Business Opportunities and Drivers for Health and Spa Tourism: A Qualitative Research on Baile Felix Spa Resort, Romania

By inergency On Feb 22, 2024

1. Introduction

The tourism industry has developed remarkably over the past decades due to the rise of the global demand for travel, knowledge, and relaxation. The swift and comprehensive response of the small- and medium-sized enterprises (SMEs) and large corporations plays a pivotal role in capitalizing on this opportunity [1,2,3,4,5,6]. According to the World Travel & Tourism Council (WTTC) [7], SMEs make up around 80% of all global businesses in the tourism sector in 2022. These enterprises were responsible for creating one in four of all new jobs across the world, bringing a contribution of 6.1% to the global GDP. It is a significant increase compared to the pre-pandemic year, where SMEs comprised 10.3% of global GDP and supported 289 million jobs.

Tourism is an industry with relatively low entry barriers and regulations [8,9,10], requiring moderate skill levels, technological permeability, and innovation [11,12,13,14], which makes researchers and practitioners agree that it is an ideal field for small- and medium-sized enterprises (SMEs) and various entrepreneurial initiatives [15,16,17]. Additionally, generating employment tourism businesses also exploit regional and local resources, emerging as “major contributors to economic transformation in developing economies” [18] (p. 1).

Despite facing substantial challenges, such as the economy, pandemics, or political crises, the tourism sector has witnessed various opportunities and high growth rates in recent decades, resulting in a diverse range of businesses in this sector [1,3], varying in size, market power, ownership, sub-sectors, endowment, and innovation levels [9,10,11,12,13,15,17,18]. Researchers emphasize the orientation of large companies towards innovation development and implementation [19,20], while small (family) businesses combine their personal goals with community involvement, considering local specificities [21,22,23].

Despite the richness and diversity of the literature on the opportunities and factors influencing the launch and development of businesses in the tourism sector [6,12,24], references to personal characteristics (experience, education level, and gender) in various contexts related to business ownership and management are scarce. This gap is particularly deeper in certain sub-sectors of the tourism industry, where the coexistence of traditions and a cyclical demand has determined the presence of a wide range of businesses in relatively limited geographical areas, such as traditional spa resorts transformed into modern spa and wellness centers.

The analysis presented in this paper is part of a larger study carried out with entrepreneurs and managers in the most important resort in Romania, i.e., Baile Felix Spa Resort. It focuses on the innovative potential of enterprises in the health and wellness tourism sector. The main objective of the research is to explore, through the lens of qualitative research on the entrepreneurial and managerial environment, the perception of factors and opportunities that encourage the launching of businesses and their management in health and spa tourism. Furthermore, we delve into an examination of the extent to which these influencing factors are shaped by variables such as gender, relevant experience in the field, education, business type, and ownership. Therefore, the following research questions guide this paper: What are the drivers of the people owning or managing a business in the tourism sector? Do business owners and managers of businesses in the tourism sector perceive opportunities differently? How do personal characteristics (gender, education, relevant experience in the field) impact the perception of drivers to run a business in the tourism sector?

Despite certain limitations, we assert that the results hold broader significance, especially when considering the regional and international context of health and spa tourism.

This paper begins with an introduction followed by the presentation of a comprehensive review of the literature covering key topics we tackle: the impact of business opportunity recognition, work experience, networks and self-efficacy, gender and education in tourism businesses, and other relevant factors, emphasizing the unique characteristics of the tourism industry in general and particularly within the studied area. The empirical section starts by detailing the methodological framework (context, data collection tools, and sample), followed by a thorough analysis of the acquired data and a general discussion of our results. This paper concludes by outlining the theoretical and practical utility of the research results, addressing the main limitations and future research directions.

