Sustainable Hospitality Management: Issues and Impacts Report

This report delves into the critical aspects of sustainable hospitality management, examining the industry's contributions to economic, environmental, and social sustainability issues. It critically evaluates the extent to which the hospitality sector impacts these areas, exploring challenges like unethic...Read More

SUSTAINABLE HOSPITALITY
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION .....................................................................................................................3
TASK.........................................................................................................................................3
1. Critically evaluate the extent to that hospitality industry in contributes to each of issues 3
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
Sustainable is the process of a people that is maintain that help to maintain the change
in the balance scorecard and increase both current as well as 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 issues of sustainability
in the context of economical, environmental and social which an hospitality industry face.
Report will critically evaluate the extent to that hospitality industry is contributes to each
issues such as economical, environmental and social. Furthermore, it will evaluate the
importance of corporate sustainability management in hospitality industry.
TASK
1. Critically evaluate the extent to that hospitality industry in contributes to each of issues
Sustainability and environmental issues 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. World Tourism Organization (UNWTO) has stated that sustainable
tourism development meets the wants of present travellers and host areas while defending
and increasing chances for the upcoming time period (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 tourim activities at large number. Terrorism is one of teh main aspect which increases
with the rapid rate. The hospitality industry must focus and uphold corporate social
responsibility which means to social responsibility. For hospitality industry, CSR is a social
issue which also affect the overall hospitality industry such that it faces different challenges
while incorporating with CSR:
Positive Impact:
 Through tourism, development to infrastructure and new leisure amentities which
result benefits the localized people.
 This can encourages the preservation of tradition csutoms.
Negative Impact:
 This can impact on quality of life of the host nation like crowding, increased crime
etc.

 Communication with tarvellers can also lead to erosion of traditional cultures and
values.
Non Eco-friendly practices: This term includes practices adopted by the hospitality
industrywhich have negative impact over the environment due to the execssive use of the
natural resources. This can be uderstood from the fact that the emissionof the ags from the
operationof their operations has negative impact over the environment. This will results in
damage of the ennviornmental aspect at large level.
 water usage: it is the biggest issue of environment 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 disbalance the environment.
 Food waste: Often time, food is not reusable by the firm and then they thropw away
and this creates problem in environment and it leads to affect in negative way.
Positive Impact:
 Eco toruism aid promote conservation of wildlife and natural resources like rain
forests.
 Tourism decreases issues like over fishing, deforestation in developing countries.
Negative Impact:
 Tourism creates threas to natural and cultural resources like water supply, coral reefs
and heritage sites.
 Also, it reeason raised poolution through traffic emission and sewage production and
noise.
Currency flucation: There is hue different in number of the tousits on different time.
This will depend upon the seasona and other factors. This is the basic reason that this will
cause economical impact over the nation. Globalization refers to trends towards more
integrated global economic system. It is nonstop procedure in the businesses that crosses into
the economic, political, legal, technological and cultural areas (THE EFFECTS OF
GLOBALIZATION ON THE HOSPITALITY INDUSTRY, 2018). Therefore, hospitality
businesses need to focus on the globalization for developing the economic system of areas.
Through this, companies also focused on run operations effectively and smoothly in relation
to increase the market share and profits of business. This is consider an economical issue and
also affect the hospitality industry. Therefore, the challenges are :

 Seasonal employment: globalization also affect by seasonal employment. For
varying reason, due to high peak season, ther are different jobs available for the
perosn but when the season off, it creates unemployment fand it directly affect the
economy of the country.
 Exposure to different culture: the trade and economy creates a direct impact upon
teh economy such that as industry has different types and sector at worl level and due
to this, it directly exposure to different culture and this leads to create a challenge for
a hospitality industry.
Positive Impact:
 It creates jobs and increase employement 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
All kinds of issues 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 uenthical activities
The direct of this aspect is seen over the profitability as the normal individual of
society not prefers to gp to the place where they have life threats. The society consist of the
stakeholder to the firms and hence if the society advantages they benefits too (Prud’homme
and Raymond, 2016). Therefore, giving rise to the triple bottom line concept of increasing
profits, people and planet. The hospitality industry provided their large footprint both in
relation to employment and utilization of natural resources like food, water and energy. These
has frequently been at the forefront of apply activities geared to reduce the negative impacts
of their business on the environment.
These involve efforts to raise fuel effectiveness in airlines, decreasing in food waste in
restaurants, water and energy saving in the hotels for example Accor, Hilton and Marriott.
The hospitality industry embraces other social issues not limited environmental concerns.
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 (CORPORATE SUSTAINABILITY, 2017).

For instance: the engagement of hotel in corporate sustainability practices can improve their
brand awareness and loyalty for consumers. 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:
 ArtBuild 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
becuse it help to creates positive impact upon the customerss.
 Even many evidence aso 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.

