Placeful Business: Reimagining a Small Business Concept That Embraces and Enriches Places

Abstract

Globalisation, commercialisation, commodification, and mass communication have led to a loss of uniqueness and a cultural uniformity in places, known as “placelessness”. This study proposes a novel business concept called “placeful business” that addresses this issue. A placeful business incorporates local heritage, showcases unique architecture and aesthetics, engages with the community, and promotes place sustainability and identity. Qualitative interviews were conducted with 20 stakeholders, and a salience-valence analysis was performed on 874 online reviews from Google Maps, TripAdvisor, Booking.com, Agoda, and Hostelworld. This analysis aimed to reveal the key factors contributing to positive experiences and gain insights into the representation and manifestation of placeful characteristics. Through a mixed-method case study of Once Again Hostel in Bangkok, this research identified several salient attributes of the hostel that reinforce the characteristics of a placeful business and have a positive impact on the community. The authors also observed the interconnected and mutually reinforcing nature of placeful and successful factors. However, it was noted that guests’ perception and understanding of placeful characteristics remained limited. While the placeful business model has not yet gained widespread recognition in the business and academic domains, it offers practical implications for small businesses seeking to differentiate themselves in the global market by infusing their operations with a distinct sense of place. Furthermore, place managers can play a crucial role in promoting and fostering placeful business practices as a means to counteract the growing homogenization of places. The adoption of the placeful business model enables the continuous reinforcement of place identity, which, in turn, contributes to the long-term enhancement of place sustainability.

1. Introduction to Placelessness

In recent years, globalisation, commercialisation, commodification, and mass communication have resulted in a loss of local meaning and uniqueness, leading to a cultural and geographical uniformity of places [1,2]. This standardisation and homogenisation of spaces due to mass consumption is known as “placelessness” [3]. The term refers to a space, with or without physical infrastructure, which fails to reflect the unique and local characteristics of its surroundings. The purpose of this study is to propose a novel business concept that is not only beneficial to a business but also addresses the broader problem of placelessness.

Placelessness, as described by Relph [4], refers to the loss of distinctiveness and diversity in places due to modernisation and standardisation. It is also referred to as non-place, representing spaces devoid of relational, historical, or identity-related attributes [3,5]. Consequently, a sense of non-place or placelessness arises when a space is divided into unrelated parts, such as retailers, special districts, and residential areas, all connected by roads and highways [6]. Shopping malls in urban areas are often seen as placeless due to their homogenising nature and lack of differentiated experiences for visitors [1]. The proliferation of shopping malls began in the US in the 1970s, where cities implemented downtown development projects through retail strategies, leading to the creation of pedestrian malls, festival marketplaces, indoor shopping centres, and mixed-use centres [1,7]. In the tourism context, this phenomenon leads to a homogenised appearance and potentially evokes similar emotions and experiences among tourists [8]. A notable example is all-inclusive hotels that have no connection to the authenticity and heritage of the location in which they are located [9]. Many governments worldwide have adopted similar homogenised development to pursue cosmopolitan city standards and cater to mass culture and behaviours [1]. These large businesses, influenced by commercialised culture, tend to disregard the preservation of local identity and contribute to environmental degradation due to increased consumption, production, resource usage, and pollution [1,10].

To revitalise a place, businesses must utilise and customise unique place characteristics to create a placeful experience for their customers [11]. However, small local businesses often struggle to compete with larger businesses that offer a variety of products and services and employ various marketing strategies [1]. Additionally, the growing number of online shoppers poses a threat to local retailers and downtown businesses [12]. On a positive note, whereas globalisation contributes to the standardisation of businesses, it also highlights cultural identities as people become more aware of their own culture and uniqueness [1]. These individuals value authentic cultural experiences and are willing to pay a premium for them [1,11]. This emerging trend presents an opportunity for small local businesses that have a better understanding of local resources and are more likely to utilise them [13].

The objective of this research is to examine a novel business concept that serves as a countermeasure to the standardisation and mass-market model, which contributes to the phenomenon of placelessness. This concept, known as a placeful business, revolves around the notion of sense of place and is firmly grounded in the unique assets and resources of a particular location [11]. Small businesses that are embedded in local networks have the ability to access greater resources and achieve a higher competitive advantage [14]. This is a critical factor as these resilient small businesses play a significant role in driving sustainable tourism development [15].

To illustrate the concept of a placeful business, a case study approach is employed, focusing on Once Again Hostel in Bangkok, Thailand. Once Again Hostel, situated in Bangkok’s Old Town near Khaosan Road, serves as a focal point for investigating urban identity and transformation. The area, once known for its cultural diversity and liberal atmosphere, has experienced rapid commodification and gentrification, leading to homogenisation and standardisation [16]. The experiences of renowned street food vendor Jay Fai highlight the challenges faced by places grappling with increased recognition and commercialisation [17]. The Once Again Hostel’s placeful business model becomes crucial in countering the trend towards placelessness in this evolving landscape.

This case study includes qualitative interviews conducted with 20 stakeholders associated with the hostel to explore the representation and manifestation of a placeful business. Additionally, the research aims to evaluate the perceptions of customers towards the hostel by utilising a mixed method approach, which includes qualitative interviews with customers and an analysis of 874 online reviews posted by guests on Google Maps, TripAdvisor, Booking.com, Agoda.com, and Hostelworld.com. This research employed a diagnostic “salience-valence analysis” (SVA) to assess the frequency and positivity of words in online reviews [18]. The analysis revealed key factors contributing to positive experiences and provided insights into the influence of placeful characteristics on customer satisfaction.

