Case Study: Sustainability in the Hotel Industry

The Role of Operating Agreements in the Hotel Industry

Arvind Upadhyay,Francesco Pomponi,Céline Vadam,Sushil Mohan

• Publisher: Kogan Page
• Year: 2016
• ISBN:
  9780749477103
• Edition: 1
• Topic: Commerce
• Subtopic: Opérations

This case study is based on a survey conducted among major hotel chains. It looks at how to implement operating agreements and decide on different ways of increasing eco-friendly policies in the hotel industry. It highlights operational problems which arise when there are multiple stakeholders and looks at the challenges of developing coordinated and global sustainability.Implementing sustainability measures in the hospitality industry is not an easy task. Energy consumption accounts for between 3 and 6 per cent of hotel operating costs and is responsible for 60 per cent of its CO2 emissions. This case is for students on hospitality, supply chain, operations management and logistics courses. It analyses factors which influence operating costs, including building characteristics, hotel features, location, and operations. The primary factor is temperature regulation. There are various measures which can be taken within hotels to reduce energy consumption. The authors examine the efficiency of these measures, which rely on the collaboration of all stakeholders. Readers are provided with valuable information on the theory of energy consumption in hotels and the involvement of abundant stakeholders with divergent interest and targets is examined. The case study also looks at how operational and communication are the most effective ways hotel chains can promote sustainability.

CASE STUDY

OPERATIONS MANAGEMENT

Sustainability in the hotel industry

The role of operating agreements in the hotel industry

Arvind Upadhyay, Francesco Pomponi, Céline Vadam and Sushil Mohan

---

AUTHOR BIOGRAPHIES

dr arvind upadhyay is Senior Lecturer in Logistics and Supply Chain Management at Brighton Business School.

francesco pomponi is a Research Associate at the University of Cambridge, Centre for Sustainable Development.

céline vadam is an international hospitality and tourism investment consultant.

dr sushil mohan is Head of Economics Department at the University of Brighton.

---

Introduction

Energy consumption represents between three and six per cent of hotel operating costs and is responsible for 60 per cent of its CO2 emissions. It has increased from 25 to 30 per cent over the last decade and is forecasted to continue growing due to more demanding standards and the development of electronic equipment. It may be influenced by various factors including building characteristics, hotel features, location and operations. However, the main hotel’s energy end-use is temperature regulation (including room heating, hot water and air conditioning), representing 69 per cent of hotels’ energy consumption. Various measures can be taken within hotels to reduce their energy consumption; some involving important technical costs, which is a crucial parameter when putting in place a sustainable plan, whereas others only need human care. The efficiency of these measures depends deeply on the collaboration and implication of all stakeholders. Among stakeholders, hotel chains are in the best position to promote and implement eco-friendly policies. Indeed, due to their size, strength and international networks, they are highly influential in setting up trends and best practice and dispose of a range of operational, communication, training, monitoring, certification and awarding tools to do so. An efficient tool is operating agreements, which constrain the hotels to respect a list ...