Sustainable Hospitality Management

This report provides a deep understanding of sustainability in hospitality management and evaluates three main issues affecting the industry: unethical activities, non eco-friendly practices, and currency fluctuations. It discusses the impact of these issues on profitability and emphasizes the importance of corporate sustainability management in the hospitality industry.

SUSTAINABLE HOSPITALITY
MANAGEMENT

Summary
Sustainability in hospitality management means to manage the work so that company
creates positive impact upon the environment. In the same way, current report also helps to
provide the deep understanding about sustainability business and therefore, it critically
evaluate 3 main issue that affect the hospitality business and the impact of those issues upon
business.

TABLE OF CONTENT
Summary....................................................................................................................................2
INTRODUCTION .....................................................................................................................4
TASK.........................................................................................................................................4
1. Critically evaluate the extent to that hospitality industry in contributes to each of issues 4
2. Impacts of these issues have on profitability of hospitality industry ................................6
3. Importance of corporate sustainability management in hospitality industry ..................10
CONCLUSION .......................................................................................................................12
REFERENCES ........................................................................................................................14

INTRODUCTION
Sustainablity is the process that help to avoidance the depletion o natural resources so
that it will maintain the ecological balance for the upcoming expectation to meet the human
wants and objectives (Xu and Gursoy, 2015). This study is based on the hospitality industry.
The main objective of the report is to provide the 3 main issues of sustainability in the
context of economical, environmental and social. Report will critically evaluate how
hospitality industry is contributes to each issues such as economical, environmental and
social. Furthermore, it will evaluate the significance of corporate sustainability management
in the hospitality industry.
TASK
1. Critically evaluate the extent to that hospitality industry in contributes to each of issues
Sustainability and environmental aspect have earned important attention in the
hospitality, hotel and tourism management. The approach of sustainable development was
originally taken in the relation to social indicators. Subsequently, expands to address the
environmental signals (Xu and Gursoy, 2015). It is maintaining culture reliability, important
ecological procedure, and biological diversity as well as life support systems. In this context,
there are mainly three issues in which hospitality industry has been contributed like
economical, environmental and social.
Hike in unethical activities: This is one of the social issue that can be emerged by
the tourism activities at large number and among that, Terrorism is one of the main aspect
which increases unethical activities. Such that if the country faces terrorism attack, as a
result, it affect the tourist and for that, government of business should take proper action in
order to get rid from this situation. The hospitality industry must focus and uphold corporate
social responsibility which means to social responsibility.
Positive Impact:
 Through tourism, development to structure and new relaxation comforts which result
benefits the localized people.
 This can encourages the preservation of tradition customs.
Negative Impact:
 This may also create impact on quality of life of the host nation like increased crime
that may leads to unethical crime.
 Communication with travellers can also track to erosion of traditional taste and belief.

Non Eco-friendly practices: This term includes practices adopted by the hospitality
industry which have negative impact over the environment due to the excessive use of the
natural resources such that companies may dispose the waste of food and not properly aware
with the garbage waste and as a result, it is consider one of the non- eco-friendly activity.
This can be understood from the fact that the emission of the gas from the waste material has
negative impact over the environment. This will results in damage of the environmental
aspect at large level.
 water usage: it is the biggest environment issue for a hospitality industry such that in
many hotels and restaurant it is a common issue and staff also waste the water while
washing the dishes etc.
 Garbage usage: It is another issue of hospitality industry such that most of the hotel
did not have their recycle system and as a result, it directly affect the environment of
the company and also dis balance the environment. Therefore, it is quite essential for
the firm to organize well draining system in which the garbage may be throw.
 Food waste: Often time, food is not reusable by the firm and then they throw away
and this creates problem in environment and it leads to affect in negative way.
Positive Impact:
 Eco tourism help to promote conservation of wildlife and natural resources like rain
forests.
Negative Impact:
 Tourism creates threats to natural and cultural resources like water supply, coral reefs
and heritage sites that affect the environment in negative way.
 Also, due to this reason, pollution is lifted through traffic emission and sewage
production and noise.
Currency fluctuation: There is huge different in number of the tourists on different
time. Such that every country have their own currency and it is varies from one country to
different. Therefore, due to sudden change in currency fluctuation, the hotels also raise their
prices and as a result, it affect the tourism because they will not spend their extra money for
their leisure and comfort (THE EFFECTS OF GLOBALIZATION ON THE HOSPITALITY
INDUSTRY, 2018). Through this, companies have to focused on operations and as a result, it
will enhance the brand image at international level as well. This is consider an economical
issue and also affect the hospitality industry. Therefore, the challenges are :
 Seasonal employment: globalization also affect by seasonal employment and it si
consider as an economical issue. For varying reason, due to high peak season, there

