This research aims to explore the benefits that hotels can gain from embracing sustainability practices. The global issue of global warming poses a significant risk to both humanity and the planet, prompting environmental activists to urge corporations and businesses, including hotels, to make environmentally conscious choices. As a result, many hotels have joined the growing trend of adopting green technologies and implementing sustainable strategies, which undoubtedly provide advantages for these establishments. However, it is important to recognize that each action has its own set of pros and cons.
This study aims to examine the pros and cons of hotels implementing environmentally friendly practices. While numerous factors need to be taken into account, this report will concentrate on key aspects such as compact-fluorescent lamps, the World Tourism Organisation, and Leadership in Energy and Environmental Design. The Advantages Of Hotels Embracing Sustainability. The tourism sector plays a crucial role in the worldwide economy, serving as a significant source of income for numerous nations (UNWTO 2010).
This clearly shows the global importance of tourism. However, the large and increasing size of tourism has had significant negative impacts on the environment (Theobald, 1998; Bohdanowicz, 2005; Dodds, 2005; Graci, 2008). Immanuel William (2011) states that the hotel industry is widely recognized as one of the most wasteful industries globally. The severity of the environmental damage caused by hotels has prompted many hotel associations to promote sustainable practices.
Hotel Associations such as the International Hotel and Restaurant Association and the American Hotel and Lodging Association have established standards for hotels to promote eco-tourism and embrace environmentally-friendly practices (Bohdanowicz, 2005). The increasing awareness of global warming has resulted in a projection that one of the major luxury hotel trends in 2011 will involve implementing eco-friendly initiatives. This trend is driven by consumers’ growing environmental consciousness (Melanie Nayer, 2011; Han, Hsu, & Sheu, 2010; Manaktola & Jauhari, 2007).
Large hotel chains like The Inter-Continental Hotels Group and Fairmont Hotels and Resorts have integrated eco-friendly technologies into their operations. These include energy-saving light bulbs and waste-reducing machines. Their goal is to decrease operating costs while also contributing to environmental conservation. However, despite the well-established long-term benefits of adopting sustainable practices in hotels (Kirk, 1995; Rivera, 2002a, 2002b; WWF IBLF, 2002; Graci, 2002; Gossling,2005; Bohdanowicz, 2005; Green Lodging News, 2008), many global hoteliers still do not prioritize being environmentally friendly.
The lack of effective communication and understanding about the advantages and importance of adopting green practices in the industry may be the reason why the entire industry is not fully embracing it (Dodds, Graci, 2008). Hence, the purpose of this paper is to analyze and utilize various best practices to compare and explain the obstacles and benefits associated with green hotel development. The aim is to educate readers and provide them with an understanding of the advantages of going green. Cost Control Ensuring cost control is crucial for any business, including the hotel industry.
Multiple studies have shown that implementing eco-friendly practices is a cost-effective approach (Brown, 1994; Brown, 1996; Kirk, 1996; Cheyne and Barne, 2001; Essex and Hobson, 2001; Rivera, 2001, 2002b; Lynes and Dredge, 2003; Brebbia and Pineda, 2004; Gonzalez-Benito and Gonzalez-Benito, 2005). Thanks to advancements in technology,
it is now possible to adopt green initiatives while simultaneously saving money. For example,
compact-fluorescent lamps (CFLs) use three-quarters less energy than incandescent lamps
and have a lifespan that is ten times longer. Consequently,
these savings amount to approximately $25 over the lifetime of a CFL (Pennsylvania Department of Environmental Protection, 2008).
Considering the number of lamps in a hotel, this figure could accumulate to a large amount and greatly reduce the hotel’s operating cost (Ong, 2011). Implementing towel-rack hangers and sheet-changing cards that promote towel and sheet reuse programs can help hotels save up to $6.50 per occupied room per day (Association for Linen Management, 2008). Therefore, these examples demonstrate how the use of green technologies can effectively decrease costs. Many hotels have also reported positive cost control outcomes as a result of adopting environmentally friendly practices.
