HOTEL BUSINESS REVIEW

May FOCUS: Eco-Friendly Practices

 
May, 2017

Eco-Friendly Practices: The Value of Sustainability

The hotel industry continues to make remarkable progress in implementing sustainability policies and procedures in their properties throughout the world. As a result, they continue to reap the benefits of increased profitability, enhanced guest experiences, and improved community relations in the regions they serve. In addition, as industry standards are codified and adopted worldwide, hotels can now compare how their operations measure up against their competitors in terms of sustainable practices and accomplishments. This capacity to publicly compare and contrast is spurring competition and driving innovation as hotels do not wish to be left behind in this area. Water management and conservation is still a primary issue as population growth, urbanization, pollution and wasteful consumption patterns place increasing demands on freshwater supply. Water recycling; installing low-flow fixtures; using digital sensors to control water usage; and even harvesting rainwater are just a few things that some hotels are doing to preserve this precious resource. Waste management is another major concern. Through policies of reduce, reuse and recycle, some hotels are implementing "zero-waste" programs with the goal of substantially reducing their landfill waste which produces carbon dioxide and methane gases. Other hotels have established comprehensive training programs that reinforce the value of sustainability. These programs explain the need, vision, mission, strategies and benefits for achieving sustainability within the hotel. There is employee engagement through posters and quizzes, and even contests are held to increase innovation, sensitivity and environmental awareness. Some hotels are also monitoring a guest's energy usage and rewarding those who consumed less energy with gifts and incentives. The May issue of the Hotel Business Review will document how some hotels are integrating eco-friendly practices into their operations and how they and the environment are benefiting from them.

This month's feature articles...

Nancy Loman Scanlon, Ph.D.

Sustainability and Corporate Social Responsibility practices in the Hotel Industry have been developing in a synergistic pattern that is reflected in the web pages and annual reports of many international lodging companies. In 2015 the United Nations revised the original 8 UN Millennium Development Goals to better the quality of life on the planet by 2015, establishing the 17 Sustainable Development Goals (SDG's) to be achieved by the year 2030. Reflecting the original Millennium Development Goals, the 17 SDG's include eliminating poverty and hunger, fighting climate change, improving world health, education and saving oceans and forests. READ MORE

Lynne A. Olson

When executed at the highest levels, sustainability is a win-win proposition for your lodging cleaning program. A successful program can cost effectively deliver clean, safe and healthy guest rooms, using efficient products that are simple for the housekeeping staff to use. Does this seem too good to be true? If so, let's review the historical approach, and then explore a framework for the systematic design of a sustainable lodging cleaning program. READ MORE

Circe Sher

When Piazza Hospitality first started developing its h2hotel concept and design in Healdsburg in the mid 2000s, “green” properties were hardly as well-known as they are today. Architects tended to simply follow Leadership in Energy and Environmental Design (LEED) guidelines, and most consumers weren't really clear on what “eco-friendly” meant. H2hotel's Eco-Friendly View Is All About You The idea of being earth-friendly seemed like something everyone could and should embrace, but bringing that vision into a reality consumers actually wanted could be challenging. READ MORE

Jan Peter Bergkvist

193 out of 196 possible countries have agreed on the UN Sustainable Development Goals (SDGs) and in 2015, 194 countries signed the Paris Agreement that includes a joint commitment to leave 80 per cent of known fossil fuel resources in the ground. These are signs of a paradigm shift that is happening right in front of our eyes. What does this shift mean for an individual hospitality executive in May 2017? Has it, or will it perhaps change the playing field dramatically? READ MORE

Joshua Zinder

Discussions of sustainability in the hospitality industry have focused mainly on strategies at the level of energy-efficient and eco-friendly adjustments to operations and maintenance. These "tweaks" can include programs to reduce water usage, updating lighting to LEDs, campaigns to increase guest participation in recycling, and similar innovative industry initiatives. Often overlooked-not only by industry experts but even by hotel operators and designers-are possibilities for hotel design and construction that can make a property truly sustainable from the get-go. READ MORE

