Sustainability in the Hotel Industry - Case Study Example

Sustainability in the Hotel Industry Executive Summary Hotel and tourism industry has been experiencing a huge growth and potential I the recent years and it is estimated that about 1.1 million people are expected to travel across the globe by 2020. And with the growth of tourism and hotel industry the need to survive in the competitive market also becomes tough and to achieve a competitive advantage by hotels it has become extremely necessary to think beyond the 4 Ps and concentrate on the issue of sustainability. This is especially true for hotels as the impact of carbon foot print is higher in case of hotels than other industries. And as a result, hotels are implementing environmental sustainability to reduce the carbon footprint, reduce electricity usage, water consumption and waste reduction. This paper also talks about the environmental sustainability of hotel mainly Holiday Inn a part of InterContinental Hotel Groups and also the largest chain of hotels globally. it talks about the environmental sustainability practiced by Holiday inn in various place and locations and the benefit that the hotel has experienced through implementing the sustainability program. Holiday Inn has also received awards for environmental sustainability and also received a green lodging certificate. Thus the paper aims to state the importance of gong green in the competitive environment and the benefits that the company can enhance from implementing the practice and techniques of going green. Contents Executive Summary 2 Contents 3 Introduction 4 Body 5 Need of Going Green 5 Green policy & Green Lodging 7 Holiday Inn Goes Green 8 Holiday Inn Gaithersburg 8 Holiday Inn Brisbane 9 Holiday Inn Norwich 10 Benefits of Hotels Going Green 11 Conclusion 12 Reference 13 Bibliography 14 Introduction The tourism sector is recognized as one of the largest industries globally and continues to expand rapidly. According to UNWTO, in 2008 about 922 million people travelled and it is estimated that international tourism will experience a growth of 1.1 billion by 2020. The tourism industry is among the profitable economic industry. However the tourism industry is also accompanied by negative social and environmental impacts. Some of the negative impact includes revenue leakage, air, water and noise pollution, degradation as well as depletion of natural resources, loss of biodiversity and other factors. The hotel industry forms an integral part of the tourism industry and if it is not managed properly could cause detrimental to the natural and social environment. Thus to reduce the impact, hotels are adopting the “go green” initiative. Until recently the hotel industry has been unaware of the environmental damage that it posed to the environment due to its operations and services. However the last two decades have bought about tremendous change and created awareness among the public and in the development of “green consumerism”. Therefore to achieve greater environmental responsibility, hotel industries are implementing the relevant strategies and tools. The hoteliers are aware that it is essential to protect the environment where it does its business and are crucial towards the development and performance of the industry. According to reports by Bohdanowicz et al. there exist a huge number of examples which shows the development of pro-ecological initiatives.1 With continuous growth in environmental degradation, society has become aware of the needs for adopting more effective measure towards protection of the environment. Sustainable development has therefore become vital priority as well challenge in the competitive environment. The sustainability issue should be addressed at all the levels ranging from the policy makers, industry, academia, and the general public and other stakeholders. The global tourism industry is expected to grow at a rate of 2.8% in 2012 and will represent 9% of the global GDP. The hotel and tourism industry is expected to contribute about $10 trillion to the growth of global economy by 2022 and generate 32 million jobs. 2 The paper deals with the sustainable business approach by Holiday Inn and aims to focus on the ecology sustainable development. Holiday Inn is a part of InterContinental Hotel Groups and belongs to the largest chains of hotels. The hotel believes that it can make a difference by doing the right thing and thus it has taken initiative to help the environment and reduce the usage of energy at the hotels.3 Body Need of Going Green According to studies economic benefits can be gained by hotels by implementing initiatives with regards to environmental and social factors. Implementation of Environmental sustainability strategy can benefit the hotel industry to a large extent. Some of the benefits such as gaining competitive advantage, employee retention, customer loyalty, risk management, increased brand value, awards and recognition and most importantly it’s the right thing to do. The hotel industry has been pursuing green practices since 1990s as with fluctuation in the economic level along with strong focus on the need of the customer service. The final result of implementing the strategies is a win-win situation which helps hotel to reduce the cost of operation and environmental impacts.4 One of the benefits of implementing the environmental sustainable strategies is cost savings. Hotel operators are able to reduce waste and maximize the efficiency and become more cost effective as compared to the competitors. A hotel can reduce energy consumption by about 20% to 40%. Holiday Inn in Toronto is reported to save Cdn $14,852 per annum due to the installation of low flow showerheads and also faucet aerators. 