Analysis of Sustainability in Hospitality: Hilton Hotel Report

This report provides a comprehensive analysis of sustainability management within the context of Hilton Hotel. It begins by defining sustainability and corporate responsibility, highlighting the hospitality industry's contributions to various issues, and specifically addresses the economic, environmental, and social dimensions. The report then delves into the impact of these issues on the profitability of the hospitality industry, focusing on factors such as occupancy rates, environmental concerns like green hospitality, and ethical considerations. Furthermore, the report emphasizes the importance of corporate sustainability management, evaluating strategies that businesses, like Hilton, can adopt to manage sustainability and responsibility changes effectively. The report concludes by summarizing key findings and emphasizing the need for a balanced approach to sustainability that considers economic, social, and environmental factors for long-term success.

Sustainability
Hospitality
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
Concept of Sustainability and Corporate Responsibility and Contribution of Hospitality
Industry in Different Issues........................................................................................................1
TASK 2...........................................................................................................................................3
Impact of Issues on Profitability of Hospitality Industry and Formulation and Implementation
of Sustainability Management Approaches...............................................................................3
TASK 3...........................................................................................................................................6
Importance of Corporate Sustainability Management and Evaluate the Strategies that can be
Adopted by business to Manage Sustainability and Responsibility Changes...........................6
CONCLUSION...............................................................................................................................7
REFERENCES..............................................................................................................................8

INTRODUCTION
Sustainable hospitality management is a concept of hospitality industry which provide
the broad foundation in management, operations, hospitality, marketing and sustainability. It
present the sustainability problems and issues within hospitality sector (Ali, Murphy and
Nadkarni, 2014). It is a management of activities and strategies in hospitality sector which helps
in sustainability of an organisation. This report is based on Hilton Hotel & Resort which is a type
of private hospitality industry. It was founded in 31 may 1919 by Conrad Hilton. Its headquarter
is located in Virginia, United States. It provide their services in worldwide area. There are
approximately 570 outlets in around 85 countries. In this report there is a discussion about
concept of corporate responsibility and sustainability and contribution of hospitality industry in
different issues. Apart from this, impact of different issues on profitability of hospitality sector will
discuss. At last, importance of corporate sustainability management and strategies used by
business for long term sustainability will discuss.
TASK 1
Concept of Sustainability and Corporate Responsibility and Contribution of Hospitality
Industry in Different Issues
Concept of Sustainability in Hotel Industry
Sustainability refers to the maintaining the balance between changing situations. It
focuses on meeting of present needs without compromising the future generation to meet their
requirements. These concept is based on three components i.e. social, economical and
environmental (Barber and Deale, 2014). Hospitality industry is is a great example of
sustainable business which can run for long time period. Hilton Hotel is a type of hospitality
industry which make strategies for retain long run in hospitality sector to beat their competitors
and provide better service to their customers. Sustainability is deals with the meeting of present
needs without compromising the future generation needs. Every hotels and restaurants want to
sustain long term in future. For this, they make different strategies and manage their
performance in order to get sustainability. It increase different types of issues in the hospitality
sector which are deals with sustainable development. These issues are related to social factor,
economical factor and environmental factor.
Concept of Corporate Responsibility
It refers to the responsibility of corporation to those individuals or group who affect
individuals or group such as their stakeholders and society at a large. Stakeholders are
generally refers to employees, customers, suppliers, government, community, shareholders and
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other financiers. The corporate responsibility of society at a whole means to different
communities and regions. Generally, corporation have the social responsibility which is the main
objective of an organisation. Society play an important role to create value for a firm. So, it is the
responsibility of a company to provide them better quality of goods and services and satisfy their
needs. Hilton Hotel have to follow the ethical principles and apply them in their hotel
environment where staff members are behave ethically and politely with their visitors
(Benavides-Velasco, Quintana-García and Marchante-Lara, 2014). Honesty and integrity should
also spread among hotel employees are every one have to respect each other as well as their
customers. Corporate sector get licence for execute their firm to operate in society by which
society can get employment and satisfied their needs by consuming goods and services
produced by corporations.
