Applied Strategy- Extra Current Event Article- The Green Hotel Industry

Myers, Peter. Reuters News. 27 November 2012. Web. 02 December 2012.  Available at: Reuters 

Your personal daily carbon footprint is the amount of carbon dioxide released by your actions during the course of a day.  Obviously this release of carbon dioxide is bad as it is a greenhouse gas which causes global warming.  According to the article, there is a trend among environmentally minded, healthy-living consumers demanding hotels offer eco-friendly amenities.  According to recent surveys of the US traveling public, a vast majority of travelers believe hotels should “be taking green initiatives and 38% had taken steps to determine whether a hotel was green” (Myers 2012).  Those surveyed also said they would be willing to “pay $1 or more to offset their carbon footprint during a stay…” (Myers 2012). 20% said they stayed at hotels that restricted how green they could be.  Habits of these consumers include asking housekeeping not to changed sheets or towels during their stay.  Taking these steps allows managers to reduce cost and energy which save money.

According to the article, there are some hotels that have made the switch and are leading the industry with a green strategy.  Kimpton Hotels is the only leader in the US; however, Langham Hotels, Taj Hotels, and Six Senses Resorts lead outside the US.  The very large global hotel chains, however, are just behind not absent in the charge for a more eco-friendly hotel experience.  Marriott “pledged to reduce energy and water consumption by 20% by 2020; empowering its hotel development partners to build green hotels and educate its guests in becoming energy-efficient during their stay” (Myers 2012).  Retreat and meetings, the bane of many in corporate America, may benefit from these green initiatives as hotels market green meetings as a healthier environmentally respectful alternative.  While this is all very promising, analysts say there is not yet enough demand for firms to make production or construction decisions based on an environmentally friendly strategy. 

The implication for managers is a tricky one.  While the silly debate will continue for a while as to whether global warming is a fact; government regulation and mandates may be slow in coming but they eventually will come.  But there is a consumer segment, small and growing which makes choices based on how environmentally conscious a firm is.  This is not a fad that will go away quickly.  Firms can bet on the environmentally friendly route which can tap this market as well as reduce cost and energy; something that benefits the bottom line.

References:
http://www.sfgate.com/green/article/Tracking-carbon-footprints-in-hotels-New-2595028.php
http://www.elp.com/news/2012/12/03/ojai-inns-are-waking-up-to-green.html