A New Era of Eco-mmodations - The Business Case for Going Green

By Roger G. Hill Chief Executive Officer & Chairman, The Gettys Group Inc. | October 28, 2008

After inconveniently learning a few truths and watching celebrities roll up to red carpets in fuel-efficient hybrids, it seems everyone is going green these days. But some of the best and most effective environmental efforts are being embraced by the hotel and lodging industries. Not only do hotels feel the pressure to implement eco-friendly steps that go beyond simply allowing guests the option of reusing their linens and towels, it's apparent they must take measures to accommodate more and more guests who are specifically seeking out the hotels that have gone green. Some celebrities - from Andy Dick to Woody Harrelson - have even designed their own eco-friendly suites. And some hotels, such as 70 Park Avenue in New York City, are even starting to implement their own eco-concierge, on hand to recommend eco-friendly ways of getting around the city or give directions to the local organic restaurant.

But celebrity trends aside, hotels are seeking out their Green Seal certification and have taken pledges to become a part of the Green Hotels Association because they truly want to make a difference - and turn a profit. Last June, Gettys and Hospitality Design Group identified and developed 10 "macrotrends" through the Hotel of TomorrowTM (H.O.T.) Project, which more than 40 of America's top leaders participants believe will affect the hospitality industry today, tomorrow, and in the future. Unsurprisingly, one of the 10 trends is renewable resources. Sustainable design is on the rise. And, earlier this year, an ecotourism survey conducted by TripAdvisor(R) confirmed what we all know - travelers are willing to shell out more cash to stay in an environmentally friendly hotel. In fact, 24 percent would pay 5 to 10 percent more at a green hotel and 12 percent would pay a 10 to 20 percent premium. Additionally, 38 percent of travelers have already stayed at a green hotel according to the survey.

Despite these figures, it can still be difficult to make the leap to investing in a green hotel. Most developers assume that eco-initiatives are cost-prohibitive, but according to the U.S. Green Building Council (USGBC), even the highest performance features add an average of two to seven percent onto the initial design and construction costs of a project. And many hotels can attain Leadership in Energy & Environmental Design(R) (LEED) certification without increasing their design and construction budgets at all. And few people realize developing an eco-hotel isn't a long-term investment; costs can be recovered in as little as three to five years. According to the International Hotels Environment Initiative in 2005, hotels that have yet to implement green programs can save between 10 and 40 percent on energy costs, cut waste management expenses by 25 percent, and their water bills by 20 percent.

Now that I've gone over the numbers and shown why green design makes economic sense, let me tug on your heartstrings for a moment. It's impossible to avoid a larger discussion of a building's environmental effect when determining whether to take your hotel green. Without an understanding of the overall environmental issue, you cannot properly evaluate your hotel and determine which steps you'd like to take in developing a green hotel. When most people think green, organic and energy are the words that pop into mind. But designing a green hotel is about minimizing your overall effect on the environment and sustainability, not just using organic products or compact fluorescent light bulbs. We know from the USGBC that U.S. buildings of all kinds consume 37 percent of all energy used in the U.S., 68 percent of all electricity, 12 percent of fresh water supplies and 88 percent of portable water supplies, and 40 percent of raw materials. These buildings generate more than one-third of municipal solid waste and 36 percent of total carbon dioxide emissions. It's no longer sufficient to ask travelers to re-use their towels and linens. Consumers are educated on environmental issues and they expect green hotels to offer more than superficial programs or minimal nods to green construction practices.

Hotels pioneering the green movement are still few and far between, which presents a tremendous opportunity for hoteliers making the leap now.

As of September 2006, USGBC had awarded LEED to only 11 new construction hotels. The market is far from saturated, and LEED certification offers legitimacy and a competitive edge to qualifying hotels.

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Coming up in April 2019...

Guest Service: A Culture of YES

In a recent global consumers report, 97% of the participants said that customer service is a major factor in their loyalty to a brand, and 76% said they view customer service as the true test of how much a company values them. And since there is no industry more reliant on customer satisfaction than the hotel industry, managers must be unrelenting in their determination to hire, train and empower the very best people, and to create a culture of exceptional customer service within their organization. Of course, this begins with hiring the right people. There are people who are naturally service-oriented; people who are warm, empathetic, enthusiastic, pleasant, thoughtful and optimistic; people who take pride in their ability to solve problems for the hotel guests they are serving. Then, those same employees must be empowered to solve problems using their own judgment, without having to track down a manager to do it. This is how seamless problem solving and conflict resolution are achieved in guest service. This willingness to empower employees is part of creating a Culture of Yes within an organization.  The goal is to create an environment in which everyone is striving to say “Yes”, rather than figuring out ways to say, “No”. It is essential that this attitude be instilled in all frontline, customer-facing, employees. Finally, in order to ensure that the hotel can generate a consistent level of performance across a wide variety of situations, management must also put in place well-defined systems and standards, and then educate their employees about them. Every employee must be aware of and responsible for every standard that applies in their department. The April issue of the Hotel Business Review will document what some leading hotels are doing to cultivate and manage guest satisfaction in their operations.