Now a days tourism sector is growing rapidly which create a millions of new jobs and
increase economy condition of a country in all over the world. Although, service industry is the
largest industry around the world still it make impact on environment and society. And these
factors also make impact on Hilton Hotel in which they have to face sustainability management
challenges. There are three main issues in sustainability of an organisation i.e. social,
economical and environmental. Explanation of these issues are discuss as under:-
Economic Issues
These are the issues which are facing not only the economy of a nation but also regions
and worlds' economy. It include growth rate, inequality, inflation and deflation rate, labours
issues, emerging market, national income, exchange rate etc. Economic issues arises on
hospitality industry are as follows:-
Occupancy Rate: Hospitality industry is highly depends on country's economy. When
there is a good economy of a country then hospitality and travel and tourism business is
increases. On the other hand, if there is low economy of nation then hospitality and travel and
tourism is decreases. When occupancy rate and rack rate are increases then Hilton hotel will
gain high amount of profit. Apart from this, if residency rate is low then company have to bear
loss. It is an issue for a company to dependency on economical condition of a country. Hilton
Hotel have to focus on economic situation of United Kingdom. When there is an increment in
framing rate and residency rate then hotel need to enhance their services because it increase
their profit and helps in sustainability for long run. On the other hand, if reverse situation is
created in which occupancy rate is decreases then Hilton hotel have to face lower revenue and
decrement in profit.
Environment Issues
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These are the issues which are related to the environment and make large impact on
sustainability of an organisation. It includes the issue of global warming, greenery, etc.
Environmental issues related to hospitality industry is discuss as under:-
Green Hospitality: When a company adapt greenery concept then chances of
sustainability become more high. Going green is a growing issue in hospitality sector. Now a
days people are focus on this concept for solution of sustainability for long run in future in
hospitality industry (Camilleri, 2014). The perception of greenery become changing which is
based on fringe movement to mainstream. Hilton Hotel is being so popular in UK which take
initiative to conduct environmental program in addition to others. Sustainability of hospitality
business is depends on making the balance between people, planet and profit. By using these
concept hotel can easily sustain long term in market and manage their services properly.
Greenery development programs are beneficial for both environment as well as community.
Social Issues
These issues are related with social norms, culture and behaviour of people in different
sectors and situations (Xu and Gursoy, 2015). There are some issues in social factors which
include: change in taste of customers, unethical behaviour, cultural discrimination etc. Social
issue which affect the sustainability of Hilton Hotel is discuss as under:-
Unethical Issues: There are some unethical issues arise in Hilton Hotel can make
adverse impact on brand image of hospitality industry. If manager of hotel does not pay salary
to staff members timely or pay less amount then employees turnover will increase which is not a
positive impact on hospitality sector (Cohen and et. al., 2014). When company did not pay the
final payment after leaving by employee, ignorance in health and injury of a person, bad
behaviour with customers, using false advertising of products and services, refusing to giving
the claim of defective product etc. are include in unethical issues. Hilton Hotel have to focus on
making a positive environment where all the employees are working together without any
conflicts or behave politely with visitors and satisfy their needs by which they get positive
experience to visit in Hilton Hotel.
TASK 2
Impact of Issues on Profitability of Hospitality Industry and Formulation and
Implementation of Sustainability Management Approaches
Economical, social and environmental factors make impact on profitability of hospitality
industry. It can be determined as under:-
Impact of Economical Issues
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Economical issues make both positive as well as negative impact on profitability of Hilton
Hotel. When there is an increment in occupancy rate and rack rate then it make positive impact
on profitability of Hilton Hotel (Farmaki and et. al., 2015). There are different situations arises in
country's economy like change in rate of inflation and deflation, exchange rate etc. Seasons and
holidays are also include in economy issue. In holidays, large number of visitors are come to
visit UK through which demand of hotel rooms is increase which ultimately tends to
incrementation in profitability of Hilton Hotel. On the other hand, if occupancy rate and rack rate
are decreases in the country's economy then it directly make impact on profitability of hospitality
industry. The profit and revenue become minimise in this situation.
Impact of Environmental Issues
There are different types of issues includes in environmental factor which make both
positive and negative impact on profitability of Hilton Hotel. Positive impact of environmental
issues are maintain greenery in hotel area. It educate people about protecting the local
environment, it create employment and other business opportunities to contribute in local
economy. Better environment make positive working area where all the staff members have
responsibility to maintain area (Gao, Mattila and Lee, 2016). Hilton Hotel conduct different
program to promote green environment which make positive image in front of customers and
helps in increasing profitability of hotel. They also recycle their products, use organic ingredients
in food making and less toxic chemicals in products which helps to enhance their profitability.
