Hotel Management School Maastricht

Sustainability
To which extent is sustainability a necessary
trend for hotels to follow?
Luc van Neer, Ivan Dokic, Michelle Nievergeld, Sven Sallaerts
 To which extent is sustainability a necessary trend for hotels
to follow?

Content
Content...............................................................................................................................................1
Preface................................................................................................................................................2
Chapter 1 - What is the sustainability trend , and how is this developing?.........................................3
Chapter 2 - How can you implement sustainability in the hospitality?...............................................4
Chapter 3 - What is the advantage for hotels to follow the trend and when is this profitable?............6
Sustainability, a choice or a necessary requirement?..........................................................................7
Sources.............................................................................................................................................10

To which extent is sustainability a necessary trend for hotels to follow?

By Luc van Neer, Michelle Nievergeld, Ivan Dokic and Sven Sallaerts
Preface

A research of the Central Statistics Office shows that only 1 % of the energy in 1995 was
sustainable, against 9 % in 2009. This is a growth of 800 % in only 14 years. This graph
shows the amazing sustainable development in the past 16 years. Sustainable energy became
more important every year. Sustainable energy is the start of a total corporate social
responsibility for companies, as well for hotels.

We were interested in the importance for hotels to follow this trend. We formulated the
following main question: To which extent is sustainability a necessary trend for hotels to
follow? We will formulate a answer with different sub questions such as:

 What is the sustainability trend , and how is this developing?

 How can you implement sustainability in the hospitality?
 What is the advantage for hotels to follow the trend and when is this profitable?

To which extent is sustainability a necessary trend for hotels to follow?

By Luc van Neer, Michelle Nievergeld, Ivan Dokic and Sven Sallaerts
Chapter 1 - What is the sustainability trend , and how is this developing?

Before we take a look at the sustainability trend you first have to understand the definition of
sustainability. There are a lot of different definitions for this word, but the most common for
us is the one from the VN Commission ‘Brundtland’ in the rapport ´Our Common Future´ from
1987.

This commission defines sustainable developments as developments which meet present

needs without compromising the ability of future generations to meet their needs. In other
words, sustainability takes consideration for the here and now and for the future of the next
generation. Companies can deliver an important contribution to a sustainable development of
the society by sustainable business.

Sustainable business is also called corporate social responsibility. Within this trend of
sustainable business gives the company a conscious interpretation of social responsibility in
a way that goes beyond the law and jurisdiction. Aspects that are crucial for sustainable
development of the society are climate change, biodiversity, human rights, environment and
economy, prevention of child labour and equal distribution of wealth. Due to the increasing
interest from the public and guests to these issues, we believe hotels cannot stay behind in
this trend.

Hotels that participate in sustainable business combine business with caring for people and
the environment. There is often talked about the three dimensions: People, Planet and Profit.
A hotel seeks in its commitment to sustainable business for a balance between financial
results, social interests and reducing the environment pollution.

The field People include the performance of hotels in social - ethical matters. How is the
organization dealing with their staff in a broadly sense? Key themes within this domain are,
human rights, child labor, diversity and discrimination.

The field Planet considers performances of the hotel for the environment in a wider
perspective. Current themes that belong to the domain planet : Environmental Care, Eco-
Efficiency, cleaner production and sustainable technology development.

The domain Profit doesn’t include the financial performances but considers economic
issues. Topic such as employment, political participation and sponsorship belong to this field.

When a hotel has decided from which perspective they want to operate, it’s important to
make a distinguish between the hotel his image and the position of the hotel in the society. In
our opinion, hotels can use sustainable business for creating a better image. Especially when
they integrate it in their entire hotel and communicates this effectively to their guests and
stakeholders. This leads to an added value for both the society and the hotel itself.

How this trend can be implemented in the hotel industry will be described in the next chapter.
6

To which extent is sustainability a necessary trend for hotels to follow?

By Luc van Neer, Michelle Nievergeld, Ivan Dokic and Sven Sallaerts
Chapter 2 - How can you implement sustainability in the hospitality?