5 Holiday Inn in North Vancouver has also managed to save USD $ 16,000 per year and has reduced energy consumption by 28%. 6 Going green is a way of reaching the bottom line directly as measures related to energy savings are introduced by hotels and includes options such as energy management system, ceilings fans, fluorescent bulb, light out cards, linen cards, motion sensor for rest rooms, exercise room, meeting rooms and as a result the energy bills are reduced to a large extent. Water saving equipments such as low flow showerheads, serving water only on request, low flow toilets which reduces water bills. In addition to energy and water, waste hauling is also one of the huge expenses borne by hotels which can be reduced through recycling and avoiding the waste packaged products. Thus being green refers to a healthier environment with healthy staff, guest and the management. Green hotels are environmental friendly and the term “green hotels” describes hotels that aim and strive to become environmental friendly by utilizing efficient water, energy and materials and at the same time providing with quality services. The green hotels preserve and conserve by reducing use of energy, saving water and by reducing solid waste.7 As a result hotels are constantly becoming greener and Holiday Inn has also been regarded as one among the green hotels. Green policy & Green Lodging The hotel has recognized the impact of the business towards the environment and is committed to conduct business which would enhance the environmental sustainability. Holiday Inn is the members of Green Engage, operated by the Intercontinental Hotel Group. The program aims to reduce the carbon footprint by monitoring the use of electricity, water and waste material produced. At holiday Inn every staff is made to remember to refuse, reuse, recycle and reduce. Some of the going green initiative undertaken by Holiday Inn in various locations is described in the paragraphs below. Each and every lodging property has taken steps to reduce its carbon footprint and in return increase its green quotient. New properties have the opportunity to go green through effective energy design. Old properties can also incorporate green practices. The main benefit of going green is that company can start up with simple actions and build up with the business. The importance of going green has increased drastically as compared to previous years as with a rise in global warming, loss of natural resources need to go green is much more important an ever.8 Holiday Inn Goes Green Holiday Inn Express of Holland has received partner certification from the Michigan Department of Energy, labor and economic growth for Green Lodging. This accreditation is received by those hotels which are committed towards green practices making environmental and economic goals the top priority. Holiday Inn Express of Holland has taken various environmental initiatives to ensure effective use of resources. The hotel had towel and linen reuse program and also used low flow fixtures to control and conserve water. The hotel had reduced the waste through recycling and worked with the vendors which have helped it to reduce packaging. To improve energy Holiday Inn had installed energy star lighting equipment and also recently conducted energy audit to identify the energy conservation options. On this achievement the general manager of Holiday Inn stated that the Green lodging certification gave the hotel the opportunity to access the resources which were necessary to achieve sustainability and maintain new partnership in the industry. The program of going green had also encouraged the hotel staff and its guest to take the smallest step in order to become environmental responsible.9 Holiday Inn Gaithersburg The hotel situated in Gaithersburg has received an Environmental Award and is proud to be leader in taking the initiative if greening the hotel industry. In the process of sustainable practice, the hotel primarily focused on recycling and conservation through consumption reduction and waste reduction. Each of the guestroom and the public space were provided with recycling receptacles to dispose of plastic, paper glass and aluminum; the management of the hotel ensures that all the light bulbs, electronic equipment and batteries are recycled; the hotel also provides