Porter et al. [19] introduced the World Town Framework, which aims to manage, develop, and market towns and smaller communities worldwide. The framework encompasses two critical principles: promoting the unique identity of a place and supporting local economies. The ultimate objective of this research is to encourage the adoption of the newly introduced “placeful business” concept among place managers and local businesses, which aligns with the principles of the World Town Framework, to promote a unique sense of place and support local economies. The widespread adoption of the placeful business concept would not only enhance economic vitality but also reinforce the identity of a place. Additionally, this concept provides local businesses with a new strategy to compete with large corporations, allowing them to establish or improve successful businesses that positively impact their surrounding community. Parker, Ntounis, Quin, and Grime [12] identified engagement between businesses and places as a priority for improving urban areas. The placeful business concept could be a forefront concept to promote such a connection.

2. The Interdependence of Places and Businesses: A Placeful Business Concept

The relationship between places and businesses is mutual and interdependent. This section reviews existing literature on the topic and defines the characteristics of a “placeful business”, which represents the intersection of places and businesses.

Businesses have long been influenced by the places in which they operate. Choosing the right location is a critical aspect of business globalisation [20]. For a business to thrive, it is essential that the systems within the place also be resilient and sustainable [21]. The success of a business is also heavily dependent on the economic viability and overall performance of the place where it is located [22].

The benefits that places offer to businesses can be broadly classified into two categories: demand-side benefits and supply-side benefits. Places, particularly cities, serve as centres of consumption, expression, and enjoyment for consumers [23], and businesses often flock to bustling cities in search of large, growing markets and a variety of activities and people [23]. Proximity, connection, and accessibility to customers are additional advantages of having a business in a particular place [20,24], allowing businesses to better understand their customers and offer products that cater to local demand [3].

On the supply side, places offer “location-specific advantages” in the form of physical, social, and cultural amenities that enable businesses to add value to their offerings [13]. Access to the latest technology, economic resources, human capital, and other institutional factors also contribute to a place’s supply-side benefits, encouraging businesses to innovate [23]. Furthermore, places provide “soft” factors such as quality of life, social diversity, and tolerance, which are essential for attracting creative professionals to a business [23].

Conversely, businesses play a crucial role in the development and sustainability of places. Economic activities from a diverse range of businesses, promoting a place’s comparative advantage over time, are essential [25]. Businesses also contribute significantly to a place’s brand identity, influencing stakeholders’ perceptions and communication about the place [26], and are a crucial part of the ongoing evolution of urban life and spaces [21]. Theodoridis et al. [27] emphasize the influence of retailing in understanding changes in town and city centres. Small businesses embedded in the community play a key role in improving resident well-being and fostering an entrepreneurial culture for community development [12]. The intricate and reciprocal impacts between place and small local businesses involve a connection between the business and its location, inspiring sustainable behaviour. Factors such as familiarity, security, communal support, and trust in local institutions enhance entrepreneurs’ value creation [28]. Local businesses that are unique to a particular place, community-oriented, and differentiated enhance place resilience and strengthen social cohesion [19]. The following section elaborates on the concept of a placeful business.

2.1. Placefullness and the Definition of a Placeful Business

The concept of placefullness refers to the extent to which a location strengthens the sense of place for individuals [29]. The sense of place is a composite of individual perceptions, emotions, and experiences shaped by their interactions with a location over time [6,30,31]. Factors that contribute to the sense of place include the duration of time spent in the location, residency, community involvement, membership in groups or associations, feelings of respect, and the sense of being a local [31,32]. The lack of a strong sense of place can compromise the authenticity and sustainability of a location [30].

The concept of a placeful business involves augmenting the core business model with a sense of place. In simpler terms, it is a business that infuses its offerings, setting, processes, and outcomes with a unique sense of place, creating value and establishing a competitive advantage [11]. The concept of a placeful business is crucial for small businesses because their success and sustainability are closely linked to their familiarity with the local landscape and their integration within the community [28]. By leveraging the support and trust of the community, these businesses can adopt sustainable practices that align with the unique opportunities and values of the place [28]. This combination of business and sense of place not only benefits the business itself but also contributes to the improvement of the place in which it is located [13].

A placeful business fully leverages location-specific advantages for the benefit of the business while also contributing to the economic growth, strengthened identity, and sustainability of the place [28]. This type of business differs from globalised, homogenised, and standardised businesses, as it not only seeks to differentiate itself from competitors but also reinforces the place’s identity and authenticity [7,11]. When adopted collectively by diverse types of businesses, a placeful approach has the potential to drive increased visitation, income, and prosperity, helping to reinforce the unique character of the place and distinguish it from others.

The concept of a placeful business has been drawn from a diverse range of literature, including tourist destinations [11,29,30,32], shopping complexes [1], downtown areas [7], railway stations [3], universities [33], reef catchments [31], and oceans [34]. This paper summarises four key characteristics of being placeful. Additionally, it is crucial for a placeful business to be both financially sustainable and successful. To this end, the characteristics of a successful business are also described.

2.2. Characteristics of a Placeful Business

Heritage and sense of local pride in the offering: Placefullness is deeply rooted in a community’s heritage and local pride, according to Alexander and Hamilton [3]. A placeful business leverages distinctive social and cultural characteristics to offer customers unique products and services [11]. It provides customers with opportunities to experience the atmosphere, try local produce, or participate in events [11]. The business offerings may also incorporate personal, family, or community stories, as well as information and knowledge about the place, such as its history, legends, geography, geology, flora, and fauna. These non-material characteristics help create the “soul” or “spirit” of a place [11]. Examples of placeful offerings include recreational activities that employ local resources, such as land-based or skill-based activities [13], local food and beverages that preserve traditional cultivation and processing techniques [11], and local artisans’ crafts with unique and innovative designs [35].

