Customer’s Awareness of Environment-Friendly...

Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking

(ME14 DUBAI Conference) Dubai, 10-12 October 2014

ISBN: 978-1-941505-16-8 Paper ID_D411

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www.globalbizresearch.org

Customer’s Awareness of Environment-Friendly Initiatives in Hotels

Naresh Nayak P.,

Assistant Professor- Senior Scale, Accommodation Operations,

Welcomgroup Graduate School of Hotel Administration,

Manipal University, India.

Email: [email protected]

Abhishek Rao KP,

Assistant Professor, Human Resource and Supply Chain Management,

Department of Commerce,

Manipal University, India.

Email: [email protected]

___________________________________________________________________________

Abstract

India is a country with long history and rich cultural heritages. It has abundant tourism

resources and a wide range of tourism facilities, making it one of the most famous tourist

destinations in the world. However, the continuing development of the tourism industry and

its conflict with environmental protection has become a problem for many countries.

Developing green hotels could be one solution to the problem. However, consumers'

understanding of green hotels is quite limited. It was found that consumers were not clear

about the characteristics of a green hotel. Different categories of consumers have different

perceptions about a green hotel. Consumers hope to boost and improve green consumption

while hotels hope to reinforce management and sales of green hotels. This Study analyzed the

awareness of the people about Environment-friendly programs in hotels and degree to which

such programs influenced customer’s hotel selection.

___________________________________________________________________________

Keywords: Green Hotel, Awareness, Environment

mailto:[email protected]

mailto:[email protected]



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1. Introduction

The tourism industry keeps growing. Worldwide tourist arrivals in foreign countries have

increased by 6.5% yearly since 1950 reaching nearly 900 million arrivals in 2007. Nowadays,

tourism represents 35% of the world‗s exports of services and over 70% in some developing

countries. However, this growth often comes with unsustainable consumption practices

endangering ecosystems and natural resources. In order to conserve local biodiversity while

sustaining the tourism industry, a new approach involving sustainable development must be

implemented. To achieve this, the different components of the tourism industry need to be

integrated into a global strategy of environmental protection. Since the hotel industry is at the

heart of tourist activity, it is important to evaluate and assess its environmental impact. There

is hence a need for greener hotels that are at the heart of the tourism industry. Hotel guests are

more conscious of environmental problems and have started to consider the environment in

their accommodation choice. In a few years, it is certain that environmental protection will

become a legal obligation for hotels (M. Ruud J. Reuland, Best Environmental Practices for

the Hotel Industry 2008) Tourism is one of the leading growth sectors of the global economy,

bringing in billions of dollars annually in developing countries and transporting millions of

people internationally. But the tourism industry's growth through the years has created an

increasing amount of stress on the environment. For example, as a result of increasing tourism

in Goa, India, developers built several hotels. The hotels soon drew up to 66,000 gallons of

water per day from wells and other local sources. Many of the wells and rivers the community

had relied on went dry. This is a common problem in many areas where tourism runs into the

limits of natural resources (Sarah Alexander, 2002). Green hotels follow strict green

guidelines to ensure that the guests are staying in a safe, non-toxic and energy efficient

accommodations. Here are some basic characteristics of a green hotel:

Housekeeping uses non-toxic cleaning agents and laundry detergents

100% organic cotton sheets, towels and mattresses

Non-smoking environment

Renewable energy sources like solar or wind energy

Bulk organic soap and amenities instead of individual packages to reduce waste

Guest room and hotel lobby recycling bins

Towel and sheet reuse

Energy efficient lighting

Serve Organic and local grown food

Non-disposable dishes

Offers a fresh air exchange system



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Newspaper Recycling

Gray water recycling

The term has been used on a more regular basis as new websites devoted to the subject

become more prominent and hotel owners become more interested in protecting the areas

their guests have come to visit. New properties are built from sustainable resources- tropical

hardwoods, local stone and designed to better blend in their environment. In addition, they are

also being run on eco-friendly principles, such as serving organic or locally grown food or

using natural cooling as opposed to air conditioning. Selecting the right decisions in

developing a green hotel is very crucial. Selecting a location, the technology and other green

equipment in plan of developing a green hotel are all interrelated. Getting a certification such

as LEED or GRIHA has become very important nowadays, as the current generation of

people trust in these certifications. Whereas building a green hotel used to cost a premium,

current studies show that the cost of building to LEED standards is not greater than

conventional approaches, while those buildings are healthier for occupants and less expensive

to operate (Jim Butler, 2012).

