Mr. Meade

Eco-Friendly Practices

Sustainability Initiatives in the International Operations of US-based Hotel Chains

By Bill Meade, Director, Tetra Tech

Common Focus on Energy Management

Virtually all US chains have embraced energy management in their hotel facilities. Evidence of this can be found in the list of U.S. Environmental Protection Agency (USEPA) Energy Star partners which include: Accor North America, Best Western International, Inc., Carlson Companies, Inc., Choice Hotels International, Extended Stay America, Fairmont Hotels & Resorts, Hilton Hotels Corporation, Host Hotels & Resorts, Hyatt Corporation, Intercontinental Hotels, Marriott Corporation, Outrigger Hotels Hawaii, Ritz-Carlton Hotel Company LLC, Starwood Hotels & Resorts Worldwide, Inc., White Lodging Services Corporation, and Wyndham Worldwide. Individual Hilton and Radisson Hotel properties are also on the list. However, only Marriott has pursued the next level of achieving Energy Star labeled buildings, accounting for 309 of a total 349 individual properties.(89%).(1)

The focus on energy management reflects the cost control approach to sustainability and reliance on the engineering department to deliver savings at the property and group levels. Energy management systems, heating ventilation and air conditioning (HVAC) controls, and efficient compact florescent lighting have become standards. Hotel chains commitment to meeting guest expectations in terms of comfort and amenities often resulted in perceived conflicts with conservation programs.

Sustainability Enters the Guest Room

The most common guest-orientated sustainability initiative is the towel and/or linen reuse card in the guest room. If implemented effectively, a linen and towel reuse program can significantly reduce energy, water and chemical use. Individual US flag properties operating in leisure destinations served as the test case. For example, after learning about the potential savings, management at the Sheraton Miramar Resort on the Red Sea coast initiated its own program. Based on the results, other properties in the Starwood Middle East, Africa and India Division followed suit. Individual properties of US hotel chains operating in the Caribbean initially participated in the "Caribbean Cares" program sponsored by the Caribbean Hotel and Tourism Association's Caribbean Alliance for Sustainable Tourism non-profit subsidiary. Wyndham Hotels and Resorts recently introduced the EarthSmart towel reuse program acknowledging "guest interest in helping protect the natural resources of our planet". Unfortunately, based on PA's experience at the property level, failure to train room attendants/house keeping staff and institute changes in standard operating practices has had the opposite effect. That is, environmentally conscious guests are discouraged by voluntary supporting the hotel's commitment and finding clean towels the rack.

Recognizing Individual Property Contributions to Sustainable Development

The growing awareness of the international leisure traveler has given rise to a multitude of sustainable tourism awards and certification schemes that acknowledge success attempts to chart new strategies of healthy tourism. Some of the awards schemes include British Airways' "Tourism for Tomorrow" awards, Virgin Holidays' "Responsible Tourism" awards, the International Hotel and Restaurant Association/American Express "Green Hotelier and Restaurateur of the Year" award and National Geographic Society's "World Legacy" awards. Examples of sustainable tourism certification programs include Green Key (Scandinavia), Green Leaf (Thailand), Green Tourism Business Scheme (UK) and Green Globe (global). In addition to good environmental management practices, all of the awards and certification schemes recognize the tourism businesses for their contribution to social development through building schools and health clinics, and incorporating local businesses and entrepreneurs in the supply chain.

Corporate Sustainability Programs of Selected US-based Hotel Chains

Most of the global chains such as Starwood, Marriott, and Intercontinental have had established corporate environmental guidelines focusing on "back of house" standard practices that focus on reducing electricity and water utility costs. One example is Marriott's Environmentally Conscious Hotel Operations (ECHO) program. The "top down" approach allowed individual properties to adopt other environmental initiatives on a selective basis. Green Hotelier magazine(2), published by International Tourism Partnership (ITP) created a forum for sharing best practices and reporting on successful breakthroughs, large and small, to create an atmosphere of innovation in the industry. As part of the Prince of Wales Business Leaders Forum, ITP assists the industry to make a valuable contribution to the countries and cultures in which they operate, to their customers, their shareholders and future generations. The following US-based hotel chains are members of the International Tourism Partnership (ITP): Carlson, Fairmont, Hilton, Hyatt, Marriott and Starwood, as well as non-US chains such as InterContinental Hotel Group, Ritz Carlton, Scandic, and Taj Hotels in India.

