Green is the new gold

Why sustainability is an imperative for hotels after the pandemic

past several decades, hoteliers have turned their focus to the importance of sustainability in the hospitality industry as it relates to hotel development and operations, including the environmental, economic and social impact. Sustainability is one of the most important issues currently facing our world.

The hospitality sector has historically had a dramatic environmental impact through energy and water consumption, use of consumable and durable goods, and solid and hazardous waste creation. Hotels consume energy for HVAC operations, lighting, fuel and other power needs. Water is used for bathrooms, F&B, and laundry, as well as other general operations (irrigation, cleaning and maintenance). Waste is generated by the disposal of paper, batteries, bulbs, furniture, equipment, appliances and more.

Economically, myths include the ideas that green operation is more expensive and that guests are not interested in sustainability. In fact, according to Cornell University’s Center for Hospitality Research, the reverse is true for both. Recent advances in technology related to renewable sources of energy (solar, geothermal, wind, etc.) have improved the economics of using these kinds of alternative energies at the property level.

On the social front, there has been a remarkable shift in recent times, as demonstrated by corporate social responsibility (CSR) programs, as well as the green buildings for new development projects. Cornell also offers educational programs to inform and drive discussion and critical thinking around significant industry issues like the global challenges of sustainability.

As hoteliers begin to realize that they can provide an enhanced guest experience by integrating natural elements, there has been an evolution in “green thought” in the community inspired by multiple factors:

Cost savings

Cost is always a driving factor and reducing operating costs provides a compelling incentive for hoteliers. Cost reduction and efficiency strategies can be achieved by investing in better operational procedures and emerging environmental technologies. Many hoteliers now employ a variety of strategies to reduce, reuse, and recycle waste. Other emerging areas include sustainable procurement, indoor environmental quality (focusing on air quality and chemical/cleaning product use), and staff training programs (which can facilitate improved performance and higher levels of employee satisfaction/retention).

Economic incentives

Our government has enacted a variety of economic incentives to encourage the development of environmental retrofits and the construction of “green” buildings. These benefits include tax write-offs, financial grants, insurance premium discounts and expedited regulatory permitting.

Corporate Brand Image

Adopting a sustainable corporate culture can provide a distinct advantage in terms of attracting and retaining talent. According to Shelton Group, 55% of the U.S. workforce would choose to work for a socially responsible company, even if they made less money — that number jumps to 76% for Millennials. Furthermore, 70% — 83% of Millennials — would be more loyal to a company that helps them contribute to social and environmental issues. These statistics make it clear that sustainability — and a company’s commitment to it — is top of mind for employees.

Guest Experience Factor

A greater number of hoteliers understand that investments in environmental technology can have a direct positive impact on guest experience. Where the rubber meets the road, however, is what the guest thinks and feels about their hotel experience. More than ever, guests want to stay at properties that don’t feel like hotels — they want an “at-home” feeling. Lighting, furnishings, cleaners and other front-of-house products combine to leave an impression with the customer, which can affect both occupancy and ADR.

Regulatory requirements

Current environmental regulations targeted toward the hotel sector are largely focused on facility operations such as storm-water management, hazardous materials handling, and environmental health and safety. However, a wide range of present and future legislative activities will impact hotel design, construction methods and operational approaches.

Brand Image gains

Most major hotel brands have incorporated some level of sustainability platform into their brand definition. Several brands have been repositioned to cater to a younger generation of more environmentally and socially active customers. But companies really need to put their plans into action: According to Forbes, younger generations “take pride in knowing which brands aren’t just talking the talk, but are walking the walk.”Having sustainable business practices will lead to an enhanced reputation and brand image, which translates to great hotel profits in the long term

However you turn it, becoming sustainable is no longer a fancy marketing tool. It is nothing less than the new business imperative for hotel brands.