Environment may be broadly understood to mean our surroundings. It can be divided into

non-living and living components. The Environment provides resources which support life on

the earth and which also help in the growth of a relationship of interchange between living

organisms and the environment in which they live. It is important to realize that humans enjoy

a unique position in nature due to their exceptional ability to influence and mold the

environment. In the recent past the term nature has been used as parallel to word environment.

It has been generally believed that nature is what man has not made. In our discussion

environment and nature have been used as synonym, which incorporate most of the visible

manifestation of geography. Raymond Williams defines nature as ‗the material world itself,

taken as including or not including human beings.‗ Tracing the history of the term he suggests

that nature‗ has meant the ‗countryside‗, the unspoiled places‗, plants and creatures other than

man.‗ (Keywords, London, 1988. p. 219-223) The variety of life on Earth, its biological

diversity, is commonly referred to as biodiversity. The number of species of plants, animals,

and microorganisms, the enormous diversity of genes in these species, the different

ecosystems on the planet, such as deserts, rainforests and coral reefs are all part of a

biologically diverse Earth. Biodiversity boost

Almost a third of India‗s energy and water usage is consumed by commercial buildings,

including hotels, thereby providing a significant opportunity to assess and accelerate the

implementation of environmentally sustainable practices in the country. While major brands

and hotel chains in India have often been associated with eco-friendly practices, the Orchid

Mumbai, an independent business hotel, pioneered the initiative in the country by being



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established as Asia‗s first five-star ―Ecotel certified hotel in 1997. Currently, there are five

Ecotel properties operating in India, with four more under development. Other industry firsts

include Welcomgroup hospitality chain‗s ITC Sonar Bangla, Kolkata which was the first

hotel in the world to obtain Certified Emission Reductions (CERs), or climate credits issued

by the Clean Development Mechanism (CDM) Executive Board for emission reductions

achieved by CDM projects and verified under the rules of the Kyoto Protocol.

At Marriott International Hotels, greening its hotels isn't enough; the Bethesda, MD-based

hotel operator also has made it a mission to have zero net waste from its headquarters by

2012. On the hotel end, Marriott's "Spirit to Preserve" is a five-point strategy, which includes

greening its hotels and supply chain. Marriott is working to empower its hotel development

partners to design and construct greener hotels and will by the end of the year develop its own

green hotel guidelines, in line with LEED standards‖ stated David Eisen (2009). He also

writes that ―Starwood Hotels and Resorts newest brand, Element, is making sure that

consumers and agents alike are aware of its greening efforts. Starwood says the brand, which

is an extended-stay product, is the first to mandate that all properties pursue the U.S. Green

Building Council's LEED certification. The hotel company believes that just as its W brand

was a trailblazer in hotel design and style. Element will do the same in the green arena.‖

2. Literature Review

Green practices are those things that organizations can do to minimize their carbon

footprint and the negative impact that their organization has on the environment. Some of the

practices that are often recognized by the public as green or environmentally responsible are:

saving water, saving energy, and reducing solid waste (Manaktola & Jauhari, 2007). Often

these practices go unnoticed by the public as they are behind the scenes types of things. What

distinguishes a no green restaurant from a green restaurant focuses on 3 R‘s- reduce, reuse,

and recycle and two E‘s- energy and efficiency (Gilg, Barr, and Ford, 2005). According to

Osland and Mackoy (2004, p. 110), ―eco-lodges are the accommodation facilities and services

established in, or very near, natural areas visited by Eco tourists.‖ Other researchers have

defined eco-lodges as nature-dependent lodges that meet the philosophy and principles of

ecotourism (Russell ,Bottrill, & Meredith, 1995).