Negative impact of environmental issues is that when there is no greenery around the
area of Hilton Hotel then it make negative image in front of visitors. When they see that
greenery is destroyed at the area then will avoid to visit that place again and again. Electricity
for refrigeration and air conditioning needs lots of water and energy which make negative impact
on environment. Food and other wastages issues are also increase the cost of Hilton Hotel and
make adverse impact on profitability of hospitality business.
Impact of Social Issues
Social issues includes social norms, culture, ethical behaviour, taste and preference of
consumer, income level of persons which make impact on profitability of Hilton Hotel. Unethical
behaviour make negative impact on brand image of hotel as well as their profitability and
sustainability. Because Hilton Hotel is a type of hospitality industry which is a kind of service
sector. It is important for hotel to provide best services to their customers by which they feel
satisfied and get positive experience to visit the hotel. But if there is unethical environment run
in hotel and conflicts are arises between staff members then it make create negative image of
hotel in hospitality sector (Jones, 2017).
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Need of Corporate Sustainability Management
Corporate sustainability management is a technique whose aim is to create large
number of stakeholders who sustain long term with business. It is a business activity which
focuses on social, economical, environmental, cultural and ethical dimensions for performing
activities. This strategy is created transparency and proper employee development within
hospitality industry. It can be viewed as a new corporate management paradigm which is used
for deliberately. Corporate sustainability management is necessary for Hilton Hotel to manage
their products and services offered by them to their customers in order to get profit, customer
satisfaction and gain competitive advantage to achieve long term sustainability. It helps to better
growth and sustainability of a hotel. It give advantage to vision, mission and values to hospitality
industry. Environmental protection, pursue societal goals and contribution in country's economy
is the main aim of corporate sustainability management.
Corporate sustainability management is necessary for hospitality business to assess the
strategic priority and consultant with stakeholders to measure their performance in terms of long
term sustainability. This management strategy is based on environmental, social, and
economical challenges, priorities and objectives (Jones, Hillier and Comfort, 2016). It is also
necessary for implementing the initiatives and actions which are important for compliance with
monitoring of regular performance and achieving defined aims and objectives. Hilton Hotel have
to use the strategy of managing sustainable corporation by which they can effectively alignment
with practices and policies.
Formulation and Implementation of Management's Approaches to Sustainability
Management approach of sustainability is to targeting continuous improvement is to
focus on growing the issues related to social, economic and environment which make impact on
Hilton Hotel in long term sustainability. Business practices are used to formulate and implement
for successfully run the activities in hospitality industry. There are different types of strategies
and objectives a firm but they have to focus on that strategy which is easily formulate and
implement in their performance (Juvan and Dolnicar, 2014). Management approach is focuses
on customer satisfaction and enhance their brand image. They also have to focus on
competitors strategies by which they can improve their strategy and gain competitive by
providing quality product to their visitors.
Hilton Hotel is a leading service industry which have a standard of health and safety,
better quality of raw material and reduce the adverse impact of environment. They don,t have to
use that material which is harmful for environment. For the approach to sustainability,
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stakeholder engagement and efforts are play an important role to setting the objectives and
implementing the strategy of management for sustainability of Hilton Hotel.
TASK 3
Importance of Corporate Sustainability Management and Evaluate the Strategies that
can be Adopted by business to Manage Sustainability and Responsibility Changes
The meaning of corporate sustainability is depends on business context. Basically the
concept of sustainability can be defined as the meeting of present needs without compromising
the need of future generation. There are generally three pillars of are associated with concept of
corporate sustainability management which are social, economical and environmental. These
are often known as planet, people and profit. By the combination of these components, Hilton
Hotel can get benefit to enhance their sustainability, efficiency, shareholder value, growth and
development (Kramar, 2014). Corporate sustainability management is important for hospitality
business because it helps to analyse the market scenario and manage all the activities properly
which helps to attract more and more customers towards Hilton Hotel and hotel also provide
them quality services which satisfy their requirements.
Importance of Corporate Sustainability Management
Corporate sustainability play an important role to eliminate the negative issues arises in
social factors which can be unethical issues. It make negative impact on hotel services.
Management of sustainability corporation helps to analyse and identify the issues and after
finding the causes they have to eliminate that issues and make ethical environment in Hilton
Hotel in which staff members are perform their work without any conflicts and polite behaviour
with customers. It helps to increase customers value, profitability and sustainability of hotel in
hospitality sector for long run.