Shannon Sentman

Utility costs are the second largest operating expense for most hotels. Successfully reducing these expenses can be a huge value-add strategy for executives. Doing this effectively requires more than just a one-time investment in efficiency upgrades. It requires ongoing visibility into a building's performance and effectively leveraging this visibility to take action. Too often, efficiency strategies center on a one-time effort to identify opportunities with little consideration for establishing ongoing practices to better manage a building's performance ongoing. READ MORE

Susan Tinnish

Hotels brands have actively engaged in large-scale efforts to become more environmentally friendly. Individual hotels have made great strides on property. Many significant large-scale eco-initiatives are most easily built initially into the infrastructure and design of the building and surrounding areas. Given that the adaptation of these large-scale changes into the existing asset base is expensive and disruptive, hotels seek different ways to demonstrate their commitment to sustainability. One way is to shift the focus from large-scale change to "small wins." Small wins can help a hotel create a culture of sustainability. READ MORE

Eric Ricaurte

As an industry we could add more sustainability to our benchmarking, as we benchmark the comp set for other hotel amenity and service attributes. Thus, our quest for hotel sustainability benchmarking began. In the years since, we've worked with the big support of hotel chains to push this concept forward, now benchmarking sustainable practices and performance across thousands of hotels worldwide through various initiatives. One of which, the Green Lodging Trends Report provides the empirical results for this article's title. Through this free benchmarking exercise, hotels can see how they compare among trends in over 100 best practices. READ MORE

Mandy Chomat

Over the years, luxury has been defined by everything from fancy objects and shiny finishes to exceptional service and authentic experiences. Today's definition of luxury encompasses a new element, eco-consciousness. Whether a property is Platinum LEED certified and positions itself as “green” or simply promotes responsible practices, an element of eco-tourism is now the expectation at upscale hotels and resorts around the world. Leisure travel contributed $7.58 trillion last year to the global economy. Furthermore, the number of travelers who are aware of sustainable travel issues and the willingness of said travelers to spend on environmentally-sustainable travel have increased by a third in the last decade. READ MORE

Lawrence Adams

Explore the evolution of wellness in hospitality from the early days of Greco-Roman Thermae to the thermal spas of Central Europe and US resort towns to ultra-modern spas in the heart of the Swiss Alps. As wellness takes on a renewed importance in hospitality, we see medical science-based technological innovation applied to the health and well-being of hotel guests through the Stay Well Rooms program created by health-centric real estate developer Delos. Learn how major hotel firms are incorporating robust wellness programs into their brands. Watch wellness evolve to satisfy growing market demands with technological advances and innovative programs. READ MORE

Rauni Kew

In 1994 & 1995 a British economist working on corporate social responsibility coined two phrases- Triple Bottom Line, and later People Planet & Profit. The simple three word phrase describes a sea change in hotel operations that would take place over the next 2 decades. John Elkington's minimal catch phrases for the complex theories of sustainability were easy to understand and provided a simple road map for business. Recognizing cost savings from reductions in water, waste, energy and chemicals as well as the value of preserving regional icons as travel destinations, the Planet piece of Elkington's phrase is now accepted as mainstream hotel operation. READ MORE

Scott Parisi

The hospitality industry is a unique sector when factoring in the total amount of guests that visit any given facility in a single year. Most commercial buildings do not see nearly the amount of people visiting their facilities in comparison to the lodging industry's visits. The Environmental Protection Agency has reported, “on average, America's 47,000 hotels spend $2,196 per available room each year on energy.” READ MORE

Gaynor Reid

The tourism industry leaves a significant impact when you consider the need to move people around, host them and feed them, with the intrinsic needs for water, energy and food. As the travel industry continues to grow apace in Asia Pacific it is becoming increasingly important for hospitality providers to reduce their environmental footprint as well as to give back to the local communities in which they operate. AccorHotels first committed to a comprehensive environmental policy back in 1974 and is firmly committed to creating positive hospitality wherever it operates. While many of its actions are on a global scale, it has found that what is just as important is for each hotel in the network to work regionally to impact positively on its local community. READ MORE

