Critical Evaluation of Sustainable Hospitality Management in Practice

This report provides a comprehensive analysis of sustainable hospitality management, focusing on critical evaluations of the industry and its impact on environmental, social, and economic dimensions. The report examines various issues, including pollution, poverty, and economic challenges, and analyzes the significance of corporate sustainability management (CSM). It explores examples like the Hilton hotel, highlighting their efforts in waste management and social initiatives. The report also discusses the interlink between theory and practice, emphasizing the importance of balancing environmental integrity, social justice, and economic development within the hospitality sector. The analysis covers the impact of industry problems, the role of corporate sustainability in economic development, and the significance of CSM in creating a healthy environment and improving working conditions. The report underscores the need for sustainable practices to ensure the long-term viability and growth of the hospitality industry.

SUSTAINABLE
HOSPITALITY
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Critical evaluation of hospitality industry .........................................................................1
2. Analysis of impact of these problems on hospitality industry and probability..................3
3. Significance of corporate sustainability management........................................................5
4. Analysis of examples of hospitality industry.....................................................................7
5. Interlink between the theory and practice..........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES ............................................................................................................................10

INTRODUCTION
Development of sustainability is considered as important for every business enterprises to
sustain in competitive business environment and development of brand recognition among the
people in country. It is also considered as combination of various principles which relates to
environmental, economic and socio-cultural aspects of tourism development. In this context,
analysis of Hilton hotel is done to analyse various measure which taken by them to sustain in
market and provide growth and development of economy. Moreover, a critical evaluation of
hospitality industry is also discussed providing an understanding about the issues which are
faced and needs to be resolved through application of various effective measures.
1. Critical evaluation of hospitality industry
Sustainability is considered as the framework which is a combination of various
principles like environmental, economic and socio-cultural aspects of tourism development. It is
also essential to develop a balance between these three principles to guarantee its long-term
sustainability (Millar and Park, 2013). In other words, it is also considered as a process
protecting the natural resources that to make fulfil the requirements in the future. In present
context, there are several issues have been considered that provides major impact on
sustainability of various natural resources and provides major impact on environmental, social
and economic dimensions within the country. These major issues are
 Environmental issues: It is most significant issues that concentrates on the problems
faced by the various developed nations in development and sustaining a clean and healthy
environment within the country. In this context, pollution is the major issue which
provides major impact on the environment and causes various problems for the people to
survive in country (Jones and et.al., 2016). This issue of pollution is the introduction of
harmful and poisonous contaminants in to natural environment which causes from the
improper disposal of solid waste. In this context, Hospitality industry is considered as one
of the most energy and resource intensive branches of tourism industry. Their most
important priority is to satisfy the customers without sacrificing comfort and service. It is
also recognised that high degree of waste has been disposed by hospitality firms that
creates pollution (Sustainability issues among top 10 global concerns, 2017). With the
changes in regulations by government, environmental authorities they are also focused on
1

development and sustainability of clean and healthy environment. Therefore, there is
great concern that environmental improvements or conservation methods implemented
will provide major benefit to hospitality industry and helps in making satisfaction among
the tourists. For example: there are various environmental issues have been faced by
Hilton hotel like environment pollution due to waste. Therefore, they have developed
waste management system in their workplace to remove such consequences.
 Social issues: These are considered as most significant aspect that concentrates on
development on people living society by eradicating the poverty and providing
employment to individuals. In the analysis, it has been recognised that the poverty is
major issue that is faced many people in developed and developing countries (Eccles and
et.al., 2012). There various international summits have been organized by countries to
remove this social issue to sustain the positive and healthy environment to raise the
standards of living of people. In this context, for the removal of this social issue business
firms in hospitality sector also provided a major contribution by giving financial support
to lower income people. It has also reduced the problems of poverty by providing
employment to individuals. By making effective policies that have also provided supports
to government in development low level income or minorities groups in UK. For
example: There are major issues like changes in preferences of people, increasing
environmental changes.
 Economic issues: It is one of the major challenge that is faced by several economies that
clearly describes the conditions of inflation and economic crisis. In UK, there is major
contribution of hospitality and tourism industry in increasing the GDP and resolving the
problems of inflation as well as economic crisis (Deale and Barber, 2012). By developing
effective strategies and utilizing new technological channels of communication they have
increased the promotions of tourist destinations across the countries. These are also
considered as major challenge which needed by organization like inflation, decline in
profitability etc. There is a continuous rise number of tourists have increased the revenue
generation of country and removed the reduced the problems of unemployment. For
example: there are various economic issues like decline in profitability, inflationary
condition in economy etc.
2

