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Article history: The albergo diffuso (AD) model of hospitality was launched in Italy in the 1980s and has spread since then to in-
Received 19 September 2016 clude other countries. Until now, the literature has mostly dealt with case studies, through which it has defined
Received in revised form 6 February 2017 the characteristics of the model and examined the conditions for its creation, the services offered and aspects of
Accepted 8 February 2017
sustainability. Our exploratory study, conducted by means of a survey, offers an overall analysis of the phenom-
enon, with particular focus on how ADs are organised and managed. The results show that an AD is, to all effects, a
Keywords:
Albergo diffuso
company based on private initiative - and one that requires considerable investment for structural renovation.
Destination planning Our analysis also confirms the centrality of sustainability and of stakeholder relations, although some areas for
Local tourist supply improvement were found here. Lastly, Italian ADs are small and medium-sized structures that pay careful atten-
Sustainable tourism tion to marketing policy and communications, with particular use of digital technology.
Tourism development © 2017 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.tmp.2017.02.002
2211-9736/© 2017 Elsevier Ltd. All rights reserved.
68 A. Romolini et al. / Tourism Management Perspectives 22 (2017) 67–72
the services offered (Orlandini, Vallone, De Toni & Cecchetti, 2012; for use as tourist facilities; basic services for residents and tourists; the
Vallone & Veglio, 2013) and sustainability for the territory (Vallone, possibility to set up a reception desk in a central position; a significant
Orlandini & Cecchetti, 2013). number of residents who welcome relationships with tourists but also
The AD, however, is also an enterprise, whose business dynamics, fi- value the preservation of traditional culture and a sense of belonging;
nancial and managerial features have received insufficient attention in appropriate signage able to help tourists appreciate the unique history,
the literature. Yet these are decisive elements for the definitive growth art and culture of the area; special events and initiatives organised for
and dissemination of the model. Our research, therefore, aims to exam- the improvement and preservation of the area; local traditions, includ-
ine the organisation and management of the AD model, analysing them, ing culture and cuisine, that can be redeveloped; a entrepreneur who
in particular, in Italy, where the model was created and where, hitherto, is interested in the “AD” project. Villani and Dall'Ara (2015), on the
it is most widely found. other hand, concentrated on studies to determine the framework for
ADs and their users, but without considering the implications of how
2. Literature review ADs were actually managed. It is this organisational aspect that requires
further examination, analysing the distinctive management features of
In recent years, tourism research has seen growing importance given this hospitality model. Indeed, to date, the literature has particularly fo-
to the social and emotional aspects of travel (Ross & Iso-Ahola, 1991; cussed on defining the characteristics of the AD, in an attempt to con-
Wacker, 1996). Cohen (2005) identifies as the key trends in modern struct a theoretical model that can act as a framework for the
tourism a desire for authenticity, fantasy and strong emotions, in a phenomenon.
search for experiences where tourists can become part of their experi- Our research, therefore, aims to concentrate on the management
ence and ‘live as the locals do’. According to Murphy, Pritchard and aspects of the AD, examining not single case studies, but the whole
Smith (2000, p. 44) the tourist destination might be defined as “an phenomenon, while taking into account the territorial context of
amalgam of individual products and experience opportunities that com- Italy, where the model was conceived and where it is most
bine to form a total experience of the area visited”. In line with these widespread.
trends, the AD is a key element of a tourist destination, that allows vis-
itors to get to know local traditions and culture and, in a journey of “ex-
periences”, to appreciate the area in the same way as do its residents. 3. Research method
The AD is also an element of competitiveness for the territory. In past
studies, the variables that foster the competitiveness of a tourist desti- In the endeavour to conduct a detailed study of the management as-
nation have been analysed by many authors (Buhalis, 2000; Heath, pects of this hospitality model, our research used a survey administered
2002; Ritchie & Crouch, 1999 and 2000; Dwyer & Kim, 2003). Ritchie to Italian ADs, to members of the national association (ADI), the leading
and Crouch (1999) identified many factors for measuring competitive- network for the sector. ADI counts 86 member businesses in Italy and
ness, grouped into four areas: support factors and resources, core re- two abroad1 with most of the structures located in Sardinia (11), follow-
sources and attractors, destination management, and qualifying ed by Lazio and Tuscany (8) and Umbria (6). The survey was sent by e-
determinants. The same authors subsequently (2000) added the con- mail to 79 structures2 in June 2016 and 58 replies were received for a
cept of sustainability to their model, suggesting that “competitiveness feedback of 73%. The information of the survey was collected at 31st De-
is illusory without sustainability”. It is one of the key advantages of cember 2015 and the questionnaire was divided into 5 areas (with the
the AD experience that it is able to marry sustainability and competi- possibility of giving multiple answers for each question): General Infor-
tiveness of the territory of the tourist destination. Vallone et al. (2013) mation, Territory, Sustainability, Structure and Marketing (Appendix A).