5. Analysis of the Interviews with Managers and Entrepreneurs Regarding Factors and Opportunities Motivating a Business in the Health and Spa Tourism Industry

In order to analyze the discussions, we first created a word map incorporating insights from all the interviews. As depicted in Figure 1, pivotal terms such as business, hotel, development, work, time, tourism, family, etc., stand out prominently. The interpretation drawn from this word map indicates that entrepreneurs in Baile Felix Spa Resort aspire to develop a (family) business by offering better, new, different, or improved services in tourism, particularly within the hotel industry, thereby asserting their independence. This summary of responses synthetizes diverse motivational factors, aligning with existing studies and theoretical approaches, which will be further analyzed in this paper.

To categorize these responses, we conducted an additional analysis using NVIVO, cluster analysis by cases, to generate a distribution of four clusters: groups of interviews based on word frequency and correlation. The results, presented in Figure 2, highlight similarities among the provided responses. Consequently, we grouped the responses based on this distribution and created codes for similar responses. These codes were manually assigned to different sections within the interviews, forming the basis for subsequent analysis.

Based on the analysis of these responses, we have identified four codes describing distinct motives for starting a business in this field. These codes are as follows:

–: Improving work quality, including the provision of (financial) independence [appearing in 16 files with 22 references];
–: Professional or self-improvement [six files, six references];
–: Response to an opportunity [eight files, nine references];
–: Improving existent services [12 files and 17 references].

One can notice that two of these motivations are extrinsic: response to an opportunity and improving existent services, while two are intrinsic and are related to professional and self-improvement. The number of references to internal or external sources is similar. Nevertheless, we should emphasize the interconnected nature of these motivations: one individual may mention motivations from any of these four codes.

We must note that improving the quality of work along with responding to an opportunity are the most frequently referred-to motivations by our interviewees (22 references for the first and 17 for the second).

To contextualize these codes, we provide both examples and extracts from the responses in the following paragraphs.

(1) Improving the quality of work, including achieving financial independence, was the most frequently discussed topic, with interviewees expressing a desire to set their own work conditions, work close to home, and improve their income. The term “independence” was frequently used in this category, yet only a few respondents specifically used “financial independence”. In various instances, independence may mean the need to work by his/her own schedule to be able to take decisions, to organize the work in their own way, and to focus on the aspects of the business that he/she considers most important.

“I live near Baile Felix Spa Resort and I wish to set my own schedule and manage my finances”;

(SBO12)

“… a better control of resources, a more in-depth application of innovation, a determining factor to have a successful position on the Romanian market, especially in spa tourism”.

(HM 4)

(2) Improving existent services is a code also linked with the response to an opportunity, as people recognize the potential in providing novel and superior services. However, in this code, we grouped responses that specifically express an intent to develop existent touristic services, while in the next code, we emphasized the contextual aspect. Under this code, the emphasis predominantly lies on hotel managers recognizing the imperative of meeting clients’ needs by offering different and improved services.

“The expansion of business opportunities in the Băile Felix Spa Resort area, the provision of new services in an area that was showing signs of aging and the provision of a service already existing on the market, but in a superior and different way”;

(HM 7)

“The desire to do the work better”.

(SBO1)

(3) Responding to an opportunity is primarily contextualized within the business realm, and our responses identified two main types. The first is linked with the business location: Baile Felix Spa Resort, a destination blending tradition and modernity in Romania’s spa industry. The second type pertains to individuals who are native to, raised in, or have familial roots in this specific area, involving possessing land or a family residence that can serve as the foundations for a guesthouse venture. The relevance of the first context type is more pronounced for hotel managers, while the second is more pertinent for small business owners.

“The main factor was the expansion of opportunities in Băile Felix Spa Resort and the development of the … [geographical area]…”;

(HM 10)

“The very low rental price of the space, we renovated it and re-compartmentalized it”.

(SBO 20)

(4) Self-improvement and professional advancement are similar to the first code; however, there was a large number of references emphasizing the importance of development, self-confidence, and professional growth. Unlike the first category, which focuses on specific aspects such as independence, this latter category is more encompassing, addressing broader facets of personal growth.

