Responsible Hospitality at Lietsu – Valuing Local Roots

Lietsu Boutique Aparthotel, located in the heart of Joensuu by the Pielisjoki River, is full of stories – both traditional Karelian stories and new ones created by guests during their stays. Unique apartments full of character, a sauna overlooking the river, a Karelian breakfast that also attracts local visitors, and new meeting facilities with additional services invite guests to enjoy the Lietsu experience time and again. 

Continuous development is part of everyday business

 Lietsu’s piänaine, or “head lady”, Helena Puhakka-Tarvainen 

The hotel has been at the heart of the business from the beginning, with other services systematically developed around it to complement the hotel operations, says Helena Puhakka-Tarvainen, Lietsu’s CEO, or "head lady" as she is known at Lietsu.

– Before founding the hotel, both of us co-founders had already spent more than 15 years working in development roles, so continuous development has naturally become part of our everyday business as well. When we started the company, we did a great deal of groundwork to define how we wanted to operate and how our processes should work. For example, the day before opening, we welcomed a test group of guests to see how the customer journey worked in practice.

The thorough groundwork has paid off. According to Helena, there has been no need for major changes to the company’s operating processes. Details have been refined along the way, for example in response to restrictions during the COVID-19 years and based on customer feedback. Lietsu has also made use of suitable business development funding and extensive cooperation with educational institutions.

– More than 20 theses have been completed for Lietsu, we have hosted over 50 student interns, and dozens of smaller student projects have also been carried out. They have provided tremendous support for our business, as there is simply no way we could have explored everything we need to on our own. Through collaboration, we have achieved much more than would have been possible with our own resources alone, Helena explains.

Development work has covered areas such as environmental management, productisation, employee wellbeing and, most recently, everyday risk management.

– Naturally, the development work becomes increasingly detailed and in-depth as the business matures. Over the years, we have also become more selective about what we get involved in, because there is little point in working on very similar things more than once.

Employees and stakeholders are actively involved in generating ideas and developing the business. Employee retention at Lietsu has been high, and most newer employees originally joined the company through internships. Students are encouraged to complete their studies, while employees are encouraged to continue developing their skills both as part of their work and alongside it. The results of development work are also put into practice in each employee’s day-to-day work.

Responsible business 

– Responsible business practices are a fundamental part of our business, not simply a matter of values. We keep money circulating within our own region and invest in employee retention and customer-oriented service. From a business perspective, this requires investment, but it has also brought us visibility and awards, as well as visitors interested in benchmarking our operations.

Lietsu’s investments in responsibility and continuous development are reflected not only in positive customer feedback but also in long-standing partnerships and customer relationships. Helena says that although Lietsu is a micro-enterprise, the company has been committed to high-quality, systematic management from the very beginning.

– We have involved external members in our board work ever since the company was founded. Especially in the early years, the support and expertise of Ari Pärnänen, a hotel entrepreneur from Jyväskylä who served on our board, were extremely valuable to us. Over the years, we have also used the services of a therapist, a work supervisor and a business mentor. We have turned to Business Joensuu’s business advisory services on several occasions and received support from different experts depending on our needs – not forgetting the invaluable peer support of fellow entrepreneurs.

The company carried out an extensive strategy process in 2022. In an interim review last year, it was decided to extend the strategy period in order to achieve the targets set for 2027. Participation in the Grow² business growth coaching program starting in September will support planning for the company’s next phase and provide new perspectives for developing its next strategy.

Over the years, Lietsu Palvelut Oy has experimented with a variety of new business ideas. One example was Lietsun Pada, which served traditional Karelian stew at Joensuu Market Square in summer 2022.

– Not every experiment has turned into permanent business, but Lietsun Pada, for example, gave us much-needed visibility among people living in Joensuu. We have also had to make some big and painful decisions along the way, and we have not been immune to challenges with entrepreneurial wellbeing either, Helena says openly.

