Business Model Innovation in Tourism: How to Survive in Highly Competitive Environments
Abstract
The objective of this research is to clarify the role and the importance of the business model in tourism and to demonstrate the necessity of changing the business model to maintain competitiveness. By employing the Osterwalder nine-block business model Canvas framework, an interview with the manager of Slovenian tourist agency was conducted. Without the innovation of individual segments of the business model or, more often the majority of its dimensions, the firm would not have survived. In our case, the necessity of innovating the business model was confirmed by the statement of the agency’s manager: ‘In any case, without changes, we would no longer exist on the market; without future changes, we will no longer exist on the market either.’ This article presents a single case study; therefore, the results may have limited generalisability. Everyday changes in competitive markets should be met by the innovation of business models. Tourism firms must be able to articulate and innovate their business model if they want to survive in a rapidly evolving competitive global market. Although studies on business modelling are common in the tourism sector, little about them has been documented regarding the tourism sector in Slovenia. Hence, this study, which focuses on a Slovenian tourist agency, aims to fill this knowledge gap. Our case is particularly interesting, because we have demonstrated the interdependence of segments and their modification, we have shown that the business model is already present in the tourist agency, and we articulated it.
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