HOTEL BUSINESS REVIEW

May FOCUS: Hotel Sustainable Development

 
May, 2014

Hotel Sustainable Development: Integrating Practices and the Bottom Line

The term "sustainable development" was first coined in 1987. In a report entitled, "Our Common Future," the Brundtland Commission defined sustainable development as follows: "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs." This definition immediately caught on. In the business world, it is sometimes referred to as a triple bottom line - capturing the concept that investments are profitable, good for people and protective of the environment. Within the hotel industry, companies have taken an active role in committing themselves to addressing climate change and sustainability. Hotel operations have realized that environmentally sound practices not only help the environment, but can lead to cost reductions, business expansion, and profit growth as consumers increasingly seek environmentally sustainable products and services. In a recent survey by Deloitte, it was noted that 95% of respondents believe that the hotel industry should be undertaking "green" initiatives. Additionally, 38% of respondents said they made efforts to identify "green" hotels before traveling, and 40% said they would be willing to pay a premium for the privilege. These results suggest that consumers want and expect sustainability in their travel plans. In response to these trends, many hotel companies and on-line travel agencies have even begun offering their consumers an opportunity to purchase carbon offsets to reduce the environmental impact of their trips. The May issue of the Hotel Business Review will document how some leading hotels are integrating sustainability practices into their hotels and how their operations, consumers and the environment are profiting from them.

This month's feature articles...

Michael, J. Slosser

The benefits of sustainable practices within the hotel industry are clear and more and more hotel companies and individual properties are establishing guidelines to help them become more eco-friendly. But designing programs that outline efficiencies and best practices is only the beginning. Turning theory into practice requires a committed, motivated partnership between hotel staff, guests, vendors and the local community. L'Auberge Del Mar, by Destination Hotels & Resorts has had great success implementing an effective sustainability campaign by getting the four partnership entities vested as outlined in this article by Vice President and Managing Director, Michael J. Slosser. READ MORE

Christopher Bush

The Jean-Michel Cousteau Resort in Fiji is one of the South Pacific's most renowned vacation destinations, distinguished for offering mindful and discerning travelers a five-star way of connecting with the ocean, land and local culture. Named for the son of legendary oceanographer Jacques Cousteau, the Jean-Michel Cousteau Resort is dedicated to preserving nature's balance by respecting and existing harmoniously with the natural environment and through involving guests in its preservation initiatives. "What is a scientist after all? It is a curious man looking through a keyhole, the keyhole of nature, trying to know what's going on" - Jacques Cousteau READ MORE

John Chastan, CMP

Kalahari Resorts and Conventions is committed to delivering a beyond expectations guest experience, and in addition to offering outstanding service, has introduced state-of-the-art green operations that protect the environment and reduce the resorts' carbon footprint. One of three recipients of the 2006 Partners for Clean Air Recognition Award, Kalahari Resorts and Conventions leads the hotel industry in cutting edge-initiatives for water conservation, recycling, lighting and climate control. These initiatives include, but are not limited to, high-efficiency water consumption pumps within the indoor and outdoor waterparks for extended life cycle, more than 4,160 square feet of rooftop solar panels, partnering with the renown Clean The World organization and much more. READ MORE

Joseph Ricci

The hotel industry, like all industries, is being scrutinized for its sustainable business practices. As hotels take an active role in committing to sustainability, use of sustainable laundries for their towels and linens increasingly helps reduce carbon footprints as well as cost. Leading laundry services use certified green methods that create energy and water savings, reduce waste, improve quality and - through innovative microchip technology - reduce linen loss. Plus, sustainable laundries give hotels an additional way to market to consumers who list green practices as a leading determinant in hotel choice. READ MORE

David Ely

Federal, State, and Local government agencies offer a number of incentives to businesses. Some incentives are put forward to guarantee that developmental benefits will be sustained, other incentives support decreased energy usage in buildings to encourage investment in underdeveloped areas and to reward environmentally friendly building practices. These incentives can not only encourage you to increase your overall efficiency, but can reduce your out-of-pocket expenses. It's imperative that owners, designers, and project managers don't overlook these incentives, as they can add up quickly. READ MORE

