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What is This?
Abstract
A study of 571 business and leisure travelers examined the environmentally friendly attributes that guests seek in hotel
rooms. Using conjoint analysis of bundles of seven hotel room attributes, the study found that the most influential single
attribute on hotel room preference for this sample was green hotel certification (such as LEED). These respondents
were also supportive of rooms with a refillable shampoo dispenser, energy-efficient light bulbs, and towel and linen
reuse policies. Guests also appreciated the idea of a key card that would control all energy use in the room. Relatively
few respondents agreed that they would pay more to stay in a “green” room. The study included only respondents who
indicated a willingness to stay in green rooms and as such cannot be generalized. However, the study found few differences
between the preferences of the 284 business travelers and the 287 leisure travelers. Three findings differed from other
research outcomes in the weight ascribed to green certification, the preference for a shampoo dispenser, and lobby-based
recycling. The idea of an energy-controlling key card is also uncommon, but would represent a considerable retrofitting
expense for most hotels. While these findings are of interest, one limitation is that only seven attributes were studied,
and the inclusion of additional attributes—or more levels of the seven attributes—might alter the results. Nevertheless,
these findings give hoteliers information about preferences of a substantial number of guests who would consider staying
in a “green” hotel room.
Keywords
hotel guest preferences, green hotels, LEED standards, conjoint analysis
The traveling public clearly expects the hotel industry to purposes. In addition to incorporating green practices at the
pay attention to environmental concerns, and to operate sus- general property level, some hotels are now incorporating
tainably (Gustin and Weaver 1996). According to the 2008 them into the guest room. Typical green attributes found in
National Leisure Travel Monitor survey, 85 percent of lei- the guest room may include low-flow water fixtures and
sure travelers consider themselves environmentally con- linen reuse programs.
scious (Crocker 2008), and a separate study found that The problem for hoteliers who want to do the right
43 million U.S. travelers have expressed their concern for thing—both in terms of sustainability and in terms of profit
the environment (Vora 2007). In a survey conducted by considerations—is that the full dimensions of guests’ pref-
Deloitte, 34 percent of 1,155 business travelers surveyed erences for green attributes in hotel rooms remain unclear.
seek out hotels that are environmentally friendly and The scope of research about guests’ preferences for green
38 percent have researched green lodging facilities (Clausing hotel attributes is limited (Kasim 2004), and the few studies
2008). The 2009 North America Hotel Guest Satisfaction conducted in this area have focused on individual attributes,
study by J.D. Power and Associates reported that 66 percent such as a towel reuse program or energy-efficient lighting.
of hotel guests stated that they were aware of their hotel’s In this article, we address this issue by considering green
conservation efforts, compared with 57 percent in 2008. Of
these respondents, 72 percent said they participated in their
hotel’s conservation programs.
Mindful of these concerns, hoteliers have started incor- 1
University of San Francisco School of Management, California
2
porating sustainable practices into their daily operations. University of Nevada, Las Vegas
For example, some hotels have installed energy-efficient
Corresponding Author:
lighting, while others have taken more drastic steps by Michelle Millar, University of San Francisco School of Management, 2130
replacing inefficient HVAC systems, or by reusing gray Fulton Street, San Francisco, CA 94117
water drained from sinks and showers for landscaping Email: mmillar@usfca.edu
Exhibit 1:
Selected Environmentally Friendly Attributes and Attribute Level
also been used in the meetings and events industry (Hu and The levels for the second attribute, shampoo amenities,
Hiemstra 1996; Renaghan and Kay 1987), as well as those were the typical individual bottle and a refillable dispenser
of restaurant customers (Dube, Renaghan, and Miller 1994; in the guest bathroom. Controlled lighting is the third attri-
Koo, Tao, and Yeung 1999; Verma and Thompson 1996, bute, with level one being occupancy sensors in the room
1997; Verma, Thompson, and Louviere 1999). Perhaps the and level two being key cards that control all power to a
most prominent lodging industry application of conjoint room. Because lighting is such a large use of energy, the
analysis was the study by Wind et al. (1989) that helped presence or absence of energy-efficient light bulbs are the
Marriott Corporation design its Courtyard by Marriott levels for the fourth attribute.
brand. The fifth and sixth attributes involve towel and linen
The theoretical framework for traditional conjoint analy- policies. Level one of each is a towel or linen reuse pro-
sis lies in Lancaster’s (1966) theory of consumer demand. gram, and the other level is fresh towels or linens each day.