Architectural and aesthetic distinction in the setting: Placefullness is also characterised by authenticity, which can be reflected through the use of distinctive architecture or public art [3,33]. A placeful business incorporates these architectural and aesthetic elements into its setting, offering hedonic value and nostalgic appeal to visitors [3,13]. This distinction in the setting contributes to the “charm” and “allure” of placefullness, which can help attract customers [33]. As demonstrated by Alexander and Hamilton [3], railway stations can enhance placefullness through features such as displays of original architectural plans, floral displays of local heritage (e.g., lobster pots), or murals.

Community engagement and collaboration in the processes: Placefullness depends on inclusive, participatory processes that involve a wide range of stakeholders [29]. To cultivate placefullness, businesses must involve and integrate the community through active, empowered input [3]. The community often has the best understanding of the place [3,32]. Social networking and community-based processes infused with local characteristics can significantly impact the local community [13]. Placeful businesses can engage the community through informing, consulting, or partnering with them [36]. They can also employ local people, who are essential resources of the place [11,13]. By being embedded in the local environment and welcoming and caring for the local community, placeful businesses increase their chances of success [13,33].

Contribution to place identity and sustainability: A placeful business ultimately supports the place in which it is located by enhancing its value, improving the quality of life for local residents, increasing local added value, and preserving the natural and cultural environment [11,13,29]. The contribution to place identity and sustainability is the result of these benefits. Place identity refers to the objective reality of a place, which encompasses materiality, practices, institutions, and representation [37]. Lindstedt [38] added that place identity comprised physical settings, human activities, and meaning. A placeful business should help enhance the place’s identity rather than detract from it. The business should also promote sustainability in the place, which means understanding and contributing to positive ecological, societal, economic, and other processes [25].

2.3. Characteristics of a Successful Business

Small business success is a multifaceted concept that goes beyond mere financial performance. The purpose of small businesses may not be solely profit-driven, underscoring the importance of a broader view on success indicators [35]. Gorgievski et al. [39] echoed this perspective, noting that profitability, growth, innovation, survival, societal contribution, personal satisfaction, and public recognition all hold relevance. Furthermore, the success of a small business is strongly influenced by various internal and external elements, as suggested by Rogoff et al. [40]. They highlighted the significance of individual characteristics, management practices, financing, marketing activities, human resource management, economic conditions, product attributes, competition, regulation, technology, and environmental factors. Complementing these insights, Benzing et al. [41] stressed the impact of elements such as management skills, charisma, governmental support, training, capital access, prior business experience, familial and friend support, marketing, pricing strategies, customer service, societal position, accurate record-keeping, personnel management, social skills, political involvement, and reputation. Despite the plethora of factors impacting small business success, this research synthesises and distils these elements into four core factors deemed most relevant to this context.

Market orientation: Market orientation refers to a firm’s culture and behaviours that adopt the marketing concept, creating superior value for customers, and improving business performance [40,42]. This includes an understanding of customers and competitors through the generation, dissemination, and responsiveness to market intelligence [40,42]. Previous studies have found that market orientation activities, such as marketing and customer service, significantly contribute to the success of the business [35,40,41,42,43]. A systematic planning approach to monitor, measure, analyse, and predict important metrics often leads to better business performance [43,44,45].

Entrepreneurial orientation: Entrepreneurial orientation refers to a firm’s tendency to identify and exploit new opportunities through experimentation with new technologies, seizing new product-market opportunities, and taking risks [42]. Firms with high entrepreneurial orientation exhibit boldness, proactivity, and risk taking in their business operations [46]. Entrepreneurial orientation is crucial for the success of the business as it is the precursor to innovation success [42]. Innovation success directly contributes to maintaining and expanding customers and markets [42]. Firms that undertake entrepreneurial orientation focus on a learning, flexible, and dynamic approach to doing business. A learning approach emphasises incremental improvement of business operations through experimentation and execution [44].

Human capital: Education, experience, knowledge, and skills of people in a firm make up human capital [47]. It is considered a generator of value and a potential source of innovation for the firm [24]. Experience and skills, among other human capital attributes, have been found to contribute to the success of a firm as they enable its owners and employees to perform crucial tasks such as opportunity discovery and planning [47]. Previous studies have shown that attributes such as work ethics, dedication, industry experience, and marketing experience, as well as tasks related to human capital, such as effective human resource management, lead to business success [40,43,45,48]. Superior human capital also leads to the accumulation of new knowledge and skills [47], thereby updating the firm’s assets and capabilities in a continuous learning loop [46].

Relational capital: The value of relationships between a firm and its customers, suppliers, shareholders, and other stakeholders makes up relational capital [24]. It is crucial for a firm as it helps acquire necessary tangible and intangible resources for long-term results [24]. Networking, professional and personal socialisation, reputation, supply chain integration, and seeking professional advice are among the activities and attributes of relational capital that contribute to a firm’s success [24,41,43,45,48]. Conversely, a lack of physical, financial, and intangible resources is one of the main causes of business failure [24,40].

In conclusion, a placeful business is one that incorporates local heritage and pride into its offerings, showcases unique architecture and aesthetics in its business setting, engages with the local community in its operations, and promotes place sustainability and identity. Furthermore, it demonstrates important characteristics of a successful business, such as market and entrepreneurial orientation, and possesses human and relational capital. This paper utilises a case study method to illustrate the concept of a placeful business through the example of Once Again Hostel in Bangkok, Thailand.

2.4. Research Context: Once Again Hostel, Bangkok

Located amidst the bustling heart of Bangkok’s Old Town, near Khaosan Road, Once Again Hostel was the focal point of this research, setting the stage for an investigation into the issues of urban identity and transformation [26]. Historically, Khaosan Road was a stop on the hippie trail of the late 1970s and early 1980s, attracting a diverse and progressive crowd. Its proximity to Silpakorn University, Thailand’s leading institution for visual and performing arts, further established it as a hub for liberal thought and cultural exchange [49]. However, recent years have seen Khaosan Road, along with other parts of Bangkok’s Old Town, undergo rapid commodification and gentrification aimed at catering to international tourists. This shift, while enhancing the appeal for tourists, has begun to impinge upon the traditional character of these areas, leading to a creeping homogenisation and standardisation of the local milieu [16].