point out that the AD is a model of sustainable development that allows These themes were chosen, based on studies carried out to date, which
for the use of local resources, both tangible and intangible. Sheehan and highlighted – especially the case studies – the qualifying elements of the
Presenza (2013) also note some characteristics of the AD that sit well AD. Moreover, the selection of the themes was based on the component
with the aim of sustainability: conservation of local buildings and archi- of the Ritchie and Crouch's (1999) model “destination management”.
tecture, modest use of restructuring materials, use of local people and These themes are indeed the most consistent with the AD management
businesses, understanding of local culture and traditions and fresh in- issues and they can be summarized as follows: Territory includes as-
vestments in the territory with local funding sources. pects about the organisation and the interaction with the stakeholders;
The AD has also been linked to the emergence of business innovation Sustainability concerns with the resource stewardship with a careful at-
in the field of tourism and SMEs (Droli, 2013; Paniccia, 2012; tention to the vulnerable resources of the destination; Structure in-
Quattrociocchi & Montella, 2013) and to a revitalised economy for cludes, on one hand, the service and activities dimension and, on the
small villages (Piersanti, 2013). While research to date has not been other, the use of information system; Marketing represents a critical
able to outline a theoretical framework for the phenomenon on which issue for the AD management including attention to product, pricing
to base research in the field (Paniccia, 2012), Sheehan and Presenza policies and promotion.
(2013) do, however, identify some factors that facilitate the innovation The first section aimed to gain an overall view by gathering informa-
of this business initiative. For example, the AD can provide high levels of tion on the companies running the model of AD. Next, given that this
profitability with modest investments compared with hotels, and better form of hospitality has a strong link with the territory, enabling visitors
economies of scale compared with B&Bs. It can also augment the tour- to “live like the locals”, we studied the connections with the key stake-
ism offer in an already mature area. holders and the activities offered. We then examined the question of
Early studies of the AD date from the 21st century (Dall'Ara, 2002) sustainability, considering respect for local places and residents, and
and concentrated on the characteristics of this innovative model of hos- the search for a model of sustainable economic development by the var-
pitality. Endeavouring to define the model's distinctive features led ious business initiatives. Attention was also paid to the characteristics of
these first researchers to focus their attention on analysing case studies. the structures hosting the AD, as fundamental elements of the hospital-
In recent years, some attempts have been made to systematise stud- ity model. Lastly, given that the AD is a company and, as such, must ac-
ies of the phenomenon by identifying its characteristics (Confalonieri, quire and win the loyalty of clients, our survey analysed marketing
2011) and to carry out exploratory research into its spread and dissem- tools.
ination (Villani & Dall'Ara, 2015). Confalonieri (2011) identified the
characteristics of the AD: valuable structures and buildings, which 1
Data updated to 20th May 2016.
may be interesting from a historical or artistic standpoint; uninhabited 2
ADI has 86 members. 4 of these could not be reached at the email address found on the
buildings within a single village, suitable for renovation and adaptation website, while 3 did not have an email address.
A. Romolini et al. / Tourism Management Perspectives 22 (2017) 67–72 69
4. Results and discussion In terms of Sustainability, the main features resulting from our sur-
vey were the use of renewable energy sources - especially photovoltaic
As far as the characteristics of AD business set-up are concerned, systems (38%) - and the attempts to minimise wastefulness (e.g. by
most were found to be private companies (95%), without public share- substituting low energy consumption household appliances - 72%), to
holders. This fact influenced the choice of company structure for reduce waste production (50%), to use recycled raw materials (41%)
organising business activities, with a majority (51%) deciding to form and to harvest rainwater (22%). There is potential room for improve-
limited companies. Less common were unlimited companies (21%) ment regarding sustainability policies, by increasing the spread of re-
and sole traders (14.9%). newable energy – over half of the structures had no active systems or
Regarding dates of foundation, most companies opened to the public ongoing projects. Likewise, there was little use of sustainability certifi-
after 2000, with a considerable number (8) of start-ups in 2012. There cation or quality branding; indeed 65% of those replying to our survey
were 4 exceptional cases of businesses set up well before the AD did not possess any. For the remainder, their certification was for envi-
model was created (the oldest dates from 1985). These evidently, as ronmental management systems or branding for hotel or tourism ser-
time went on, were transformed to incorporate the characteristics of vices (Eco World Hotel, Slow Tourism, Eco Leader by TripAdvisor, etc.).