– We have spoken openly about both the good days and the bad. That has helped us build trust with the community around us. From the very beginning, we have also invested in occupational healthcare and ensured an appropriate level of YEL pension insurance for ourselves as entrepreneurs. Both have proved to be very wise decisions when facing difficult times.

Working together

The company has an extensive network of partners. Every year, Lietsu purchases products or services from around 60 companies in North Karelia.

– There is an old saying: “One hand washes the other, and both come clean.” It describes the way we work with our partners. A nearby partner is also usually the quickest to help when something goes wrong – for example, when the coffee machine suddenly starts acting up in the middle of breakfast service.

Trust also extends to Lietsu’s employees, who are given the freedom to independently make the best decisions for each situation.

– From the very beginning, we have emphasised the importance of pulling together as a team. There are agreed guidelines for how we work, but everyone has the freedom to act within them according to what each situation requires. We also emphasise the importance of communication between employees. For our guests, this is reflected in the warm and genuine hospitality they experience, which is our greatest strength. Everything is done with care, as our authentic selves, without rehearsed lines. We deal with things there and then, as they arise, and make sure that tacit knowledge is documented and passed from one shift to the next. 

Most of the time, customer service is handled by Lietsu’s employees rather than the entrepreneurs themselves. With operations running around the clock, there is really no other option. Lietsu employs around ten people in total, equivalent to 7–8 full-time employees. Unusually for the industry, the company has also aimed to offer as many full-time, salaried positions as possible.

– Across the region and within our partner network, on the other hand, we are more visible in our role as entrepreneurs. The positive feedback we receive from our guests confirms that the quality of service at Lietsu does not depend on who happens to be working, Helena says with delight.

Personal hospitality 

Lietsu invests in quality and personal service despite the resources this requires. Basic processes such as digital check-in and PIN-code door locks have been automated, freeing up time from routine tasks that can instead be spent talking with guests and helping them.

– Direct bookings account for more than 70% of our bookings, and we have many regular business travellers, particularly during the winter season. We also receive a great deal of positive feedback in writing, which is not all that typical of Finns, who often tend to speak up when there is something to criticise. Recommendations that our guests share within their own networks are also extremely important for a small business. Sometimes you become blind to your own way of doing things, but based on our customer feedback, we have succeeded in turning Karelian hospitality into something guests genuinely experience – not just something we talk about.

According to Helena, Lietsu receives the most positive feedback for its Karelian breakfast featuring products from local producers, its homely atmosphere, and the cleanliness of its facilities.

– We receive a surprising number of gifts from our guests! Most recently, at the end of the summer, we received two pairs of hand-knitted woollen socks. These moments stay with you, and we think of our customers more as guests – people with whom we can pick up the conversation right where we left off last time. One particularly memorable encounter for me took place in 2021, when Folke West, a TV personality I remembered from my childhood, came to interview us for his new program. It was a very special day!

– Over the next couple of years, we will focus on growth and internationalisation with the support of ERDF project funding. We aim to make more effective use of the tour operator rights we acquired back in 2022, as well as our new meeting room for 20 people, which opened in August, Helena says of the company’s future plans.

At Lietsu, continuous development is at the very heart of the business.

Lietsu’s new meeting room. 

Lietsu nominated for Accommodation Company of the Year 

Lietsu is currently nominated for Accommodation Company of the Year at the Finnish Travel Gala.

The Finnish Travel Gala recognises tourism businesses that, despite economic and geopolitical challenges, have succeeded in their respective sectors or renewed their business operations in challenging circumstances. The winner will be selected based on an NPS survey, and voting is open until 31 August 2026 at https://nps.finnishtravelgala.fi.

Further information:

Helena Puhakka-Tarvainen, Head Lady, CEO
+358 50 541 7289, helena@lietsuhotel.fi

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Text: Katariina Eskelinen, Business Joensuu
Photos: Lietsu Boutique Aparthotel