“a job that increases your self-confidence, doing what you like”;

(SBO17)

“I was motivated by the desire for professional development”.

(HM 4)

These codes exhibit a strong interconnection. As depicted in Figure 3, most responses referred to different types of motives.

For example, one of the received responses covered three of the four codes.

“I intended to approach these 3 points: desire to succeed, financial independence, offering a service already existing on the market; from the customer’s perspective—my experiences as a tourist led me to approach the issue from another point of view, in order to offer better tourism services than what was on the market”.

(SBO14)

With the intention to analyze the type of motives on the classification criteria of the respondents, we created a matrix coding query, and the outcomes of this analysis are presented in Table 3 below.

The analysis reveals distinct patterns among male small business owners and hotel managers with regard to their motivations for starting and running businesses. Most male small business owners started their businesses with the aim of enhancing work quality and achieving financial independence, while hotel managers are driven mostly by their intention to improve existing services. As discussed in each case below, these trends align with previous research on these topics, reflecting both international and national entrepreneurship trends and business development, particularly within the tourism sector.

We have taken a separate look at each of the codes in order to assess how different codes and criteria are distributed in our responses, with graphical representations below (Figure 4, Figure 5, Figure 6 and Figure 7).

Regarding gender, we can make three important observations: (a) in our interviews, there is no difference between male and female managers and entrepreneurs in responding to an opportunity; (b) for women, self and professional development is less relevant; and (c) women seem more motivated by improving existent services (Figure 4). The equal perception of opportunities as motivating for both women and men is relevant for understanding the business environment in the health and spa industry.

This result largely confirms the literature’s assumptions that the tourism sector encourages a substantial representation of women in business ownership or management, recognizing its potential to empower women [58,59], with open opportunities for both genders [67]. At the same time, we confirm that gender-related differences are less pronounced in recognizing business opportunities and their quality [48,75].

The second observation may be determined by the fact that women tend to be more pragmatic; they are either driven by their need for independence or as a response to an opportunity and formulate less explicitly their need for personal fulfillment. Men’s lower focus on improving existent services may be driven by their stronger emphasis on personal motivations (improved quality of work and self-development), and this could further explain why businesses led by men are perceived as being more ambitious and competitive [68,70].

Next, we examined different motivations among the two different types of respondents: small business owners and hotel managers. As highlighted in Figure 5, there is a significant prevalence among small business owners for the desire for independence and an improved quality of work. This result aligns with theoretical approaches suggesting that starting a business comes from the desire to be independent and have autonomy to make decisions regarding one’s work. In contrast, established businesses are far more motivated by their interest in developing new and improved services, thereby attracting more clients.

The research findings largely confirm the existing literature on the perceptions and commitments of large hotel managers towards comprehensive objectives, in which sector and resort revitalization are related to service modernization, innovation, and long-term business sustainability [19,20,130]. On the other hand, entrepreneurs and small business owners seek a balance between personal goals (individual and family prosperity), an attractive workplace, consolidating their business, and cultivating positive community relationships [21,22,23]. In other words, hotel managers are mainly motivated by “modernization and performance, while small business owners and entrepreneurs prioritize personal fulfilment and profit” [17] (p. 13).

The prevalence of motivations aimed at enhancing work quality and achieving independence is particularly pronounced among respondents with no previous experience. As shown in Figure 6, this difference is rather strong, while, in the case of other motivations, the differences between individuals with relevant previous experience in the field are not significant.

These outcomes complement several contributions [8,28,40,131], confirming that a considerable number of entrepreneurs join the tourism sector and are less motivated by maximizing economic gain, profit, or professional recognition; instead, they are looking either for a particular lifestyle or for more independence, improved work quality, and a balance between business and family life [78,132]. We could speculate that these objectives, coupled with a certain degree of overconfidence in their ability to provide services of superior quality compared to existing market offerings, are akin to a form of self-efficacy and are specific to new entrants who lack experience and a deep understanding of the daily realities of the industry [42,43].