the new hospitality model. We then attempted to take a snapshot of the phenomenon of the
Our enquiry then examined the length of time taken to renovate the albergo diffuso, bearing in mind the number of Structures operating in
buildings, from start to finish. On average, we found that it took 8 years Italy and involved in the survey (79) and their sizes. The average AD
to renovate a structure to host an AD. The end date refers to building has a covered area of 814 m2, or 700 m2 if the median is calculated.
restructuring but does not necessarily coincide with the date of opening The largest structures cover 2000 m2 and the smallest just 200 m2. Of
to the public, which frequently took place before building work was course, Ads are also part of a wider surrounding area that provides
concluded. services such as swimming pools, horse riding and so on. ADs are
Regarding funding, the principal source was the resources of the small-to-medium structures with on average 53.4 beds, well below
stockholders (51%), who used their own funds to restructure build- the Italian average for hotels of 67.3 beds (Federalberghi, 2016, p. 26).
ings in the villages. There was also considerable public funding from Structures differ greatly, however. Some have more than 100 beds
the Regions (35%) and the European Union (24%), as well as from (the largest, 150) while others have less than 20 (the smallest, 12).
banks and credit institutions in 24% of cases. It should be noted The median capacity of ADs is 36.5 beds. Considering the small size of
that, often, funding from different sources was combined contempo- the ADs, it's not surprising that the respondents declare a limited use
raneously. Moreover, the buildings being restored were mostly the of information systems that provide managers with the necessary infor-
property of the stockholders or sole trader (in 69% of cases), or mation for AD management and for understanding visitor needs and
were rented (35%). satisfaction.
Our survey has therefore brought to light some characteristics typi- So ADs are generally smallish structures, in terms of both area cov-
cal of the business activity behind the AD. It is mainly a private initiative, ered and, above all, of tourism offer. This is a typical characteristic of
using company setups that do not involve local public shareholders (for the model, which renovates modestly sized buildings in small villages
example, Municipalities or Regions). Hence funding is obtained from and therefore cannot offer the same number of beds as large hotels.
the stockholders themselves or from banks. Public intervention in the More spacious, however, are the structure's surroundings where some
spread of the AD is mostly found in the obtaining of regional or Europe- of the activities on offer take place. All in all, there are notable differ-
an funds to significantly support the business initiatives. ences between ADs. The model can be applied to micro-structures
As far as the recent history of the AD is concerned, while the first with not many more than 10 beds, as it can to structures similar to a me-
structures were set up from 2000 onwards, in the fifteen years that dium-sized traditional hotel with over 100 beds. It is a flexible model,
followed there was constant, though not explosive growth in the which can be adapted to different business initiatives, depending on
number of new companies set up. This limited spread of ADs may funding available.
be connected with the fairly long time (8 years, as mentioned We went on to analyse the types of services and activities for clients
above) needed to restructure the buildings and the considerable in- offered by ADs, of which there is a fair variety. The main services include
vestments required. an Internet connection, TV in the accommodations, a parking area,
In relation to their Territory, the ADs belonged to a variety of local shared rooms for recreational and cultural use, shops selling local pro-
and national associations or consortiums, mostly connected with sus- duce, restaurant services, gardens, parks and wedding and event plan-
tainable tourism policies (47%), local cultural (40%), food (28%) and ning. In the ADs we studied, less common services included a library, a
craft (23%) traditions. This bears witness to the link between the ADs swimming pool and transportation services. Sales of local products
and the promotion and implementation of sustainable tourism policies. and restaurant services are those most closely linked to the territory
On the other hand, a good 23% of participants in the survey said they did and to promoting and protecting local crafts and traditions. Again, activ-
not belong to any association or consortium. This fact shows that, de- ities available to clients demonstrate close ties to local life and include
spite its importance for the territory, this activity needs to be more food and wine tours, hiking and excursions to local places of interest,
widely known, including to local and national associations that ought cookery lessons and cycling tours. Clearly ADs have already developed
to involve a tourist activity like the AD in promoting local and cultural a considerable range of activities and services comparable to those of a
traditions. traditional hotel (Internet connection, TV, parking etc.) to which they
Further confirming their close link to the territory, we found many have added initiatives linked to learning about local traditions and
initiatives promoted by ADs with public and private organisations for culture.