are different jobs available for the person but when the season off, it creates
unemployment fund it directly affect the economy of the country.
 Exposure to different culture is consider as a social issue: the trade and economy
creates a direct impact upon the economy such that as industry has different types and
sector at world level and due to this, it directly exposure to different culture and this
leads to create a challenge for a hospitality industry.
Positive Impact:
 Fluctuation in currency creates jobs and increase employment within the tourism
industry.
 It is the essential in rural communities and generate taxes revenues.
Negative Impact:
 Destination dependent on tourism can be influenced by events like terrorism.
 Jobs are created by tourism are frequently seasonal and poorly paid.
2. Impacts of these issues have on profitability of hospitality industry
Environmental, economical and social issues also create impact on the profitability of
hospitality industry. These kinds of issues affected on the market share and productivity of
hospitality industry. Also, it affects on the brand image of hotels, travel and tourism
companies in hospitality business.
Impact of Hike in unethical activities
Working in the unethical environment also affect the overall environment of the
company such that in hotels, most of them did not have best drainage system and as a result,
it may affect the environment in negative way. That is why, it may leads to unethical
activities (Prud’homme and Raymond, 2016). Therefore, it is quite essential for the business
to keep focus on the carbon footprint so that it will help to creates positive impact upon the
environment. On the other side, hotel also uses different social activities in order to generate
awareness among people related to environment.
As a result, it also affect to decreasing in food waste in restaurants, water and energy
saving in the hotels for example Hilton also uses OnQ system that integrates to multiple
capabilities into one system for the hotel reservation as well as improving the operation
system in the firm. But sometimes, the hospitality industry embraces other social issues
(Bunakov and et.al., 2015). Such that Major of hotels firms has applied corporate
sustainability initiatives relating to community development, promoting diversity between
their manpower and progressive employment activities with the outcome that several of them.

For instance: the engagement of hotel in corporate sustainability practices can improve their
brand awareness and loyalty for consumers.
For cost saving, It is the necessary to install low flow burst heads to decrease the
consumption of water, switch to air coded ice machines from the water cooled machines,
utilise sensor activated taps in kitchen and wash rooms. In order to that, the many modes
millennial are modification the hospitality industry, their commitment to socially conscious
consumerism is important one. They consider it role in the business to contribute to the well
being of the community. There are 73% of millennial are willing to spend more goods and
services from sustainable brands.
It has negative impact over profit upon the hospitality industry such that:
 Art Build Hotel Group is a leading example in hotel fee development as well as
hospitality consulting. Such that CSR of the hospital industry helps to earn profit
because it help to creates positive impact upon the customers.
 Even many evidence also shows that green operation is a long term trend and if the
company did not follow the issue then it will affect the brand image of an industry as
well.