Joseph Ricci

Resource conservation is becoming more of an economic necessity than a choice in hotel business practices as the cost of water, energy and other supplies rises. Laundry operations represent a fertile frontier for such improvement. Using mass-production technologies easily accessible via outsourcing decreases a property's carbon footprint thanks to water and energy conservation in linen processing. Ensuing labor savings from this greater mechanization add to this economic benefit. TRSA aids hotels in locating high-efficiency outsourced linen, uniform and facility services through its Clean Green certification program and provides a published guide to finding certified green suppliers of all kinds of products and services needed for hotel operations. READ MORE

James Gieselman

This issue of Hotel Business Review is devoted to the concept of Sustainability, so how does energy efficiency fit into this topic? And why is it so important now? Well, because, as that famous philosopher Yogi Berra once said, “the future ain't what it used to be.” We're experiencing changing consumer attitudes with regard to the environment resulting in shifting market trends. We're seeing a vastly different and uncertain political landscape. Competition in many industries has begun to beat the sustainability drum. And all of these trends are linked back in one way or another to energy and how we use it - energy efficiency. READ MORE

Arthur Weissman

This article discusses the overall benefits for hotel owners and managers of partnering with their local jurisdiction to promote sustainable tourism. Such a partnership goes beyond the typical relationship with the city's CVB in that it directly includes city departments and ideally the mayor's office. The partnership may take many forms; the type expounded on in this article is based on promoting environmental certification by a third-party to tout the hotels' and city's sustainability credentials. The city's support may come in the form of in-kind service and promotion or actual grants to subsidize program costs, such as for certification fees. READ MORE

Deborah Popely

Water scarcity has been identified as among the top five global business risks in the next ten years. Tourism is recognized as a high water-use industry and hotels are some of the most water-intensive operations in the industry. Water scarcity disproportionately affects hotels since some of the most popular tourism destinations are in water-stressed areas, driving up utility costs and creating other challenges. For this reason and other reasons, reducing dependency on fresh water and making the best use of existing supplies makes good business sense. This article explains how hotels can respond to the looming water crisis by incorporating some low-cost best practices and strategies that have proven to save money and generate a return on investment. READ MORE

Wendi Gelfound

Steeped in myth and legend, the ancient springs at Ojo Caliente Mineral Springs Resort & Spa, 60 miles north of Santa Fe in Ojo Caliente, New Mexico, have been a gathering place and source of healing for thousands of years. The use of the waters can be traced back to the earliest human migrations in the region, when ancestors of today's Tewa tribes built large pueblos and terraced gardens overlooking the springs. Now, ruins of these ancient cities are marked by the shadows of walls and a sprinkling of potsherds. READ MORE

Bill Lally

Green initiatives have become widespread across the hospitality market, often denoted from a sign that kindly asks guests to reuse your towels or use less water. These are small steps that hotels can take, but new technologies are making large-scale sustainability programs possible. This next wave is about more than material conservation; now the whole building is starting to get smarter through design, automation systems, sensor technologies and a fully integrated guest experience. One of the first aspects that hotels consider when going green is the materials for the decor as part of the branding and custom experience. READ MORE

Tara Hammond

The United Nations designated 2017 as the International Year of Sustainable Tourism for Development to support a change in policies, business practices and consumer behavior towards a more sustainable tourism sector. But how will those of us whose purpose it is to innovate and drive change in corporate social responsibility affect change among consumer behavior? It is not enough to just implement policies and practices. Communicating our actions to guests is the key to inspiring change in everyday behaviors. The United Nations designation provides a platform to communicate the great programs and initiatives happening all over the world, especially within sustainable sourcing. READ MORE

Diego Lowenstein

When done right, hotel owners can use a spa to tap into a valuable market and enhance the hospitality experience by restoring mindfulness and overall well-being for patrons. This, in turn, can earn repeat guests and positively impact the property's bottom line. That's why it's so important for hotel owners to stay ahead of evolving industry trends and guest expectations, and avoid common pitfalls when developing or renovating an on-site spa. Owners who successfully differentiate their hotels typically have a strategic advantage, and spa treatments remain a terrific way to stand out from the competition. READ MORE