promoting and safeguarding local places, demonstrating how important In management terms, it was interesting to investigate the main
these structures are for local tourism. Main initiatives were connected booking channels used by clients and the advertising and Marketing
with food and wine (50%), conferences and events on local develop- services employed by the ADs. Bookings are chiefly managed by devel-
ment (39%), on safeguarding culture and traditions (28%) and on envi- oping in-house, independent functions that principally use electronic
ronmental sustainability (24%). However, 28% of interviewees said channels (Internet and e-mail, 97.8%) and, next in popularity, the tele-
they were not associated with any network initiatives. One of the stron- phone (66%). More limited, though still significant use is made of tour
gest characteristics of the AD is its relationship with its own territory, for operators (46.8%) and of travel agents (26.7%). The main choice for
which it is an important instrument of valorisation and tourism promo- booking management seems to be more efficient use of digital channels,
tion. But there is still a need to further develop these relationships, by thereby reducing costs of commission to tourism intermediaries and
wider communication and dissemination of the model's potential. managing marketing policies.
70 A. Romolini et al. / Tourism Management Perspectives 22 (2017) 67–72
ADs seemed to find local and regional tourist networks not very Lastly, our research endeavoured to examine management ap-
efficient and these channels accounted for only 8.5% and 6.4% of proaches regarding bookings and solutions used for marketing and pro-
our respondents' use respectively. There is clearly a need for motion. In both cases digital solutions prevailed, as these enable
local authorities to strengthen their policies for promoting the ter- efficient management of bookings and promotion of the structure on In-
ritory. These are currently insufficient to support tourism develop- ternet and social media. There was, however, a tendency towards mixed
ment of the small structures and small villages where the ADs use of digital and traditional channels. It emerged also that public poli-
operate. cies for marketing and promotion implemented by local authorities
Digital means again prevail as channels for marketing and promo- had little impact on the management of ADs. Local and regional promo-
tion, especially own websites (95.8%), specialist web portals (Expedia, tional channels, in fact, do not attract a sufficient number of tourists,
Booking.com and similar) (85.4%) and digital portals managed by driving ADs to use the commercial channels employed by other hotel
local institutions (45.8%). Notable use is also made of social media, es- structures. Considering the limited resources of these SMEs, better pub-
pecially Facebook (79.2%) and of specialist blogs (22.9%). Lastly, there lic promotion of these smaller enterprises would bring unquestionable
is still considerable room for traditional word-of-mouth (72.9%) and, benefits in terms of tourist flow, giving greater visibility to the AD
rather less, for specialist travel magazines (37.5%). Marketing and pro- model.
motion channels, therefore, are various and are combined together, One of the limits of our study was the decision to restrict it to
from the currently prevalent use of digital technology and social ADs belonging to ADI and operating only in Italy. Future research
media, to the more traditional travel publications and informal contact might usefully repeat the survey to include structures not belong-
between visitors who have experienced the AD and new users. ADs are ing to that network and operating abroad. Given the limited spread
also promoted on websites managed by local institutions (45.9%). of the model outside of Italy, initial research might use the case
There is not, however, a corresponding percentage of bookings, as al- study method, only subsequently surveying a more numerous
ready mentioned above. population. Another area of investigation into AD management
not included in this study is performance analysis, to evaluate
company profitability within the framework of SMEs and of family
5. Conclusions businesses.
The AD is a new model of hospitality, developed in Italy and only re- Appendix A
cently extended abroad, especially as a business idea. The first struc-
tures were set up in Italy from 2000 onwards and the years that
Aspects surveyed Results
followed saw constant, if limited growth of new businesses.
As already indicated, in contrast to previous case studies, our re- General information on AD
Company setup • Sole trader: 14.9%.
search aimed to examine management aspects of the albergo diffuso,
• Unlimited companies: 21.2%.
by means of a survey administered to Italian ADs. Our research showed • Limited companies: 51.1%.
that compared with traditional hotels ADs are small-to-medium struc- • Other: 12.8%.
tures, both for their property size and number of beds available (53.4 Public stakeholders • Yes: 4.7%.
on average). In effect, ADs are SMEs that, by their very nature, offer a • No: 95.3%.
Year of opening to public Specific value for each respondent
modest number of beds, but with services quite equal to those of the tra- Year restructuring began Specific value for each respondent
ditional hotel plus the addition of special activities enabling visitors to Year work ended Specific value for each respondent
learn about local life and culture. Funding sources • Public funding from EU 24.4%.
It was found that the typical AD is a private company with one or • Public funding from Regions 35.5%.
