Introduction

Sustainability and the benefits derived from its implementation have become a contentious issue within the hotel industry. Populations, particularly in emerging markets, continue to expand at a very rapid pace. In fact, it is estimated that the population will grow to nearly 10 Billion people by the year 2050. This rapid expansion of population, although exciting, will require sustainability practices that meet present needs without compromising the needs of future generations. As such, resources, and their subsequent management will be paramount to the overall success of the hotel industry. Sustainability practices, to a large extent will require hotels to reevaluate how they operate. Through proper implementation, hotels can benefit both financially and from a customer loyalty perspective. As indicated above, the overall population is increasing rapidly. As such, the tourism market will expand alongside it. According to the article, tourism is already the largest industry in the world, with nearly 800 million people traveling to a foreign country. As such growing competition will necessitate a lower cost structure within the industry overall. These large numbers of individuals travelling around the world will undoubtedly have an adverse impact on the surrounding environment (Blewitt, 2008). Through sustainable solutions, hotels in both the short and the long run can alleviate costs within the overall capital structure of the business. As such, hotels can first lower cost, thus increasing the overall net income of the firm. In addition, through the increase savings garnered from the sustainable practices, hotels can further invest in their brand, advertising, marketing, or still more hotels. By being a more financially viable franchise, hotels will also be able to access financing more cheaply as they are less risky (Daly, 1989). Finally, hotels will be able to weather various economic conditions more readily as their overall cost structure is lowered. In addition to the financial benefits derived above, many consumers are willing to pay more for sustainable products. As such, the market for hotel sustainable practices will reap reputational awards as well. Consumers tend to be loyal to causes they deem important. By aligning themselves with sustainable solutions, hotels will make themselves more attractive to potential customers, thus cultivating profitable, long-term relationships.