Cristal Hotel Abu Dhabi has implemented various green initiatives such as using CFLs, turning off electrical appliances when not in use, and closely monitoring the hotel’s water temperature to reduce the load on the compressor. These efforts have proven to be successful as the hotel’s energy usage only increased by 9 percent, despite a 26 percent increase in occupancy rate from 2009 to 2010 (Cristal Hotel Abu Dhabi, 2011). Similarly, the Holiday Inn in North Vancouver, British Columbia has also seen benefits from adopting sustainable practices, including the implementation of a room energy management system. This has resulted in a 28 percent reduction in energy usage and annual savings of approximately USD $16,000 (Green Lodging News, 2008).
Walt Disney World Village, Hilton Hotel, saved $4,800 in garbage collection fees by implementing a recycling activity (Sherman, 1994). Beginning in 1999, La Cabana All Suite Beach Resort in Aruba has been committed to green initiatives. The employees of La Cabana periodically clean the beach to remove garbage. Additionally, the hotel implemented a recycling program in 2004 and recycled over 90,000 kilograms of bottles and cans (Frank Sabajo, 2005). By adopting energy-saving technologies such as energy-saving light bulbs, La Cabana has saved over $585,000 in electricity costs (Frank Sabajo, 2005).
Despite the positive financial situation observed in these hotels, there is still resistance from many hoteliers to adopt environmentally friendly practices. There are various reasons for this reluctance. A study carried out by Lewis (2008) revealed that managers’ willingness to engage in green initiatives decreases during economic recessions. This may be due to the common perception that green practices are seen as an additional expense that can be afforded in times of abundance but can be discarded during difficult times (Taylor, 2007). In addition to this, the main barrier to embracing green practices is the perceived high cost of investment (Vernon, 2003).
Despite the well-known benefit of cost savings associated with going green, there are still many managers who hold a different belief (Tzschentke, 2008). According to Tzschentke (2008), these managers believe that the high fees required for practices such as environmental auditing, impact evaluation, and official recognition are the reason behind their perspective. Additionally, Ghobadian’s research in 1995 found that many corporations prioritize short-term profits over long-term returns. However, Kirk (1995) challenges these statements by suggesting that high investment costs are not always necessary when implementing green programs and policies.
Simple and low cost green activities can be carried out by hoteliers to contribute to the environment (Kirk, 1995). All corporations prioritize profits and aim to remain in business for a long time. Thus, long-term planning is necessary. The financial advantages of adopting sustainable practices often outweigh the initial investment cost. Numerous hoteliers have demonstrated that going green not only saves money but also brings environmental benefits. However, the main challenge now may not be the cost but rather the differing opinions and perspectives of managers.
The green movement has clear advantages, as it can provide hoteliers with a significant return on investment (Ong, 2011). Additionally, employees benefit from working in a greener environment, which results in increased productivity. The Harvard Business Review (2010) conducted research that confirms productivity improvements ranging from 2 to 15 percent for employees in LEED Certified workplaces.
The Green Workplace survey conducted by the Society for Human Resource Management (SHRM) in 2008 demonstrated that implementing environmentally responsible programs can positively impact employee morale, loyalty, productivity, and retention. The findings of the survey showed a 44% increase in employee morale, a 16% rise in employee loyalty, a 6% boost in workforce productivity, and a 3% improvement in employee retention as a result of these programs. Moreover, the survey indicated that 61% of employees are “very likely” or “likely” to stay with a company that implements green programs because of its environmental commitments (SHRM, 2008).
Gerlinde Herrmann (2008) argues that younger generations are increasingly considering environmental initiatives when choosing where to work (Green Workplace, 2008). Fairmont Hotels is a prime example of a company that has gained employee loyalty by prioritizing green practices. By implementing environmentally responsible programs, Fairmont Hotels has successfully fostered employee loyalty through its commitment to sustainability (Reid, 2006). The introduction of the incentive-based green program called “Seeing the Forest AND the Trees” has motivated Fairmont Hotels chains to proactively participate in the green movement (Reid, 2006).
The success of this program is attributed to the efforts of the employees (Reid, 2006). According to Reid (2006), 90 percent of Fairmont’s employees supported the green programs and projects. However, there are still challenges in achieving the benefits of the green movement, as some hotel employees may lack interest or have a different perspective on environmental practices (Leondakis, 2009).