• Fairmont Hotels and Resorts
  Fairmont Green Partnership was launched in 1990 (through then Canadian Pacific Hotels). Phase 1 focused on measures of resource conservation, while Phase 2 moved outside the hotel properties and into local communities and environment. Fairmont's "bottom up approach" created incentives for all staff to identify change equipment; this, in turn, resulted in the adoption of practices that generated considerable savings in utility costs across the company. Phase2 initiatives, such as socially conscious efforts to protect the beluga whale and support to local women's shelters netted the company valuable free publicity, awards and industry-wide recognition acknowledging its CSR good-neighbor policy. Fairmont's sustainability achievements include: Tourism of Tomorrow Award 2006, Worldwide Hospitality Award - Best CSR Program 2006 award, and participation in World Heritage Alliance to support sustainable tourism. The Fairmont Green Partnership Guide, now in its third edition, serves to help other hotels learn how to be more energy efficient without sacrificing the appeal of luxury vacations for tourists. The Green Partnership Guide focuses on how to start, maintain and grow an environmental program for sustainable tourism.(3) Fairmont's initiatives include offsetting greenhouse gas emissions by purchasing green tags/energy certificates, and implementing alternate energy, such as renewable wind power and use of biodiesel, where possible, in Fairmont resorts.

• Hilton Hotels Corporation.
  Hilton has developed a comprehensive company-wide policy to promote business practices that help preserve the environment. "At Hilton Hotels Corporation, protecting the Environment is a top priority. Responsible environmental activity is good for both our business and the community". Hilton has committed to sustainable building design, use of renewable energy sources and resource conservation programs to achieve its five year (2009-2014) targets for environmental sustainability: reduction in energy consumption and carbon dioxide emissions by 20%; reduction in waste generation by 20%; and reduction in water consumption by 10%. Staff are encouraged to play a role by participating in various community outreach projects, such as planting trees, cleaning beaches and undertaking other activities that help restore natural resources. The company recently introduced the Hilton Environmental Reporting Tool (HER), a web-based property reporting system, to support the monitoring of each hotel's environmental improvement and resource efficiency. HER is intended to provide a consolidated picture of the company's overall performance, the results of which will be communicated through the company's annual report.(4) "Conserve to Preserve" is Hilton's guest towel and linen reuse program. "Hilton in the Community Foundation" is the centerpiece of the company's corporate social responsibility program. Focusing on young people, the Foundation supports activities in education and health initiatives. At times of humanitarian disaster, the Foundation also quickly responds to support relief efforts in affected areas.(5)

• Intercontinental Hotels Group
  Intercontinental Hotels Group (IHG) has appointed a Senior Vice President for Global Corporate Social Responsibility in 2006 to oversea its global CES and CSR programs. During 2007, IHG's "Chase the Extraordinary" program reached 12 countries outside the US and replaced 250,000 incandescent bulbs with compact fluorescent lights (CFLs) in its properties, and another 15,000 CFLs to employees for use at home. This initiative alone is expected to significantly reduce carbon dioxide emissions while saving the company an estimated $5 million in energy costs. Other initiatives include the IHG "Corporate Responsibility in a Box" best practices guide distributed to all of its hotels. In 2008, IHG launched its "first 100% eco-friendly hotel" that relies on rain water collection, solar panels, sustainable energy sources, and usage of recycled materials for construction and furnishing.

• Marriott
  As mentioned earlier, Marriott corporate offices prepared the Environmentally Conscious Hotel Operations (ECHO) guidelines as a first step in their CES program. More recently, Marriott has established a unique partnership with Conservation International and is pledging $2 million protect the rain-forest in Brazil as part of its carbon offset program. Other partnerships include Clean up the World and Audubon International. Other corporate goals include: reduce water consumption by 25% per room in next 10 years, install solar panels in 40 hotels by 2017, and expand recycling program.

• Starwood
  Starwood's Environmental Sustainability Policy recognizes the company's responsibility for environmental stewardship and is committed to integrating leading environmental practices and sustainability principles into its core business strategy. Through collaboration with hotel owners, franchisees, suppliers and business partners, Starwood encourages the adoption of practices that conserve natural resources, minimize waste and pollution, enhance indoor environmental quality, report on key environmental performance indicators, and raise environmental awareness among associates, guests and the communities in which they operate. Starwood recently announced ELEMENT, the first hotel brand to commit to Leadership in Energy and Environmental Design (LEED) building certification.

