Eco-marketing's impact on Thailand's hospitality industry customer behavior

¶ … Marketing on Hospitability Industry in Thailand

Overview of Eco-Marketing on Hospitality Industry

In the contemporary competitive business environment where a substantial market share has become one of the important strategies to stay in business, increasing number of businesses are using eco-marketing to achieve competitive market advantages. However, global sustainability awareness has made large number of consumers to be selective in the product they consume because many products and services have been linked to health outcomes. In other word, consumers' attitude towards environmentalism has become a global phenomenon where businesses have risen to seize the opportunities to respond to environmental challenges by adopting the eco-marketing. (Jain, 2004). Increase in global sustainable awareness has made the concept eco-marketing to become prominent in the marketing plan of many organizations. Moreover, global rise against environmental destruction, which has led to carbon emission and climate change has made many businesses to design their marketing plan towards sustainability advantages. Additionally, health consequences that have arisen from environmental degradations have made increasing number of consumers to design eco-products to achieve competitive market advantages.

Cherian, and Jacob, 2012) define eco-marketing as a strategy that business organizations employ to design, promote and distribute product in a way to promote environmental sustainability. In other words, eco-marketing is the strategy employed by businesses to facilitate human needs and minimize environmental degradations. Typically, eco-marketing covers overall marketing techniques to promote green product manufacturing in order to reduce negative impact of environment degradations. In the present marketing environment, eco-marketing has become a vital component of marketing plan, which has been a genuine effort to promote environmental sustainability. Businesses globally have been forced to adopt eco-marketing because increasing number of consumers are moving towards green consumerism.

The green consumers are the categories of consumers who purchase products that are compatible to environmental sustainability. Despite importance of eco-marketing in enhancing environmental sustainability, large number of literatures focus on the impact of eco-marketing on hospitality industry in advanced countries such as the United States, United Kingdom, Canada, and other western countries. (Kumar, Rahman, and Kazmi,2013). By consequence, few literatures focus on the eco-marketing in Thailand, the paper attempts to fill the gap by reviewing the literatures focusing on the impact of eco-marketing on the Thailand hospitality industry.

Impact of Eco-marketing on Thailand Hospitality Industry

Since 1980, Thailand hospitality industry has played a critical role in the Thailand economy. Thailand composes of more than 55 million people and is one of the developing countries with the most dynamic economy. In the last 10 years, Thailand has recorded one of the highest growth rate with average annual GDP (gross domestic product) reaching 10% per annual. However, hospitality industry plays a crucial role in the Thai economy. Typically, hospitality industry provides one of the large source of foreign exchange in the country contributing to more than 5% in the Thai GDP. Moreover, hospitability industry has yielded economic returns in the economy, stimulates Thai economic growth, raises the country standard of living and encourage investments. However, in the last few years, Thai hospitality industry has faced new challenges with global demand for eco product and services. (Chon, Harrah, and Mikula, 1993).

Global commitment for eco product and services has made the Thai hospitality industry to embrace sustainability marketing agenda, and many hospitality firms have been committed in enhancing eco marketing to attract more clients in order to achieve competitive market advantages. Jain and Kaur (2004) argue that environmentalism has become an important global phenomenon based on the increasing occurrence of green house effect, acid rain, ozone layer depletion and land degradation. Similar to developed countries where increasing number of NGO (non-governmental organizations), government agencies and environmentalists are demanding firms to implement eco-marketing in their marketing plan, increasing number of developing countries are also concerned about the environmental sustainability . Although, consumers are reacting positively about the eco-marketing in Thailand, however, lack of effective enforcement laws in Thailand still contribute to environmental problems in Thailand. (Amorntatkul, and Pahome 2011).

A report by the Thailand Tourism (2011) reveals that Thailand hospitality industry is going green. Typically, global warming is becoming an issue affecting all people. Similar to Hospitality industry in advanced countries, the hospitality industry in Thailand has joined hand with other international organizations to enhance environmental sustainability. With increase in climate change and global warming, many Thai business are looking for the strategy to reduce the carbon footprint. Going green has become a long-term strategy that hospitality industry use to enhance competitive advantages, and the energy saving measures assist in reducing in carbon footprint, and operating costs.

