International Hospitality Management - Literature review Example

International Hospitality Management Name Professor Institution Course Date International Hospitality Management Executive summary The sustainability in business is a concept which in the mid 70’s. The sustainability idea for the companies presents companies with the attributes of both opportunity and responsibility. With opportunity the Hotel companies are seen to be satisfying the ever changing needs, having top-line business and deliver great value to the society. Sustainability has also made companies to be seen as responsible and ethical and produce safe products while maintaining safe environment for human. Therefore, this report will discuss Prarie (2012) statement that “the hotel industry is in the midst of a sustainability awakening”. The report will use various hotel companies’ examples to put the discussion into context. Table of Contents International Hospitality Management 2 Executive summary 2 Table of Contents 3 1.0 Introduction 4 2.0 Overview of Sustainability in hotel industry 4 3.0 Why hotel industry is adopting sustainability concept 6 3.1 Cost saving 7 3.2 Regulatory affair 8 3.3 Customer experience 8 3.4 Brand image 8 4.0 How companies adopt and portray sustainability 9 5.0 Conclusion 10 6.0 References 11 1.0 Introduction Sustainability concept has been there since 1970’s meaning it is not a new concept (Blackburn 2007, p. 23). However, the concept has drawn an increased attention in the business and media circles in the recent years. Competition, customer demands and consumer environmental awareness has encouraged hotel companies to adopt sustainability strategies in order maintain the pace of change. The strategy of adopting sustainability has also been encouraged by various experts and literature which argue that the concept offers a competitive advantage. Sloan, Legrand and Chen (2009, p.45) contended that shareholders, customers and employees now associate with hotel industry which shows responsible behavior towards social, environmental and economic factors. The companies have realized that it is increasingly difficult to attract customers with sustainability has adopted this concept in numbers. Therefore, this report will discuss Prarie (2012) assertion that (the hotel industry is in is in the center of the sustainability awakening”. The report will use various examples of hotel companies which have adopted sustainability to put the discussion into context. 2.0 Overview of Sustainability in hotel industry Sustainability has been explained differently by various literatures over the years. According to Linnenluecke and Griffiths (2010, p.359), some academicians within the organizational context define sustainability in reference to social responsibility concern or the ecological issue. However, in some researchers, there have been three overlapping perspective of sustainability which entails social equity, environmental protection and economic growth. The connection between the three perspectives results to a sustainable framework (Todorov and Marinova, 2009, p.17). On the other hand, Jones, Hillier and Comfort (2014, p.6) explains that sustainability is objective of the sustainable development which emerges and response to the needs of different stakeholders organization shareholders such as customers, suppliers and the society as a whole. The development takes in the three factors social equity, environmental protection and economic growth. From this development perspective, sustainability is therefore defined by Jones, Hillier and Comfort (2014, p.6) development which stratify the current needs and demands of the society but not compromising capability of the next generation in satisfying their needs. According to Amsler (2009, p.113), this argument is intrinsic in political and strategic decisions which encourage sustainability development. Summarizing these descriptions, this report defines sustainability as the incorporation of the economic development, social issues and environmental principles into business objective and fulfilling the needs of the business stakeholders. Simão (2010) posited that literatures reviewed in the recent years show that sustainability concept has become critical in the hotel industry owing to the mixture of services and products offered and the economic, social and environmental pressures taking place in the sector. Jones, Hillier and Comfort (2014, p.7) claimed that numerous chains of hotels have integrated sustainability into their business strategies which supports the success, effectiveness and expansion of their operations. According to various studies by Jones, the ten major hotels which have adopted sustainability strategies include Best Western, Marriot, Hyatt, Hilton, Iberostar, Ramada, Relais and Chateaux, Holiday Inn, Jumeirah and Ritz Charlton. These hotel companies have shown their commitment to the sustainability through communication and have brought numerous positive results and enhanced their competitive edge. Reports from Jumeirah claimed that high regard to sustainability has improved customer satisfaction, improved brand reputation and increased customer loyalty, motivated employees and better company-society relations (Jumeirah 2008). 