Susan Tinnish

Like other industrial sectors, the hospitality industry can catapult its sustainability efforts forward through expansion of its initiatives to its own global supply chains through Sustainable Supply Chain Management. The unique characteristics of the hospitality industry require its supply chain practices to be modified from those of manufacturing or retailing. This article addresses these unique characteristics and also outlines how redesigning buildings, processes and products will be necessary for any seismic shift in sustainable supply chain practices. READ MORE

Sir Royston Hopkin

As a hotelier, I attend a lot of industry conferences which afford me the benefit of experiencing many other hotels throughout the Caribbean, Europe and North America. This allows me to experience hospitality from the other side, which lends insight into hotel practices that work - and even more importantly - those to avoid at my own property. Check-in lines, for example, are something we've done away with entirely, ensuring guests are able to relax from the moment guests arrive on property. Nonetheless, I often find myself waiting in line to check-in, and recall a particular instance where the guest in front of me complained about the hotel's lax environmental policy. READ MORE

Joshua Zinder

To meet the challenge of competing for clients who prefer a boutique atmosphere, larger properties must offer one-of-a-kind venues that are memorable and encourage repeat stays. Architects and designers should engage the client in an integrated design process, arriving at a "shared lifestyle vision" for the venue. Using three examples — a nightclub, a restaurant and a retail confectionery — this article demonstrates best practices for boutique-ing big properties in ways that make a powerful impact without appearing out of place in the larger context. The process is also shown to deliver sustainable designs with high ROI. READ MORE

Catherine Greener

Legendary Hospitality with a softer footprint—that's the Xanterra Parks and Resort mission statement. The Softer Footprint, the commitment to environmental stewardship is a long-standing commitment of the company, and a never-ending journey of learning. Unlike other important hospitality disciplines like food and beverage, sustainability barely was recognized fifteen years ago. It is a complex puzzle balancing efficiency, environmental regulations and the right amount of guest engagement. Projects are often piloted, analyzed for their “stickiness", modified and then with the help of employees, deployed across the company. The following two stories illustrate how Xanterra strives to deliver sustainability throughout its operations--one invisible to guests and the other targeting guest awareness and actions. READ MORE

Jennifer Silberman

The World Bank estimates that global urban populations create 1.6 billion tons of solid waste per year, and more than half of that ends up in landfills. A mere fraction is composted or recycled. In the United States, the hospitality industry alone produces 1.9 billion pounds of waste annually. According the UN Food and Agriculture Organization (FAO), nearly 30 percent of all food produced in a year is thrown away, while more than 888 million struggle with hunger. That's 1.3 billion tons of uneaten food. And on a daily basis, 2.6 million bars of soap are discarded by the hotel industry in the United States alone according to the Global Soap Project. READ MORE

Rebecca Hawkins

Do you want to increase the profitability of your business? How about improve the morale of your staff? Build trust in your brand? Even better still, how about all of the above, whilst also enhancing customer satisfaction? Does it sound too good to be true, while it isn't! Believe it or not all of the above can be yours through the simple expedient of delivering really good quality responsible business training to your staff. READ MORE

Michael Sturman, Ph.D.

Hotels in many locations have adopted sustainable practices, and many have achieved certification through such programs as ISO 14001 and U.S. Energy Star. At the same time, some industry practitioners remain concerned about the cost and market acceptance of sustainable practices. Researchers investigating these issues have found that guests are, on balance, responding favorably to hotels' sustainability practices—albeit not always by paying higher room rates—and certain aspects of sustainability certification are beneficial for hotel operation and finances. In particular, ISO 14001 certification has been found to be useful as a tool that improves hotel efficiency. READ MORE

Timothy E. Osiecki

With all due respect to my favorite Muppet, being green has never been easier. Whether its single stream recycling hitting your neighborhood or building and operating greener hotels, green is the new black when it comes to colors that make everything appear slimmer. Some of my colleagues in the hotel industry will likely insist that green development fattens the cost of construction, but frankly, the argument is as old and out-of-date as the mullet some of us sported in the 70s. Truth be told, green building practices and attaining LEED certification is reasonably easy, cost effective, forward thinking and simply the right thing to do. READ MORE