Impact of Non Eco-friendly practices
The practices which are defined above about the excessive use of the natural
resources have the direct negative impact over the environment. Due to this reason
organisation faces many issues and also pays penalty to the government side and this
situation results in decrement of the profit of the overall industrial organisations. It makes
chances for hotels with eco-friendly practices to appeal to the value of environmentally
awake guests (Modica and et.al., 2018). In order to that, companies needs to focus on eco-
friendly or green practices within the business which help to enhance consumer satisfaction
and profits of hospitality industry. There are many green lodging trends like green building
design, tracking energy consumption water conservation, installing low energy lighting and
so on.
Green building design: In order to that, one of leading elements of green lodging
direction in green approaches of structure that integrates many sustainable characteristics like
Illustration 1: CORPORATE SUSTAINABILITY
Source: (CORPORATE SUSTAINABILITY, 2017)

building material, residency, low energy, interior decoration that highly cost-efficient
chilling, warming approaches and plumbery which us low flow.
Tracking energy consumption: Eco friendly hotels are also lead their energy intake
and create efforts to preserve power by utilizing energy efficient gelidity, vessel, and
illumination.
Water conservation: Water conservation is an essential portion of sustainability.
Utilization of trade less liquid like low travel supply like shower heads and toilers can
safeguard large measure of liquid (Su, Pan and Chen, 2017). the water which is recycles also
utilised for washing clothes and at watering the plants as well as gardening pirpose in the
buildings
Installing low energy lighting: Green trends in hospitality have been consider as one
of the leading region which most building internationally focuses to changes, to protect
energy and relieve an energy account. There are 2161 hotels in 44 nations that is 70% have
located florescent and glowing lights with LEDs.
Green Hospitality: The internet has allowed trade companies and individuals
customers to research environmentally sustainability practices within the hotels. It is
providing clear competitive edge to hotels which can appeal to this kind of consumers before
deciding whether to stay there (Kim and et.al., 2018). Any of hotels can advertise their eco-
friendly practices on their websites. An eco-friendly hotel can assure that customers are
aware of commitment to environmental principles of the hotels.
This creates a problem such as global warming and it is also analysed that due to
global warming different hospitals faces biggest issue and as a result, it also affect the climate
change that leads to affect the environment as well . For instance, there are many cities who
faces pollution and as a result, this directly affect the environment of teh company in negative
way.
Impact of currency fluctuations:
Seasonable tourism have impact over the currency of the nation. This will have huge
negative impact over the profitability s this will results in decrement of their business
activities. Globalisation is procedures of firms developing their business or activities
overseas. It pressurize hotel firms to select best areas for all the buildings in order to expand
their business properties (Medrado and Jackson, 2016). Size and chain of the hotel is also
consider one of the most effective key element that affect the business environment of in
opposite way . Therefore, it creates a direct Impact is the globalization is an economy that is
also very essential. There is only of the market share hotel, travel and tourism can get by

staying localised or in their countries as well. Another impact of globalization is culture of
the hospitality industry.
Cultural diversity: Globalization creates hotels firms adapt various cultures and
changes their concepts when they enter in new nation. Expansion of nation with wholly
various cultures is large risk to most hotel firms. They can consider the various cultures in the
destination image of then places (González-Rodríguez and et.al., 2019). Globalization forces
firms adapt various cultures aspects. If the company refuse to adopt, so that it can happen the
risk or lose. Moreover, due to having a wide range of force, will help the firm to generate
different ideas so that it may leads a business towards further level of success. Moreover,
now hotels are also did not discriminate anyone on the basis of caste, gender and religion that
is why it leads to cultural diversity as well (Gao Mattila and Lee, 2016).
The poverty line of the country also affect the hospitality industry in negative way
such that it affect the overall profit of the business and also affect the economy of the country
in negative way. But on the other side, Accor also adopted different sustainability strategy
that helps the firm to sustain the brand image at international level and gain or attract wide
range of customers towards it. So that, it also help to overcome the issue as well.
3. Importance of corporate sustainability management in hospitality industry
The hospitality business is highly focused on the significance of sustainability within
the business. It relates to variety of hotel development and functions which includes
environmental, social impacts. Sustainability is one of the most essential issues recently
facing in the world. The hospitality sector has traditionally has remarkable environmental and
social effect through energy, water consumption and durable products, solid and dangerous
waste creation (The Importance of Sustainable Development, 2015). Sustainability saves
money by decreasing spending and waste. It aids environment of hotel and hospitality
business. Also, it provides public relation benefits over competing operations which do not
care about efforts to be green. Another reason is to hotels and hospitality business to embrace
sustainability.

