Source: Hotel Executive
Published: Thursday, April 10, 2008

This is the year of the green consumer.  Green has become a mainstream issue driving millions of consumers to find out how they can live a more eco-friendly existence or a “lifestyle of health and sustainability” now popularly known as LOHAS.  “Eco” has led to a new wave of consumer marketing in a grasp for green market share.  In the hospitality world the implications of green for consumers include: eco-travel, eco- hotels, green buildings, eco- friendly interior design, and hybrid vehicles.  This trend has gained significant momentum in the lodging and hospitality industry where more hotels are going green (or at least saying they are) and offering eco-friendly options.  In an industry with a proliferation of brands and choices, green appears to be competitive hot button for 2008.  

Green programs can lead to enhanced perceptions of hotels and their brands. Hotels by their very nature of transient guests, groups, excess consumption, and housekeeping demands are inherently an impact on the environment.  The opportunity for hoteliers is to embrace environmental consciousness and green practices.  Once an environmentally focused hotel is operational, it can then be marketed as such and their eco-story shared with guests, consumers, employees, the industry, and the media.  

Energy Star, a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy, focuses on helping save money and protecting the environment through energy efficient products and practice.  They have put the energy savings into hotelier “language”.   With a 30 - 50 percent energy savings, a limited service hotel would achieve economic savings equivalent to increasing average daily rate (ADR) by $1.80 - $3.00, and a full service hotel would have the equivalent benefit of increasing ADR by $4.00 - $6.75. 

Hotels and resorts around the world are going green and becoming more environmentally friendly because customers are seeking it and even requiring it.  Many organizations today have an environmental mandate. There is a growing movement toward green meetings and green weddings.  Green meetings can save money by conserving resources, create and enhance competitive advantage and reputation, and present opportunities for marketing and public relations. 

Consumers are often looking for a hospitality experience that will be relevant to their needs and align with their values.  With more and more consumers basing decisions on environmental consciousness, green hotels will appeal to consumers with those values and attract them. Building a brand that incorporates eco sensitivity helps consumers in their decision making process.  Hotels and resorts need to differentiate themselves with a brand and being a green and eco-friendly brand can be a part of that.  A green brand image can help hoteliers to differentiate their property from other hospitality choices in their market.  This can attract consumers as well as groups and meetings that now require a green location.   

How do you brand an eco-hotel? 

Once you are sustainable and it can be demonstrated, you will be credible and therefore marketable.  While being green and sustainable is unto itself an organic branding process, you still want to let people know about it.  Not every guest will understand sustainability, but once explained will feel positive about it.  Internally, the message first needs to be communicated to all employees.  Internal marketing programs to educate staff will heighten green visibility as they most likely have been actively involved in the greening process and culture.  Being green affects everyone and branding is everyone’s role.  Signage and printed collateral will reinforce the eco message. Utilize any achieved third-party environmental certification, eco labels, awards, and voluntary initiatives. Wherever appropriate, include recognizable certifications such as three arrows for recyclable products and symbols for energy-efficient products.  Externally there are several ways to incorporate an eco-hotel message into brand communications: 

• Send an e-newsletter to your guest list to let them know about an upcoming or past stay and the benefits of their eco experience.

• Issue a press release to publicize a specific development at your hotel or within your brand.  When you add “eco” into the message, you open up a whole new area of interest. 

• Use your Web site to explain and promote the benefits of a green lodging experience.  Put a message on your Web site that charts energy and water saving results.

• Use blogs and seek user-generated content as a channel to educate consumers on the environment.  Writing a blog is a way to get your green hotel messages out to the public while also being a source of content that can lead users to your site. 

• Create an online video to tell the story and connect it to YouTube which can be linked from your Web site or blog. 

• Podcasting, another format for telling your eco story, allows you to communicate online to consumers and guests.  

• Other “branding” opportunities include participation in community partnerships and local conservation.

Eco branding in action 

Lodging is one of Florida’s largest industries with 80 million people visiting the state each year and at least half stay in a hotel, motel, resort or B&B.  The Florida Department of Environmental Protection’s Green Lodging program encourages, recognizes, and rewards environmentally conscious lodging facilities.  Several properties from small independents to large branded properties have received the Green Lodging designation.  It’s just the beginning. 

Fairmont Hotels & Resorts has been in the vanguard of the environmental movement since it launched its Green Partnership Program in 1990.  At Fairmont, the environment is part of the culture, not just part of the program. 

Hilton Vancouver, the first green Hilton in the world, generated $2 million in marketing and public relations value for the hotel's sustainable features in one year, illustrating the marketing potential of being first in their market with a healthier, more comfortable place to stay.  

Kimpton Hotels are recognized for their numerous green innovations including: in-room recycling bins, housekeeping carts contain nontoxic cleaners, organic and shade-grown coffee, Property-wide printing on recycled paper, recycling of coat hangers, elimination of Styrofoam cups, paperless check-ins/outs, organic flowers and more. 

The Ambrose Hotel in California has a Green Initiatives section of their Web site indicating their commitment to holistic hospitality in protecting the environment and preserving precious natural resources. By going “green” they have made a promise to promote a lifestyle that ensures their environmental impact is minimal and as positive as possible. They have integrated various methods of green living into their daily lives and encourage guests and team members to do the same. They reduce, reuse, recycle, compost, and continue to search for environmentally friendly alternatives.  In the eyes of the consumer, a brand is a promise.  

Are there risks to branding an eco-hotel? 

Branding your hotel or resort as environmentally friendly can attract eco-concerned consumers and boost overall customer loyalty.   But there are also potential risks as if consumers see you as ‘greenwashing’ your brand.  As green consumers become savvier, a sustainability message needs to be authentic and credible.  With hospitality marketers now claiming carbon foot prints, green, eco-friendly, sustainable, natural resources, etc. the mandate is to not be seen or perceived as misleading or false.  Consumers are expected to double their spending on green products and services in the coming year. A brand’s green image will affected by skeptical consumers.  Despite the temptation to shout green initiatives, subtle and consistent is sometimes more effective—especially at the higher end of the market. Promoting by word-of-mouth, rather than through advertising, creates a viral message that can reach conscious consumers more effectively since they tend to be skeptical of claims of green programs. Some properties even choose not to market its green credentials because they believe that they should be doing it anyway.   

In 2008, the branding of green will only be as successful to hoteliers as the authenticity of their brand.  Consumers will appreciate any attempt to be eco-conscious, but at the same time they just may get weary of all the green claims. In any case, going green is now a full blown trend and an important one.  As more hotels and hospitality brands embrace green, it will become less of a point of differentiation.  A hotel should always be able to compete on its own brand foundation.  Until that time going shades of green for people, places, planet and profitability will continue to change the hotel brand climate.  How much comes down to hue.