Rob Howell

Sustainability. Reducing Your Carbon Footprint. Greening Your Property. Environmental responsibility. No matter how you phrase it, the movement to embrace environmentally conscience practices is no longer a fad; it is a fact, that almost no lodging facility can continue to ignore. As conscientious hospitality professionals, we must make changes to our operations that ensure our business is environmentally friendly. Most hotel companies large and small started these efforts years ago. Towel and linen reuse programs, recycling plans, energy efficiencies, and other simple steps to show our guests that we were mindful about how our company affects the world. As time passes and we need to deeply ingrain these programs to reduce our carbon footprint into our operations, how do owners and operators ensure that they are seeing the greener $ide of sustainability? READ MORE

George Plattenburg

All hotel owners and operators are interested in cutting costs without compromising on guest satisfaction, and many of them also have adopted or are considering sustainability programs. A focused effort to reduce energy and water consumption and costs is good for the planet, good for the bottom line of a hotel or portfolio of hotels, and is the aspect of a sustainability program that typically delivers a measurable ROI. An energy or utilities portal is a web - based information and reporting platform that brings cost cutting and sustainability tracking together. This article will help hotel executives and general managers think about their utility information in a new way, a way that can provide meaningful insights into improving their profitability. READ MORE

Faith Taylor

Innovation has always played a significant role in making Wyndham Worldwide a leader in the hospitality industry, and has been behind much of the growth across the Company over the past few years. The continued dedication, ingenuity, and tenacity of our associates has helped drive us forward. In fact, our chairman and chief executive officer Stephen P. Holmes, leads an Innovation Council that recognizes and rewards individuals and teams for their achievements in developing new initiatives that advance the Company. READ MORE

Ray Burger

Malcolm Gladwell is one of my favorite authors. As I recall, I was wandering around an airport one day with some free time (as a frequent flyer this happens on just about every trip) when I picked up a copy of The Tipping Point. After reading The Tipping Point it became imperative that I read Blink, Outliers, and What the Dog Saw. I have recently added David and Goliath to my "to read" list. But, this isn't a book review. It's really a discussion about a Tipping Point that (in my humble opinion- IMHO) has been reached in the lodging industry. A definition for a Tipping Point is as follows: The point at which the buildup of minor incidents reaches a level that causes someone to do something they had formerly resisted READ MORE

Rauni Kew

Sustainability is a prerequisite for the continued growth and profitability of the hospitality industry. Most hotel companies today have integrated operational practices to reduce their carbon footprint, realizing economic and marketing benefits. Efforts to reduce water, waste, energy and chemicals are now an industry standard. However, for long and short term financial success the industry needs to go beyond these reductions and create sustainable initiatives and programs that support and preserve local communities and traditions, and regional icons as well as the natural environment. READ MORE

Bernard Ellis

The benefits for hoteliers of moving business applications to the cloud are numerous. Initial costs are lower because there is no need to purchase additional hardware or expand IT headcount. Systems can be deployed faster, changes can be easily made as business needs expand over time, and the long-term return on investment is higher because the technology vendor will handle potentially costly system upgrades and enhancements. Disaster recovery of data is also easier, as information is backed up in the cloud rather than on physical servers. Additionally, selecting a solution that delivers the same robust, hospitality-specific functionality as an on premise system supports globalization. READ MORE

Anthony Maggio

Just as mobile booking technology captured the attention of travelers and demanded the time and resources of hotel brands and OTAs in 2012 and 2013, mobile check-in and keyless keys are now grabbing the headlines, challenging hotels to keep up with airlines for technology-enhanced service features. It may be years before a final verdict is reached on the best way to deliver mobile services to hotel guests, but it's clear from the number of companies and smart people working on it, that the hotel check-in experience is evolving. Here, CheckMate's Anthony Maggio, offers an overview of the future of keyless keys READ MORE

Kyle Rogg

Selecting the right furniture, fixtures, and equipment (FF&E) can lead to increased staff efficiency at hotels. Kyle Rogg, President and COO of Value Place, discusses his strategy for driving an increased bottom line through better quality FF&E decision making. READ MORE