3.0 Why hotel industry is adopting sustainability concept The hotel industry has in the past had a considerable environmental impact by means of water and energy use, consumption of durable and consumable goods, and hazardous and solid waste creations (Conrady 2011, p. 124). The hotels use energy for fuel and lighting needs. The hotel water which is used in the bathrooms, for laundry and for general operations such cleaning, maintenance and irrigation. The waste within the hotel industry is often produced by disposal of bulbs, furniture, paper, appliances and equipment among others (Baker 2005). Economically, various myths have been peddled about green operation (sustainability) as a costly, and that consumers are less interested in the concept. The truth is that the research by Branco and Rodrigues (2006, p. 117) had found that the opposite is actual true and sustainability is not expensive and customers too prefers companies which embrace this concept. The recent technological advancement taking place in energy sector particularly renewable sources such as solar, wind, and geothermal have enhanced the economic factors of consuming such forms of the alternative energies. On social arena, Holcomb, Upchurch & Okumus (2007) argued that a remarkable shift has been evident as shown by integration of the corporate social responsibility strategies by hotel companies. Higher learning institutions offer programs which drive and inform discussions with critical thinking around opportunities and challenges concerning sustainability. Since most of these big hotels such as Hilton, Best Western, Marriot and Hyatt hire student from the universities, the management taps the knowledge from these employees which they implement to gain competitive advantage. Gutiérrez et al. (2015) posited that as management of hotel companies starts to understand they can offer an improved effective customer service by incorporating natural factors, sustainability has emerged as one of the greatest factors for customer experience. Besides offering good customer experience, the need to embrace sustainability has been inspired by factors such as cost saving, regulatory affairs, customer experience and corporate brand image (Lange & Meier 2009). 3.1 Cost saving Sheth, Sethia & Srinivas (2011) asserted that the cost has often been a driving force and lowering costs of operation presents a convincing incentive for the hotel management. The cost efficiency and reduction approaches can be realized through investing in effective operational practices and the growing environmental technologies (Dávid 2011, p. 212). According to Dávid, (2011, p.213) most hotel managers currently use an array of strategies to decrease, recycle and reuse wastes. Other growing areas consist of sustainable procurement, employee training programs and indoor environmental quality. 3.2 Regulatory affair The present environmental regulation that targets the hotel industry mostly concentrates on the operation of the facility like dangerous materials handling, environmental safety and health, and water management (Ball, Horner & Nield 2007, p. 57). The government laws restrict hotel companies to use various strategies which protect the customer health and environment to ensure the future generation has the capability to satisfy their needs. Future laws will continue to impact hotel operations. 3.3 Customer experience Falkenberg and Brunsæl (2011, p.11) argued that majority of hotel management comprehend that investing in the environmental technology can bear a positive effect on the customer experience. The furnishing, cleaning and lighting combine to give the customer the experience. Besides that, how company disposal the bulb, manage water and environment attract customers as most have become aware of environmental destruction effects (Tavitiyaman, Qu & Zhang 2011, p. 652). The customers understand that when hotels destroy the environment, the effects will be felt by them and the next generation in the future. 3.4 Brand image The need create a strong brand has driven companies to adopt various strategies. Adopting sustainability and integrating into the corporate culture has been regarded as an effective strategy which provides a unique advantage which can help companies in attracting and retaining majority of talent (Jones, Hillier & Comfort 2014, p.11). Hilton, Best Western, Marriot, Hyatt, Holiday Inn, Jumeirah and Ritz Charlton are some which focuses on corporate branding through the use of sustainability concept. Holcomb, Upchurch and Okumus (2007, p.466) opined that a research conducted through survey established that most Americans (more than 50%) prefer working for the companies which have sustainability concepts such as CSR. Further study at Hyatt, Hilton, Iberostar and Ramada found out that young employees and women incline to work for companies which have the mission which gravitated towards benefiting the general society. In a nutshell, these companies have incorporated sustainability into their products. Hilton particular engage sustainable practices because they enhance brand reputation and image that converts to large profits. For instance, Hilton Worldwide (2015) claims that Hilton have a program “Environmental Awareness Initiative” which has run for nine years which empowers society on how to reduce waste, use energy efficiently and conserve water. Another sustainability initiative by Hilton Company is DoubleTree (Hilton Worldwide 2015). The program was launched in 2002 and has been used to teach kids on how to care about the environment and community through planting of tree, growing gardens and cleaning public places. 