Are luxury and sustainability compatible? A Canadian social entrepreneurship case

Sustainability is a pressing issue for industry. Climate change, the concern for pollution, the need to lower energy consumption, and the necessity to provide economic benefits in local communities are problems that the sector is increasingly aware of but slowly addressing. The purpose of this paper is to address sustainability in the luxury hotel sector. Can a hotel be designed to be sustainable while providing an experience that customers want to pay for at a high price? An exploratory case-study method was used on Fogo Island Inn, an award-winning hotel in Newfoundland, Canada, that offers a unique luxury experience centered around sustainability. Fogo Island Inn is a success story that demonstrates that a hotel can combine, with the adoption of a new business model, a luxury focus with strong environmental and social orientation. A luxury hotel may be both a social business and a community asset creating a shared value.