Communication breakdown and poor monitoring can have negative consequences for green practices and programs. In addition, a lack of employee support can also impact corporations negatively (Baker, 2009). To ensure the smooth implementation of green initiatives, Allen (2006) suggests the importance of clearly communicating green policies and mentality to employees right from the start. Furthermore, supervisors and top management should lead by example in initiating green movements to minimize the likelihood of failure (Allen, 2006; Ong, 2011).
The act of going green does not guarantee that an organization will see improvements in employees’ loyalty, retention, and morale. The methods, techniques, and strategies implemented by management play a significant role in achieving and maintaining employee loyalty. Proper strategies can lead to a more dedicated workforce and a better working environment through the green movement. Fairmont Hotels & Resorts serves as an example of how loyalty among employees can be achieved through going green. In the hospitality industry, employees are considered valuable assets.
Therefore, one of the main reasons why hospitality firms should move towards an environmentally friendly direction is the intangible benefit of going green (Ong, 2011). The attitudes and behavior of customers are constantly changing over the years. It is worth questioning whether the green movement generates more consumption. According to Coddington (1990), it has been stated that since the early 1990s, 83 percent of Americans have started practicing green habits and 67 percent of them were willing to pay 5 to 10 percent more for green products. However, the low market share of green products proved otherwise (Wong, Turner & Stoneman, 1996).
UK surveys have shown that the number of people consuming green products has only increased slightly, while their reluctance to purchase these products has increased as well (Mintel, 1991, 1995). According to Barnes (2007), customers who are environmentally conscious understand that green products are more expensive but are more willing to spend money on them. This is supported by research conducted by Baker (1996) and Tynan (2009), which found that many consumers actively seek out green hotels and are willing to pay a higher price to support the environmental movement.
According to the J. D. Power and Associates’ 2007 North America Hotel Guest Satisfaction Study, 75 percent of hotel guests are willing to participate in green activities at their hotel (Butler, 2008). A separate study conducted by the International Hotels Environment Initiative and Accor found that 90 percent of hotel guests prefer to stay in hotels with green programs (Mensah, 2004). However, Barsky (2008) remains skeptical about whether consumers truly prioritize hotel green practices, programs, and policies.
According to Barsky (2008), there are uncertainties about the impact of going green on hotel choice and willingness to pay more. To address these doubts, Barsky conducted a survey. The results revealed that guests with higher spending power are less concerned about the price of green products, whereas those with tighter budgets consider green programs less significant. Ultimately, Barsky concluded that price remains the decisive factor for many consumers, and they are still hesitant to pay more to support the green movement.
According to Butler (2008), many hotel companies are eagerly awaiting solid evidence that shows a growing demand for green products and that implementing environmental practices will result in lower operating costs. However, Silano (1997) argues that consumers often perceive the use of green products as a compromise in terms of service and standards, believing that hotels are simply trying to cut costs. On the other hand, Kirk (1995) suggests that hotel guests prioritize satisfaction and enjoyment, such as having a high-pressure shower and an ample supply of towels.
This led some small business owners to believe that engaging in green activities, such as reusing towels, using recycled paper, and installing soap dispensers, could potentially diminish the service quality provided to guests. These owners feared that this decrease in service standards would hinder their ability to deliver an exceptional guest experience (Getz and Carlsen, 2000; Tzschentke, 2008). However, Kirk (1990) argued that incorporating green practices can coexist with providing a good experience as long as the quality of service is not compromised and there is mutual agreement between guests and management.
This perspective by certain hotel owners and guests may be the reason why many hoteliers are hesitant to adopt environmentally friendly practices (Vernon, 2003). Customers have varied attitudes, perspectives, and behaviors, making the issue of going green subjective. However, Ong (2011) argues that the growing focus on creating an environmentally friendly world will gradually alter the viewpoint of both hotel owners and guests. As public awareness of green issues strengthens, the demand for eco-friendly products will eventually rise. This will compel more hotels to adopt green practices in order to stay competitive.