Green restaurants can also purchase energy efficient products and equipment, purchase

locally grown produce and materials to minimize the transportation impacts, and engage in

environmental protection programs (Schubert, et al, 2010). The hospitality industry in general

has been feeling the pressure from society as well as governmental regulations related to the

implementation of more environmentally friendly policies (Bohdanoqicz, 2006; Zurburg, Ruff

& Ninemeier, 1995).Other researchers have defined eco-lodges as nature-dependent

lodges that meet the philosophy and principles of ecotourism (Russell, Bottrill,



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& Meredith, 1995). Hilton‘s Europe and Africa-wide sustainability initiative was launched

in 2006 in order to conserve energy (Environmental Leader, 2008). These hotels have been

interested in the reduction of solid waste, water consumption, and energy consumption in

order to comply with environmentally friendly efforts (Bohdanowicz, 2006; Shanklin, 1993).

In order to monitor and improve energy savings, a hotel needs an energy management

program that includes temperature controls, motion-sensitive lighting systems, and Energy

Star rated devices and Appliances (Iwanowski & Rushmore, 1994). An energy program

coordinator of the United Nations Environment Program suggested that consuming less

energy and adopting energy-efficient technologies reduce the need for investment in energy

infrastructures and increase the competitiveness of businesses (Accor, 2006). A solid waste

management program is intended to reduce the volume and toxicity of the garbage being sent

to the landfill (Iwanowski & Rushmore, 1994). Kirk (1995) suggested that waste can be

recycled either by reusing products, or by recycling the materials, by minimizing waste in

operations. For the efforts, hotels have installed soap and shampoo dispensers in guest

bathrooms instead of individually packed toiletries (Bohdanowicz, 2006). With such waste

management programs, the Willard InterContinental Hotel in D.C. reduced waste by 22%,

from 1029 tons in 2005 to 807 tons in 2006 (Envirelation, 2007). Environmental management

has been targeted at reducing wastage of water and improving water quality. Excessive water

use can deplete or destroy local water resources, and threaten the availability of water for

local needs (The Center for Environmental Leadership, 2003). Nearly all hotels pay for the

water they consume twice: first to obtain fresh water and then to dispose it (Dodds, 2005).

Water consumption depends on the services and facilities offered, and on existing water

conservation practices (Bohdanowicz, 2006).

Negative impacts include the extensive amount of laundry that hotels do on a daily basis,

the use of disposable products, heated swimming pools, use of strong cleaning products by

the housekeeping departments (Gustin & Weaver, 1996). The increased environmental

awareness is poised to have a significant impact on hotel selection. The types of

environmental policies hotels have, or the steps they have taken to reduce their impact on the

environment, may become factors for travelers when selecting which hotels to stay in. Hotel

selection, with a heavy emphasis on hotel attributes and guest room attributes, is a prominent

research topic in the travel and tourism literature (Lockyer, 2005). The role those attributes

may play in a travelers mind are also a well-studied phenomenon (Dolnicar & Otter, 2003).

Although consumers have expressed concerns about the environment, these concerns have not

translated into purchase or consumption of green products and services (Wong et al, 1996;

Peattie, 1999; Crane, 2000). This is because consumers often perceive several green or eco-

friendly products and services as expensive and unattractive, especially when compared to



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similar non-green products and services ( Johri and Sahasakmontri, 1998; Lubieniechi, 2002).

―At Marriott International Hotels, greening its hotels isn't enough; the Bethesda, MD-based

hotel operator also has made it a mission to have zero net waste from its headquarters by

2012. On the hotel end, Marriott's "Spirit to Preserve" is a five-point strategy, which includes

greening its hotels and supply chain. Marriott is working to empower its hotel development

partners to design and construct greener hotels and will by the end of the year develop its own

green hotel guidelines, in line with LEED standards‖ stated David Eisen (2009).

