Does Green Hotel Certification Improve Operational Performance - Evidence from North American Eco-Rating Programs

Abstract

This study investigates whether obtaining green hotel certification leads to improved operational performance in the hotel industry. Using panel data from 2009 to 2018 covering 143 certified hotels classified under the North American Green Leaf Program, the Canada Green Key Eco-Rating Program, and the American Green Mark Program, along with 148 non-certified hotels, the analysis applies a fixed effects panel regression approach. The empirical results indicate that green hotel certification is positively associated with key performance indicators such as occupancy rate, average daily rate (ADR), revenue per available room (RevPAR), and total operating revenue. These findings suggest that although certification may involve short-term cost increases, it can contribute to long-term operational gains. The results provide practical implications for hotel managers and policymakers who are evaluating investments in sustainability and certification initiatives.

Keywords: Social Responsibility, Green Hotel, Operational Performance, Hotel Industry, Fixed Effect Model

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