Dusit Thani Bangkok is one of the hotels in Thailand that has adopted the environmental sustainability. Typically, the hotel has contributed to a reduction of carbon footprint. The hotel uses the energy saving menus, and lunch containers made with recycled materials. Many hotels and tourist firms in Thailand have also integrated the eco-marketing model in the marketing plan. For example, "Sai Kaew Beach Resort," Indra Regent Hotel, Paradee, Aiyapura Resort, Samed Club, Aiyapura Resort, Aonang Villa Resort and other many firms in the Thai hospitality industry have adoped the eco-marketing in their marketing plan to attract customers. (Thailand Tourism, 2011 p 33).

Svetasreni (2013) contributes to the argument by pointing out that eco-marketing has led to a tourist attractions in the Thai hospitality industry, and eco-marketing strategy has made Thailand hospitality industry to achieve a record breaking in market performances. For example, increase in number of visitors from Japan, South Korea, Russia, and India have led to an increase in number of consumers' visiting Thailand hospitality industry. In 2012, Thailand receives more than one million visitors from each of these countries.

In 2013, the eco-marketing strategy that Thailand hospitability industry has adopted makes the industry to receive more than 10.6 million tourists, which is more than 19.09% increase between 2012 and 2013. Based on the figure presented by the Ministry of Tourism & Sport, the Thailand hospitality industry received the total of 3.1 Million visitors in 2013 from East Asia, 2.9 Million from Europe, 503,000 consumer from Americas and 538,000 from Asia. Moreover, the Thai hospitality industry also recorded 329,000 visitors from Oceania, and 62,000 from Africa. In the same year, the industry received more than 1.9 million Chinese tourists.

Svetasreni (2013) points out that eco-marketing is one of the marketing strategies that Thai hospitality industry employs to achieve competitive market advantages. Typically, sustainable marketing has been the backbone of the industry. Many hospitality companies use marketing agency to design eco-marketing At present, Thailand has more than 100 Green hotels, which use the sustainable marketing strategy to attract customers. Karryon (2015) contributes to the argument by pointing out that Thai hospitality industry has used the eco-marketing to enhance sustainable market advantages in the tourism industry.

For example, Thailand Travel Mart focuses on marine tourism, culinary tourism, wedding and honeymoons and weddings, as well as health and wellness. Moreover, the UNESCO World Heritage in Thailand has also focused on domestic tourism. More importantly, the Thailand parks has 148 parks, and the parks have developed website to provide accommodation and reservation for visitors, and the Parks have used the eco-marketing to enhance sustainable practice, which assist in enhancing competitive market advantages. Moreover, the Green Leaf Foundation has assisted the Thai hospitality industry to operate sustainable practice and promote good practice. Jointly with Green Leaf Foundation, the Thai government has implemented programs to educate farmers to adopt sustainable practice and encourage hotel management to source for food from farmers to indulge in sustainable farming practice.

Muqbil.(2013) support this argument by pointing out that the TAT (Tourism Authority of Thailand) employed sustainable marketing practice in attracting more customer to the Thai Hospitality industry. The impact of climate changes, and global warming has made increasingly numbers hospitality companies to pursue both economic gain and sustainable benefits from tourism. Muqbil (2013) further points out that sustainable marketing effort that hospitality industry has adopted has enhanced the market advantages of the hospitability industry making the Thailand Tourism industry to receive more than 30% value for money. In 2011, the Thailand Tourism recorded more than 31% increase between 2010 and 2011. In 2011, the Ministry of Tourism recorded U.S.$25.45 billion earning, which was more than U.S.$23 billion of the original target. The figure reveals that Thailand hospitality industry has recorded both an increase in quantity and quality arrivals.

"According to the Ministry, Thailand recorded 19.23 million international visitors in 2011, up by 20.67% over 2010. With an average length of stay of 9.64 days, and an average daily spend of 4,187.12 baht (U.S.$137) per person, the Thai tourism industry generated 776 billion baht in earnings." (Muqbil, 2013 p 3).

A report by the Tourism Authority of Thailand (2015) reveals that Thailand receives total of 24.4 million visitors between January and May in 2015, which is 25% more than the visitors received in the same period in 2014. Before the end of 2015 fiscal year, the Ministry of Tourism estimates that the Thailand will receive more than 28 million visitors. Typically, eco-marketing that the Thailand Hospitability industry has adopted makes the industry to enjoy competitive market advantages. Mellor, (2014) contributes to the argument by pointing out that Thailand has been the number one destination for medical tourism globally. In 2013, Thailand has attracted more than 1.8 billion medical tourists and many medical tourists from different countries pumped more than $4.7 billion into the economy.