The green revolution has impacted all facets of society and all sectors of the global

economy. This includes the hospitality and tourism industry, which has attempted, over the

years, to incorporate sustainable practices in its various segments. In recent years, however,

there has been a significant impetus toward incorporating green practices into all areas of the

lodging segment. The emergence of green consumers began in the 1990s – the so-called green

decade – when environmentalism first began to mushroom worldwide (Kirkpatrick, 1990).

Several factors have led to this change or shift in expectation. These include: consumers ‗

demand for lodging facilities to become more environmentally friendly; increased

environmental regulation at all jurisdictional levels; lodging companies ‗ concerns about

business ethics and socially responsible business practices; the need for hospitality facilities

to be esthetically pleasing; physical plant maintenance issues; and finally, the need to improve

customer satisfaction (Foster et al , 2000).

Excessive energy use is extremely costly and with minor adjustments, it can lead to

massive cost savings. "The average energy consumption per bed per night in hotels might be

in the order of 130 Mega joules. Hotels generally use more energy per visitor than local

residents, as they have energy intense facilities, such as bars, restaurants, and pools, and have

more spacious rooms". Studies have determined that a hotel emits an average 20.6 kg of

carbon dioxide per night (Gössling., 2005)

2.1 Research Questions

1. Age, Gender, Education Level

2. How often do you stay in hotels?

3. Are you aware of the pollution and wastage of energy that are being caused by hotels?

4. Have you ever heard of Green Hotels or Eco Hotels?

5. Are you aware of the technology they use, if yes please do specify?

6. Would you be willing to spend more to stay in a green hotel?

7. How often would you prefer a green hotel over any other hotel?

8. Have you ever given any hotel a feedback on going green?

9. Would you recommend a green hotel to a friend\family member?

10. Solid Waste and Water Program in Guest Room



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11. Energy Program

2.2 Modeling Volatility

The primary purpose of the study was to identify the customers‘ awareness of green or

eco-friendly hotels. Awareness of customers about the various practices followed in the hotels

were analyzed. This study used a self-administered, close-ended questionnaire with order

choices to survey a random sample. This study selected environmentally friendly action

programs based on an environmental checklist previously developed for the lodging industry

(De Franco & Weather spoon, 1996) and Accor hotels environment charter (Accor, 2006).

The sampling population consisted of students, online questionnaire was prepared and

circulated amongst travelers who used the communities on Facebook and Google plus. The

questionnaires were also emailed to a set of contacts at random. Out of 200 distributed

questionnaires, 133 questionnaires were analyzed.

3. Data Analysis

The Objective of the study was to find out

Identify customer awareness of environmentally friendly practices implemented by

hotels.

To study the awareness about eco-friendly Hotels.

Awareness towards various practices followed by an Eco-Friendly Hotels

The questionnaire included questions regarding the lifestyle of the subject being

interviewed their visits to hotels and their spending capacity. Also things of the environment

conservation were kept in mind in questions asked to them so that the awareness of Go Green

was told. The statistical tools used in this study were percentages. The analysis of the survey

results combined with the statistical applications (SPSS) allowed for the researcher to draw

conclusions regarding to the objectives of the study is produced.

3.1 Age Distribution Figure 1: Distribution of sample in different age groups



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Table 1: Age Group Distribution

Age Group No. of Respondents Percentage of Respondents

15-19 years 9 6.81

20-34 years 111 84.09

35-49 years 6 4.55

50 years and above 6 4.55 Total 132 100

According to the results maximum numbers of respondents were from the age group of

20-34 years old. This shows that this age group travels and stays in the various hotels more as

compared to other age groups.

3.2 Income Group

Table 2: Income Group

INCOME GROUP

CROSS TABULATION less than Rs.