Michael  Schubach

There was a time during the tumultuous 60s and 70s that the younger generation was admonished to “never trust anyone over thirty.” You may have heard that quote - it was made a cultural touchstone by the likes of luminaries such as Abbie Hoffman, Jerry Rubin and the Beatles. Today, members of the older generation seem to apply the opposite perspective - it's hard to trust anyone under thirty. Employers talk about a new generation of workers with a “me first” mentality who place more value on their own entertainment than on company loyalty and work output. READ MORE

Ken Hutcheson

Your hotel's landscape is responsible for making a first impression with your guests. Your landscape should be a reflection of your hotel's brand and should clearly demonstrate to your customers the type of experience you hope your property will deliver—relaxing, comfortable, safe, and fun. In other words, dedicating financial resources to landscaping and grounds keeping are more than worthwhile from an ROI perspective. Nevertheless, as any hotel executive knows, unforeseen circumstances often require difficult budget decisions. If you are forced to dedicate less budget and resources to your landscaping, follow these best practices to ensure that your landscape's health, aesthetics, and safety do not suffer. READ MORE

Paul van Meerendonk

Today hotel guest options, incentives and choices are ultimate reflections of an overall brand strategy. However, choice shouldn't be a message embodied only within the vivid description of a brand promise, its contemporary lounges or the high-tech amenities and ultra-modern guestrooms. For organizations with a unique portfolio of hotel brands, choice also needs to be a primary theme that permeates into every one of their properties' revenue strategies—and it needs to be supported by advanced revenue technology. READ MORE

DJ  Vallauri

In October of last year, Pepsico started shaking things up with their digital marketing strategy. They decided to take the social media portion of their digital marketing in-house for the Pepsi brand. There was a lot of buzz about it -- questioning whether this was a smart move. Outside of the tremendous resources needed to have an in-house agency focused solely on social media, the concept of what Pepsi was doing intrigued me. In fairness and full disclosure, I work with a digital marketing agency for the hospitality industry. READ MORE

Curtis Bashaw

Historic buildings are a window into the past. Unfortunately, few of them operate today as they were originally intended to, and, of those that do, only a handful have been successful at it. Today, urban and resort hotels are thriving again. Some are renovations of long dormant properties. Others are down-sized urban grande dames whose owners sold off parts of the hotel as residences and reduced guestroom counts. My mission as a developer and hotelier is to preserve these touchstones from the past in ways that connect them to present-day users. If they are not kept relevant through use, they run the risk of becoming relics or museums. READ MORE

Bob Lowe

Every hotel needs to accept credit cards as a payment method, and to do that you need a credit card processor. As you select a processor, you should look at what they can do for you and how you will connect to them, because not all are created equal, and the choice you make could have a far- reaching impact. First, will you connect directly to them or connect through a switch, gateway or other intermediary? You may be constrained by the choices your property management system (PMS) or even your hotel brand offers, but it's good to explore those choices and make the decision that works best for you. READ MORE

Susan Furbay

Though historically associated with residential and low-rise commercial buildings, modular construction has gone more upscale in recent years. What are the benefits, and what should hotel developers consider before going modular? The term "modular construction" once conjured images of small construction trailers or antiquated mobile home clusters just off the highway-not the most alluring draw for high-end developers and top-tier hotel companies, nor for their gentrified clientele. Today, however, the concept of modular construction has evolved, with developers across the U.S. adopting a modular approach to building 2- to 4-star select-service, full-service, and even boutique hotels. READ MORE

Ken Hutcheson

Whether a guest is staying at your hotel for business or pleasure, their first impression can be a lasting one. Even before they walk into your hotel's lobby, they've already started to form their opinion of your hotel - whether that was based on a visit to your website or as they drove up to your hotel. Just as the messaging on your website helps to set expectations and provides your guests with a glimpse into your commitment to making their stay at your hotel an enjoyable one, so does the appearance of your landscape. Every touch point the guest has with your hotel impacts his or her customer experience, making it even more critical that those encounters reflect your brand. READ MORE