Lancaster (1971) argued that traditional demand theory The final attribute is the presence or absence of green certi-
only identified the effect of a change in price on the demand fication for the hotel.
for goods or services, but traditional theory provided no In summary, the tested attributes, each with two levels,
way of identifying the effect of changes in the physical were recycling policy (RP), shampoo amenities (SA), con-
properties (characteristics) of the goods on demand or pref- trolled lighting (CL), energy-efficient light bulbs (EEB),
erence. The idea of conjoint analysis is that since it is the towel policy (TP), linen policy (LP), and green certification
physical properties of goods that fulfill consumers’ needs (GC). In general, the manipulation of attributes is intended
and wants, consumers gain utility from the characteristics to have an environmentally friendly level and a more tradi-
of the good, not from the good itself. Thus, changing the tional, less green level. We note, however, that all attributes
physical properties of goods and services will similarly are currently provided in at least some hotels, and none are
change the utility to customers. This study was designed as totally unfamiliar to guests. The attributes and their corre-
a conjoint choice experiment by presenting potential travel- sponding levels are summarized in Exhibit 1.
ers with hypothetical scenarios that incorporated different
bundles of environmentally friendly room characteristics.
The travelers then rated their preference for each room Scenarios
incorporating (or failing to incorporate) these attributes. Similar to the Wind et al. (1989) study, we used the typical
The scenario with the highest rating represented the room conjoint analysis approach of presenting respondents with
with the most preferred attributes. twelve scenarios that they rated on a scale of 0 (not at all
preferred) to 10 (extremely preferred) (following, e.g.,
Hair et al. 2006; Orme 2006). Each scenario consisted of a
Selection of Attributes hypothetical hotel room that incorporated one or the other
We selected attributes to test both from the aforementioned level of the seven attributes. An example of a scenario is
studies (i.e., Kasim 2004; Watkins 1994) and from the shown in Exhibit 2.
results of a pilot study we conducted with hotel developers We used twelve scenarios to address a critical issue in
(Millar and Baloglu 2008). We tested two levels of seven conjoint analysis, namely, the number of scenarios that should
attributes. For the first attribute, recycling policy, the levels be included in the study. It would be impossible to ask respon-
were recycling bin in the guest room, or a recycling bin in dents to rate all scenarios containing all levels of all attri-
the hotel lobby. butes, since this full factorial design would mean 128 (27)
Exhibit 3: Exhibit 4:
Demographic Profile of Travelers Part-Worth Utility Scores for Each Attribute Level
Exhibit 5: Exhibit 6:
Relative Attribute Importance Scores Travelers’ Price Sensitivity toward a Green Hotel
create a label that is straightforward, easy to understand, shampoo dispensers to be unpopular (Kasim 2004; Watkins
and truthful, guests’ skepticism can be minimized. Such a 1994). Dispensers are common in Europe and Asia, but so
label could provide guests with a baseline idea of what a far have not been well received in the United States. Based
green hotel offers and what to expect when staying at one. on the travelers in this study, guests may be more open to
Green certification labels communicate a certain character- dispensers than previously thought. Perhaps hoteliers could
istic to guests, and, at the same time, educate them about the take advantage of this opportunity by experimenting with
green hotel industry. dispensers filled with, for example, a branded product to
The “green” certification is the only extrinsic attribute increase guests’ confidence about the dispenser. There is a
that we tested. The fact that it was accorded importance far cost savings too for use of dispensers because product waste
greater than the intrinsic factors—17.51 for business travel- is reduced and housekeeping staff does not need to replace
ers and 16.83 for leisure travelers—might point to guests’ the products daily. One hotelier that long ago installed dis-
desire to reduce the confusion regarding what sustainability pensers estimated savings exceeding $6,000 a year. (Burger
actually means. Given other studies on extrinsic attributes 2003).