45000/pm

Rs. 45000-

55000/pm

Rs. 55000/pm

and above TOTAL

Age

group

less than 28 years 20 10 15 45

Between 28 - 35 years 15 11 8 34

35 years and above 14 17 22 53

TOTAL 49 38 45 132

Figure 2: Income Group

No. of Respondents



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3.3 Gender

Figure 2: Distribution of sample according to Gender

Table 3: Distribution of sample as per Gender

Gender No. of Respondents Percentage of Respondents

Male 78 59.1

Female 54 40.9

Total 132 100

3.4 Education Level Figure 3: Distribution of sample according to Education level



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Table 4: Distribution of sample according to Education level

Education Level No. of Respondents Percentage of Respondents

Some College 21 15.9

Undergraduate Degree 60 45.45

Graduate Degree 45 34.1

Postgraduate Degree 6 4.55

Others 0 0

Total 132 100

3.5 Distribution of sample as per Education Level

This shows that amongst the sample maximum number of respondents had an education

level of an Undergraduate Degree. This may not be a good representation of the current

market. Since most of the respondents were from a younger age group there is a possibility of

increase in awareness about green hotels in the coming generation of consumers.

3.6 Frequency of visits to hotels

Figure 4: Distribution of frequency of visits to hotels by sample

No. of Respondents



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Table 5: Frequency of visits to hotels by sample

Frequency of visits No. Of Respondents Percentage Of Respondents

Frequently 54 40.09

Once a month 45 34.1

Once a year 18 13.63

Rarely 12 9.1

Never been to one 3 2.27

Total 132 100

This shows the frequency of the sampling visiting various hotels for various purposes

such as leisure, business etc. Data acquired from the sample shows that the sample is very

much into travel with 40.09% out of 100% going frequently for staying in hotels.

3.7 Awareness of Pollution and Wastage of Energy caused by Hotels

Figure 5: Awareness of Pollution and Wastage of Energy caused by Hotels by sample

Table 6: Awareness of Pollution and Wastage of Energy caused by Hotels by sample

Awareness of Pollution and

Wastage of Energy by Hotels No. of Respondents Percentage of Respondents

Yes 81 61.37



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No 51 38.63

Total 132 100

Outcomes show that 61.37% of the respondents were aware of the pollution and wastage

of energy caused by hotels. This signifies that the majority of the sample is aware of the

pollution and wastage of energy by hotels. This implies that there might be an increase in

demand for green practices in hotels.

3.8 Awareness of Eco or Green Hotels

Figure 6: Awareness of Green or Eco Hotel by sample

No. of Respondents

Table 7: Distribution of the awareness of Green or Eco Hotels by sample

Awareness of Green Hotels No. of Respondents Percentage of Respondents

Yes 69 52.28

No 63 47.72

Total 132 100

3.9 Preference Level of Sample for a Green Hotel over any other Hotel

Outcomes shows the majority of the sample is aware of green hotels. The reason for

such can be that the sample as is already into travelling they are a

Figure 7: Preference Level of Green Hotel over any other Hotel by sample



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Table 8: Preference Level for Green Hotel over any other Hotel by sample

Preference Level No of Respondents Percentage of Respondents

Mostly green hotels 57 43.18

2-5 times out of 10 33 25

Once in 5 visits 21 15.91 Never 21 15.91

Total 132 100

Results explains that people are willing to stay in a Green Hotel. This may be due to the

increase in environment consciousness among the consumers.

3.10 Willingness to spend for the facilities provided in Green Hotels

Figure 8: Distribution of Spending Willingness for Green Hotel stay

No. of Respondents

Table 9: Willingness to spend for a stay in Green Hotel by sample



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Willingness to spend for

Green Hotels

No. of Respondents Percentage of respondents

Yes 69 52.28

No 63 47.72

Total 132 100

Data shows that the majority of the consumers are willing to spend more to stay at a green

hotel. This also shows a growth of customer perception towards green hotels.