Michael Doyle

This article highlights the benefits and available options of third party outsourcing for hotels. Hotels have historically outsource services to restaurant operators, parking and audio visual professionals, with resorts often outsourcing recreational services and landscaping as well. Today's options for outsourcing are much broader, as new firms have developed business models to provide expertise with greater efficiency at lower costs. Have you considered outsourcing your entire housekeeping operation? How about stewarding, overnight cleaning, or laundry operations? Other options could be banquet services, night cleaning, HVAC Services or Accounting Services. READ MORE

Paul Lachance

Hotel executives are starting to catch on to digital technology as they strive for better customer experiences across the board. With powerhouses like Hilton and Marriott leading the charge, competitive hotel brands are raising the standard for guest experiences in the digital age. A recent study by Hospitality Technology found 57 percent of hotels plan to spend more on technology across the board in 2017 than they did in 2016. And while improving customer engagement and enhancing payment and data security stood out as the top priorities for many hospitality industry decision-makers, it appears far fewer are considering a critical investment: Enterprise Asset Management (EAM). READ MORE

Benjamin  Ebbink

Responding to years of pressure from union advocates and their allies, the California Occupational Safety and Health Administration (Cal/OSHA) has proposed a first-in-the-nation, industry-specific rule aimed at hotel housekeepers. If enacted, this proposal would greatly impact the industry in California (as well as operators who conduct business in multiple states including California). In addition, as California tends to lead the nation in employment and workplace safety standards, operators in other states should monitor this proposal closely - what happens in California may come to your state next! READ MORE

David Lund

Flow Thru, this is my abbreviation, is a catch all phrase that measures how much made it through your business comparing one period to another. What made it through, from revenues to profit. Another term to describe this measurement is retention. A good analogy to grasp the concept of flow thru is to compare it to your paycheck. Imaging I give you a $1000 a week raise. The question then is how much will end up on your pay vs. how much got eaten up by higher taxes and other deductions. The same goes for additional revenues in your business. If revenues are $50,000 higher this month than the same month last year, how much of the $50,000 will make it through to the profit line. How much will flow? READ MORE

Steven D. Weber

Taking measures to protect your hospitality organization's trade secrets before filing or defending against a lawsuit may significantly increase your organization's chances of obtaining a favorable result in any lawsuit related to the misappropriation of trade secrets. While there are many ways to protect information, hospitality organizations need to be educated on what the law applicable to them considers to be “reasonable” steps that provide the secrecy that is required under the circumstances. This article explores how some courts have interpreted what is reasonable or adequate protection of information such that the information may qualify as a trade secret. READ MORE

Ravneet Bhandari

Together, big data and machine learning provide the most accurate information from which to base pricing on in the entire history of the hotel business. Setting rates is no longer a guessing game. Leveraging the newest tools on the market gives hoteliers the most accurate forecasting data ever seen. The invisible becomes visible and that porridge is suddenly cooked to perfection ever time. Today, pricing with confidence means making decisions based on reams of previously undetectable information. Valuable data we never realized existed because it was invisible to us. We've had the illusion we've attained perfect pricing, but that wasn't the case at all. The good news is, though seemingly more complex, finding confidence in pricing is not as difficult as it seems. READ MORE

Paul van Meerendonk

There's arguably no other four-lettered word that has made quicker—and more impactful—moves in the hospitality industry than “data” has. With the ascension of the Internet igniting a brisk evolution of big data, the hospitality industry now orbits within an increasingly interconnected and technologically-savvy world. Keeping ahead of the curve in the midst of the Internet of Things (IoT) means hotels are not only evolving in how they meaningfully connect with their guests, but they also have to develop short- and long-term revenue strategies to capitalize on the new industry data and insights available to them. READ MORE

David Lund

Do your hotel financial statements give you the information you need to effectively manage your hotel? Are you able to see if your profits are where they should be in an enhanced top line statement? Do your statements measure flow thru? Do you record your rooms business by proper segments and track the rooms occupied, rate and revenue in each segment? Do you record customers served in F&B and do you separate meal periods? Do you record liquor, beer, wine and mineral sales on your financials separately? Do you measure labor productivity in your financials? Do you record hours of work in your financials? Do you have payroll segmented by management and hourly classifications? Do you have a separate supplemental payroll and benefits statement? Do you track arrivals and departures? READ MORE

Coming up in March 1970...