According to (Sonya Gracci,Rachel Dodds, 2008), there are few benefitscan be gained in hotel industry via implementing green management initiativeswhich included customer loyalty, risk management, employee retention andcompetitive advantages. Customer loyalty has been move in the demands andexpectations of customers over the past 29 years. Many years ago, the guestswill decide to stay in their ideal hotels based on the facilities, services andlocations but the guests of today will think in varying degrees and being moreexperienced. This is because they focused on the environmental friendly issues likepaper at home, cans and recycling bottles.
They will make fuel-efficientvehicles and organic food as the greener lifestyle selections. Therefore, the consumersbecome more concerned on the important of being environmental friendly and theways to protect environment. Many guests will stay in the go green hotel as itwill cause them to understand that they put an effort to protect theenvironment. Hotels with the green certification allow them to give ecologicallymindset to their guests at their locations. This will help go green hoteldistinguish to others less eco-friendly hotels. The guests will influencepotential guests as they share the experienced to them and increase their levelof awareness. It will affect them to experience environmental practices.
As theresult, customer loyalty may rise when the guests have experienced anenvironmental friendly hotel which level of environmental commitment is demonstratedFurthermore, the article alsomentioned that the risk management as one of the benefit to hotel industrythrough implementing green management initiatives. Risk management is aboutmanaging external exposure in order to reduce the chance of damages caused bydecisions and activities within the company. Risk minimization will bring outan increasing wined with governance and good corporate social responsibility. Therisk management strategy of a hotel was focused on health and safety concernsaround pest infestation, water and food, outbreaks of disease, fire damage orfirst-aid and guest safety and security issues. However, social andenvironmental issues become an important issue in recent years. Environmentalrisks affect the cost of capital in different types and sizes of enterprisesand it may also affect the long-term value of the company. The example of environmentalrisks included air and noise pollution, water and land contamination, wastemanagement and supply chain environmental practices. In addition, increasing ininvestment community will help practices in environmental management morepowerful and maintain the quality of the performance and capacity in generalmanagement.
Some insurance lenders and companies began to select and aligntheir rates based on environmental issues regulated by ethical funds. The companiesthat incorporate the environment management into their business decisions can reducetheir liabilities and environmental risk. It is in a good position to investand reduce their financial and reputational risks.After that, employee retention isthe benefits through implementing green management initiatives in the hotelindustry which stated in the journal. One of the greatest benefits people ofgoing green is employee.
This is because employees like hotel guests and theybecome more sophisticated and coordinated in society. As a result, they aremore likely to identify with an employer whose practices and principles arealigned with their values. Environmental projects have been shown to motivatestaff to work together in order to achieve common goals. Many hotel companiesuse environmental programs as incentives for employees. The financial savingsof these projects are translated into cash or other rewards, such as internalactivities or travel. The retention will increase to save the cost of trainingnew staff because of the hotel industry has a considerably high turnover rate.
Moreover,the competitive advantage also as a benefit that stated in the article. Greenprojects can provide competitive advantage for leaders but as long as greenactivity continues to be voluntary. However, green practice will become abenchmark in the hotel industry. Consumers will become more demanding in greenpractices hotels because of the non-renewable energy costs continue to rise andthe regulatory pressure increases. Therefore, the hotel with green practicewill have the greatest opportunity to gain a competitive advantage before theemerging sustainable development curve.
Environmental initiatives can alsoimprove the productivity and competitiveness of the hotel industry. Indirectbenefits include improved image, employee morale, health and safety. Corporateimage and reputation of hotel companies are one of the most invisible and pricelessassets that enterprises can possess. The hotel with a good image can gain acompetitive advantage in the market. Competitive advantage to enhance somebenefits which included improvement in the price premium, customer’senthusiasm, market share, obtain orcreate new markets, corporate image, employee productivity and operationalhealth.