The manifestation of this transformation could be seen in the story of the local street food vendor “Jay Fai”, located near Once Again Hostel. Jay Fai, a chef named Supinya Junsuta, saw her modest street food restaurant skyrocket to international fame after being awarded a Michelin Star in 2018 and featuring in a Netflix documentary [17]. However, this newfound recognition and the resultant commercialisation of her business have presented several challenges, including an overwhelming surge in customers, increased operating costs, and longer waiting times for her patrons. The notoriety has sadly led to the displacement of many of Jay Fai’s long-term customers [17].

Khaosan Road, once a common public space, has gradually become a contested private domain with limited access. Driven by economic mechanisms, the rights to use public spaces are increasingly restricted, creating disparities among local inhabitants and businesses. Furthermore, the influx of tourists and the ensuing gentrification have led to a concentration of businesses such as middle-level hotels, restaurants, and entertainment venues, overshadowing the local culture and residents [16]. These factors culminate in an issue of Bangkok’s Old Town inching towards a state of “placelessness”. The impending homogenisation calls for a detailed examination of the Once Again Hostel’s placeful business model that might present an effective counteraction to this trend.

Once Again Hostel is a budget-friendly accommodation located in Soi Samran Rat, Phra Nakhon, Bangkok, Thailand. Established in 2015, the hostel offers air-conditioned dormitory-style rooms with fast Wi-Fi, built-in beds with personal lockers, personal lights, and curtains for privacy. The hostel also provides essential amenities such as a shower, TV/movie room, 24 h security, daily housekeeping, tours, and a café.

What sets Once Again Hostel apart from other hostels is its commitment to preserving the traditional way of life and local wisdom in Bangkok’s communities. The hostel’s efforts to conserve this priceless heritage have earned it a top rank on TripAdvisor.com, where it is currently ranked 11 out of 995 hostels in Bangkok according to travellers’ reviews. Guests can immerse themselves in the vibrant communities of Rattanakosin Island (Old Town) and experience first-hand the rich culture and centuries-old craftsmanship that are still alive today. The official channels of the hostel clearly demonstrate its embodiment of the placeful business concept.

Therefore, the first research question is:

RQ1: Which aspects of Once Again Hostel’s operations exemplify the placeful business concept?

To introduce the new business concept effectively, it is crucial to understand how customers perceive and value the placeful characteristics. A placeful business should not only contribute to the place but also provide benefits and value to the business itself, ensuring its sustainability and viability for small business owners. Hence, the second research question is as follows:

RQ2: How do customers of Once Again Hostel perceive the placeful characteristics?

3. Methodology

Mixed method case study methodology helps to explore a phenomenon within an organisation through various sources and perspectives [50]. It enables an in-depth investigation within its real-life context, promoting understanding of the dynamics and complexities of a single setting or case [51]. This research employs the case study method to investigate the multiple perspectives of stakeholders involved with Once Again Hostel. The strategy used in this research is referred to as the inductive strategy by Rashid, Rashid, Warraich, Sabir, and Waseem [50], which involves gathering facts to verify the tentative theory or concept of a placeful business. The facts extracted in this research are derived from various stakeholders, as they provide a key approach to understanding the phenomenon from different perspectives, allowing for a deeper comprehension of the complexities and multiple realities involved [51,52].

3.1. Qualitative Interviews (RQ1)

In order to address the first research question, this study employed semi-structured qualitative interviews and direct observations to gather data on Once Again Hostel. The interviews were conducted in person between January and April 2023 and lasted approximately 15–45 min. Nine stakeholders, including the CEO, five employees (E), and three external community stakeholders (C), were interviewed in English or Thai, based on their preference. The sample size was deemed adequate for a small hostel case study.

The researchers obtained permission to observe the hostel and captured photographs, with explanations provided by the employees. The interview guide included the three topics:

• Stakeholders’ perceptions of Once Again Hostel;
• Exploration of the “placeful” characteristics of the hostel;
• Assessment of the impact of the hostel on the local community’s livelihood.

Qualitative thematic analysis was applied to categorise and organise the data, which was performed manually by the researchers. This analysis aimed to gain a comprehensive understanding of the placeful business concept and the effects of Once Again Hostel on the surrounding community. The interviewee profiles are in

Table 1. Interviewee Profiles.

Code	Role	Gender	Age	Nationality
CEO	CEO	Female	30	Thai
E1	Receptionist	Male	22	Thai
E2	Receptionist	Male	25	Thai
E3	Receptionist	Male	30	N/A
E4	Housekeeper	Female	25	Thai
E5	Housekeeper	Female	22	Thai
C1	Laundry	Female	65	Thai
C2	Food stall	Male	55	Thai
C3	Food stall	Female	60	Thai
G1	Hostel guest	Male	25	Italian
G2	Hostel guest	Female	30	Norwegian
G3	Hostel guest	Male	25	German
G4	Hostel guest	Female	30	Mexican
G5	Hostel guest	Male	29	American
G6	Hostel guest	Female	30	German
G7	Hostel guest	Male	28	American
G8	Hostel guest	Male	35	Thai
G9	Hostel guest	Female	25	Japanese
G10	Hostel guest	Male	28	Canadian
G11	Hostel guest	Female	26	Dutch

.

