Rethinking Utilization: Revitalizing Accomodations With Local and Innovative Sustainability

Company and project background

Can you give us a brief overview of your business and the specific project you implemented?

Ruralis digitally manages a widespread network of farm stays, holiday homes, and B&Bs located in rural areas across Italy. Our core service is decentralized hospitality coordination, bringing tourists to small villages outside mainstream flows. Crucially, we do not own these accommodations; they are independently owned. Our circular project was a 6-month feasibility study aimed at solving a unique challenge: how to transform this decentralized, highly diverse network into circular operational units. We developed strategies to reduce dependency on virgin inputs, extend asset lifecycles, and activate local micro-supply chains, perfectly aligning with our mission to be a driver of regenerative tourism.

What motivated you to make your business more circular?

The motivation came from a need to rethink our resource use through a systemic lens. For us, circularity isn’t just about the environment; it is a concrete opportunity to improve the economic efficiency of the properties we manage, enhance the guest experience with authentic practices, and strengthen our market positioning. We also wanted to align with the EU’s ecological transition agenda to access new networks and funding.

Implementation process

What were the objectives of your project?

The main objective was to define a strategic approach to adapt circular economy principles (usually designed for manufacturing) to a highly fragmented, service-based hospitality network. We aimed to reduce environmental impact and set concrete indicators, such as kilograms of materials recovered, number of repair interventions performed, estimated CO2 emissions avoided, and percentage of waste reduction per structure.

What activities did you carry out as part of your project?

We started by analyzing European best practices and conducting a detailed assessment of around 60 of our properties. From this, we selected 10 pilot structures across 7 Italian regions. Working alongside environmental experts, we didn’t just write theories: we designed highly practical tools, such as decision-making flowcharts for on-site composting and step-by-step maintenance protocols for furniture regeneration. Finally, we delivered a comprehensive, interactive online training program to 100% of the owners and staff of those pilot properties.

What feedback did you receive from stakeholders (customers, suppliers etc.)?

Initially, some property owners were hesitant, perceiving the circular transition as a potential burden in terms of costs and operational workload. We listened carefully and completely adapted our approach: we shifted our training to strongly emphasize the direct economic returns, cost savings, and reputational value. We also simplified the tools to make them effortless to use. Once they understood the tangible benefits and saw how easy it was, skeptics turned into highly engaged, active participants.

Impact & Outcomes

What are the main results and outcomes of the project for your company?

The main gap we aimed to address was the complete lack of true circular models designed for small-scale, decentralized hospitality. We successfully validated that a circular transition is achievable even in such a fragmented network. We bridged the gap between basic sustainability (like just using renewable energy) and true circularity (like asset regeneration and local material loops). For Ruralis, this validated a potential 15% revenue growth by positioning ourselves in a high-value sustainable tourism market, along with the forecasted creation of 3 new corporate roles.

Did you detect a positive impact of circular transition for your company and for the environment?

Absolutely. Our simulations and technical evaluations showed that adopting our new models could lead to a 20-25% reduction in waste generation per property. By extending the lifespan of furniture and appliances by 2-3 years through local repair networks, we estimate an average 15% savings in replacement costs and a ~20% reduction in CO2 emissions related to purchases and logistics.

Have you already implemented any changes?

Yes! The cultural and procedural shifts are already part of our daily operations. We have fully implemented the training and awareness phases, achieving a measured 40% increase in environmental awareness among the 10 pilot structures. The new maintenance protocols and waste sorting guidelines are now part of our standard toolkit. Our immediate next step is the physical rollout in the pilot structures, followed by scaling these mandatory practices across our entire network of 230+ units.

Lessons learned

What key lessons did you learn regarding circular innovation?

We learned that in the service sector, circularity relies on “Context over Standardization”. You cannot copy-paste industrial models into rural B&Bs. The biggest positive surprise was the power of community: empowering local artisans and focusing on training proved to be the strongest enablers of circular adoption.

Did you encounter any challenges?

Our main technical barrier was the lack of genuinely circular case studies in small-scale hospitality. Most examples were just basic sustainability. Furthermore, adapting industrial models like “Product Life Extension” to a business where we don’t manufacture or own the products was tough. We overcame this by reinterpreting the model to focus on preventive maintenance and creating local artisanal repair ecosystems.

If you could do your project again, what would you do differently?

We would start the educational and awareness-building content for property owners even earlier in the process. Initially, we planned to concentrate this during the final rollout, but we realized that early engagement is crucial to overcome initial skepticism regarding costs and operational workloads.

Future plans & recommendations

What are your next steps towards circular transition?

Internally, we plan to progressively integrate our new tools and protocols into the standard onboarding process for all new properties joining Ruralis. Externally, we are actively expanding our partnerships with local suppliers, artisans, and public sector actors to strengthen our territorial micro-supply chains. Furthermore, we are exploring a new business model: we are packaging our circular methodology, training modules, and operational protocols into a replicable “circular toolkit” service. We plan to offer this consultancy and service to other independent hospitality operators and rural villages across Italy, helping them transition as well.

Is there any advice you would give to other SMEs looking to implement a circular project?

Don’t force predefined industrial models onto your business. A good first step is to analyze your specific context and involve your local community. Avoid the mistake of seeing circularity just as an environmental duty; look at it as a strategic lever to reduce costs, build resilience, and create shared value.

How can policymakers or financial institutions better support businesses in adopting circular practices?

Financial institutions and policymakers need to recognize that circularity in the service and tourism sectors requires flexible, multisectoral approaches. We need support (grants, incentives) not just for heavy machinery or infrastructure, but for training, community mapping, and the activation of local micro-supply chains that make circular services possible.

Do you have any additional comments or reflections about your participation in the Up2Circ project?

The Up2Circ project was a vital catalyst for us. It helped us realize that circular tourism is a new paradigm. For Ruralis, it means going beyond offering hospitality—it’s about taking active responsibility for the cultural, economic, and ecological regeneration of the fragile territories we serve.