The Green Premium

I just read your article that guests demand free internet! What makes us think they want to pay for being "green" vs. not green? If "Buy American" tomatoes cost more than imported Thai tomatoes, what are the majority buying?

I just finished my entry for the USGBC and HD magazine Sustainable Suite competition, and learned quite a bit about the sustainable materials available to the hospitality industry. There is no reason to have any materials and systems in a new build or a remodel that is not sustainable, energy saving, low voc/chemical, and beautiful. All vendors in the business are actively supporting "green" and their manufacturing and transportation processes are green as well. It is in their best business interests for the reason that it is economically beneficial and does wonders for their marketability. It's only old habits and lack of knowledge that keep things the way they are. The results of the competition will be announced in October and the Sustainable Suite will be built in May at the HD show in Las Vegas. There will be lots of great ideas and innovative products...I was amazed at some of the products I found. Keep your eyes open!

For some time now I have been a critic of the “more green for green product” proposition in the travel space. If hotels, airlines and rent-a-car companies are enjoying costs savings while increasing their energy, fuel and water efficiency programs, why would the result be a more expensive product? In fact – it is not. Hotels and airlines still base the cost or price of their product on yield, availability and a host of other factors. They are not increasing the price of an airline seat or hotel room because they have successfully implemented their own environmental sustainability programs. It’s a huge value-add to the product and the supplier, but not the cost of the product. What we, as leaders in the travel industry, need to recognize is that we have an important opportunity with travelers whose awareness of the environmental impact of their choices in travel has not waivered but increased. The study reported that 78 % of American travelers consider themselves “environmentally conscious” and this had not changed since 2007. This is a good thing; considering the changes to the economic and social state of the U.S. since July 2007, it speaks volumes that there has been no decrease in “consciousness”. Furthermore, the report showed an increase from 12% in 2007 to 54% in 2009 in familiarity with the term “carbon Footprint” and awareness of the term “green travel” increased from 9 % in 2007 to 22 % in 2009. • 58% of travelers say they believe that environmental programs by suppliers can have a positive effect on the environment. • 51% of travelers will continue to patronize “green” travel suppliers regardless of an economic downturn. • 48% of travelers say that continuing to support environmentally-responsible travel suppliers is a necessity, even in an economic downturn. Travelers know they can make a difference – • While travelers believe suppliers should be good stewards of their environment, 54% also believe that individuals themselves have the greatest responsibility for preserving and protecting the environment. • 29% say it is easy to find out about environmental policies and initiatives of travel suppliers. Corporate Travelers - • Corporate Responsibility was noted as the #4 overarching Business Imperative for 2009 (out of 7) in Phocuswright’s July Corporate Travel Report. • Corporate Responsibility, Triple Bottom line accounting and in particular Environment Sustainability was noted as Trend #1 of 7 in that same report. As leaders in travel we all have an opportunity to provide products and services to promote more responsible travel, make those choices easier to find and distingish through certification and standards, and make travelers feel positive about their travel choices. "green" might not be as hot as it was in 2007, but environmental sustainability and responsibility is increasingly becoming a top concern for all.

Since the early 1990's we have suggested to our hotel clients that the only time they should charge a premium for a "greener" room is when they also offer a personal health benefit for the guest such as better indoor air quality via air filtration or better water quality via water filtration. Neither Consumers or Hotel Owners are immune to Maslow's hierarchy of needs.

I agree whole heartedly that consumers should not be expected to pay for responsible business practices. With that being said, I applaud and truly appreciate any consumer who is willing to take the extra initiative to do so and hopefully motivate more hoteliers to jump on the bandwagon... and I agree with with Zoee that it's not just natural cleaning products and recycling. I market a new 75# laundry dryer that saves 2554 million BTU's of energy and reduces a hotel's carbon footprint by 36 metric tons per year by simply running 1 machine, 8 hrs a day instead of a conventional dryer. In the majority of cases the monetary savings outweigh the cost making the product 'economically green'. Sounds like a no brainer, right!? It's not to many hotel owners who just don't want to take initiative. So again, I thank the consumers who will hopefully continue to drive responsible behavior. It's unfortunate they have to pay for it instead of getting reimbursed for their efforts. Perhaps we'll all get reimbursed in the end!

Dear Jeff, Interesting topic but I think that this is the first time ever where we actually haven't experienced a "green fatigue". Instead I think we see an ever increasing focus on sustainability in all parts of society despite the global crisis, or perhaps because of it! As mentioned above the idea to pay a premium for a sustainably run business of any kind is in my eyes a misperception. It is like asking for a premium for the fact that the company follows local legislation or do bookkeeping. Sustainable business is about being part of the solution instead of being stuck in all the problems of the old society and a must if you want to survive as a business in the long run.

The "green fatigue" is really consumers being upset at green washing. If you are looking to obtain a larger market share and a price premium with Green Savvy customers (LOHAS) you better make sure your doing alot, not just using natural cleaning products and recycle. Every aspect of your hotel green should be considered

Should we really expect guests to pay a premium for our responsible business practices? Many green initiatives reduce operating expenses while creating broader appeal and increased opportunities. I personally don't think I should be expected to pay more for actions that save the hotelier money, and increase their marketability! Has anyone done a survey to determine if travellers would be willing to pay a premium to leave the lights on 24/7, run the HVAC continuously, disgard recyclables, and have their sheets changed every 4 hours? 'Green' is just common sense, good business practice. Green fatique, in my opinion, is as fatal a flaw as sales fatique or service fatique in our industry!