2. Analysis of impact of these problems on hospitality industry and probability
In business environment, there is great contribution of business firms in every industry
towards development of economic, social and environmental sustainability within the country. It
is also considered as responsibility of industries regulating their business operation countries like
UK to provide support in protecting the natural resources that by developing various polities and
making investments. In this context, hospitality and tourism sector is one of the largest industries
which has achieved a growth of 5 % in the year 2013 to 1.087 billion and expected to reach 1.5
billion by 2020 (Alonso and Ogle, 2010). Moreover, as more regions and countries and countries
develop their tourism industries, these areas will provide significant impact on natural resources
pollution levels, consumption patterns and social systems. The main pillars of sustainable
tourism are considered as the environmental integrity, social justice and economic development.
In UK, introduction various environmental or conservation methods by hospitality industry has
provided a great contribution development of healthy environment. Large amount of financial
resources is invested by hospitality sector towards resources of environmental issues which has
also affected their profitability, but it has not provided a negative impact because development of
pollution free atmosphere has influenced people and increased their customers which has
increased their sales and profitability (Kozak and Martin, 2012). Moreover, rise sustainability of
3
Illustration 1: Sustainable development model

natural resources will also raise the capability of firms to fulfil their future requirements of
resources like water, manpower, healthy environment of work etc.
Apart from this, hospitality sectors have also played role in resolving major social
problems like poverty, inequality and unemployment etc. It has also provided a huge financial
support to the economies of people living in society to increase their standard of living as well as
for development of infrastructure of economy and to make the individuals capable gaining
income by providing employment opportunities. Organization operating in countries utilize
various resources to regulate their business operations, there they also have the responsibility to
provide support to the society and by investing various monetary resources. These financial
supports will also provide a major impact on profitability of industry (Pérez and del Bosque,
2014). By resolving the social problems, they have become successful towards development of
major economic resources that results in increasing the growth of people which will ultimately
raise the profitability of industry. For example, organizations like Hilton hotel, Thomas cook
operating in this industry has provided major supports to resolve the social and provided a
financial support of around £0.5 million Along with this hospitality and tourism sector has also
provided major supports towards reconstructions of old buildings and monuments in UK to
sustain the cultural heritage of country. This is considered as major support that influenced the
people to visit these destinations. Sustainability of culture has also increased the opportunities to
hospitality and tourism sector to expand their business operations and profitability. For example:
In North America, Europe and the rest of the developed world, there are strong checks and
programmes of legislation in place to ensure that people's health and wellness is strongly
protected. It is also about maintaining access to basic resources without compromising the
quality of life. The biggest hot topic for many people right now is sustainable housing and how
we can better build the homes we live in from sustainable material.
In addition to this, support of hospitality sectors towards resolutions of economic
problems like has provided a stability to economic environment of UK. At the time of inflation,
companies in hospitality sector has also faced huge revenue loses but due to fluctuation in
currency and instability of economy. Further, by developing various successful strategies
organizations in hospitality sector has increased the promotion of various tourist destinations and
also provided major supports towards development in infrastructure of country (Wang and Pizza,
2011). In this context, resolution of economic problems has increased the profitability because
4

they are moving towards expansion of business operations in other countries. They also
developed trade relations with the other companies in European countries and other nations like
china, Russia, USA, India etc. to increase the travel and tourism by providing quality services to
people. There are various successful example firms in hospitality sector which has established
their branches in others like Thomas cook, British airways etc. these business firms have also
resolved the major economic problems of people and increased the income level by providing
various economic employment opportunities. Income level of hospitality industry has expected
to rise in 2020 by 1.5 billion which is considered as high growth and economic development of
tourism as compared to previous year five years. Rise in profitability will also lead to growth to
economy and increase the rate of GDP. These economic prosperities will also encourage the
small business enterprise in to increase their efforts and provided major supports to improve the
conditions of employments as well as removing the problems of recession, inflation etc.
3. Significance of corporate sustainability management
In the modern business environment, the is great role business or corporate organizations
towards development economic stability and providing growth to the economy. Corporate
sustainability is an approach that creates long term stakeholders value by implementing a
successful strategy of business that concentrates on very dimension of how business regulates in
ethical, social, environmental, cultural and economic circle (Waling, Clarke and Hawkins, 2013).
Further, this management of these dimensions in the economy by business firms is significant for
the smooth regulation of business operations and resolving the major issues and impact. In this
context, firms in hospitality industry has also utilized this approach to take several advantages.
The main strategy for behind this approach is to quality the positive impact of sustainability and
increase the revenue reduces energy expenses, reduce waste experiences, decrease material
expenses and increase employee productivity, reduce hiring, attrition expenses. It also considered
as major significant approach that helps in reducing the strategic and operational risks. In
addition to this, there are great importance of corporate sustainability management which is
described below:
 Provides economic development: In hospitality industry, this approach is utilized by
many international organization to increase their contribution towards economic
5

development of country by developing effective relationship with the stakeholders like
customers, government, investors, employees and shareholders etc (Wood, 2013). These
business organizations have addressed sustainability internally by educating workers and
seeking to reduce the impact through decrease in waste, energy efficiency etc. with these
strategies they are able to reduce their cost and increase the profitability.
 Sustaining healthy environment: It is also considered as major importance of corporate
sustainability management which clearly determines the contribution business
organizations towards reduction of negative impact business operations on environment
of countries and develop effective strategies for appropriate utilization of natural
resources (Cellar and Dwyer, 2013). In this context, there is great significance of
corporate social responsibility in hospitality management as it has provided a great
contribution towards development of healthy environment and removal various problems
like pollution, waste etc. Apart from this, it contributes to sustainable development,
including the health and welfare of society.
 Rise in working condition of people: CSM creates values and improves economic
performance for organisations, and sustainable development is the key to manage
economic social and environmental challenges that we are meeting and will be meeting in
the future (Social and political dimensions of sustainability, 2017). Together we are
creating companies that are more responsible for a more sustainable planet because we
are all actors of the world of tomorrow. Along with this, Improves the maintenance of
employees’ morale, commitment and productivity. It also develops the relationships with
companies, governments, the media, suppliers, peers, customers and the community in
which it operates.
 Increases economic opportunities: Research of various reports have determined that
this approach most significant as it increases the growth opportunities for the
organization in different by increasing their promotion among the people of different
countries across the world. Firms using this approach has developed various relations
with the other companies in other to make more concentration on the environment etc.
these economic benefits will lead to development effective and positive relationship with
the different organization through exchange of resources. Along with this it also provides
6

opportunities for individuals to work in other nations and analyse their ways to deal with
the deal with the development of sustainability.
 Helps in resolving socio economic problems: In business environment, there is great
significance of corporate sustainability as it reduces the various social problems of
individuals and increases various opportunities to increase their economic condition
within the country (Xu and Gur soy, 2015). Apart from this, it has been recognised that
hospitality industry also plays a major role towards sustaining the economic condition of
society and providing growth opportunities to increase the financial condition of society.
For example: to resolve the problem of poverty and unemployment hospitality industry
has introduced various strategies to increase the capabilities of individuals in society to
become self-employed and provided various employment opportunities to increase their
standard of living as well as economic condition.
 Sustainability pay-off: It indicates that companies which are carry out sustainability
practices and share data generally experience the highest gross margins, profits on sales,
higher return on assets and stronger cash flow. It is also recognised that business firms
have identified most profitable ways of being a great steward of environment. They are
making environmental issues to move from the liability to an asset. One of most
significant example was GE's imagination campaign which has determined that selling
green products can create clear and substantial products and services. Similarly, like
major retailers, they were very fast to capitalize on growing consumer desire for the
development of sustainable product and services.
Thus, these are some points that clearly describes that there is great significance of
management of sustainability by corporate business firms and it has provided major benefits to
resolution social, economic, and environmental issues within the countries.
4. Analysis of examples of hospitality industry.
In present economic scenario, the hospitality industry is also becoming one of the significant
example of regulating sustainable business to be crucial and achievement of long term success.
Although, it was clearly defined in the UN conference one environment and development in Rio
de denarii which aims at meeting the present requirements without making any compromise with
the of future generations to meet their own needs. In this context, the sustainability is becoming
one of most relevant issues to hospitality industry as the continuous rise in cost, demand turn to
7

increasingly sensitive and has the pressure of becoming economically, environmentally and
socially responsible. Various research has defined that the hospitality has important role in this
process. For example: Starbucks which is most popular coffee company, it CEO has described
that company's efforts to engage with the suppliers and locate communities in which they
operate, has increased its investments in sustainable farming. They had also reached their goal of
ethically sourcing 100% of beans by 2015 (Meissen, 2013). Apart from this, GE electronics is
also using its HR department to integrate sustainability in to the company's culture, ranging from
the practices of hiring and training to employee well-being programs. Moreover, the important
example of hospitality industry was the Pepsi Co. which is food and beverage has presented its
sustainability goals in meeting of shareholders and described that the firms has provided major
contribution towards resolving the problem of climate, water scarcity and public health issues.
They have considered these issues as core sustainability that challenges its annuals financial
fillings. Thus, these are some of the best example of sustainability management that signifies the
importance of hospitality as well as other industries in sustainable development.
5. Interlink between the theory and practice.
In order to link this with theory and practice, there are various types of theories which is
needed to be considered by organization. In this scenario, for analysing the situation of company
is external market, PESTLE analysis is used which contains major factors that affects the
business operations of company.
Political factors: These are considered as impact of political condition on company's business
operations. This political environment within country includes various rules and policies which
organisation needs to follow like health and safety, pollution and sustainable development of
country. Hilton hotel also needs to abide by the rules for smooth functioning of business
operations as if not followed it will create in regulation of business operations in country.
Economic factors: Continuous economic growth in country has provided positive influence on
organizations as it has increased the living standard of people and raised their focus towards
development of sustainability in society.
Social factors: These factors includes values, perception, and thinking of people in society that
affects the business operations of organization in hospitality sector. In this context, business
operations of Hilton hotel is influenced by perception of people towards their services.
8