Despite the benefits that Thailand hospitality industry has recorded from eco-marketing, increase in Thailand visitors has been the combination of eco-marketing, digital marketing, organizational management, image building and crisis communication. Typically, Thailand adoption of eco-marketing has not yet been comprehensive compared to eco-marketing strategy that hospitality industries in advanced countries have adopted. Many hotels, parks and tourist companies in Thailand have not yet adopted the eco-marketing strategy. The paper discusses the eco-marketing strategy to enhance effective hospitality business.

Eco-marketing Strategy for Effective Hospitality Business

Cherian, and Jacob (2012) discusses different strategies to enhance hospitability business. The authors point out that an important eco-marketing tool to promote hospitability business is to use eco-labeling promotion because eco-labeling is an important tool to bridge sellers and buyers. Moreover, eco-labeling directly influences consumer attitudes towards products. Rashid (2009) contributes to the argument by pointing out that consumers react more positively to green marketing. Thus, eco-labeling promotion can assist organizations to achieve competitive market advantages as well as improving market share. However, D'Souza et al.(2006) does not support the arguments of previous authors that eco-labeling can enhance market advantages of hospitability industry. The author points out that there is no empirical evidence to support the relationships between eco-labeling and market advantages of hospitality industry. Lack of trust among consumer has been the primary reason for lack of relationships between eco labels and consumer attractiveness to tourist companies. Despite the argument presented by the authors, Asian countries such as Thailand has started implementing eco-labeling to attract customers in the hospitality companies.(Rahbar & Wahid, 2011).

Environmental advertisement is another strategy that hospital business organizations can employ to enhance competitive market advantages . Typically, hospitability business should use green advertisement to convince customers that they are using the environment friendly product and services, which cannot affect consumer health. In other word, environmental advertisement is aimed to influence consumer positive purchasing behavior. Chan (2004) supports the argument by pointing out that environment message using the eco-labeling can influence consumers' purchasing decision. Kumar, Rahman, & Kazmi, (2013) contribute to the argument by pointing out that sustainable marketing is a strategy that hospitability industry can employ to achieve market advantages.

Different strategies can be employed in achieving sustainable marketing advantages. First, hospitability businesses can use social marketing technique that involves designing a program, which involve integrating communication, pricing, and distribution in eco-marketing technique. A business can also use the corporate social marketing in changing the behaviors of consumers favorably towards services delivered by the hospitality businesses. Moreover, hospitality businesses can use the cause- related marketing technique by which they donate a small percentage of their revenue to promote sustainable program in the television. During the interval of the program, the company should advertise its product and services, the strategy will make consumer believe that the company is supporting the environmental sustainability.

Influence of Eco-marketing on Hotel business on Consumer Behavior

Hotel sector in Thailand is part of the hospitality industry where millions of national and international visitors stay during their visit in Thailand. Similar to other companies in hospitality industry, different hotels have also employed using the eco-marketing technique to attract customers. A report by the Thailand Business News (2015) reveals that the eco-marketing has negative influence on consumer because there is a drop by 11.3% in the hotel' occupancy in Thailand by in 2014 . A decline in occupancy was primarily due to a drop in occupancy in Bangkok's hotels because there was a drop by 20% in the hotel occupancy in many hotels in Bangkok . Horwath (2015) also analyzes consumer attitude towards eco marketing in the hotel industry in Thailand. The author uses the market performances as an indice to measure the influence of eco-marketing on consumer behavior. The author argues that many consumer prefer lower class hotels than the luxury class hotel because luxury hotels suffer a significant decline in occupancy by (- 25.4%).

Klepsch & Schneide (2013) in their argument point out that health benefits that consumer derive from hotels employing sustainable practice make increase number of hotels in Thailand to attract customers from European countries. Moreover, the degree of awareness towards sustainability among consumer is increasing. Many hotel consumers visiting Thailand have decided to make a wise choice of the hotel they intend to stay. Many customers lodge in Thailand hotels because of natural scenery, eco activities and presence of wild life. However, Bohdanowicz (2006) argues that green marketing is not the only factors that attract visitors to the hotel industry in Thailand, however, type of service, price as well as hotel image influence the number of consumers visiting Thailand hotels. Kasim (2004) also support the argument by pointing out increasing number of consumer prefer hotels that have features such as recycle bins, water saving features and information that can assist visitors about tourism attraction in Thailand.