recycling bins in specific area such as back of house to recycle the materials. In terms of conservation, consumption reduction, the house keeping team ensures that all the lights and televisions in the guest rooms are turned off; it has installed low flow water devices in toilets, faucets, shower heads and urinals. In addition due low occupancy period the hotel shut downs certain wings and floors to save electricity. In terms of conservation in waste reduction, the hotel has implemented towel and linen reuse program. In addition the hotel has replaced windows and frame in order to improve energy efficiency, to reduce the usage of electricity the hotel has installed fluorescents bulbs. Holiday Inn also improved the water flow by adding 1.0gallon of low flow toilets in the guest room.10 Holiday Inn Brisbane The Holiday Inn located in Brisbane has also received an award for the best environmental practice in the year 2009 and received award for excellence. According to the management responsible business are no longer adjunct to economic sustainability and better returns. The environmental movements that the hotel has engineered are a commitment towards responsible business and takes into consideration safe work methods and the protocols. Holiday Inn in Brisbane believes in action when it is about environmental practices. The hotel has managed to achieve and maintain a status of bronze benchmarking in collaboration with EC3 Green globe program and is also audited in a regular basis. The holiday Inn Brisbane is among the few hotels which boast a status of Green Globe status. Green Globe is defined as a global travel and tourism industries which conducts certification program for sustainable tourism. The members of Green Globe saves energy as well as water resources reduce the operational cost; contribute to the local communities and the environment. In order to meet the set standard of Green Globe, the Holiday Inn in Brisbane uses recycled toilet paper in all the guest room, uses 98% of bio degradable pesticides though out the property. In addition introduced a range of bathroom amenities made from corn starch which is 100% bio degradable. The team members of the hotel are the major contributor towards the green credibility and also has a sustainability committee to discuss innovate and creative strategies and reduce eco footprint and make it more sustainable. The sustainable committee works to generate awareness with respect to energy consumption and encourages the guest to switch off lights and appliance when not in use. The hotel has switched from bottled water to re usable bottles. Holiday Inn Brisbane is committed towards the environment and ensures a comfortable stay of guests each year. 11 Holiday Inn Norwich Holiday Inn based on Norwich has also adopted the environmental sustainability through recycling and conservation through consumption reduction and waste reduction. Similar to the technique used by Holiday Inn in Gaithersburg, the hotel based in Norwich also provides recycling receptacles. The house keeping unit at Norwich recycles soap, shampoo and also conditioner by participating in program named Clean the World. Holiday inn purchases recycled paper for both public areas and guest room. All the key cards of the guest are of materials which can be recycled and also ensures that battery, bulbs and other electronic equipment are recycled properly. To ensure conservation-consumption reduction, the house keeping unit make sure all the televisions and lights are turned off, compact fluorescent are installed, to control over waste the hotel in Norwich similar to the strategies adopted in Gaithersburg has encouraged re use of towel and linen in all the rooms apart from other strategies to reduce waste. 12 Benefits of Hotels Going Green Business and industries which implements the green practices has the opportunity to increase the triple bottom line approach which means increase the environmental, social and economic success for the people, the planet and profit. Energy efficient practices and product save money for the company and also helps in saving the planet. Another benefit of going green and green lodging is to meet up to the consumers demand and also increase satisfaction. Consumers are now interested in green tourism and green lifestyle which generates higher demand for environmental sustainability. By gong green organization has the opportunity to stay ahead from the competitors as it enhances the cost competitive advantage as it is the focus for most of the business and consumers also prefers green and sustainable environment, green revenue growth and green entrepreneurship. 13. The brand Holiday Inn has undergone a makeover of about $1 billion globally which is estimated to save the lighting cost of the company which is estimated to be $4.4million per year. Holiday Inn is expected to cut down on energy usage by half and achieve a reduction value of 52%. This represents reduction of about 8700 metric tons of carbon dioxide per year. In addition other signage includes new lighting for outdoor, exterior updates as well as new landscaping). 