(such as price and brand), we know that an extrinsic factor Our finding that hotel guests prefer recycling bins in the
such as green certification can potentially have consider- lobby also contradicts other studies (e.g., Kasim 2004; Watkins
able influence on travelers’ decision making. We cannot 1994). This finding also presents hoteliers with an opportu-
draw further conclusions here, because the relative role of nity. Rather than spend the money to put recycling bins in
extrinsic and intrinsic variables on the decision-making every room and ask guests to separate trash in their room, a
process for travelers is relatively untouched territory, espe- hotel can set up an efficient, centralized recycling center.
cially in relation to hotels. Understanding how important Given this outcome, we wished we had added two more
and influential these two types of attributes are can help levels to the recycling policy attribute—namely, hotel recy-
hoteliers to highlight specific hotel characteristics as part of cles in the back of the house, and hotel does not recycle. We
marketing campaigns. believe that we would have seen different preferences on this
That said, we see a green label as a blueprint for hoteliers attribute. Several large hotel properties separate trash and
to create and set standards for all hotels that want to be a recycle in the back of the house, thus eliminating the need
little friendlier to the environment. Even with LEED stan- for guests to do so in either their room or the hotel lobby.
dards, U.S.-based hotels have no uniform sustainability rat- The hotels communicate this information via posters in the
ing system (Withiam 2010). Despite much discussion about lobby, or literature in the hotel room. Had this option been
creating such a program for the industry, no industry-wide presented to the respondents in this study, it may have proven
action has been taken as of this writing. Even with such more popular than the bin in the lobby. In addition, some
standards in place, hoteliers would need to take care about hotels may not recycle at all. Since we did not present that
how they use a green certification in advertising materials option, we may not have a clear picture of the importance of
because the success of similar ecolabel programs in other recycling attributes, which is a limitation of this study.
industries has been mixed, including accusations of green- Contrary to results of previous research, the large major-
washing, which can be a deterrent to potential guests. ity of respondents in this study believed that a green hotel
Hotel guests are undoubtedly familiar with some of the room should not be priced differently than one that is not
attributes we tested, such as linen reuse programs and effi- green. We need further studies to resolve this controversy,
cient lighting, which are already widespread. We were not since a 2011 Cornell study found that a substantial number
surprised that our respondents indicated preference for of guests would pay more for sustainable rooms (Susskind
those attributes. The use of occupancy sensors or key cards, and Verma 2011). In any event, hoteliers need to under-
however, is thus far relatively uncommon to the hotel indus- stand that guests have a perception that a green hotel costs
try. It is understandable that guests would most prefer the more to stay at than a nongreen hotel. If so, that perception
key card because that gives them control over their room, may be driving potential guests away from sustainable
which is hardly the case for occupancy sensors (which hotels. A successful green hotelier will recognize this and
sometimes have a life of their own). From management’s price rooms accordingly and competitively. Although we
perspective, though, installing occupancy sensors might be have found that most guests do not wish to pay more for a
a much easier and economical retrofit than key cards. green room, some guests are willing to do so. Business trav-
Although key cards were preferred over occupancy sensors, elers in our study were more likely to agree to pay higher
that is not to say that guests would not accept the sensors in “green” rates than leisure travelers were. Because business
a hotel room. travelers typically do not pay for their own accommoda-
Our respondents’ preference for the shampoo dispenser tions, they may be less sensitive to price than the leisure
over individual bottles is unexpected, especially since two traveler, thus explaining the willingness to pay more. The
earlier studies (which assessed importance of individual travelers willing to pay less for the green room may believe
attributes rather than bundles of attributes) found refillable that many green attributes also represent cost-saving
measures for the hotelier—cost savings that could be passed customers may indicate that they want some sort of certifi-
on to the hotel guest. cation, the type and influence of different certification
Finally, our study found relatively similar support for labels is virtually unknown in the hospitality industry.
environmental attributes among business and leisure travel- Future research that seeks understanding of the green
ers, contrary to claims that business travelers might have hotel consumer and the green hotelier should also assess
more concern for the environment than do leisure travelers. environmental attitudes, personal values, and how they may
The results of this study, at least for hotels offering an envi- influence green hotel preferences or green hotel operations.
ronmentally friendly product, suggest that hoteliers do not In addition, future studies could focus on the effect of green
need to differentiate between the two types of travelers hotel attributes on actual hotel selection, as well as guest
when marketing their green product. Instead, they may tar- satisfaction.