• Wyndham Worldwide
  Wyndham Worldwide launched its corporate environmental sustainability with the announcement of the WyndhamGreen program in 2008(6). Due to its numerous brands, properties and distribution points, the WyndhamGreen program is expected to have a large impact on the Company's overall carbon footprint. Like other US chains, Wyndham Worldwide is focusing on energy conservation and renewable energy, water conservation, and recycling and waste management practices. In addition, WyndhamGreen will include sustainability initiatives at the local destinations in the more than 100 countries and 6 continents in which Wyndham properties operate. These include tree planting and work with local charities and community organization. Education is also a big part of WyndhamGreen with the intent of engaging staff as agents for change and improvement in environmental performance. One of its first initiatives was to introduce a new ecologically-friendly uniform line for hotel staff using recycled polyester fibers spun from plastic beverage bottles.

Taking It to the Next Level

With most US-based international hotel chains now having established a corporate environmental sustainability and corporate social responsibility program, the challenge will become how to get the most out of these programs and ensure that the high level corporate commitment is translated to meaningful and lasting results. The following recommendations draw on the best practices of both US and non-US hotel chains, as well as PA Consulting Group's global experience in the travel and tourism industry.

1. Establish a high level strategy and effective implementation plan that recognizes corporate responsibility and the importance of environmental stewardship. The CES and CSR strategy should define the mission and vision of the organization, establish goals and targets from the perspective of its different stakeholders, e.g., investors, management and staff, visitors, local communities and the government authorities in destinations where they operate. Quick wins, such as appointing property-level environmental officers will help build stakeholder support, while more transformational initiatives such as equipment retrofits and changes in standard operating practices will take longer to yield results. The strategy and implementation plan need to be translated into the standard operating practices for the different business processes and effectively communicated through website, advertising, public relations, and hotel literature to the stakeholders by tailoring the message to reflect their respective interests. A global reporting system with key performance indicators is needed to measure the effectiveness of the strategy and underlying programs.

2. Provide support and flexibility in property-level implementation of corporate CES and CSR programs to recognize the differences in operating conditions and customer preferences of international visitors. Implementation of sustainability initiatives of US hotel chains are not always reflected in property-level operations. Furthermore, the US chains are not necessarily capitalizing on leading sustainability initiatives at the property level. Company wide targets are set and applied uniformly across the managed properties without recognizing the limitations and opportunities facing individual hotels. An effective CES an CSR program should provide for change management where new standard operating practices are introduced, and a forum for "bottom up" ideas for environmental and social responsibility initiatives emphasize aspects of program that are most relevant and provide the greatest benefit at the property-level.

3. Engage stakeholders for new ideas and continuous improvement. The reality of operating in today's changing world is that no one person has all of the answers. Effectively engaging the various stakeholders in the process will yield ideas for new initiatives that provide a mechanism for continuous improvement and refinement of the CES and CSR programs. Organizations should incorporate CES and CSR programs in their loyalty programs to engage customers, incentives for management and staff, and awareness and openness for feedback through community and public relations.

(1)www.energystar.gov
(2)http://www.greenhotelier.org
(3)http://luxuryresorttravel.suite101.com/article.cfm/a_leader_in_sustainable_tourism
(4)http://hiltonworldwide1.hilton.com/en_US/ww/business/environmental/report.do
(5)http://hiltonworldwide1.hilton.com/en_US/ww/business/citizenship/foundation.do
(6)http://www.wyndhamworldwide.com/wyndham-green

Bill Meade is a Director with Tetra Tech and is based in Arlington, Virginia. Mr. Mead heads Tetra Tech's Sustainable Tourism Service work and has worked continuously in the Caribbean for over a decade at the property, resort complex, hotel group, destination and national level. Mr. Mead has also assisted private hotel companies and chains to develop corporate and property-level environmental management programs, including achievement of Green Globe 21 certification. He is currently serving as Team Leader for the Caribbean Hotel Energy Efficiency Action (CHENACT) project for the Caribbean Hotel and Tourism Association and Caribbean Tourism Organization, with funding from the InterAmerican Development Bank. Mr. Meade can be contacted at 703-387-2134 or bill.meade@tetratech.com Extended Bio...

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