Laura James and Henrik Halkier
The aim of the CROCUS project is to develop sustainable business models for cultural and creative tourism in rural and remote areas. In this blog post we discuss how we think about and work with business models, not just as a profit-making mechanism but a dynamic system that creates value for communities, stakeholders, and the environment.
What is a Business Model?
A business model is an analytical concept that explains how an organisation or network creates, delivers, and captures value. Traditionally, the concept has been closely linked to profit-oriented enterprises, but over time it has evolved to encompass a wide range of value-creation mechanisms across public, private, and community-based organisations.
At its simplest, a business model describes the logic behind an organisation’s operations by covering key elements such as:
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Value Proposition:
the unique benefit or experience offered to customers or users. -
Target Market or User Segments:
the specific groups that the model is designed to serve. -
Channels:
the means through which value is delivered, whether via physical venues, digital platforms, or a combination of both. -
Customer Relationships:
the type of engagement maintained with users. -
Key Resources and Activities:
the critical assets and actions required to deliver the value proposition. -
Revenue Streams and Cost Structures:
the methods by which the model generates income and manages expenses.
A popular tool for mapping these components is the Sustainable Business Model Canvas, which offers a visual layout that encourages a holistic view of the interconnections among all elements1, including socio-ecological costs and benefits. However, while the canvas provides an excellent starting point for mapping a business model at one point in time, it is important to recognise that business models are dynamic—they evolve in response to technological advances, shifting market conditions, and changing stakeholder expectations.
In the context of cultural and creative tourism, the concept of a business model takes on additional layers of meaning through its intrinsic connection to place. Business models in this sector are deeply embedded in specific geographical, cultural, and social contexts. They are not only about the delivery of services but also about the place-based assets and resources that define local identity.
The notion of place-shaping is integral here: business models contribute to the re-grounding of cultural resources by harnessing assets unique to a particular locale, by fostering the re-appreciation of these assets as communities and visitors find new value in them, and by repositioning places in the broader cultural tourism landscape. Thus, the success of a cultural and creative tourism business model depends as much on its ability to tap into and enhance the local area as it does on its internal mechanics.
This broader approach underscores the shift from a narrow focus on profit to an inclusive approach that values cultural preservation, social well-being, and environmental stewardship. Modern business models in tourism recognise the importance of interdependencies; rather than operating in isolation, they function as part of broader ecosystems where local artisans, public institutions, and non-profit organisations collaborate to create shared value and different business models are connected together2.
Analysing cultural and creative tourism business models and sustainability issues
Sustainable business models aim to generate economic value while simultaneously contributing to environmental preservation and social‐well-being3. Rather than focusing solely on profit, sustainable models strive to reduce negative ecological impacts, foster social inclusiveness, and ensure long‐term economic resilience. In doing so, they create value for a broad spectrum of stakeholders—from local communities and public institutions to private enterprises and environmental organisations. This holistic approach necessitates innovative reconfigurations of traditional value creation and capture processes, supported by dynamic capabilities that allow organisations to adapt in the face of emerging challenges4.
In cultural and creative tourism, the need for sustainability is particularly pronounced. These activities are usually based on local cultural heritage and place‐based assets that define a region’s identity. Business models are not only about delivering a generic service; they are also about integrating the unique cultural, social, and environmental attributes of a specific place. In other words, these models contribute to the ongoing process of place‐shaping by ensuring that local assets are preserved, valued, and effectively integrated into tourism strategies.
In work package 2, the CROCUS project has developed a typology that classifies business models in cultural and creative tourism according to the nature of visitor engagement. The value of this typology lies in its ability to reveal the distinct sustainability challenges inherent in each business model type. By focusing on the form of visitor engagement, the typology provides policymakers and academics with a structured approach to identifying areas where interventions may be needed. CROCUS has identified four main types of cultural and creative tourism business models.
Looking & Listening
These business models are characterised by relatively passive forms of engagement, such as guided tours of museums, visits to heritage sites, or attendance at cultural performances. Sustainability challenges often centre on resource conservation and managing visitor flows to prevent overexposure and degradation of fragile sites. Measures such as limiting visitor numbers, using timed entries, or incorporating digital innovations (e.g. augmented reality experiences) help prevent overexposure and physical degradation of vulnerable assets.
Making & Doing
In these business models, visitors actively participate in cultural practices—whether by learning a traditional craft, engaging in local dance, or taking part in hands‐on workshops. The sustainability of Making & Doing models is closely linked to community empowerment and respect for local traditions. By involving local stakeholders as co‐creators, these models ensure that the preservation and transmission of cultural heritage are central to the experience.
Touring
Touring models involve the movement of visitors between multiple cultural sites or experiences, often structured around thematic itineraries. While touring can enhance overall cultural appreciation, it presents significant sustainability challenges. Increased mobility may result in higher carbon emissions and place pressure on local infrastructures, depending on the type of transport involved. Sustainable touring requires strategies such as eco‐friendly transportation, innovative route planning to disperse visitor flows, and initiatives to promote lesser‐known sites, thereby ensuring a more balanced distribution of economic benefits and a reduced environmental footprint.
Buying & Consuming
These models focus on the direct economic exchange associated with cultural experiences, such as sampling regional cuisine or purchasing locally crafted products. Sustainability in Buying & Consuming models is achieved by fostering ethical economic relationships. Supporting local producers through fair trade principles and responsible sourcing not only bolsters the local economy but also promotes environmentally sound production practices. By integrating local, high‐quality inputs, these models can help preserve traditional methods and ensure that tourism development contributes positively to the region’s cultural and natural assets.
By applying this typology, policymakers, tourism developers, and academics can more precisely identify and address the multifaceted sustainability challenges inherent in different CCT business models. For instance, while Looking & Listening models may require conservation-oriented measures and digital innovations to mitigate physical impacts, Making & Doing models might benefit most from initiatives that build local capacity and ensure community involvement. Similarly, touring models call for environmental impact assessments and equitable benefit-sharing mechanisms, whereas Buying & Consuming models should focus on ethical sourcing and local economic support.
Developing Sustainable Cultural and Creative Tourism Business Models in CROCUS
If cultural and creative tourism is to play a constructive role in the development of rural and remote areas then we need to focus on sustainable, adaptable, and inclusive business models. By drawing on established frameworks like the Sustainable Business Model Canvas and incorporating insights from recent research on sustainable business model patterns, the CROCUS project builds on existing frameworks and conceptualises business models not as static blueprints, but as evolving ecosystems where the interplay between cultural preservation, economic viability, and environmental impacts must be carefully assessed.
In the coming months the CROCUS living labs will work with local stakeholders in cross-border regions across Europe to analyse existing business models and develop new and more sustainable activities. We will be developing business model prototypes that can serve as conceptual templates that stakeholders in other rural and remote regions can use as diagnostic and generative tools, identifying gaps and suggesting new combinations of value creation, delivery, and capture mechanisms that can be adapted to new contexts.
- Osterwalder, A., & Pigneur, Y. (2010).Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley.
- Boons, F., & Bocken, N. (2018). Towards a sharing economy – Innovating ecologies of business models. Technological Forecasting and Social Change, 137, 40-52.
- Bocken, N. M. P., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes.Journal of Cleaner Production, 65, 42-56.
- Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49.
- Lüdeke-Freund, F., Carroux, S., Joyce, A., Massa, L., & Breuer, H. (2018). The sustainable business model pattern taxonomy—45 patterns to support sustainability-oriented business model innovation.Sustainable Production and Consumption, 15, 145-162.