3.2. A Mixed Method Approach (RQ2)

To address the second research question, a mixed-method approach was employed, and the hostel’s online reviews were analysed to gain a comprehensive understanding of the guests’ experiences and perceptions. These online reviews provided a platform for users, including both visitors and locals, to share their experiences and memories, encompassing factual information, opinions, impressions, and sentiments that reflected their level of satisfaction or dissatisfaction [53]. Consequently, they have emerged as a valuable source of feedback for researchers and practitioners in the field of business and tourism. A total of 874 online reviews in English were manually collected from the five most prominent platforms: Google (287 reviews), TripAdvisor (224), Booking.com (180), Agoda.com (96), and Hostelworld.com (87). All words in the analysis underwent tokenisation, lemmatisation, and stemming. Stop words from Snowball and Onix libraries were excluded from the analysis. The remaining analyses were performed using R.

To analyse the online reviews, this research employed a diagnostic “salience-valence analysis” (SVA) proposed by Mathayomchan and Taecharungroj [18] to assess “salience” by determining how commonly a word was found in the reviews and to determine “valence” by evaluating the positivity of the word or its association with positive experiences. This analysis was successfully used to analyse businesses in tourism and hospitality [18,54]; thus, it was applicable for the analysis of Once Again Hostel in this current study. The y-axis of SVA displayed the salience or the logarithm function of word frequency derived from all online reviews. Meanwhile, the x-axis indicated the valence of the words, which determined the extent to which the words were linked to positive experiences.

This research utilised a consistent approach to categorise experiences as positive or non-positive/negative based on the rating scales used by different platforms. Following the methodology of a previous study [18], experiences with a 5-star rating were considered positive on TripAdvisor and Google, whereas experiences with less than 5 stars were considered non-positive or negative. For platforms with a 10-point rating scale, scores of 9 or higher were classified as positive experiences in this current study, aligning with the highest evaluations such as “superb” in Hostelworld and Booking and “exceptional” in Agoda. It is worth noting that the 9 and 10 ratings aligned with the well-known net promoter score concept proposed by Reichheld [55]. These top ratings (5/5 or 9/10 and higher) could be regarded as the pinnacle of customer experience or “delight”. A study by Bowden-Everson et al. [56] revealed that delight, which signified an intensely positive emotional state resulting from an unexpected experience, significantly influenced customer loyalty. Therefore, this analysis could provide insights into both frequently mentioned attributes and impactful features of the hostel.

The valence of words was determined by calculating odds ratios, which indicated the probability of a word appearing in positive reviews compared to non-positive reviews. The odds ratio was calculated using the following formula:

$$Odds ratio=\frac{Odds of a positive review containing the word}{Odds of a negative review containing the word}.$$

The provided formula indicated that words with a higher valence were strongly associated with positive experiences. Analysing the outcomes of the sentiment valence analysis (SVA) allowed us to uncover the key factors that contributed to positive experiences and gain a deeper understanding of the influence of placeful characteristics.

Subsequently, qualitative data obtained from semi-structured interviews conducted with eleven hostel guests (G) in April 2023 were utilised to provide additional clarification and confirmation of the findings from the analysis of online reviews. Although our quantitative analysis did not adhere to a traditional quantitative research method, such as a survey, the salience-valence analysis of the online reviews inherently incorporated quantitative elements [18]. Therefore, we believe that the term “mixed-method” remained valid and applicable in this context.

4. Findings

This section provides a summary of the findings derived from interviews and an analysis of online reviews. Firstly, the characteristics of a placeful business model are illustrated based on insights obtained from interviews conducted with the CEO, employees, and community stakeholders. Subsequently, an explanation is provided on the analysis of online reviews, utilising salience-valence analysis (SVA), which is complemented by interviews conducted with guests.

4.1. Insights from Stakeholder Interviews: Unveiling the Placeful Business Characteristics

Heritage and sense of local pride in the hostel: Once Again hostel offers guided tours that showcase the local heritage and pride of the community. Guests are encouraged to participate in activities that involve walking and visiting lesser-known areas to immerse themselves in the local culture. Staff-led tours include trips to temples, markets, and cultural experiences such as cooking classes. The CEO mentioned, “we may take our guests to watch the sunset at Phu Khao Thong, feed turtles at a temple under a small Buddhist bridge, visit the canal market or Trok Moo market in the morning”. The hostel aims to cultivate a deeper connection to the local community by organising tours and encouraging social interaction among guests.

Moreover, the hostel supports local businesses and vendors by incorporating their foodservice into their offerings. The nearby boiled rice restaurant provides food, and the hostel washes the dishes themselves (E4). Staff-led tours also include trips to local restaurants, such as a recent trip to a riverside grilled pork restaurant (E2). Collaborating with local vendors and restaurants provides guests with an opportunity to immerse themselves in the local atmosphere and cuisine. As one employee stated (E1), “We believe it’s important to show them places that are not well-known”. By highlighting the local culture and supporting local businesses, Once Again hostel creates a sense of local pride that is felt by both employees and guests. Figure 1 illustrates the posters advertising organised foodservice and guided tours by the hostel.

Architectural and aesthetic distinction of the hostel: Once Again hostel stands out with its architectural and aesthetic distinctions, as seen in the handcrafted furniture and decorative items sourced from the local community. As the CEO mentioned, “the alms bowls used in the hostel come from the Baan Bat community”, and “most of the furniture is handmade, particularly the woodwork, which comes from the community next to Wat Saket”. The hostel also incorporates doors that separate each room based on bed sizes, similar to those found in local shop houses, to provide private spaces for guests. Additionally, the hostel has a photo gallery created by the team, featuring pictures taken around the property, adding to its unique charm. Figure 2 illustrates the pictures of the decorations, furniture, and gallery.