Trevor Stuart-Hill

In the hospitality business, selecting a competitive set to benchmark performance is a common task. Unfortunately, selecting the wrong set can have long-term consequences that may ultimately impact asset value. Operators and owners need a practical approach to determining an appropriate competitive set by using information and techniques that are readily available to them. This article outlines the key factors that should be considered when selecting a competitive set and provides helpful tips along the way. READ MORE

Kelly McGuire

Revenue managers squeeze every last dollar of revenue opportunity from each product - frequently managing dozens of rates over hundreds of days in detail. Automated revenue management systems have taken some of the burden from revenue managers, by producing analytically-derived rate recommendations and automatically updating selling systems. However, revenue managers still need to review recommendations and manually intervene when necessary. This detailed analysis is not only time-consuming, but it keeps revenue managers in the weeds, taking time away from strategic thinking. For hotels to survive and thrive, there must be a balance between driving short-term revenue and building sustainable long term profits. READ MORE

Emil Atanassov

Global marketing content is an important part of how you communicate your hotel brand promise to customers while making sure it remains consistent from country to country. But a marketing concept that strikes a chord in one region won't necessary elicit the same strong response in a market thousands of miles away due to cultural differences. Transcreation allows you to re-create your marketing message so that it achieves the same impact in each target country. Today's hotel marketer should understand how transcreation works, what the process looks like and how it can actually strengthen a global hotel's core brand identity. READ MORE

Larry Mogelonsky

The word 'talent' isn't normally associated with individuals working in the hospitality industry. However, a comprehensive analysis of the nature of talent and skill proficiency reveals that there are indeed wide-reaching implications for hotel managers. This includes how a hotelier might go about learning a task to grasping how early childhood experiences can affect a person's motivations and natural migration to one particular niche or another within hospitality. Also discussed are the relationships between talent and intuition as well as talent and supposed flashes of genius. READ MORE

Richard Takach, Jr.

The hospitality industry, by its nature, embraces both commerce and community. Positioning one's hotel as a valuable member of the community has many advantages. These advantages include building solidarity within a community and supporting its most valuable programs and identified needs; reinforcing the interests of team members, while building team work and leadership skills; and, also, reinforcing the organization's mission, goals and values. The best community programs result when we can endorse, whenever possible, the genuine interests of team members, while making sure that these efforts reflect the quality and value of the individual property, our organization, ownership and management. READ MORE

Janet Gerhard

Success of a marketing campaign is routinely measured by the number of social media impressions it generates as a proxy for engagement. Using social media as a customer feedback to uncover problem areas enables us to move quickly and effectively to resolve them. And, synthesizing this data into reports allows the organization to get a snapshot view of what's happening. But, this is only the tip of the iceberg. Digging deeper into these insights gives us the intelligence needed to make changes in process improvement that will drive customer loyalty and long-term growth. Customer insights teams have been burdened with insights but are not always allowed and encouraged to capture and analyze feedback in creative ways. EFM systems have been installed to quickly identify problems and resolution tactics are formalized. But, learning why customers feel the way they do about their experience is how we as an industry move from impressions toward building customer experience management as a core competency. READ MORE

Ken Hutcheson

Vacationers, professionals, and travelers of all kinds are looking for a home away from home, and the landscape surrounding a hotel plays a major part in their appraisal of your property. In the article “Xeriscaping Your Way to Savings,” U.S. Lawns President Ken Hutcheson discusses the growing trend of xeriscaping, and how incorporating slow-growing, drought-tolerant plants help to conserve water and establish a waste-efficient landscape. By xeriscaping at least a portion of your property to a well-planned and well-maintained xeriscape can be advantageous to both the environment and your bottom line; something that can benefit you and your guests. READ MORE

Rita Anya Nara

The world has become a smaller place, and jet-setting guests who are savvy enough to travel thousands of miles are adaptive experts at feeling and being their best anywhere, right? No, not quite. There's no app yet for managing the physiological and psychological challenges of hopping continents or time zones - and these challenges, taken together, can burden your guest faster than an expired visa in a customs line. What's it got to do with you? Plenty - you want to make your guest as comfortable as possible, and be able to relate to their health and well-being concerns. Many of these concerns have straightforward, non-medical, effective solutions within your capacity as their host. READ MORE