When you are aware what sustainability is and you want to become a sustainable company,
you have to implement a sustainable policy in your company.
Sustainable thinking:
Mindset
The most important thing when you want to become sustainable is to involve your employees.
Sustainable development calls for a different approach then the traditional thought of
education. Instead of just giving a training and providing the knowledge, it is more important
to create awareness and involvement. You can implement technical improvements to become
more sustainable, but the biggest contribution to sustainability can be reached by your
employees. Especially in the communication to your guests and also to create commitment
with your guests you need to inform and convince the staff. You need employers with a
specific mindset. Employees have to imagine and realize the stake they have in a better
future. Future thinking encourages the employees to become more active in your
sustainability policy. You have to empower your employees so they can think and act in a
sustainable way.
Cradle to cradle:
A good way to become a sustainable organization is to work with the cradle to cradle
principle. The economy is working on a producing and consuming idea. This means a product
is produced, consumed and thrown away, so-called cradle to grave. Nowadays there is a new
movement and the idea is to produce a product, consume a product and then re-use a product.
The principle is to extend the life cycle of a product, and in this way we do not exhaust our
resources and decrease the waste. For example in Teaching Hotel Chateau Bethlehem the
architect mister Coenegracht reused the old castle floor in a new hotel room. Instead of
throwing the floor away, he produced an authentic wall with the wooden floor.
Certificates
A lot of hotel consider themself green. But how can you tell which ones are really reducing
their impact on our health and the environment? If a company is sustainable they want to
communicate this to the guests. Because of the fact that there has to be some kind of
guideline. There are nonprofit organizations which develop standards, audit and provide
certificates. They check if the hotels are meeting the standards, and the certificate will prove
that the hotel will be sustainable. The certificates can help the company with communicating
their sustainable involvement to the guests.
The Green Key certificate:
The leading certificate in the Netherlands is The Green Key certificate. This is an
international eco-label certificate for leisure organizations who are working in a sustainable
way. The certificate proves that a company is voluntarily and controllable sustainable. A 6
company with a Green Key certificate is willing to do more than legally necessary for the
environment. This means they fulfill; technical, management, communication and buying
criteria.

To which extent is sustainability a necessary trend for hotels to follow?

By Luc van Neer, Michelle Nievergeld, Ivan Dokic and Sven Sallaerts
The Green Key certificate is used to communicate that a company is corporate social
responsible to its guest, government and business relations. In The Netherlands there is the
possibility to get a brass, silver or golden Green Key. To get a Green key certificate there will
be an audit and a contribution starting around 1000 Euros. Of course you have to meet
different kind of standards regarding energy saving, recycling, use of sustainable products and
corporate social responsibility.
Globally there are more than 1600 companies in 18 countries who are working with a Green
Key certificate. To maintain the Green Key certificate there will be a yearly audit and
companies need to improve their consumption numbers, invest in the environment and use
sustainable products.
Green Seal:
Because of the importance of the American guest for the Hilton Hotel Schiphol we also
discuss a Eco Label which is recognizable for Americans. We discuss the Green Seal label
because this is the first eco-label in the United States and also one of the biggest as well for
products as companies.
'Green Seal is a non-profit organization that uses science-based programs to empower
consumers, purchasers and companies to create a more sustainable world'.
In other words, when Green Seal started in 1989 there was no other eco-label for products or
companies. The Green Seal is the first eco label in the Unites States, and is different from the
Green Key certificate because it is a general label for all products and all companies. This
means it is very recognizable for guests because they see the label everywhere. This creates a
clear image of the meaning of the label. The Green seal symbolizes environmental leadership
and green products.

To which extent is sustainability a necessary trend for hotels to follow?

By Luc van Neer, Michelle Nievergeld, Ivan Dokic and Sven Sallaerts
Chapter 3 - What is the advantage for hotels to follow the trend and when is
this profitable?