Community engagement and collaboration in the processes of the hostel: Once Again hostel believes in working closely with the local community in the hostel’s business processes. As the CEO stated, “we outsource housekeeping task, including laundry and maintenance work to community stakeholders. It’s convenient, but the disadvantage is that the service may not always meet our standards”. Despite the possible downsides, the hostel continues to work with stakeholders in the community such as laundry services, repairmen, and food vendors. In doing so, the hostel aims to support the local community and promote inclusion. One employee (E1) stated, “Instead of setting up our own washing machine and vending machines, we reached out to our neighbours next door to provide laundry services”. In addition to laundry services, the hostel also collaborates with local food vendors and restaurants. One community stakeholder (C2) mentioned that the hostel orders food from their restaurant, and they work together to ensure the use of quality ingredients. The hostel encourages guests to support local food and drink shops instead of setting up their own cabinet.

Once Again Hostel’s contribution to place identity and sustainability: Once Again Hostel contributes to the identity and sustainability of the local community in various ways. The hostel has created new menus in English, suggested new dishes, and supported local food vendors and restaurants. As the CEO stated, “We simplify the process by designing the menu to be more accessible and easier to understand, such as including pictures and descriptions of the dishes”. The hostel has also encouraged shops to reduce plastic use by providing incentives such as discounted prices for those who bring their containers. These efforts promote sustainable tourism and a trend towards healthier eating in the neighbourhood. One restaurant at the entrance of the alley, is an example of a shop that benefits from the hostel’s efforts. The owner expressed gratitude to the hostel, stating (C3), “The owner of the hostel made a sign and gave us a name, ‘Three Aunties’. We are grateful for that”. The examples are illustrated in Figure 3.

The hostel’s commitment to promoting local heritage and identity extends to personalised recommendations based on guests’ individual interests. According to one employee (E1), “We like to highlight the blend of Thai and Chinese architecture in the Talat Noi area and recommend it as a must-see spot for anyone interested in cultural architecture”. Moreover, the hostel directs guests to nearby businesses to generate revenue for the entire community, rather than solely benefiting the hostel. As another employee stated (E3), “We do not sell alcohol here. Instead, we encourage our guests to spend their money in the surrounding area to create a more robust local economy”. The hostel has also stopped selling drinks and coffee, encouraging guests to instead purchase from nearby shops, thereby supporting local businesses. This demonstrates the hostel’s commitment to sustainability and community engagement, promoting the growth of a more supportive community. The community stakeholders expressed gratitude to the hostel for its contribution to their businesses, with one stating (C1), “We feel comfortable as we do not have to struggle. This is how we support each other, building a community for a better living”.

4.2. Exploring Guest Perspectives: Analysis of Online Reviews and Qualitative Interviews

To gain insights into the perception of guests towards Once Again Hostel, a salience-valence analysis (SVA) was conducted, as depicted in Figure 4. The x-axis represents the valence or positivity of the words, with words on the right side indicating a stronger association with positive experiences at the hostel (higher odds ratio). For better visualisation, the valence limit was set at 3, resulting in the exclusion of six extremely positive words, including highly (11.3), exceptional (5.5), enjoyed (4.5), thanks (3.5), wonderful (3.1), and fun (3.1). Conversely, the words positioned on the left side of the graph are more strongly associated with negative reviews. The y-axis represents the salience or frequency of the words in the corpus of online reviews, displayed on a logarithmic scale. Words appearing fewer than 20 times were not included in the analysis.

Positive words in the analysis are represented in green, with odds ratios higher than one, whereas negative words are displayed in red. The authors identified the words associated with placeful characteristics discussed in the interviews with black text. These words include “daily”, “organized”, “local”, “activities”, “events”, and “tours”, which refer to the tours organised by the hostel, as well as “decor” and “design”. Words that belong to the same themes are indicated by dotted lines.

At the top of the SVA graph, there is a group of words that represent common hostel attributes, including “hostel”, “staff”, and “location”. According to the analysis, the words “staff”, “clean”, and “stay” are associated with positive experiences at the hostel, whereas “beds” and “location” have a slightly negative connotation. Moving down the graph on the right-hand side, we find a cluster of positive evaluative words such as “lovely”, “amazing”, and “perfect”, which guests frequently use in online reviews to describe their delightful experiences. Additionally, several salient positive words such as “friendly”, “people”, “comfortable”, and “food” are located towards the higher end of the graph, indicating that these attributes contribute to positive guest experiences. On the other hand, there are also salient negative attributes such as “bathrooms”, “night”, “coffee”, and “showers”, which are often associated with negative experiences. These insights demonstrate that SVA analysis provides a comprehensive understanding of guest experiences by utilising data from online reviews.

The focus of this SVA analysis, which addresses RQ2, is on the words that indicate the placeful characteristics of Once Again Hostel. The analysis revealed that while they are not highly prominent, words such as “activities”, “tours”, and “events”, which refer to the walking tour organised by the hostel, have positive valence values. On the other hand, words related to the aesthetic design of the hostel, including “décor” and “design”, have somewhat negative connotations.

These findings align with the sentiments expressed by both the employees and the guests who posted online reviews. Many guests specifically highlighted the organised tours as a strength of the hostel, emphasising their enjoyment and the opportunity to meet new people. For example, one guest on Hostelworld.com in January 2023 mentioned, “The turtle feeding walking tour is really cute and a nice way to meet people”. Similarly, a review on Booking.com in the same month stated, “The tour ended with a super cosy family-style street food dinner!” These reviews highlight the positive connection between the walking tours and the chance to socialise and meet new people, which are attributes that guests value. This was confirmed in the qualitative interviews with one guest (G2) highlighted that the ability to “socialise and meet new friends” is a significant advantage of Once Again hostel. These insights demonstrate that the placeful characteristics of the hostel’s business operations can contribute to delightful customer experiences.