4.0 How companies adopt and portray sustainability Research by Jones, Hillier and Comfort (2014, p.8) have pointed out how the top global hotels such Best Western, Marriot, Hyatt, Hilton, Iberostar, Ramada, Relais and Chateaux, Holiday Inn, Jumeirah and Ritz Charlton are addressing the challenges of sustainability and CSR. The companies communicate their sustainability through their annual reports, press release, through and through their websites. The companies like Hilton have a section within their website where they compile report of their sustainability initiatives (Jones, Hillier and Comfort 2014, p.8). A customer concerned with corporate sustainability only need to search the key word the website and they will be directed to the page. On the other hand, Jumeirah publishes their report of sustainability on the newspapers to show commitment and achievement though this concept (Jumeirah 2008). The main aim is to attract more customers. In their publication, they stress water and energy preservation, waste management and recycling, and preserving and protecting natural resources. 5.0 Conclusion This report has reviewed different literatures to ascertain that the hotel sector is in the middle of the sustainability awakening. The report has established that the claims are actually true due to sustainability initiatives and endeavors driven by these companies. A research by Jones, Hillier and Comfort (2015) has revealed that ten leading hotels including Best Western, Marriot, Hyatt, Hilton, Iberostar, Ramada, Relais and Chateaux, Holiday Inn, Jumeirah and Ritz Charlton use sustainability concept to create good customer experience, improve brand image, conform to government regulation and cost saving. The report has also founded that sustainability is on the increase among these companies because it attract customers and improve their image. 6.0 References Amsler, S. S. 2009, Embracing the politics of ambiguity: Towards a normative theory of “sustainability”, Capitalism Nature Socialism, Vol. 20, No.2, pp.111-125 Baker, C 2005, Sustainable hotel, London, UK, Prince of Wales Business Leaders Forum Ball, S, Horner, S & Nield, K 2007, Contemporary Hospitality & Tourism, Management Issues In China and India (1st ed.), Oxford, Butterworth-Heinemann Blackburn, W.R 2007, The Sustainability Handbook: The Complete Management Guide to achieving Social, Economic and Environmental Responsibility, London, Earthscan Branco, M. C & Rodrigues, L. L 2006, Corporate social responsibility and resource-based perspectives, Journal of Business Ethics, Vol. 69,No.2, pp.111-132 Conrady, R. B 2011, Trends and Issues in Global Tourism 2011, Heidelberg, Berlin, Springer Dávid, L 2011, Tourism ecology: towards the responsible, sustainable tourism future, Worldwide Hospitality and Tourism Themes, Vol. 3, No.3 pp. 210-216 Falkenberg, J & Brunsæl, P 2011, Corporate social responsibility: A strategic advantage or a strategic necessity? Journal of Business Ethics, Vol. 99, No.1, pp.9-16 Gutiérrez, I, Alcaraz, J.M, Susaeta, L, Suárez, E & Pin, J.R 2015, managing sustainability for competitive advantage: evidence from the hospitality industry, IESE Business School Holcomb, J.L, Upchurch, R.S & Okumus, F 2007, Corporate social responsibility: what are top hotel companies reporting? International Journal of Contemporary Hospitality Management, Vol.19, No.6, pp.461-475 Hilton Worldwide 2015, Hilton Worldwide Official Website, viewed 6th July 2015 Jumeirah 2008, Corporate social responsibility, viewed 6th July 2015, Jones, P, Hillier, D & Comfort, D 2014, Sustainability in the global hotel industry, International Journal of Contemporary Hospitality Management, Vol. 26, No.1, pp. 5-17. Lange, H & Meier, L 2009, The New Middle Classes: Globalizing Lifestyles, Consumerism and Environmental Concern, Springer. Linnenluecke, M. K & Griffiths, A. 2010, Corporate sustainability and organizational culture, Journal of World Business, Vol.45, No.4, pp.357-366 Prairie, P 2012, A Critical Look at Hotel Sustainability, viewed 6th July 2015, Sheth, J.N, Sethia, N.K & Srinivas, S 2011, Mindful consumption: a customer-centric approach to Sustainability, Journal of the Academy of Marketing Science, Vol. 39 No. 1, pp. 21-39. Sloan, P, Legrand, W, & Chen, J. 2009, Sustainability in the hospitality industry (1sted.), Oxford, Elsevier Inc. Tavitiyaman, P, Qu, H & Zhang, H.Q 2011, The impact of industry force factors on resource competitive strategies and hotel performance, International Journal of Hospitality Management, Vol.30, No.3, pp. 648-657. Simão, J 2010, An extended VRIO model as a framework for sustainable tourism planning, In Brebbia, C. A & Pineda, F. D, Sustainable Tourism IV (Vol. 139): 87-97, Southampton, UK, WIT Press Todorov, V. I & Marinova, D 2009, Models of sustainability, 18th World IMACS Congress, Cairns, Australia, 1216-1222. Read More