3.11 Providing Feedback to Hotels on going Green

Figure 9: Providing Feedback to Hotels on going Green

No. of Respondents

Table 10: Providing Feedback to Hotels on going Green

Providing Feedback to

Hotels on going Green No. of Respondents Percentage of Respondents

Yes 39 29.54

No 93 70.46

Total 132 100

This data shows that approximately 30% of the respondents have responded for a

hotel to go green. This suggests that there might be an increase in green practices for a

hotel to go green.

3.12 Recommendation of a Green Hotel to a friend/family member



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USING REFILLABLE AMENITIES

DISPENSERS FOR SHAMPOO AND SOAP

REPLACING INDIVIDUAL CREAMER AND SUGAR PACKAGE

WITH CONTAINERS

REMOVING UNNECESSARY

AMENITIES

SOLID WASTE AND WATER PROGRAMME IN GUEST ROOM

13 16

22 25 26

30 Yes No

Figure 10: Recommendation of a Green Hotel to a friend/family member

No. of Respondents

Table 11: Recommendation of a Green Hotel to a friend/family member

Recommendation of Green

Hotel to friends/family No. of Respondents Percentage of Respondents

Yes 123 93.18

No 9 6.72

Total 132 100

The above data shows that 93.18% would recommend a green or eco-hotel to friends/family

members. This shows that there is growing awareness among the consumers for the

preference of green or eco-hotels

3.13 Solid Waste and Water Program in Guest Room

Table 12: Solid Waste and Water Program in Guest Room

Figure 11: Solid Waste and Water Program in Guest Room

CROSS TABULATION Yes No TOTAL

Solid waste and

water programme

in Guest Room

Using refillable amenities dispensers

for shampoo and soap 13 25 38

Replacing individual creamer and

sugar package with containers 16 26 42

Removing unnecessary amenities 22 30 52

TOTAL 132



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Using energy efficient lighting Water levels adjusted forshort loads of laundry

Energy Programme

42 44

20

26

ENERGY PROGRAM

Yes No

3.14 Energy Program

Table 13: Energy Program

Figure 12: Energy Program

Majority of respondents believe and are aware of the fact that (42%, 44%) there is energy

efficient lighting which is being used, as well as water levels are adjusted for short loads of

laundry.

4. Findings

The study had focused on the behavioral intentions as a means of investigating to what

CROSS TABULATION Yes No

Energy

Programme

Using energy efficient lighting 42 20

Water levels adjusted for short

loads of laundry 44 26



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extent a green image affects a guest‗s choice of hotel and how this would affect the growth of

green hotels. Although behavioral intentions have been widely used as an attitudinal loyalty

indicator in the marketing and hospitality literature, this methodology does not correspond to

behavioral loyalty. This should be considered a limitation of the research because behavioral

loyalty is an important metric that reflects the number of times a guest may visit the same

hotel in a particular category, as compared with the total number of stays in the whole

category (Carpenter & Lehmann, 1985). This limitation is linked to the fact that actual green

product sales revenues are less than those generally reported by consumers, and the chance of

consumers paying a premium for green products tends to be lower than one would expect

(Rex & Baumann,2006).

5. Conclusion

Today, we are living in a society where firms are judged on their business ethics, social

accountability and socio-economic awareness as well as financial outcomes. As public

understanding grows about global warming and climate change, the public, including

stakeholders, employees and customers, expect hotels to act on their understanding. This

global trend guides hotels to move in a green direction. As this research suggested that a

green hotel image becomes a powerful operational tool in attracting and retaining more

guests, Incorporating (functional and emotional) green positioning into hotel operations is

prerequisite for the creation of a green hotel image. The successful creation of a green image

would not be feasible if emotional and functional benefits of green products and services were

not effectively communicated (Pickett, Kangun, & Grove, 1995). Consequently, a hotel with a

sound green image can achieve cost reduction from the use of energy and water, appeal to

investors, attract and retain highly motivated employees and cultivate guest loyalty, thereby

securing top market.

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