The role of sustainability is also important in the hospitality industry it is so because
hotels need electricity, water and goods which are both consumable and durable. But as a
result, it also leads to the create waste in large amount. The corporate that utilise such
sustainable technology get the green building labels. Therefore, hotels, travellers as well as
tourism industry needs to follow the sustainability practices for increasing consumers
attraction, attention and experience towards their products and service (Bunakov and et.al.,
2015). Sustainability can help to increase the brand image and equity within the hospitality
industry.
Cost Effective:
Environmental technologies aim to accomplish better performance in producing better
operational processes. Cost effectiveness is the element which makes green technology more
attractive. Companies can utilise green technology in variety of modes. In order to that,
utilising technology that can start recycling programs (Chan and Hsu, 2016).
However it has been also evaluated that hotels, travellers as well as tourism industry
needs to follow the sustainability practices for increase consumers attraction, attention and
experience towards their products and service. Sustainability can help to increase the brand
image and equity within the hospitality industry. In order to that, it can aid raise the profits
and sales of the business. Critically it has been further analysed that It increases the
Illustr
ation 2: The Importance of Sustainable Development
Source: (The Importance of Sustainable Development, 2015)

productiveness and improves the performance of the hotels and travel as well as tourism
industry.
Better guest experience:
There is awareness among the travellers about the harmful effect of pollution on the
atmosphere. Hence, they look forward to the hotels which are aiming on reducing the harm to
the environment. They feel obligated to stay at the property which efficiently utilises the
latest technology to decrease the energy waste and recycle the waste materials. Therefore,
investing in environmental tech and better operational techniques will outcome in positive
impression on the guests (Prud’homme and Raymond, 2016). however it has been critically
evaluated that hotels and travel as well as tourism industry needs to follow the sustainability
practices for increase consumers attraction, attention and experience towards their products
and service. Sustainability can help to increase the brand image and equity within the
hospitality industry. In order to that, it can aid raise the profits and sales of the business. It
increases the productiveness and improves the performance of the hotels and travel as well as
tourism industry.
Critically it has been further analysed that this can be helped to increase the
profitability and consumer satisfaction towards the business. This can aid to create the brand
image of hotel, travel and tourism within the hospitality industry.
Build the corporate image:
Green organizations employ sustainable habits which are mostly preferred for new
talent to link with them. But, the company has to get to retain workers as they feel proud to
be part of reputed firm which actually cares about an environment. On the other side, it has
been critically evaluated that The younger generation and women are attracted to these firms
which do not focus on profits alone instead of aim for betterment of the people. Also, it
makes them feel that they can make difference and contribute to society. Therefore, hotels
and travel as well as tourism industry needs to follow the sustainability practices for increase
consumers attraction, attention and experience towards their products and service (Depke and
et.al., 2016).
CONCLUSION
This report has summarised that different issues such as environmental, social and
economic which involves corporate social responsibility, eco-friendly or green practices and
globalization in the hospitality industry. It can be concluded that impacts of all these issues

on the profitability of hospitality business. It can be discussed that importance of corporate
sustainability management which includes build the corporate image, improved brand image
and cost effective in hospitality industry. Furthermore, report has completed that impact of
corporate social responsibility which involves community services and charitable
contribution by the hospitality industry. It can be evaluated that building green design, water
conservation by hotel industry. . Also, this can be helped to increase the profitability and
consumer satisfaction towards the business. This can aid to create the brand image of hotel,
travel and tourism within the hospitality industry.

REFERENCES
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