Public Commitment: The trend seesms to be creating sustainability and public
comittment which is basic practice of business. Social responsibility as sustainability refers
more than caring about the environment. It is about caring for people and communities too.
This makes sense as the hoteliers for example Accor, Hilton and Marriott. Their community
is what creates their locality great and attracts tourists to visit, so that they can be invested in
their health and prosperity (Social Responsibility in the Hospitality Industry: What You Can
Do and Why You Should, 2018). Therefore, travel and tourism as well as hotel companies
focused on the effective community services which directly impact on the profitability of
business within the hospitality sector.
Charitable contributions: It is the aid the community or safeguards the atmosphere,
setting up their programs and initiatives can be discouraging activity. Today, travellers are
more conscious about their impacts on the world that ever before. They want to stay in
accommodation and support industry that are doing by which they can to develop their
localised communities (Depke and et.al., 2016). Also, companies must have contribution in
Illustration 1: CORPORATE SUSTAINABILITY
Source: (CORPORATE SUSTAINABILITY, 2017)

social activities for increasing consumer satisfaction towards the business which help to
increase the profits of business.
Impact of Non Eco-friendly practices
The parctices which are defined above about the excessive use of the natural
resources have the direct negative impact over the envirnment. Due to this reasobn
organsiation has to face the many issues and fines from the government side and this istuation
results in decreament 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
trends in green approaches of construction that integrates many sustainable characteristics
like flooring, occupancy, low energy, lighting highly efficient cooling, heating approaches
and plumbing which us low flow (Latest eco friendly trends in the hospitality segment, 2017).
Countertops and other accessories that are utilised are created from recyclable materials like
glass, bamboo etc.
Tracking energy consumption: Eco friendly hotels track their energy consumption
and create efforts to conserve power by utilizing energy efficient chillers, boilers, and
lighting.
Water conservation: Water conservation is an essential part of sustainability.
Utilization of plumbing less water like low flow equipments like shower heads, faucets and
toilers can safeguard large amount of water (Su, Pan and Chen, 2017). Recycled water can be
utilised for laundry and water the plants in the garden or in the building.
Installing low energy lighting: Green trends in hospitality have been lighting as one
of the leading areas which most hotels internationally have tried to changes, to protect
electricity and save an energy bills. There are 2161 hotels in 44 nations that is 70% have
replaced 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 Global warming is making the
hospitality industry face large issues such as today, people are not choosing to travel from
one place to another because of climate change. For instance, there are many cities who faces
pollution and as a result, this directly affect the environment of teh company in negative way.
The organisations in the industry tends to suffer from these aspects and it impacts the
profitability.
Impact of currency flctuataions:
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 tehir business
activities. Globalisation is procedures of firms developing their business or activities
overseas. It forces hotel firms to select best areas all over the world to expand their properties
(Medrado and Jackson, 2016). Location is important to hotel, no matter whose target market
is business visitors. Size and nature of the place in which the hotel is situated are seen to be
the most essential element for big or small chains. 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 nations. Another impact of globalization is culture of the
hospitality industry. The world is global village and difference places have various culture
and tradition.
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.
Also, it brings culture diversity to the industry that is always positive thing. It brings
hotel firms more understanding of the views of various cultures that aid them to do better.
Globalisation in hospitality business has made more job chances help with the development
and stability of hospitality industry. When hotel firms entered into globalization, it actually
becomes survivals of fittest. Powerful businesses will survive and become stronger and weak
ones will be removed and fade away (Gao Mattila and Lee, 2016). Globalization needs
adjusting and evaluation of various factors. Hotel firms need to keep the same standard in

each and every establishment because consumer loyalty will depend on whether hotel can
deliver the brand promise consistently throughout their hotel experience.
The poverty line of the country also affect the hospitality industry in negative way
such that it affect the overall profitability of the industry and also affect the econmy of the
country innegatve way. But on the other side, Accor is a company who adopted the Planet 21
strategy which main concentrate on corporate sustainability. This strategy has helped an
enterprise in gaining the customer loyalty and 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 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 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. Hotels need
electricity, water and goods which are both consumable and durable. Also, it leads to the
Illustr
ation 2: The Importance of Sustainable Development
Source: (The Importance of Sustainable Development, 2015)

creating of waste. The corporate that utilise such sustainable technology get the green
building labels. 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 (Bunakov and et.al., 2015). Sustainability can help to increase the
brand image and equity within the hospitality industry.
Cost Effective:
The impressive 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. 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 washrooms. In order to that, utilising technology that can start recycling
programs (Chan and Hsu, 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. Critically it has been further analysed that It
increases the productiveness and improves the performance of the hotels and travel as well as
tourism industry.
Better guest experience:
There is awareness between the travellers about the harmful effect of pollution on the
atmosphere. Hence, they look forward to the hotels which are directing 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:
The green organizations employ sustainable habits are also preferable for new talent
to link with them. Also, they get to retain workers as they feel proud to be portion of reputed
firm which cares about the environment. However 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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