Despite the negative valence, the aesthetics of the hostel played a significant role in the decision-making process, as highlighted by guest during the interviews. One guest (G3) mentioned, “I saw the pictures on the website, and they looked good, so I decided to book this hostel”, while another guest (G1) stated, “I found this hostel at the top of the website search list. I looked at the pictures and thought it looked nice, so I selected it”. This sentiment was echoed by other guests who described the decorations and settings as “interesting” (G11), “pretty nice” (G9), and “great” (G5). However, despite the appreciation for the aesthetics, most guests were not aware of the connection to local heritage. This lack of awareness may have explained the negative perception associated with the aesthetic aspect, as guests generally had a positive attitude towards these elements. However, without a compelling story and heritage behind them, these aesthetic features may not have had a positive impact on the overall guest experience. This finding was further supported by online reviews, where only one Thai reviewer mentioned the alms bowls used as decorations, and there was no mention of the local heritage of the furniture or gallery in any of the 874 reviews.

Many of the placeful characteristics of the hostel identified in the interviews were not mentioned in the online reviews. For example, the guests did not highlight the hostel’s collaboration with the local community for laundry services or the promotion of nearby traditional shops. Interestingly, some aspects of the placeful characteristics, such as the hostel’s decision to stop selling “coffee” to support local businesses, were perceived negatively by guests who missed the availability of free coffee. Similarly, the word “door” was perceived with negative valence, despite its special design resembling traditional local doors. One guest expressed this sentiment on Booking.com in March 2023, stating, “doors to dorms are a bit weird and still have space in between them”.

The findings from this mixed-method case study indicates the significant potential of the placeful business model. However, the main challenge lies in creating awareness among guests who primarily focus on standard attributes of a hotel. Nevertheless, when guests are made aware of the placeful characteristics, they tend to have positive sentiments. As one guest (G4) expressed, “I read the description about this hostel. They’re talking about their involvement with the local area and neighbourhood. I think it’s great to do anything like this and to show more about the community around the hostel”. This focus on sustainability and inclusion resonates with potential customers, as demonstrated by another guest (G8) who showed interest in the hostel after learning about “the concept of environment and sustainability” online.

5. Discussion and Conclusions

5.1. Interconnectedness of Placeful and Successful Business

To counter the phenomenon of placelessness, the objective of this research was to investigate Once Again Hostel as a case study of a placeful business. This study examined how the hostel incorporates a distinct sense of place into its offerings, setting, processes, and outcomes, resulting in the creation of value and the establishment of a competitive advantage. The literature review explored the four placeful and four successful factors separately, but the findings revealed an interconnectedness and mutual reinforcement between these characteristics. For instance, the market orientation of Once Again Hostel reflects local pride through immersive guided tours, resulting in satisfying guest experiences. The SVA analysis further confirmed the positive impact of these activities on guest experiences. This research built upon the findings of Haven-Tang and Jones [11], who emphasized the incorporation of local heritage into the market offering. Furthermore, this study highlighted the connection between such an offering and the characteristics of a successful business. However, this research goes beyond business offerings by presenting an extended model.

While the distinctive architecture and aesthetics of the hostel play a significant role in the decision to book, they do not necessarily translate into positive experiences. This can be attributed to a lack of awareness regarding the unique local heritage associated with these attributes. The entrepreneurial orientation involves the courageous embrace of the inclusive/placeful business concept, which can bring optimism, energy, and innovativeness to the team and the working atmosphere. A notable example of this is the hostel’s commitment to contributing to the community by discontinuing the sale of coffee and incorporating local heritage through the traditional design of the dorm doors. Despite some customers perceiving these aspects negatively, the hostel remains steadfast in its mission.

The human capital of Once Again Hostel was significantly driven by the sense of pride in the offering, such as the guided tours, which attract and energise people in the same mould. Those who work in the hostel are primarily people who are passionate about the neighbourhoods and the place identity. Human capital was also affected by the focus on the contribution to place sustainability and identity, attracting employees who have a sustainability mindset and those who are willing to engage. This research goes beyond the scope of Pato and Teixeira’s [13] study, which focused on the involvement of local people and the community in the process. Instead, this research explores the potential linkages to successful small businesses. Additionally, the concept of placeful business presented in this research has broader applicability and usage compared to the concept of rural entrepreneurship proposed by Pato and Teixeira [13].

This leads us to the final characteristic of a successful small business: relational capital. Placeful businesses prioritise collaboration with local community stakeholders throughout their operations, placing great emphasis on this aspect. Such collaboration enhances relational capital, which becomes a core asset for the business. In the case of Once Again Hostel, key collaborations with the local laundry service provider, a handyman from the community, and the nearby aunties form the heart of the business. These examples highlight the interconnectedness of successful and placeful characteristics, illustrating how small businesses can leverage the placeful business concept to attain success.

The literature has examined the concept of a placeful institution, such as a transit station [3] and a university [33], but the concept of a placeful business has not yet been explored. Introducing the placeful business model could have significant benefits for numerous stakeholders in the private sector.

5.2. Addressing the Diffusion Challenge of the Placeful Business Concept

The limited awareness and understanding of the placeful business concept among stakeholders present a significant challenge to its adoption and dissemination. Given that the concept is newly introduced in this study, it is understandable that stakeholders may not be familiar with it. Consequently, the second research question aims to explore the perception of guests regarding the placeful characteristics.

The findings from the research reveal a mixed picture in terms of guest awareness and perception of the placeful business concept. While guests, who play a crucial role in the success of Once Again Hostel, are often unaware of the concept and the unique elements that set the hostel apart; they primarily focus on conventional criteria such as price, location, and visual representations of the hostel. However, the SVA analysis suggests that there is potential for establishing the placeful business concept as a core concept, as many placeful characteristics are strongly associated with delightful experiences. For instance, the strong connection between walking tours and positive socialisation highlights the opportunity for the hostel and other businesses to integrate placeful characteristics into the important attributes of their operations.

