Chandershekher Joshi

XLRI Jamshedpur

Sustainable Development in Hotel Industry
by Chandershekher Joshi “Customers’ green attitudes are, in general, significantly associated with their expressed intentions to visit a green hotel, to spread word-ofmouth about a green hotel, and to pay more for it.” -- International Journal of Hospitality Management “Eco-friendly hotels get higher consumer reviews than their non-green counterparts.” -- Travelocity

Executive Overview
Today, ‘Green’ or ‘Sustainable’ hotel becomes a buzz world in the Hotel industry. Hotel industry in recent past has come up with various sustainable development measures. These measures are from conserving water, waste management , energy saving to creating green room. The industry has integrated its business with Sustainable development approach in various functions supply These such as and Operations, procurement. Chain globally Hotel industry is adopting sustainable development approaches in the daily business.

The

goal of Sustainable Development is

clearly to secure economic development, social equity and environmental protection. As much as they could work in harmony these goals sometimes work against each other in our modern world. The rapid development of good living, travel and in general of the consumer society has often resulted in less

sustainable

approaches has benefited industry in terms of cost and brand. This research paper find out how

SD focuses on having a holistic approach to development economic.protection to the environment and to some groups of the world population.for more than a day in order for hotels to conserve water and reduce the use of detergent. taking social into and consideration environmental needs while avoiding over utilizing key natural resources. Hospitality or Hotel industry all over the world is leading in creating sustainable model for other industry. guests are recommended to keep their towels –sometimes their sheets. A significant global project is to engage the units to reduce waste as much as possible and to recycle it .should be encouraged. Currently. Ferocious search for profitability has not co-existed harmoniously with making the world a better place. Area of Sustainable Developments in Hotel industry Water As the hotel industry is a large consumer of water it is obvious that it should demonstrate its concern about this major problem. basis of human development but it should integrate as well its impact on the people and on the planet. Green roofs help conserve energy. Energy The installation of fluorescent lights throughout a hotel reduces energy consumption by thousands of dollars as does the replacement of windows. Governments usually encourage the efforts by giving grants or tax cuts. Waste There is an enormous amount of waste in the hotel industry and particularly in the food industry. in a lot of hotels. Their pay-back period is generally very good. New energies – wind. However there is a general consensus that it cannot go on for ever and those who are favored by life now feel responsible for those who have not had the same chance. Economic growth will always remain the worthwhile undertaking but one that sounds hypocritical as it appears to be as a cost saving exercise. Hotel companies should do whatever can be done to help develop clean energies. It is a Greenhouse Gas emissions (GHG) Hotels. solar . Not only these programs help save energy but they cut maintenance costs. using major quantities of energy.

engaging the procurement company and all suppliers in the same direction. When one adds the production of ink and toners to supply photocopy machines it is easy to realize the negative impact of such habits on the environment. Not only would it help the environment but it would also cut costs dramatically in the long term. however in the hotel industry it is the room product that captures the attention of the public Procurement The value chain of the hotel industry includes a major component which is procurement.produce major quantities of GHG. Paperless environment When one considers the quantity of paper that is used in a hotel one cannot but think of the destruction of trees and its impact on global warming. Every aspect of room construction and decoration can be addressed: flooring. It actually gives a great opportunity for the company to display its commitment to SD. air conditioning. Once the procurement company is . Clearly the process should not only consider the room but the whole property. This is true not only during construction but while running a hotel and a restaurant. furniture. textile and equipment. A company can make a pledge to offset carbon emissions by supporting an organization such as Climate Care. It can start with presenting as many green products as possible and encouraging vendors to reduce packaging and offer recyclable products. water usage. Moreover the procurement company should include Sustainable Development in its own strategy. Vendors involved in a hotel construction and renovation program should be made aware of the objective of the company. The measurement of the reduction of GHG emission is more visible when consolidated at company level. It should as well emphasize buying sustainable food only. electrical installation. Only the necessary printing of paper and strict use of recycled paper should be encouraged. wall-covering. In a computerized world it is evident that old habits should be discouraged. This activity will reveal how a sound hotel SD policy can have a ripple effect on other industries. Moreover the printing of paper is often totally useless and people often discard papers after a meeting or will not even look at them at a later point. Green Hotel Program – A new Concept In an industry where investment in the end product (rooms) is enormous it is significant to spend money wisely with a focus on the environment.