Can hotels get advantage from following the sustainability trend? If they implement
sustainability in the right way, they can get several advantages.
Better Image
The hotel can get a better image if they will be sustainable. Sustainability became a need since
a couple years. The hotel should be able to attract more customers if they turn the company
green, they can attract other markets by this strategy.
Cost saving
Implementing sustainability in the company can save a lot of costs. An example is checking
the life time of a product, with buying them. For example with sustainability in your mind,
you can select the lights with the longest life time. This approach will save a lot of money in
the long term. It works also with other electronics as TV’s, computers, coffee machines and
minibars.
Another high expense in the hotel industry is energy. Saving energy starts with creating
awareness by your guests and employees. Installing electronics such as electro card systems,
could help with saving energy.
Recycling
With An example of recycling and sorting different kinds of trash. They can even earn money
with selling trash paper. They can turn trash in to money. Even cooking fat is worth some
money.
Another easy way of saving costs with recycling is using paper on two different sides for
internal use. This will save trees and money on the same time.
Better quality
Another achievement of implementing sustainability is a better quality of the products such as
food and drinks. The hotel can buy fish from local fishermen and meat from local farms.
These product will be much fresher and healthier. And because of this trade fair you will gain
respect and commitment with your hinterland. This will lead to more revenue.
For an hotel it is soon very attractive to follow the Sustainability trend in the Hotel world
nowadays. It is already profitable to follow this trend when all the efforts and investments
lead to cost reduction, more turnover and guest appreciation and satisfaction in the hotel. With
a view on the future, this trend will only be more profitable during the development of our
‘Green’ and Sustainable world.

To which extent is sustainability a necessary trend for hotels to follow?

By Luc van Neer, Michelle Nievergeld, Ivan Dokic and Sven Sallaerts
Sustainability, a choice or a necessary requirement?

It is found that corporate social responsibility is inescapable in the hotel business. It is briefly
mentioned that trends in ‘Western’ society are the cause. What are these trends? The term
corporate social responsibility or sustainable working (sustainability) is new. This is not for
their content. Besides the profits, also the human-oriented element.

In recent decades, everything, including sustainability, has accelerated. Since the end of the
year 2000 we can see a number of social trends since the Second World War in Sustainability
as well in the normal life as in the hotel business:
The increasingly better training and knowledge, besides the increased absorption capacity
have led to more individual opinions and preferences what nowadays plays important role.
The increased wealth leads to a shift of needs: the material needs of the 40s and 50s have
made place for the more immaterial needs.
The economy is much less capital intensive, this changed to more knowledge-intensive and
service orientated.
Both companies and social organizations have clearly gained more power, creating a new
division of responsibility between government, market and civil society is. In the more and
less distant past it manifests itself in voluntary agreements, collective agreements and public-
private partnerships. These trends results in a significantly increased dynamism, diversity and
complexity of social and economic life. Hotels are increasingly obliged to work and think
with sustainability or corporate social responsibility, for the simple reason that the market
requires this; ‘Sustainability becomes more and more a license to operate.’

Companies have to deal with different perspectives:

What should? (considering legislation, the law and given societal expectations),
Which belongs? (from personal conviction) and
What it pays? (What is the most profitable for us as an hotel?)

What should?
This are the standards and values that "society" develops. See above historical trends, but also
norms and values like they were restricted in old times from the public or church and faith.
One of the most important societal goals nowadays is that they do not take a 'trust us' from
the hotel, but calls for a "show it to me" and "prove me. "
Openness is a prerequisite to be considered as an ethical organization. This creates an
interactive process.
Due to this openness and interactivity the borders between hotels and the environment are
more and more disappearing. 6

A hotel should therefore reflect the needs of the society. Another reason to do so is the
increased ability and accessibility of citizens as individuals or collectively to a variety of
communication. These are very effective means to enforce a certain behavior. Besides that we

To which extent is sustainability a necessary trend for hotels to follow?