It is worth noting that negative attributes such as decorations, designs, coffee, and doors were not strongly valued by guests, possibly because they were unaware of the heritage associated with these elements. This highlights the importance for businesses to effectively communicate and educate guests about the concept of placeful business in order to enhance their understanding and appreciation. It also indicates that there is still work to be performed for the placeful business concept to become widely recognised and integrated into the business world and academic discourse. Nonetheless, given its positive impact on places, this concept deserves further attention and study.

5.3. Contribution of Placeful Business to Sustainability

This research demonstrates the contribution of placeful businesses to place sustainability, which encompasses positive ecological, societal, economic, and other processes in places [57]. Among the factors of place sustainability identified by Taecharungroj, Tachapattaworakul Suksaroj, and Rattanapan [25], placeful businesses can have a positive influence on the economic growth, conviviality, and social equity of places.

Once Again Hostel, as exemplified in this research, embodies a placeful business that not only contributes to the economic growth of the community but also provides opportunities for less competitive members and businesses in the neighbourhood. The placeful business model of Once Again Hostel supports local businesses directly by utilising their services or assisting in improving their marketing, as well as indirectly by promoting other businesses to their guests and avoiding competition within the hostel. This contrasts with the business model of all-inclusive hotels, which often lack relevance to the authenticity and heritage of the location [9]. Furthermore, Once Again Hostel enhances the conviviality of the place through organised tours and social activities.

The concept of sustainability extends beyond physical resources and includes the preservation of place identity, which plays a pivotal role in shaping individual and community identity [58]. Heritage, as a part of place identity forged through the interaction between people and places, serves as an anchor for future generations, connecting them to their own history and traditions. Once Again Hostel incorporates tangible elements of local identity, such as furniture and alms bowls, and promotes intangible aspects by sharing stories and educating guests about the surrounding areas. This continuous reinforcement of place identity contributes to the long-term improvement of place sustainability.

5.4. Theoretical Contributions

Although the concept of placeful business is related to “local business”, it is different from local business in that it encompasses more than just local ownership. While a local business is defined by the fact that it is owned and operated within a specific community [59,60], a placeful business goes beyond that and encompasses the broader relationship between a business and its environment. As demonstrated by Once Again Hostel, the hostel’s locally owned status is just one facet of its connection to the local community. The offerings, setting, and processes are all intimately linked to the place identity and stakeholders. Furthermore, the hostel’s contribution to the community is tied to the success of other surrounding businesses. A placeful business is not just located in a particular place, but it is also intertwined with and supports the unique identity of that place.

A placeful business is distinct from an “inclusive business” in terms of their primary goals and focus. The main goal of an inclusive business is to enhance the social and economic well-being of disadvantaged populations and promote sustainable value creation [61], whereas the primary objective of a placeful business is to create a competitive advantage. Placeful businesses leverage the advantages of the place in which they are located, such as the local culture, resources, and community, to create unique offerings and stand out in the market. Once Again Hostel is an excellent example of how local resources can be seamlessly incorporated into business processes and offerings to provide an exceptional experience for guests. Another distinction between inclusive and placeful businesses is their scope. Inclusive business aims to create value by incorporating income-constrained groups into the business model [62]; it does not emphasise the role of “places” as either an input or an outcome. Placeful businesses highlight the interdependence between places and businesses.

This research expands on the concept of a “sustainable business model”, which seeks to create mutually beneficial outcomes for various stakeholders, including the business, society, and environment [63,64,65]. In addition to well-known models such as circular, green, inclusive, and sharing business models, the placeful business model, with its emphasis on the importance of place, can be considered another type of sustainable business model.

5.5. Practical Implications

The practical implications of the placeful business concept hold significant value for small businesses aiming to distinguish themselves in a global marketplace. By infusing their offerings, settings, processes, and outcomes with a unique sense of place, small businesses can establish a distinctive identity that resonates with customers. Small retailers and restaurants could make their offerings, settings, and processes more placeful. Technical services might need to apply global standards, such as IT services or mechanics, but they can still adopt placeful processes and settings to differentiate themselves. The placeful business model could allow small businesses to counter large businesses with a variety of products and various marketing strategies, as the main advantage and valuable resources of placeful businesses are in their small yet distinctive embeddedness in the place. This is an aspect that large global businesses cannot imitate.

The findings of this research highlight two important considerations in implementing the placeful business concept. Firstly, it is recommended to closely integrate the placeful business characteristics with the core attributes of the business, similar to how Once Again Hostel utilised walking tours to enhance socialisation, which is valued by guests. Secondly, effective communication of the placeful characteristics is crucial, as guests’ perception and understanding of these elements can contribute to a positive experience.

Place managers, such as administrators and policymakers at the town, city, and national levels, have much to gain from the placeful business concept, which can help counteract placelessness. By incentivising small businesses to adopt placeful business practices, place managers can promote the creation of unique, locally rooted enterprises that contribute to a place’s distinct identity. The success of Once Again Hostel illustrates the multiplier effect that placeful businesses can have on other businesses in the area and the positive impact they can have on the sustainability and identity of a place. Kortelainen and Albrecht [66] proposed countering placelessness by creating a place that functions as a “common living room” or a shared space. In this research, the concept of a placeful business aligns with this idea by immersing and embedding the business into the local network, fostering dynamism and vitality in the place, similar to a “common living room” of the city.

5.6. Study Limitations and Future Research

Despite its contributions, this research had some limitations. The most significant limitation was that a single case study approach was employed to investigate Once Again Hostel as an introduction to the concept of placeful business. Although the hostel fully exemplified the concept of a placeful business, the results have not yet generalised to other types of businesses. Future research could explore other potential placeful businesses, such as the Artist House (art gallery) and Bo.Lan (restaurant) in Bangkok and Warorot Market (traditional retail market) and Ban Rai Kong Khing (community-based tourism) in Chiang Mai. Such research could explore and compare various types of businesses that provide benefits to the places in which they are located.