Jennifer Dunphy

With the advancements in digital media, it has become increasingly more important to become hyper targeted with your marketing strategy. This includes better targeting your audience segments and tailoring the messages and campaigns specifically to them, their culture, their interests and better yet their native language. Multicultural marketing campaigns that target specific demographics with a culturally relevant and on point message, yield high rates of return for hoteliers. The present multicultural market has been growing leaps and bounds and is quickly evolving into a new type of customer-influencing mainstream culture, especially within the travel and leisure segment. Members of this market are younger, more acculturated, more tech-savvy and most importantly, have tremendous buying power that offers hoteliers significant growth opportunity that cannot be ignored. They are utilizing mainstream media, social media and mobile devices more than the general market. Multicultural consumers are the new mainstream and the use of traditional marketing methods alone is no longer sufficient to reach them and make the necessary impressions that will drive increased bookings. READ MORE

Marc Stephen Shuster

Given the strength of the hospitality sector today, many hotel owners and developers are starting to see the value of their assets start to increase. Just as values are beginning to appreciate, however, numerous developers, who previously financed their projects through Commercial Mortgage-Backed Security (“CMBS”) loans will likely be facing a significant dilemma as those loans mature over the coming years. The pundits say that we will see a wave of CMBS loan maturities in the next 2 to 5 years. With many of these loans having been originated prior to the real-estate bubble bursting, however, many will not qualify for refinancing due to the decline in the value of the collateral securing the loan. The authors discuss this impending dilemma, and the options that should be considered by borrowers that find themselves unable to refinance. READ MORE

Frank Vertolli

Consumers are shifting to using their mobile devices to call hotels and travel destinations to book due to the amount of friction in the booking process. Consumers are finding it easier to call to book rather than trying to use their cell phone's mobile booking applications, to search for the accommodations they desire and punch in their credit card information. The measurability of mobile bookings gives the hotelier the opportunity to build a relationship with the consumer by having a human voice connect with them. READ MORE

Michael Koethner

As all businesses, systems and humanity in general are in the midst of a radical and thorough wake-up call and overhaul, it is again time to speak and write about the inclusiveness of the wellness & spa industry within a hotel and resort environment, in order to create a sustainable enterprise. There is a system recovery happening right now and it will clear, delete and destroy everything which will not be compatible to the future business environment. As we all live in a time of transformation, the wellness education should be viewed as an extension and enhancement to the overall hotel operation and not just be pushed aside or be limited to a mere massage parlor. READ MORE

Alan E. Young

Not only do Meta-Reviews provide travelers with a trusted overview of a hotel, but now all of this big data from reviews is structured. This means that it becomes simple to set up searches and filter results for hotels that fit a traveler's specific criteria. So, for example, if I am looking for a family friendly hotel with clean rooms and a central location in Bangkok, I could search for only hotels that fit those exact requirements. It creates a more personalized experience during the search-shop-buy process by giving travelers the chance to drill down to the most relevant results in the least amount of time. READ MORE

Werner Absenger

Breathing is such a fundamental, autonomic physiological process. We never have to think about it. That is precisely the reason why most of us breathe in a way that is counterproductive to optimum performance and stress resilience. In this article, we will elaborate a little more on the importance of proper breathing and explore a simple technique, very easy to implement, to teach hospitality employees to get their Zen anywhere, anytime in almost any situation. READ MORE

Mercedita Roxas-Murray

When is it time to change the face and the direction of your hotel in order to stay open? What we have learned during the economic downturn of a few years ago can still be put to good use today. In today's day and age, hotel operators must analyze themselves and their surroundings in order to remain successful. This article uncovers what some hoteliers are doing in order to stay relevant within their neighborhoods, amongst their target guests, and within their perceived position in the market. As businesses, hotels must consider trends within these categories to ensure they continue to flourish READ MORE

Simon Hudson

This article focuses on customer service training at the Renaissance Harbour View Hotel Hong Kong, a Marriott property on the island. Bringing in outside consultants, training at the Renaissance is designed to encourage employees to exceed customer expectations by making emotional connections with customers. This attention to detail leads to a high loyalty rate, a higher average room rate than competitors, and higher profitability. READ MORE

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