14 Conclusion To conclude it can be said that Holiday Inn has implemented the going green strategies and has performed well in implementing the practices and this is evident as the hotel is a certified green lodging hotel and has also received awards for environmental sustainability. Holiday inn has taken into consideration the recycling process and conservation of consumption and waste. However it is still important to keep inventing the going green process and sustain in the industry and achieve a competitive advantage. Some of the recommendation includes as follows, Installation of green roof will help to mitigate the effect of heat island and also helps to reduce the amount of energy to be required to heat or cool the rooms. Apart from providing environmental benefits, the green roof of the hotel will serve as a commitment of commitment towards sustainability and will provide the guest with a connection with the nature. Secondly the hotel can provide environmental friendly transportation for the guest. The transportation will provide fuel efficient and environmental friendly environment to travel to the desired place by the guest. The low emission and eco friendly bus would reduce vehicle emission, lighter traffic and a convenient way to travel for the guests. Thirdly, the hotel can install high efficiency plumbing fixtures along with water reduction by implementing much more efficient fixtures, appliances and water landscaping outside the hotels to preserve water and reuse it. Thus by implementing more sophisticated tools and technology the hotel industry will be able to achieve environmental sustainability benefiting the hotel and also the environment as a hole. Reference “DELEG Announces Green Lodging Certification for Holiday Inn Express, Lara, Last modified 2012, http://www.michigan.gov/lara/0,4601,7-154-10573_11472-231982--,00.html “About IHG,” Holiday Inn, Last modified 2012, http://www.holidayinn.com/hotels/us/en/global/support/about_ihg “Green Hotels”, Zero Waste, last modified 2002, http://www.zerowaste.org/publications/GREEN_HO.PDF “Greening the hospitality Industry”, Neb Guide, Last Modified: 2010, http://www.ianrpubs.unl.edu/live/g2026/build/g2026.pdf “Holiday Inn ‘Green’ Signage Yields $4.4M Savings Annually”, Environmental Leader, Last modified 2009,http://www.environmentalleader.com/2009/09/02/holiday-inn-green-signage-yields-44m-savings-annually/ “Holiday Inn Goes Green”, Queensland hotel, Last Modified: No Date, http://www.queenslandhotels.com.au/content/files/Winning%20Insights/QHA_WI_HolidayInn.pdf “Hotel Industry Embraces Green Revolution”, Entrepreneur, Last modified: 2009, http://www.entrepreneur.com/article/201838# “How to increase your bottom line by going green,” Green hotels, last modified: No Date, http://green.hotelscombined.com/Pages/MainGreen/Downloads/green-hotel-whitepaper.pdf “News & Features”, Green Lodging News, Last modified August 29, 2012, http://www.greenlodgingnews.com/ “Strong travel, tourism growth expected in 2012,” Hotel New Now, Last modified March 7, 2012, http://www.hotelnewsnow.com/articles.aspx/7686/Strong-travel-tourism-growth-expected-in-2012 “About Us”, Green Globe, Last Modified No Date, http://greenglobe.com/ Claver-Cortes Enrique et al, “Environmental Strategies and Their Impact on Hotel Performance”. Journal of Sustainable Tourism, 15, 6 (2007): pp. 663-679 “Going Green”, Holiday Inn, last modified 2012, http://www.higaithersburg.com/going-green.php “Holiday Inn Norwich is Going Green - Environmentally Sustainable Hotel”, Holiday Norwich hotel, Last Modified: No Date, http://www.holidaynorwichhotel.com/resourcefiles/pdf/going-green---hi-norwich.pdf Sonya Rita Graci, The Greening of Accommodation: A Study of Voluntary Environmental Initiatives in the Hotel Industry (2002), p. 188 Bibliography Ginley D. S and David Cahen, Fundamentals of Materials for Energy and Environmental Sustainability (Cambridge University Press 2011) Honey Martha, Ecotourism and Sustainable Development, Second Edition: Who Owns Paradise? (Island Press 2008). How Global Warming Laws Will Affect Hotels: Will California’s New Legislation Set the Standard for the Country? Global Hospitality Advisor, November 2007. Johnson, Wes, “Council To Consider Property Tax Break,” News-Leader, 30 June 2008. Leslie David, Tourism Enterprises and the Sustainability Agenda Across Europe (Ashgate Publishing, Ltd. 2011) p.107. Mckinnon Alan, Green Logistics: Improving the Environmental Sustainability of Logistics (Kogan Page Publishers 2010). Nathanson, Rick, “Get A Tax Break on Remodels, Rehabs or New Projects,” Albuquerque Journal, 29 June 2008. PRACTICAL STRATEGIES in Green Building, USGBC, Last Modified: No Date, http://www.usgbc.org/ShowFile.aspx?DocumentID=7760. Schott Christian, Tourism and the Implications of Climate Change: Issues and Actions (Emerald Group Publishing 2010) Walker John R, Exploring the Hospitality Industry (Pearson Education India 2012). Read More