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Opportunity of Sustainable Operations

Practises in Hotel Industry

Amrendra KUMAR

Thesis Supervisor: Dr. Mihalis GIANNAKIS

September 19. 2014

Contents

Motivation

Sustainable Hospitality Introduction

Research Process

Research Methodology

Research findings

Research Questions

Conclusion

Motivation

All major Hotel Chain

are tagging

themselves as Green &

sustainable Hotel. Is it

new marketing trend

or need of the hour ?

According to

LEED* the demand

of being LEED

certified increased

550%..

Source LEED:- * Leadership in Energy and Environmental Design

Sustainable Management

3 Pillars

Socio-

Cultural

Economic

Vitality

Ecological

Integrity

Sustainable Hospitality Operations

Economic

Protect the Environment

Socio - Cultural

•The main objective is to optimize the use of resources.

•Control the wastage.

•Promote social Cooperation and involve local people.

•Be Social responsible- improve the quality of life of community &

manpower.

•Work on reduction of carbon foot print.

•Conservation of natural resources.

Research Questions

1. How hospitality industry can meet the demands

of their stakeholders for comfort and efficiency

while operating sustainably?

2. What level of advantage is achieved by operating

sustainably?

3. What is the current situation and awareness of

sustainable operations in Indian Hospitality

Sector?

4. How can hotel develop and implements

sustainability practices and value for the

environment aspect water?

1. Setting

Research

Objective

2. Conducting

Research

3. Summarize

• Literature Review

•Thesis Question

•Frameworks

• Data Collection using research

Methodology

• Analyzing Data

• Conclusions &

Recommendation

Research Process

THEORETICAL FRAMEWORK

Triangulation Research Method

Data

Data

Triangulation

Secondary

Data

Interviews

Internal

Company

Reports

Case Study ITC Hotels

MAJOR POINTS FROM ITC HOTELS

ITC Hotels Tagline is “Responsible Luxury” and claimed to

be biggest & greenest luxury Chain of the World.

The Chain has 11 LEED Platinum rated properties.

Uses LED lighting in public area.

Usage of Solar energy has reduced almost 20 % of energy

consumption.

Water efficient Air conditioning system.

Usage of Low Volatile Organic Compound Paints & certified

wood in guestroom & public areas.

Sourcing stationary and supplies from local vendors.

Planning of room with optimum usage of water usage and

disposal.

HR policy for Manpower retention.

Qualitative Data Research

Customer’s feedback : On 4 questions

Interviewed 40 customers + 15 tourists.

Do you actively seek socially or environmentally active

hotel?

60% of customer don’t agree

Does the sustainable practise influence your perception for

hotel?

48% agrees

Would you like to pay more for CSR practising hotel chain?

50% can Pay more.

Are the hotels following CSR because of economic climate?

30% agrees.

According to Customer Major reasons

Public relations Advantage

Financial Benefits.

FINDINGS

1. How Hotel meet demands of guest while operating

Sustainably ?

Knowing the need of Customer.

Creating awareness in the consumers with

marketing promotion.

Being Genuine & transparent to customer.

Reassuring the customer.

Pricing for the customer.

Participation of customer.

Improving the quality of Life of External & Internal

Customer.

Environmentally 3 R

Revenues

•Save the operational cost

to the company hence

increase the revenue.

• Reduce the carbon foot

print.

•Save Non renewable

Resources

• Low carbon emission.

• Environment al Friendly

•Reduces wastage the

material.

•Re use Optimization of

usage of product .

•Recycle of water etc can

improve efficiency.

• Improve the brand image.

• Improves the guest

experiences.

•Create awareness about

the circular economy.

Advantages

2. Advantage of Operating Sustainably

3. Current Trend : Indian Hospitality

It’s a nurturing trend in Indian Market.

New chain are promoted as Sustainable branding

Luxury Brand are getting more n more

Certifications

Departmental Initiative being Integrated .

Manpower are Trained.

Guests are engaged for social interest.

Trend of Reduce, Reuse and Recycle is being

Promoted.

Hotels are setting target and reflecting the results

in Annual reports.

4. Development & Integrating EMS

Assessment

Establish Objective

Develop & Implement Process

Evaluate &

Measure Impact

Review & Improve

Implementing sustainability

practice for Water

Summarizing Hoteliers Feedback

Sustainable Operations Management need of the

Hour.

It increase the revenues and reduces operations

cost .

Emphasis on Trained Manpower.

Trend of Reduce, Reuse and Recycle is being

Promoted.

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