According to Ong (2011), it is important for hotels to prioritize green issues over price, as the majority of hotel owners will benefit financially when there is a higher demand for green products. A good corporate image and reputation are crucial for hotels, as they are often linked to competitive advantage. Research has shown that having an environmental image can bring various benefits, such as meeting green demands, increasing revenue, and gaining a competitive edge (Hu and Wall, 2005; Corrigan, 1996; Chen et al. 2006; Porter and van der Linde, 1995; Chen, 2008, 2010). Improving competitive advantage can lead to increased price premiums, market share, corporate reputation, productivity, and employee loyalty (Descano and Gentry, 1999; Bansal and Roth, 2000; Rivera, 2001). In a survey conducted by Penny (2007) among hotel managers in Macau regarding green issues, 65% of respondents agreed that implementing green programs can enhance a hotel’s reputation and competitiveness.
Many international hotels are now adopting environmentally friendly practices in order to attract different target markets and gain a competitive edge (Bohdanowicz & Zientara, 2008). One specific example is the Six Senses Resort in Thailand, which donated 0.5 percent of its revenues to a Social and Environmental Responsibility Fund, positively impacting their company’s image (Ernst and Young, 2008). Another successful case is Fairmont Hotels and Resorts, which is renowned for its environmental initiatives and has effectively projected a positive corporate image through its green practices (Ong, 2011).
Past studies have shown that company reputation has a significant impact on customer satisfaction and loyalty (Abdullah et al., 2000; Zins, 2001; Park et al., 2004; Chang and Tu, 2005; Martenson, 2007). According to research conducted by Chang and Fong (2010), the results demonstrated that a positive corporate image ultimately leads to increased customer satisfaction and loyalty. However, Helena (2008) argues that the perceived lower quality of green products poses a challenge in adopting eco-friendly practices.
This has resulted in many hospitality firms hesitating to adopt environmentally friendly practices because they are worried that these products could harm their hotel’s reputation (Helena, 2008; Ong, 2011). However, it is clear that moving towards sustainability can enhance a company’s corporate image, which is an invaluable asset. Based on research and studies, a positive corporate image brings more benefits than drawbacks. As a result, Ong (2011) argues that obtaining a favorable corporate image is one of the key advantages that a hotel can gain from implementing environmental initiatives. In conclusion,
The clear signs of global warming, including climate change and natural disasters, highlight the vulnerability of our planet. Consequently, environmental organizations are vigorously promoting practices and initiatives that are kind to the environment. Numerous studies and examples have shown that adopting eco-friendly practices in hotels brings various advantages such as lower costs, improved employee loyalty, retention, morale, and productivity, customer retention, and a stronger corporate image.
Despite the widespread knowledge of the advantages of adopting environmentally friendly practices and the growing recognition of environmental concerns, some hoteliers have not taken sufficient measures to contribute to the green movement. This is evident in conflicting surveys and studies which have demonstrated the insufficient implementation of practical green initiatives by hotel owners. Overall, the discrepancy between awareness and action can be attributed to various factors, including customer perceptions, sensitivity to prices, attitudes of managers, and lack of knowledge.
To address these obstacles, government entities should intervene and back green initiatives, as well as smaller companies, considering the government’s significant impact and financial resources. Ultimately, the primary objective of businesses is to generate profit, and numerous hotel owners remain unsure if embracing environmental practices is a worthwhile investment. Consequently, if corporations receive funding to promote sustainability efforts, there would undoubtedly be a rise in the number of hoteliers adopting eco-friendly practices, as such funding would diminish their initial investment expenses.
Instead of focusing only on short-term profit, hoteliers should consider the numerous long-term benefits of adopting environmentally-friendly practices. These benefits are invaluable and cannot be compared. It is crucial for hoteliers to think about future generations and the environment by embracing green initiatives. Since global warming affects the entire world, it is essential for humanity to unite and work together to address this global problem.
References
Abu Dhabi City Guide. (2011, January 24). Cristal Hotel Leads Abu Dhabi Hospitality Sector’s ‘Green’ Advocacy – Abu Dhabi City Guide. Retrieved February 15, 2011, from Abu Dhabi City Guide Web site: http://www.abudhabicityguide.com/news/news-details.asp?newsid=6482&newstype=Local%20News
Aker, J. M. (2008). Please Do Not Disturb (the Environment): Greening Your Hotel. Buildings, 102(3), 56-59.
Baugh, P. (2010, October 19). Taking “Going Green” to the Bank. Retrieved February 15, 2011, from CallSource Web site:
