Contemporary issues in hospitality industry tiểu luận

Sustainable Marketing Strategies and Limitations...5 3.1 Eco-Certifications and Labels...5 3.1.1 Limitations of Eco-Certifications and Labels...6 3.2 Transparent Reporting and Communicat

MINISTRY OF EDUCATION AND TRAINING

VAN LANG UNIVERSITY

SUSTAINABLE MARKETING STRATEGIES IN

THE HOTEL INDUSTRY

Huynh Thuong My Ha _ 2178102010123 Tran Man Hien _ 2178102015010 Class: 232_72HOSP40123_01

Contemporary Issues in Hospitality Industry

Lam Minh Nhut May 3, 2024

Table of Contents

I Introduction 3

II Definition 4

III Sustainable Marketing Strategies and Limitations 5

3.1 Eco-Certifications and Labels 5

3.1.1 Limitations of Eco-Certifications and Labels 6

3.2 Transparent Reporting and Communication 6

3.2.1 Limitation of Transparent Reporting and Communication 8

3.3 Carbon Offsetting Programs 8

3.3.1 Limitation of Carbon Offsetting Programs 9

3.4 Sustainability Hub on hotel websites 10

3.4.1 Limitation of Sustainability Hub on hotel websites 11

3.5 Enables clients to make a positive impact 11

3.5.1 Limitation of Enables clients to make a positive impact 13

IV Conclusion 14

References 15

List of image

Figure 3.1: Four Seasons Hotels and Resort certifications 4

Figure 3.2: 2023 SERVE 360 REPORT - Report of 2023 6

Figure 3.3: Performance table of Marriott 6

Figure 3.4: 2022 Carbon Reduction of Hilton 8

Figure 3.5: Serve 360 section on hotels' websites 9

Figure 3.6: Captain Cause website of Accor 11

I Introduction

In the dynamic landscape of today's hospitality sector, sustainability has emerged not just as a mere trend but as a core ethos driving hotel operations and marketing endeavors globally This report navigates through the contemporary marketing strategies adopted by hotels to embrace sustainability, illuminating innovative approaches that transcend conventional norms By delving into the challenges inherent

in integrating environmentally and socially responsible practices, this study aims to offer valuable insights into the intricate relationship between sustainability and marketing strategies within the hotel industry

II Definition

In an age marked by increasing concern for environmental conservation, social responsibility, and economic viability, the concept of sustainability is having an impact

on many industries One sector undergoing a significant transformation towards sustainability is the hotel industry (UNCOVERED, 2023)

The hospitality industry is a huge consumer of resources and can have a significant impact on the environment and local communities In the hospitality industry, sustainability refers to operating hotels, resorts, and other accommodations in a way that negative environmental consequences are minimized and societal and economic advantages are maximized This includes elements like conserving energy and water, reducing waste, utilizing renewable resources, supporting local communities, and promoting employee and guest wellness (Arafat, 2023) Sustainable hotels are committed to reducing carbon emissions, conserving natural resources, supporting local economies, and improving guest experiences through responsible and ethical practices Essentially, sustainable hotels strive to meet the needs of present guests while also preserving future generations' ability to meet their own

III Sustainable Marketing Strategies and Limitations

3.1 Eco-Certifications and Labels

One common method is to emphasize eco-friendly practices in operations, such as pursuing green certifications like LEED, EcoHotel certification, ISO 14001, Green Key,

or Blue Flag They are committed to environmentally friendly techniques in all parts of their business, from construction and design to day-to-day management To gain LEED certification, hotels are required to conform to severe requirements established by the United States Green Building Council (USGBC) Similarly, Green Key accreditation assesses a hotel's environmental performance Hotels are subjected to rigorous testing and audits on a regular basis to verify compliance with accreditation standards From there, these certifications play a role as tangible evidence of a hotel's commitment to sustainability, which improves its reputation and appeals to environmentally sensitive customers Displaying these certificates prominently in marketing materials and on-site demonstrates a dedication to environmental stewardship, attracting customers who value eco-friendly accommodations

In 2021, Four Seasons Hotels and Resorts improved its Mechanical, Electrical, and Plumbing (MEP) standards and combined Fitwel and WELL to incorporate sustainable design requirements, ensuring that all new construction and major renovations exceed industry-leading standards The corporation's goal is to consistently achieve outstanding sustainability practices across its global portfolio of properties, while also seeking chances to exceed industry norms The Sustainability Strategy takes a three-tiered strategy that includes environmental certifications, health and wellbeing components, and alignment with net zero paths

Figure 3.1: Four Seasons Hotels and Resort certifications.

3.1.1 Limitations of Eco-Certifications and Labels

Certifications and green labels, serve as important demonstrations for encouraging and recognizing sustainable practices within the hotel business However, these certification processes frequently focus on certain criteria, which may overlook other critical aspects of sustainability and fail to capture the entire range of a hotel's environmental and social initiatives Moreover, the proliferation of certification programs has led to a phenomenon known as "certification overload," wherein hotels may feel compelled to obtain multiple certifications, confusing customers and diminishing the importance of individual endorsements The voluntary nature of certification programs, coupled with limited enforcement mechanisms, raises concerns about accountability and the potential for greenwashing Finally, the static structure of certification criteria may stifle innovation and prevent hotels from striving for ongoing development beyond the limitations of current standards Despite these challenges, certifications and green labels are essential instruments for improving sustainability in the hotel industry when used in conjunction with broader efforts to integrate social, economic, and environmental considerations into business processes

3.2 Transparent Reporting and Communication

Transparent reporting in the hotel industry involves informing stakeholders about the hotel's operations, performance, and impact Hotels use a range of methods, including annual sustainability reports, public disclosures, and regular communication They established particular metrics and Key Performance Indicators (KPIs) for sustainability, including energy and water use, waste management, carbon emissions, and community engagement They also issue yearly sustainability reports that document progress, initiatives, challenges, and future plans and are distributed to the public via various media

Transparent reporting is critical to developing a sustainable marketing strategy for the hotel industry because it promotes confidence and reliability in consumers, who are increasingly demanding more transparency from businesses In addition, it enables the hotel to stand out from competitors and appeal to a rising consumer segment that values sustainability By combining marketing statements with transparent reporting methods,

a hotel may effectively communicate its commitment to sustainability and attract guests who share its values

Marriott International has effectively embraced transparent reporting as part of its sustainable marketing strategy Marriott issues an annual sustainability report that provides comprehensive information on its environmental and social initiatives, performance metrics, and progress toward sustainability objectives The report discusses

energy and water saving, waste management, carbon emissions reduction, community participation, and diversity and inclusion efforts

Figure 3.2: 2023 SERVE 360 REPORT - Report of 2023.

Figure 3.3: Performance table of Marriott.

Overall, Marriott's transparent reporting and communication strategy have helped position the corporation as a leader in sustainability and responsible business practices

By openly sharing information about its sustainability efforts and performance, Marriott has built trust and credibility with consumers, investors, and other stakeholders, enhancing its brand reputation and driving long-term business success

3.2.1 Limitation of Transparent Reporting and Communication

Transparent reporting is critical to corporate governance and sustainability, but it has limitations It can lead to selective disclosure, which can lead to biased perceptions

of performance The complexity and accessibility of transparency reports can offer challenges, especially for non-experts Developing and maintaining a transparent reporting system can be resource-intensive, especially for smaller enterprises Legal and competitive factors may hinder transparency efforts, while the risk of greenwashing may harm reputation Data protection and security aspects are also important Although engagement with stakeholders is encouraged, transparency reporting may fail to facilitate meaningful dialogue, leaving stakeholders feeling alienated Addressing these constraints requires comprehensive transparency policies, accountability, and active stakeholder engagement

