Green hotels defeating poor customer loyalty, and more...
Nowadays, hoteliers are facing an increasing number of challenges due to a dense market, digitalization of the travel industry and behavioral change in customers. On top of managing efficiently their daily hotel operations, hospitality managers have to deal with high competition, high operating costs and poor customer loyalty.
So how does going green help hoteliers in resolving these issues?
#1 – COMPETITIVITY
Don’t you want to be a hotel leader?
Today, the hospitality industry is booming, and it is not an easy task to stand out from this pervasive competition.
According to the STR‘s June 2017 Pipeline Report, the hotel industry saw an average increase of 8.5% in hotel construction from 2016 to 2017. (Source : https://www.hospitalitynet.org/performance/4083731.html).
In parallel, the offer online has never been as expanded and diverse. Proposing a green hotel to customers provides a marketing edge both as a differentiator on the heavy online choice as well as an attractive argument to increasingly eco saavy travelers.
#2 – ATTRACTING AND RETAINING VALUED CUSTOMERS
In 2020, Millennials will account for 35% of the global workforce making them the highest spending power. Being called the “Vote with your wallet generation”; for them, every time you spend money, you cast a vote on the kind of world you want to see. And millennials happen to be increasingly concerned about social and environmental issues. Actually more than half would choose a green option over a conventional one when it comes to selecting brands, products or services. Similarly, travellers from Europe and the US, are seeking for eco-friendly hotel options to align their travel choices with the growing sustainable and responsible lifestyle they have at home.
According to a survey from Deloitte, 95% of business travellers believe the hotel industry should be undertaking ‘green’ initiatives.
Staying in a green hotel provides these customers with a feeling of fulfilment, as they enjoy a greater and meaningful experience by contributing to a positive impact on the environment.
#3 – DECREASING OPERATING COSTS
Going green does not only provide your hotel with an undeniable marketing attribute; it will also definitely cut down your hotel’s operating costs. In regions like South-East Asia, hotels heavily rely on aircon to supply guests with adequate comfort, an amenity which is very hard to control and which accounts for the most part of your energy bills.
According to the Carbon Trust, by implementing low-cost and no-cost measures, you can decrease by at least 20% your total energy bill.
Solutions can be as easy as changing your light bulbs to LED or cleaning your AC filters.
When it is time for the hotel to undergo a renovation, done right and done green, will not only increase the efficiency of your building systems, enhance the durability of your facility but also increase the asset value of your hotel itself.
#4 – STAFF PROFICIENCY THROUGH ENGAGEMENT
A big part of converting your hotel to green standards depends of your staff proficiency. This is why trainings and continuous improvement are important. However, these need to be coupled with a strong engagement from the employees. Engagement comes from providing employees with a healthy and motivating working environment which respects the cultural context. This is particularly true with international hotel chains.
Like Richard Branson said, “Take care of your employees and they will take care of your business.”
Sustainability programs are designed to engage staff further by raising staff awareness on environmental issues, and incentivising them to take action at work and at home. But first and foremost, the process of raising a hotel to green standards teaches employees how to manage efficient operations, as they learn how to spot and solve operational discrepancies with sustainable solutions.
#5 – CORPORATE IMAGE
Without careful planning and in pristine locations, hotels can put pressure on vulnerable habitats and communities. Sharing the beauty of places with its customers while preserving its viability, is more than a CSR strategy, it is the right thing to do. Guests recognize and favor companies which are making a difference in today’s world.
Being a green hotel does not mean sacrificing guest comfort, quite the contrary. Not only do guests in green hotels have access to human comfort driven indoor environments with calculated ideal temperature levels and exposure to natural light. You also offer them with healthier indoor spaces as particular attention is put in choosing materials, paints and everyday products that do not unleash hazardous emissions. A number of hotels like the gorgeous Soneva in Koh Kood, Thailand, have shown an excellent combination of luxury and sustainability which in turns has attracted year on year high end customers in the search of a meaningful yet exceptional experience. “The more sustainable we are, the more luxurious we are,” Shivdasani says, Founder and CEO of Soneva.
If you want to know other benefits from converting to a green hotel, click here for more.