By Luc van Neer, Michelle Nievergeld, Ivan Dokic and Sven Sallaerts
can see that even stakeholders in hotels nowadays ask for a more Sustainable approach on
different situation.
Another reason that there is pressure from the society, is that the government and its citizens
increasingly find that the government fails, or cannot solve cases on their own anymore.
Guests and hotels, are explicitly requested to make a contribution to the prosperity and
welfare of the population combined with Sustainability.
The hearing has to do with the entrepreneur or the supervisor as a person or group. The fact
that leaders on their own personal mission of the organization is always connecting buyer’s
premium and in the context of corporate social responsibility is that is even stronger. This
personal mission comes from such a strong conviction to do something back to society or the
personal ethics.
Which belongs?
The all has to do with the entrepreneur, guests, the supervisor or the hotel directors as a
person or group. It is a fact that leaders of hotels, guests, stakeholders and employees connect
their own personal mission to that of the hotel. This personal mission comes from such a
strong conviction to do something back to society and environment.
What it pays? (profitable)
In hotels we can see it is very profitable on different ways. Three factors have always been
important;
First there is the risk of failure: unethical conduct could lead to legal action, with associated
negative publicity for an hotel.
The second important factor are the employees. It appears that socially responsible and
sustainable hotels have less difficulty recruiting and retaining staff. That is because more
people are choosing a company that matches with what they personally like. They will also be
more involved in such a hotel. Thus, companies are encouraged to reveal their values so that
people are attracted to these positive way of hotel management and responsibility.
The guests are the third influential factor of course. They carry, and collectively influence the
hotel to the trend of Sustainability. They used to ask for cheap rooms and F&B facilities, but
nowadays the ask for quality, choice and uniqueness, a responsible supplier but most of all
this combined with asking for a Sustainable ‘thinking’ hotel matching their own values.
For an hotel it is very attractive to follow the Sustainability trend in the Hotel world
nowadays. It is already profitable to follow this trend when all the efforts and investments
lead to cost reduction, more turnover and guest appreciation and satisfaction in the hotel. With
a view on the future, this trend will only me profitable during the development of our ‘Green’
and Sustainable world.

To which extent is sustainability a necessary trend for hotels to follow?

By Luc van Neer, Michelle Nievergeld, Ivan Dokic and Sven Sallaerts
So, to follow the trend of sustainability in the hotel world, a choice or a necessary
requirement?
A necessary requirement. Definitely. A hotel can really not afford itself to miss this trend and
opportunity. Sustainability is the future as we can read. When you do not see this, the results
of your hotel company will do this for you in the future.
In the words of Roland Waardenburg of ‘Ahold’ about sustainability:
“It would be a major commercial blunder to neglect this opportunity.”
In other words; you should use this trend to turn it in an advantage. The hotel can get
advantages with following the trend in different ways, examples are achieving a better image
or saving a lot of costs. Sometimes it is even a win-win situation. Mostly profit is not the main
reason to implement sustainability, but it is more an incentive.

To which extent is sustainability a necessary trend for hotels to follow?

By Luc van Neer, Michelle Nievergeld, Ivan Dokic and Sven Sallaerts
Sources

Preface

- The Dutch Central Statistics Office(2009)New Energy Graph

http://www.cbs.nl/nl-NL/menu/themas/industrie-
energie/publicaties/artikelen/archief/2007/duurzame-energie-2006-art.htm

Chapter 1

- Marcus, Van Dam(2011)Organisation and Management, Page 69 and 73

- Ernst & Young(2010) Summary Research “Sustainability for sale”

Chapter 2

- Luc Coenegracht – Lecturer/architect at the Hotel Management School Maastricht

- Bert Tenthof – Chief Maintaince Hotel Schiphol Maastricht
- Michael Braungart, William Mcdonough(2006)Cradle to cradle
- http://www.greenkey.nl/
- http://www.greenseal.org/

Chapter 3

- Ernst & Young(2010) Summary Research “Sustainability for sale”

- Ans Kolk(2010)Trends in Sustainability reporting by the fortune – Global 250

To which extent is sustainability a necessary trend for hotels to follow?

By Luc van Neer, Michelle Nievergeld, Ivan Dokic and Sven Sallaerts