Environmental Sustainability Strategies for Smaller Companies in the Hotel Industry: Doing the Right Thing or Doing Things Right?

Abstract

The connection between tourism and nature justifies the environmental concerns from tourism agents, namely global hotel chains. This paper explores the differences between smaller hotel chains and their larger global counterparts regarding environmentally sustainable practices. The research approach is qualitative, based on the analysis of 40 company websites and in-depth interviews with 18 entrepreneurs and executives. Results suggest that environmental issues are, for most companies, not a response to societal challenges (‘doing the right thing’), but a response to owners’ concerns (‘doing things right’). Hotel chains develop environmental sustainability practices, mainly for cost-reduction purposes, accommodating the owners’ demands for efficiency. Notwithstanding, there are differences according to the chain’s size. Smaller companies are less prone to adopt environmental practices and to invest in communicating them than global chains. Concerning sustainability in the hotel industry, most studies focus on specific topics and discussions. A more holistic approach to sustainability to establish a deeper understanding of sustainable business decisions in the hotel sector is scarce in the literature. This paper addresses this gap by exploring the strategic reasons behind the sustainable practices of hotel companies, namely smaller ones. Managerial implications of the results are also derived in this paper.

Sustainable practices in hospitality pre and amid COVID‐19 pandemic: Looking back for moving forward post‐COVID‐19

“…According to Calisto et al ( 2021 ), acoustic insolation, inviting guests to reuse towels and sheets to reduce laundry efforts, reducing water consumption through flow reduction systems in taps, and reducing energy consumption through solar panels, low‐consumption lighting, and air conditioning specifications are some of the environmental sustainability practices that have been implemented in hotels. Significantly, the present environmental standards that apply to the hotel business are mostly focused on waste and hazardous waste management, both of which are typical hotel practices (Khatter et al, 2021 ).…”

“…Another line of research for upcoming research is to investigate how different consumer profiles and national contexts affect the significance of environmentally sustainable practices in the hotel industry. More research on ethical dimensions of sustainability in managerial decision‐making “doing the right thing” is required (Calisto et al, 2021 ). Our study aligns with Sin et al ( 2021 ), who recommend future research to examine the impact of quality management on business ethics and sustainable performance, and the impact of business ethics on sustainable performance in different hotel classifications such as business, resorts, foreign, and domestic.…”

“…To win market share in the hotel business, it is critical to focus on sustainability (Oxenswärdh, 2020a ). Calisto et al ( 2021 ) concluded that hotels implement environmental sustainability practices to respond to “doing things right rather than to societal challenges.” In addition, Mzembe et al ( 2020 ) concluded that hotels join the green key scheme to enjoy reputational benefits, achieve competitive advantages, and contribute to sustainability as a public good.…”

“…The environmental strategy is vital for the hotel's long‐term competitiveness (e.g., Pereira et al, 2021 ). In this regard, Calisto et al ( 2021 ) revealed that hotels need to transform their operations and implement practices to become more sustainable to be at a competitive advantage, and acquire advantages from governments as well as other tourism‐related worldwide organizations (e.g., fees and financing availability), while also responding to the needs of customers to meet sustainability goals. Managers of hotels should set clear environmental policies, train staff on environmental issues, discuss ecological issues with stakeholders, promote recycling and reuse of products, use environmentally friendly products and machinery, use solar energy and energy‐efficient equipment, and reduce waste to achieve profitability and competitiveness (Cerchione & Bansal, 2020 ).…”

“…Sustainability implies different things to different individuals, and its management in the hotel industry is fairly volatile, with varying facts supporting various opinions (Oriade et al, 2021 ). Calisto et al ( 2021 ) also stated that a more comprehensive approach to sustainability is needed to gain a better knowledge of sustainable business decisions in the hotel sector, which is lacking in the literature. Despite the importance of sustainable practices during crisis times, such as COVID‐19 and post‐pandemic (Pelikanova et al, 2021 ) and the struggle, ambiguity, and volatility in both academia and practice regarding sustainability in tourism and hospitality (Albrecht et al, 2020 ; Oriade et al, 2021 ; Sin et al, 2021 ), scholars argue there is a need for a more holistic approach to sustainability (Calisto et al, 2021 ).…”