habitat and species protection and community connection. They encourage as well Social Responsibility through the Fairmont Hotels & Resorts Landfills and Incinerators . encouragement to use hybrid cars. resource conservation. It encourages all properties to individually search for environment initiatives. Industry Standards for ‘Green Hotel’ According to US green building council a ‘Green’ or ‘Sustainable’ Hotel will : • • • • Use 26% Less Energy Emit 33% Carbon Dioxide Use 30% Less Indoor Water Send 50%-75% less Solid Waste to the importance of Environment in 1990 and pioneered the Fairmont Green Partnership. Its main topics are waste reduction.involved in this mission it will encourage hoteliers to go yet further in their SD efforts. in order to minimize the impact of its hotels on the planet. etc. often in the countryside. The purchasing power of a procurement company is enormous and it will help reduce the unit price of sustainable products as they can be more expensive than non-sustainable products and it discourages hoteliers and • Green Buildings can also encourage the use of alternative transportation (walking. It should not however stop companies from considering Fair Trade as a great opportunity to improve their corporate social responsibility. purchasing policy. the company has officially recognized restaurateurs from buying SD products. low-emission. mass transit. be it minimization of pesticide on their golf course. Due to its history and its hotels locations. fuel-efficient or alternative fuel vehicles) World Wide Leading Hotels in Sustainable Development Fairmont Hotels & Resorts Fairmont is certainly the hotel company that has introduced Environment and Community Service earlier than others in its global strategy. A major endeavor for a procurement company is to include Fair Trade in its strategy enabling local suppliers to develop their business and helping poor countries to expand their economy.

charitable donations program that delivers grants which support Education and Youth development programs. Accor As of today Accor is the hotel company that is the most advanced in its SD approach. Biodiversity and architectural integration are another focus in stakeholders: Shareholders. the creation of a group-wide SD committee and the development of an exhaustive SD strategy. most recently the WTTC Tourism for Tomorrow 2006 award. A scorecard has been developed that checks Accor’s involvement throughout the world with all communities. suppliers. Kofi Annan. Through these programs Fairmont has received many accolades and awards. in January 1999 which is a commitment to follow strict guidelines in terms of Human rights. Environment and ecoefficiency start during the development phase of all projects. A SD purchasing charter was developed and distributed to suppliers to entice them to follow SD guidelines and involve them in a virtuous circle. For international and shareholder recognition Accor is listed in . member of the Management Board. waste and water consumption reduction. Employees. Environment and local the development of projects. Accor is not only focused on developing a group SD strategy but insists in reaching each and every one of its 170 000 employees through direct campaigns. Customers. Measurements are in place to show the energy.The company was one of the first ones to sign the Global Compact initiative launched by UN Secretary General. The Company uses internationally or nationally recognized certifications. Social services and Civic and community projects. Sustainable Development was officially embedded in the strategy of the company in 2002 with the appointment of a Director of Sustainable Development. It sends a strong message to all employees by published a short document highlighting conservation tips. and an environment guide for hotel managers to train their employees about all aspects of environmental protection. 30 hotels are now ISO 14001 certified and more certifications are in the pipeline. Environment and anticorruption initiatives. Health programs. It started as an Environment strategy in 1994 building a network of 53 environment correspondents throughout the world. Labor. In Canada its hotels are Audubon certified for eco-efficiency. That strategy encompasses all aspects of the concept. a comic book about environment conservation.

Hilton International (now bought by Hilton Corp) has started a program called We Care which is addressing mostly environmental issues and community service. FTSE4Good. The basis is there to make it the industry reference in the coming years. The company was the first in the industry to be awarded the EnergyStar award (US) for its involvement in reducing electrical energy consumption – fluorescent bulbs in all areas-. September 2006. The group will not only be the largest hotel company in the world but as well. water conservation – towel program-. A Senior Vice President Global Corporate Social Responsibility position was created in Their CSR is focused on four areas: Education programs Selected Healthcare programs Youth programs Civic affaires and Public policy.the major socially responsible investment indexes: DJSI World & Stoxx. recycling.Reuse – Recycle. It encourages its employees to be involved in various community services. They have included it in their balance scorecard system. Hilton Hilton Corporation has not yet embraced a holistic approach to Sustainable Development. Many actions geared toward social responsibility and environmental protections have been endorsed throughout the years by various divisions or hotels and coordination is now taking place. naturally. All components of SD have been addressed. Their Environment policies are based on a tagline: Reduce . ASPI and ESI indexes. It would be convenient to “brand” this strategy so that all could refer to it easily. Hilton Hotels . can become the most admired one. They communicate mostly on Corporate Social Responsibility concerns. (CSR) and Environment InterContinental Hotels Group IHG has evidently undergone a major shift toward a complete Sustainable Development strategy recently. Measurements will help demonstrate that the company walks the talk and a separate and comprehensive company SD report will position the company not as one of but as the hotel company that leads the industry.