3.3 Carbon Offsetting Programs

Many hotels are offering carbon offsetting options to guests, where they can contribute towards initiatives that neutralize the carbon footprint of their stay Hotels promote these programs as part of their sustainability efforts, appealing to environmentally conscious travelers Study finds that 26% of European consumers can

be classified as “pro-environmentalists”, and are willing to pay more for environmentally friendly products (Golob and Kronegger, 2019) Such eco-conscious consumers not only are willing to pay more, but there is empirical evidence, at least in some settings in Europe, that they voluntarily pay to offset their emissions (Brouwer et al., 2008; MacKerron et al., 2009; Diederich and Goeschl, 2014; Lanz et al., 2018; Golob and Kronegger, 2019) These findings suggest that demand (especially from eco-conscious consumers) for a firm’s product could be impacted by its carbon footprint Hilton has partnered with ClimeCo to develop a portfolio of high-quality carbon offsets for customers hosting meetings or events at Hilton hotels around the world (ClimeCo Green, n.d) With the purchase of verified and Gold-certified carbon offsets, Hilton promoted renewable energy projects like solar, wind, and wastewater offsets in

2022 to offset the emissions that could not be reduced and were related to our regional and international corporate conferences in Orlando, Las Vegas, London, and Singapore, which drew over 5,000 attendees (Hilton 2022 ESG report) By supporting these programs, they not only show their dedication to environmental stewardship but also improve their reputation, which may draw visitors and companies that value morality and good business practices When consumers feel their decisions are making a better world, this strategy probably enhances customer happiness and loyalty

Figure 3.4: 2022 Carbon Reduction of Hilton.

3.3.1 Limitation of Carbon Offsetting Programs

Carbon offsetting schemes have become a well-liked tactic in the hospitality industry for hotels to show their dedication to environmental sustainability However, there is disagreement about how well carbon offsetting schemes actually mitigate environmental harm Opponents contend that these programs could not always result in the projected reductions in carbon emissions or make a significant impact on tackling climate change This mistrust emphasizes how crucial transparent procedures and strong verification systems are to maintaining the legitimacy of carbon offset initiatives Furthermore, the idea of additionality is critical for assessing the effectiveness of carbon offsets To really cut emissions, these programs must demonstrate that the sponsored initiatives would not have materialized without the financial backing of carbon offset purchases Furthermore, offsetting measures' environmental benefits may be questioned While some customers are ready to pay more for ecologically friendly products and services, the general public has little knowledge or comprehension of carbon offsetting Hotels may need to engage in educational campaigns to raise consumer knowledge and involvement in their sustainability efforts

3.4 Sustainability Hub on hotel websites

The Sustainability Hub on hotel websites is an important tool in hotel marketing since it provides a dedicated platform for communicating the hotel's steadfast commitment to environmental and social responsibility This digital platform is more than just a repository of information; it is a strategic instrument used to distinguish the hotel from competitors by emphasizing its environmentally friendly activities and beliefs By openly highlighting sustainability initiatives, the Sustainability Hub fosters trust and credibility among guests, stakeholders, and the larger community, effectively positioning the hotel as a socially responsible option for travelers who value sustainability in their lodging choices A recent study indicates that 82% of consumers say they expect companies that make environmental commitments to share their results (

The Revfine, 2024) This tailored strategy not only increases bookings and income from a certain market segment but also promotes greater interaction with visitors

Marriott has integrated sustainability into its business strategy, from hotel design to guest experience They reached their aim of including a Serve 360 section on hotels' marriott.com websites, complete with hotel impact indicators, by 2022 The new section

on individual hotel websites includes third-party sustainability certifications, carbon and water footprint data, and specific environmental policies such as E Electric Vehicle (EV) charging capabilities and guest room recycling availability As of year-end 2022, 86% of Marriott properties had at least one sustainability attribute on their website Over the last year, the company has received a growing number of consumer demands for hotel-level sustainability data and information, particularly details on third-party sustainability certifications To reply to these requirements, Marriott increased its external stakeholder engagement activities and reported on hotel-specific sustainability measures

Figure 3.5: Serve 360 section on hotels' websites.