Corporate sustainability management is important to resolve the negative issues arises
from environmental factor which make adverse impact on profitability and sustainability of Hilton
Hotel (Mason, 2015). There are some issues arises in environment factor such as internal and
external environment, greenery in hotel area, cleanliness and using of natural resources. By the
management of corporation, manager of hotel need to focus on different types of strategy by
which they can optimum utilisation of natural resources, focus on greenery around the area and
recycling of disposals and other wastage which is significant factor for enhancing possibility of
sustainability of Hilton Hotel in hospitality industry for long run.
Importance of corporate sustainability management in economic factor is that it focuses
on enhancing the brand image of a firm by which manager of Hilton Hotel can focus on
improving their performance and enhancing the brand image of hotel and make positive impact
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in front of customers. Country's economic condition is also make impact on profitability of
hospitality sector.
Strategies for Business to Manage Sustainability and Responsibility Changes
There are different strategies used by a business to manage responsibility changes and
sustainability for long time period. Strategies are described as under:-
Create and promote special packages- This strategy can be used by Hilton Hotel in
which they have to create and promote the special packages related to staying in hotel and in
addition to this they can provide services such as spa treatment, fitness classes etc. This offers
are attract customers and encourage them to get the services (Stylos and Vassiliadis, 2015). It
increase profitability and sustainability of Hilton Hotel.
Give guests control over brand culture- Hilton Hotel have to provide better services to
their customers by which they get positive experience and also attract more customers to get
their services. it helps them to enhance the reputation of hotel in service sector.
Emphasise the creation of valuable hotel experiences- Hotel have to create extra
activities by which customer will get valuable experience and enhance sustainability of Hilton
Hotel. Some guests are prefer downstairs rooms, later breakfast etc. By providing these
facilities, hotel can gain positive feedback from customers.
Focus on direct bookings- Hilton Hotel adopt this strategy and provide a facility to their
customers to book their rooms online. Now a days, guest are prefer to directing booking of
hotels from hotel websites (Wang, 2014). Customers also get discounts offers and some
attractive packages which enhance the booking of rooms in Hilton Hotel.
Need to focus on reviews- It is a responsibility of manager of Hilton Hotel to focus on
the responses given by clients and share their experience regarding services and facilities
provided by them. If they get any negative feedback they they have responsibility to change
their facility or improve their services.
CONCLUSION
From the above mentioned report it can be concluded that there are different issues
arises in a hospitality business where company contribute their services. Social, economical and
environmental issue make positive as well as negative impact on profitability of an organisation.
Different management approaches are formulate and implement for sustainability of a firm.
Corporate sustainability management is important for resolve the issues arises in firm and make
negative impact. There are also some strategies adopted by business for long term
sustainability of hospitality business.
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REFERENCES
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behavior. Cornell Hospitality Quarterly. 55(1). pp.100-114.
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management, corporate social responsibility and performance in the hotel industry.
International Journal of Hospitality Management. 41. pp.77-87.
Camilleri, M., 2014. Advancing the sustainable tourism agenda through strategic CSR
perspectives. Tourism Planning & Development. 11(1). pp.42-56.
Cohen, S. A. and et. al., 2014. Understanding and governing sustainable tourism mobility:
Psychological and behavioural approaches (Vol. 43). Routledge.
Farmaki, A. and et. al., 2015. Politics and sustainable tourism: The case of Cyprus. Tourism
management. 47. pp.178-190.
Gao, Y. L., Mattila, A. S. and Lee, S., 2016. A meta-analysis of behavioral intentions for
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Juvan, E. and Dolnicar, S., 2014. The attitude–behaviour gap in sustainable tourism. Annals of
Tourism Research. 48. pp.76-95.
Kramar, R., 2014. Beyond strategic human resource management: is sustainable human
resource management the next approach?. The International Journal of Human
Resource Management. 25(8). pp.1069-1089.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Stylos, N. and Vassiliadis, C., 2015. Differences in sustainable management between four-and
five-star hotels regarding the perceptions of three-pillar sustainability. Journal of
Hospitality Marketing & Management. 24(8). pp.791-825.
Wang, C. J., 2014. Do ethical and sustainable practices matter? Effects of corporate citizenship
on business performance in the hospitality industry. International Journal of
Contemporary Hospitality Management. 26(6). pp.930-947.
Xu, X. and Gursoy, D., 2015. A conceptual framework of sustainable hospitality supply chain
management. Journal of Hospitality Marketing & Management. 24(3). pp.229-259.
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