• Public funding from local authorities
more stockholders, set up as a sole trader or company without public
4.4%.
sector shareholders. Funding for start-up mainly comes from the sole • Private funding from banks or credit
trader or stockholder, confirming the entrepreneurial nature of institutions 24.4%.
the model. The role of public organisations is therefore to provide • Private funding from stockholders:
resources, through regional or European funding, to add to private in- 51.1%.
• Other: 17.7%.
vestment. The thinking behind public funding is thus that of supporting
a business initiative to help develop a hitherto non-tourist area. From a The AD and its territory
financial viewpoint, a considerable amount of investment is required Types of consortium/association • None: 23.4%.
• Preserving traditional food: 27.7%.
and a long time (8 years on average) is needed to restructure the • Preserving traditional crafts: 23.4%.
properties. • Preserving local culture: 40.4%.
The main characteristic of the ADs is, first and foremost, their link • Developing sustainable tourism poli-
with the territory. This is confirmed by their strong participation in net- cies: 46.8%.
• Other: 19.1%.
works and associations involved with local food and crafts and by their
Initiatives promoted or organised with • None: 28.3%.
organisation of events promoting the local area. In this sense, the AD is partners and stakeholders • Permanent museum displays: 10.9%.
an important instrument for developing areas outside the traditional • Temporary museum displays: 15.2%.
tourist routes and, as such, should have a key role in local policies. Not • Photographic exhibitions: 17.4%.
all the structures, however, had consolidated relations within their ter- • Traditional exhibitions: 21.7%.
• Food and wine events: 50%.
ritory. This highlighted a need to disseminate the model and its poten- • Conferences/events on environmental
tial for local development in order to further involve stakeholders and sustainability: 23.9%.
regulatory public bodies. • Conferences/events on developing the
Our survey also confirmed the role of the AD in implementing poli- territory: 39.1%.
• Conferences/events on preserving
cies of sustainability, as new construction is not required and, at the
traditions and culture: 28.3%.
same time, the existing building heritage is restored. There is, however, • Other: 6.5%.
much room for improvement in sustainability policies applied in man- Any means of interaction with territory • Yes: 39.1%.
aging the separate structures, particularly regarding use of renewable • No: 60.9%.
energy and creation of internal procedures to acquire certification of en- Any system for monitoring impact on • Yes: 27.7%.
territory • No: 72.3%..
vironmental sustainability.
A. Romolini et al. / Tourism Management Perspectives 22 (2017) 67–72 71
Tagliabue, L. C., Leonforte, F., & Compostella, J. (2012). Renovation of a UNESCO heritage in
Silvia Fissi is Assistant Professor at the Department of Busi-
southern Italy: ASPHP and BIPV for a “Spread Hotel” project. Energy Procedia, 30,
ness and Economics of Florence University. She holds a
1060–1068.
Ph.D. in Planning and Control from the University of Florence
Vallone, C., & Veglio, V. (2013). “Albergo diffuso” and customer satisfaction: A quality ser-
and a Laurea (Master degree) in Economics from the Univer-
vices analysis, in Conference Proceedings 16th Toulon-Verona Conference “Excellence in
sity of Florence. She currently teaches Planning and Control
Services”.
at the School of Economics. Her research interests include
Vallone, C., Orlandini, P., & Cecchetti, R. (2013). Sustainability and innovation in tour-
public management, local authorities, tourism management,
ism service: The albergo diffuso case study. Eurasian Journal of Social Sciences,
corporate social responsibility, and accounting history.
1(2), 21–34.
Villani, T., & Dall'Ara, G. (2015). Albergo diffuso as a model of original hospitality and sus-
tainable development of small historical villages. Techne, 10, 169–178.
Wacker, N. (1996). Changing demands. Journal of Advertising Research, 36(1), 31–34.
Alberto Romolini is currently Associate Professor in Finan- Elena Gori is Associate Professor of Financial Accounting. She
cial Accounting at the International Telematic University holds a Ph.D. in Planning and Control from the University of
Uninettuno, Rome, Italy. He holds a Ph.D. in Public Manage- Florence and a Laurea (Master degree) in Economics from
ment and a Master in Public Management from the Universi- the University of Florence. She currently teaches Public
ty of Siena (Italy). He currently teaches financial accounting Management and Accounting (post graduate level) at the
and management control in tourism services. His research School of Economics. Her research interests include public
interests are in the field of Corporate Social Responsibility management, local authorities, tourism management, corpo-
(CSR) and non-financial reporting, public management in lo- rate social responsibility, and accounting history. She is di-
cal authorities and health-care entities, history of accounting rector of the Centro Interuniversitario di Studi sul Turismo
and tourism management. (Interuniversity Centre of Tourism Studies) of the University
of Florence.