Kimpton EarthCare: Their mission statement is the following: “To lead the hospitality industry in supporting a sustainable world. eco-friendly products and services”. with a twist of being specific to “boutique/hip hotels”. taste. One of these initiatives is the creation of an ecofriendly room at the Triton hotel in San Francisco designed to become a best practice for the company. sound. They created a fund to support all types of initial stage when it comes to measurements. to manage energy use and water conservation. environmental and social activities in which . It is very much involved in Sustainable Development and Environmental protection.Over 12. smell.Hotel Monaco Salt Lake City awarded the e2 environmental award .Galleria Park Hotel in San Francisco saved $4.000 from just changing Exit lighting to LEDs”. They have an exhaustive list of values all geared towards the happiness of their staff and customers: “epitomizing all senses: sight. However there are still at the Some of them are the following: .has developed an interesting program to help improve relationship between people: Be Hospitable Kimpton Hotels It has divided its operations into two distinctive divisions: Hotels and Restaurants. etc. high quality. to hire members of local communities and engage them in social responsibility. by continuing to deliver a premium guest experience through non-intrusive. Their environmental program is developed in the Holistic Environmental Management Program. Protection of flora and fauna.“Over $500. energy efficient lighting and motion sensors. eco-friendly paints. It offers amenity dispensers – to reduce packaging waste-. touch … and beyond”. their goals are: to reduce resource consumption and waste generation.000 in new revenue attributed to EarthCare . energy efficient mini-bars and air conditioning system. non-toxic environmentally safe products. Chicago . Six Senses SPAs Their purpose: “To create innovative and enriching experiences in a sustainable environment”.000 gallons of water at Hotel Allegro.Conserved over 103. Kimpton’s SD strategy is clear.000 gallons (over 360 bathtubs) of toxic cleaners removed from our water supply . Being generally located on tiny islands.

IND: Global Media. Houdre. Mannan. Sarah. International Journal of Contemporary Hospitality Management. Mumbai. At 170. 2009. Brody. and compared to similar buildings. 2008. New Trends in Tourism and Hotel Industry. ITC India ITC is leading hotel in India for sustainability development. p 191. .itcwelcomgroup. New York. New Gold Standard : 5 Leadership Principles for Creating a Legendary Customer Experience Courtesy of the RitzCarlton Hotel Company. Vinnie (Editor). Issue 5 : The Hospitality Industry in India. NY. p 224. Preserving the environment with the ECHO program (Environmentally Conscious Hospitality Operations) through eco-friendly guidelines to all hotels and associates through the “reducereuse-recycle” process”. Volume I. It has come up with Innovative designs. Latest Trends in Hotel Industry. Delhi. Volume 19.. That fund is then distributed to NGOs that care about the reforestation of the planet. Atul. p 364.05% of their total annual revenue.in them to the island produced. 2008. Encyclopaedia of Hospitality Management. Material resources and energy conservation steps in its various hotels . Derrick. p 4. One interesting idea is the Six Senses guest carbonneutral program through which clients are enticed to donate money to help compensate the emission of carbon dioxide (CO²) that the plane that brought Centre is the world’s largest 0% water discharge. September 2006 . Delhi. USA: McGraw-Hill Professional Publishing. Michelli. 2008. September 2002 GREEN HOTELS: Opportunities and Resources for Success ITC Group Website http://www. References Jauhari.000 sq feet. ITC Green . IND: Global Media. Joseph. Bradford. p 205. IND: Global Media. ITC is developing its hotel based on this building model and architecture. noncommercial Green building.A. 2007. Herve . B. Saxena. Sustainable Development in Hotel Industry Alexander. .they allocate 0. ITC Green Centre has a 30% smaller carbon footprint. Water efficient buildings. GBR: Emerald Group Publishing Ltd.

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