An Analysis of Customer Expectation from Eco Friendly Hotels

Abstract

The optimum utilization of scarce resources such as water and fuel as well as efficient recycling of waste has found to result in cost savings and enhanced profitability in hotels. Nevertheless, how eco-friendly practices lead to customer satisfaction which in turn leads to increased turnover, profitability and market share has not been well explored in India. This paper explores the link between the adoption of eco-friendly practices amongst hotels and customer satisfaction in India. The inference here is that hotels can become even more competitive and profitable through adoption of eco-friendly or green practices. Both secondary and primary data was used in this research. Study of secondary data revealed how green practices lead to more profitability. The primary data collection tool was a questionnaire administered to 25 guests of 10 five star hotels located in Bangalore. Analysis of this primary data revealed that all the respondents were favourably disposed towards those hotels that adopted eco-friendly practices. They were willing to pay higher tariffs to stay in eco-friendly hotels. The very perception of eco-friendliness was found to lead to perception of good customer service. Their responses also indicate how hotels can create perceptions of being eco-friendly amongst their guests. The presence of fuel efficient amenities and facilities, the visible presence of recycling equipment and of staff who are trained in green practices all go to create a perception of eco-friendliness. From this point of view, going green for hotels is more than just being in the fashion or a way to conserve resources. It becomes a lever by which hotels can become more competitive, achieve profitability and deliver good customer service. These findings are important for the hotel industry in India. The findings of this research would seem to indicate that while Indian hotels have made investments in environmentally friendly equipments and amenities, they will still need to understand customer expectations from their hotels and from these facilities in order to create sustainable competitive advantage.

Keywords: Customer Expectation, Eco Friendly Hotels, Green Practices, Profitability

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