Surprisingly, the motivation related to responding to an opportunity is the most relevant for people completing secondary education (Figure 7). People with higher education are mostly motivated by the desire to enhance the quality of their work and improve existing services. However, it is important to note that there are fewer people in the first category; therefore, the significance of previous education should be explored within larger groups.

We found that higher education (in tourism, if feasible) likely holds greater importance in obtaining a managerial position in large tourism companies and is often in tandem with experience [57], but it has a moderate impact when it comes to starting a business. The explanations come either from the relatively low entry barriers in the sector (as previously mentioned) or the pragmatism of decisionmakers, which may prioritize relevant experience in the field (in tourism, in managerial positions) over formal high education or corporate experiences, the so-called “ivory tower” mentality [12,54,56]. We have thus confirmed the essential role of human capital, emphasizing that experience, education, and qualification positively impact business performance [55].

6. Discussion

From the standpoint of the primary objective of our research, an overview of the entrepreneurial and managerial environment in the specified area, the link between entrepreneurial (and managerial) opportunities and motivations, and the development of innovative and sustainable tourism businesses, the analysis of the thirty-two interviews highlighted four types of strongly interconnected motivations. There are two personal/intrinsic motivations: (a) to improve the quality of work, including (financial) independence, and (b) self/professional development. Two external extrinsic motivations were identified: (c) improving existent services and (d) responding to an opportunity.

Summarizing the conclusion of the analysis of these motivations, as highlighted in the word map, entrepreneurs in Baile Felix Spa Resort aspire to develop a (family) business, providing superior, novel, diverse, or enhanced services in tourism, especially in the hotel industry, with the aim of achieving independence.

All four motivations were analyzed using NVIVO 14 software in order to classify them into five categories. Based on these observations, we can highlight several future hypotheses to be tested and validated on larger samples:

–: Women tend to be more practically oriented and are motivated by improving work conditions and existing services;
–: The perception of business opportunities is not gender biased in the area of the tourism industry;
–: Hotel managers are primarily motivated by the desire to improve existing services;
–: Small business owners are motivated by the need to improve the quality of work and achieve independence;
–: Individuals with no relevant prior experience are motivated by their expectations for work quality improvement.

Our results largely confirm the literature on these topics: tourism is a fertile ground for various entrepreneurial initiatives or professional development [8,9,10]; however, the relatively low entry barriers (capital, qualification, experience) [11,15] attract many enthusiastic individuals. These individuals are often overconfident, seeking immediate success, anticipating a balance between work–family–independence, and thinking that they will be able to introduce superior and distinctive services [28,42,43]. Our conclusions highlight the interconnection between internal and external motivations, with entrepreneurs seizing an identified opportunity while wanting to increase independence or the overall improvement of the quality of work.

This applies particularly to small business owners, many of whom are attracted to the area due to the economic expansion, business proximity, or certain prerequisites (location, the possibility of building a guesthouse house on previously owned land, etc.). On the other hand, large hotel managers, as anticipated, adopt a more realistic perspective: they align their career goals with business expansion and quality enhancement, relying on the revitalization of the resort and health and spa tourism, and they invest in aligning with the modern trends that are reshaping this tourism sub-sector [123,125,133].

We explicitly confirm our previous research results on this topic [17,134], which emphasized the greater involvement of hotel managers (compared to small business owners) in the overall development of the resort. They actively contribute to promoting innovative services aligned with emerging trends in health and spa tourism, useful both for the businesses and resort revival and the general prosperity of the area (community, jobs, infrastructure, image, etc.). Confirming previous studies [47,83,84,135,136], we found that family support and involvement, although essential in the initial stages of the business, may hinder innovation in terms of innovation, international openness, or transition to more performing entrepreneurial ventures.