get both groups with similar campaigns. Perhaps not all
travelers will respond, but a substantial portion of both
groups will be attracted by green policies, or at least the Limitations
environmentally friendly room attributes. One of the most difficult tasks involved with conjoint
studies is selecting the attributes used in each scenario or
profile. Although measures were taken to ensure that the
Implications for Future Research chosen attributes were realistic and important, the list was
Despite the fact that hotels have begun incorporating green not exhaustive. Many attributes that pertain to the décor of
policies into their management practices, and despite the a room (e.g., organic linens, or chemical-free paint) and to
belief that hotel guests seek such policies, there is a dearth a hotel property as a whole (e.g., efficient heating, ventila-
of research about this subject. As a result, we see many tion, and cooling systems, or reclaimed water systems)
opportunities for future studies. One possibility is to see might be of importance to some hotel guests but were not
how these results differed from similar studies conducted incorporated into the study. In addition, the scenarios may
for specific hotel chain-scale categories (e.g., economy have had some attributes that were unfamiliar to the
versus upscale), food and beverage establishments, and the respondents.
meetings and event industry. Another is to gain a better We know that guests use more than just seven attributes
understanding of the supply side of green hotel attributes, in deciding which hotel to book. The problem for this study
such as what hotel management thinks about environmen- is that including more attributes in the scenarios would
tally friendly hotels, to what extent they are incorporating have invited information overload (Green and Srinivasan
environmental policies into their company culture, and why. 1978; Hu and Hiemstra 1996). We limited the number of
The same type of research with the employees of a lodging attributes and attribute levels to avoid information over-
facility would also prove interesting. load, but then again we may have oversimplified the
Although there are a number of green attributes that picture.
were not included in this study, the ones that were included Social desirability bias also presents a potential limita-
provide future researchers with a preliminary list that can be tion (Ones, Viswesvaran, and Reiss 1996) Even though
used to validate other research efforts. We have already anonymity was assured during the survey process, it is pos-
mentioned other levels of one attribute we studied, and sible that participants responded in the way they thought
many other attributes could be incorporated into a study of they should, as opposed to responding with their true
how other attributes, both individually and as a bundle, and beliefs. We attempted to reduce the potential effect of social
both green and not, may influence preference for a hotel. desirability bias by asking respondents what types of envi-
The only conclusion we can draw about pricing for green ronmentally friendly activities they perform at home.
hotels is that there remains no clear formula for computing Responses showed a large variance, and so we conclude
different price levels. We had no way to include specific that respondents were most likely not answering in a socially
price levels in the scenarios that we tested. In addition, price desirable fashion.
will vary with different hotel types (e.g., luxury vs. mid- Last, as we mentioned at the outset, the sample included
scale). More research in the hotel industry will clarify how only business and leisure travelers who indicated that they
price may influence a traveler’s preference for an environ- were willing to stay in an environmentally friendly lodging
mentally friendly hotel. facility. This limits the extent to which the results can be
Green hotel certification has been a relatively untouched generalized to the entire population of business and leisure
research topic, so it is difficult to compare the results of this travelers. Even though some travelers may not be willing
study with others. It is encouraging, however, that these to stay in such a hotel, it does not mean that they do not
travelers wish to see this certification. The role of such have pertinent opinions about the type of attributes that may
labels in hospitality needs to be explored further. Although be incorporated into an environmentally friendly hotel.
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Renaghan, L., and M. Kay. 1987. What meeting planners want: Michelle Millar, Ph.D., is an assistant professor at the University
The conjoint-analysis approach. Cornell Hotel and Restaurant of San Francisco School of Management (mmillar@usfca.edu).
Administration Quarterly 28 (1): 66-76. Seyhmus Baloglu, Ph.D., is professor and associate dean for
Spittler, R., and U. Haak. 2001. Quality analysis of tourism eco- research in the tourism and convention administration depart-
labels. In Tourism ecolabelling: certification and promotion ment at the William F. Harrah College of Hotel Administration
of sustainable development, ed. X. Font and R. C. Buckley. at the University of Nevada, Las Vegas (Seyhmus.baloglu@unlv
Wallingford: CABI, 213-45. .edu).