Technological factors: These are considered as factors or technologies that supports the
organisation in improvement of various functioning like marketing, finance and promotion of
products and services. From the analysis, it has been considered these factors have provided
positive impacts on probability of enterprise and also make their work more effective.
Legal factors: This factors include various rules and regulation which are developed by
government and needed to be followed by company to sustain in market. These factors includes
employment rules, fair remuneration and work place equality etc.
Environmental factors: these are considered as important factors that organisation needs to
considered like development of sustainability. The business enterprise also ensure that the
business operations will not harm the environment of country otherwise they will have to face
some legal problems.
CONCLUSION
In this report, it has been summarized that their hospitality management plays a
significant role development of sustainability to control the social, economic and environmental
issues within the country. Analysis of various issues have provided an understanding that the
development of positive health environment is possible when the business firms also provides
major control on these issues. It is also recognised that the corporate sustainability management
is significant approach that generates the commitment of business firms in every sector to
supports the country towards growth and development.
9

REFERENCES
Books and journals
Alonso, A.D. and Ogle, A., [2010]. Tourism and hospitality small and medium enterprises and
environmental sustainability. Management Research Review. 33(8). pp.818-826.
Barber, N., Deale, C. and Goodman, R., [2011]. Environmental sustainability in the hospitality
management curriculum: Perspectives from three groups of stakeholders. Journal of
Hospitality & Tourism Education. 23(1). pp.6-17.
Cellar, L.K. and Dwyer, L., [2013]. An importance–performance analysis of sustainability
factors for long-term strategy planning in Slovenian hotels. Journal of sustainable
tourism. 21(3). pp.487-504.
Deale, C.S. and Barber, N., [2012]. How important is sustainability education to hospitality
programs? Journal of Teaching in Travel & Tourism. 12(2). pp.165-187.
Eccles and et.al., 2012. The need for sector‐specific materiality and sustainability reporting
standards. Journal of Applied Corporate Finance. 24(2). pp.65-71.
Jones and et.al., [2016]. Sustainability in the hospitality industry: some personal reflections on
corporate challenges and research agendas. International Journal of Contemporary
Hospitality Management. 28(1). pp.36-67.
Kozak, M. and Martin, D., [2012]. Tourism life cycle and sustainability analysis: Profit-focused
strategies for mature destinations. Tourism Management. 33(1). pp.188-194.
Meissen, F., [2013]. Sustainable hospitality: a meaningful notion? Journal of Sustainable
Tourism. 21(6). pp.810-824.
Millar, M. and Park, S.Y., [2013]. Sustainability in hospitality education: the industry's
perspective and implications for curriculum. Journal of Hospitality & Tourism
Education. 25(2). pp.80-88.
Pérez, A. and del Bosque, I.R., [2014]. Sustainable development and stakeholder relations
management: Exploring sustainability reporting in the hospitality industry from a SD-
SRM approach. International Journal of Hospitality Management. 42. pp.174-187.
Waling, V.M., Clarke, J. and Hawkins, R., 2013. Implementing sustainable tourism: A multi-
stakeholder involvement management framework. Tourism management. 36. pp.342-
353.
10

Wang, Y. and Pizza, A. eds., [2011]. Destination marketing and management: Theories and
applications. Cabin.
Wood, R.C. ed., [2013]. Key concepts in hospitality management. Sage.
Xu, X. and Gur soy, D., [2015]. A conceptual framework of sustainable hospitality supply chain
management. Journal of Hospitality Marketing & Management. 24(3). pp.229-259.
Online
Sustainability issues among top 10 global concerns, 2017. [Online]. Available
through:<https://www.greenbiz.com/news/2012/11/15/sustainability-issues-among-top-
10-global-concerns.> [Accessed on 16 October 2017].
Social and political dimensions of sustainability, 2017. [Online]. Available
through:<http://www.see.leeds.ac.uk/research/sri/research/social-and-political-
dimensions-of-sustainability/> [Accessed on 16 October 2017].
11