Our results also highlight the absence of gender discrimination and a remarkable orientation of women entrepreneurs towards the practical aspects of the businesses they own or manage. These findings align with the literature in the field, suggesting that businesses led by women do not differ significantly (compared to those led by men) in terms of the number, quality, or innovativeness of the identified opportunities [48,67,75]; increasing expectations that the career opportunities and social status provided by this sector will also improve individual attitudes towards gender equality [66,67,73]. However, due to some commitments (usually self-assumed), they are oriented more towards finding a business–family–life balance, working conditions, promoting (in a more personal way, closer to the tourists’ expectations) relaxation and treatment services, and the attractiveness of tourism in the local and sectoral context. This aspect has also been noticed by Carter et al. [71], Figueroa Domecq et al. [63], and Badulescu and Badulescu [28].

7. Conclusions, Implications, and Main Limitations of This Study

The theoretical and practical contribution of our research is revealed in several directions: the advancement of research in the field and the provision of recommendations for businesses, policymakers, and the community as a whole.

Our study reveals, once again, the role of qualifications, work experience, and education in identifying opportunities, and also the differences imprinted by the context, size, and ownership of the business. The lack of gender discrimination is accentuated along with the distinctive objectives of women’s businesses (managed or owned). Finally, the lack of experience and confidence in the provision of new and superior services goes hand in hand with the expectations of consistent performances, indicating that entrepreneurial overconfidence is a factor in both the launching and failure of a large number of businesses. Future research will need to deepen these relationships, such as the identification and exploitation of opportunities, the role of experience and overconfidence, ownership-related differences, business management, and the diminishing gender-specific characteristics in the tourism business.

From a practical point of view, our paper emphasizes that, in order to discover and capitalize on opportunities, managers and business owners must improve their experience and qualifications, keeping an open mind to new trends and opportunities, relying less on how easy it is to access this sector (based on particular favorable circumstances). Managers and entrepreneurs are advised to be alert, to leverage their knowledge and networks considering the perspectives of the sector and the local business context, to relate to the trends and the future of this industry, and to be sensitive to fashion, technological innovation, and crises, but also to the quality and uniqueness of the services provided, which require considerable financial, human, and organizational resources. Considering the differences between motivations, as perceived through our four categories (gender, education, prior experience in the field, and type of business), we consider that a better understating of both opportunities and challenges, along with disseminating good practices in this business sector, would increase the success rates of these businesses.

Finally, decisionmakers and public administration should support entrepreneurial initiatives in their areas of competence and intervention by training the workforce for high-quality services, infrastructure modernization, consultancy for accessing public support measures, and national and international promotion.

An open and articulate debate, involving managers, entrepreneurs, public authorities, community leaders, and various stakeholders, regarding the image and future of the resorts in the health and spa tourism sector, is necessary. Such a debate should analyze the fundamental orientation of this sector towards the restoration of the traditional resort (somewhat nostalgic and close to mass tourism, with medium profitability and risks) or embrace a modernized resort, with services in line with new trends (somewhat exclusive, close to an affluent and sophisticated clientele, with a higher return, but more exposed to risks). Exploring the possibility of the coexistence of these two trends is crucial. A careful weighing of pros and cons, efforts, and possible outcomes would be beneficial to businesses and the overall development of the area, with applicability in regional, national, and international contexts.

The relatively small number of respondents and the narrow geographical area, Baile Felix Spa Resort (Romania), where our study has been conducted, may be seen as having limitations. Even if the chosen context is representative (in terms of evolution, dimensions, diversity of touristic flows, and the structure of the supply, managerial, and entrepreneurial initiatives), our endeavor has limited relevance. Consequently, in order to overcome this limitation, we intend to perform a quantitative test of our concluding hypotheses on a larger sample of respondents in order to assess their impact on the business environment. Additionally, for the purpose of improving the sample representativeness and reducing subjectivity, we aim to expand this study to other similar businesses in tourism in different areas of Romania and Europe. Through this approach, we strive to determine general aspects relevant to theory and practices in the field and identify local particularities, challenges, and success factors that contribute to a better understanding of health and spa tourism within a national and regional context.