Home Travel Social Entrepreneurship and Tourism: Philosophy and Practice
The Business Model
Having provided an overview of both AA and MM, what follows is a closer examination of their business model following the framework highlighted in chapter “Business Models for Social Entrepreneurship in Tourism” of this book.
The value proposition in this model is twofold: for AA customers it is adventure travel with a positive environmental and social impact. Increasingly conscious consumers are attracted and motivated by operators able to demonstrate how they are benefitting local communities. For MM beneficiaries the value proposition lies in their ability to receive the necessary education, medical treatment, infrastructure development and stability, being in control of their lives, helping their families, and actively contributing to society. In return, beneficiaries also develop a strong ethos of giving back to their community and actively engage in supporting MM and AA whenever possible.
AA and MM serve two customer segments. The primary customers or social customers are MM’s beneficiaries. These are identified by the local trustees of each country where MM operates thus ensuring that local communities decide who should benefit from AA’s touring activities and MM’s development work. The secondary customer segment is the clients of the for-profit organization (the tourists) who use the company’s tours and expeditions benefiting from the services offered by the company. AA customers are sourced mainly from UK and Canada although increasingly customers are coming from other western tourism generating countries (e.g. Australia and New Zealand) mainly thanks to positive word of mouth built over the years.
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