Building a business model for a new form of hospitality: the albergo diffuso

Abstract Purpose – In recent years, tourists have become more interested in discovery the authenticity of a destination. The albergo diffuso (AD) is a response to this new requirement of tourist experience. The AD indeed is based on an accommodation solution with rooms distributed in various buildings across a village. The purpose of this study is to analyze the AD business model supporting the development of this emerging business opportunity in the accommodation industry. Design/methodology/approach – The research is conducted with a multiple case study approach, collecting data from different sources such as semi-structured interviews and archival research. The cases are all located in Italy where the AD was applied for the first time. Findings – The AD business model is based on business idea, value creation and innovation. The business idea is based on the aim to contribute to the renaissance of a village with an emotional link between the entrepreneur and the village. Regarding the value creation, the AD is a form of accommodation that offers more than a hotel experience. The tourist can live like a resident and experiencing local traditions and culture. The innovation is indeed related to the services that are totally different from a traditional hotel. Originality/value – Considering the previous studies, this research tries to fill the gap concerning the necessity to define the characteristics of the AD business model and to understand the key elements at the base of this hospitality approach.