Executive summary “Marketing sustainability in the luxury lodging industry: a thematic analysis of preferences amongst the Indian transition generation”

Journal of Consumer Marketing

ISSN: 0736-3761

Article publication date: 10 August 2015

56

Citation

(2015), "Executive summary “Marketing sustainability in the luxury lodging industry: a thematic analysis of preferences amongst the Indian transition generation”", Journal of Consumer Marketing, Vol. 32 No. 5. https://doi.org/10.1108/JCM-08-2015-039

Publisher

:

Emerald Group Publishing Limited


Executive summary “Marketing sustainability in the luxury lodging industry: a thematic analysis of preferences amongst the Indian transition generation”

Article Type: Executive summary and implications for managers and executives From: Journal of Consumer Marketing, Volume 32, Issue 5

This summary has been provided to allow managers and executives a rapid appreciation of the content of this article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefits of the material present.

The importance of sustainability has spiraled in recent times. It is variously defined by scholars as pertaining to people, the planet and profit, sometimes referred to as the “triple bottom line”. Sustainability has become significant in a diverse and growing number of areas which include economic development, agriculture, water, energy and resources, climate and health and lifestyle.

Today’s businesses are expected to act more responsibly and ensure that all their activities positively impact on society and the environment while proving economically viable. Consumers generally support such efforts and are favorable toward making choices of their own that reflect a more sustainable approach. However, many studies have indicated that this does not transfer to actual buying behavior in many cases. Factors like price, convenience and quality are routinely reported as being more immediate consumer priorities than sustainability. Others acknowledge that sustainability benefits society at large but has no immediate benefits for them personally.

Evidence suggests that willingness to engage in ecologically friendly behaviors is greater among well-educated individuals and high earners. Age and social status have also previously been identified as key factors. In addition, various researchers have shown that social norms can impact on how people behave. If consumers engage in sustainable practices, it is argued that others might follow suit.

A focus on sustainability can provide firms with an advantage over rivals. Scope for this to materialize exists within sectors where competition is especially fierce. The luxury lodge industry in India is a perfect example. Huge volumes of different types of waste are habitually generated by players in a sector which accounts for 5 per cent of emissions linked to climate change. Some academics feel that providing sustainable hospitality could also have a favorable effect on the current low levels of guest satisfaction recorded in the Indian context. At present, it seems that information about a provider’s sustainability practices is of interest to only a few consumers. Willingness to pay extra in support of any such initiatives is equally lacking.

Rishi et al. note the lack of research aiming to identify “cues, strategies and tactics” that firms can use to prompt consumers into choosing more sustainable tourism products. They additionally believe that more could be done to identity factors which most influence consumers’ decision-making and to understand the role of different stakeholders such as travel agents and hotel staff. The present study therefore aims to address these limitations and also ascertain why consumers may be deterred from making sustainable choices pertaining to luxury lodging.

Although limited, previous work has indicated that luxury lodge selection may only be influenced by sustainability once the consumer has evaluated price and the range of activities available. It was also found that consumers felt no motivation to engage in green behaviors when those within the hospitality firm acted in ways that are harmful to the environment.

The authors examine current literature and conduct personal interviews with industry professionals and consumers. The latter also took part in focus group discussions. In the first instance, two experienced professionals within the Indian hospitality sector were interviewed and key themes identified. The themes were categorized as either motivators or deterrents, and this information was used to create the semi-structured questionnaires used to interview the 12 consumers. Those participating in this stage or the focus groups had to have stayed at a luxury lodge on at least two occasions.

Consumers were recruited from the Delhi, Haryana and Rajasthan states in North India. Those targeted were affluent individuals aged between 25 and 44. Such consumers are regarded as the “transition generation” and are the main target audience for luxury hospitality brands. Spending power and eagerness toward hedonic consumption further justified their selection.

Themes and sub-themes at the latent level were identified and relations between them examined. Analysis revealed motivators from the marketers’ perspective:

  • Certification: Some guests are attracted to hotels that are officially recognized as demonstrating key sustainability standards.

  • Green initiatives for employees: By visibly engaging in practices at designated times, such individuals essentially act as role models that guests may emulate.

  • Environmentally friendly products and services like energy-saving lighting, water recycling and smart controls for air-conditioning: Use of natural light wherever possible is also viewed as a positive behavior.

  • Being paperless: Firms which have removed paper from checking in/out and billing procedures are making an overt statement about their commitment to sustainability. Some go further by restricting their promotional activities to e-brochures and e-pamphlets.

One of the industry professionals commented that such moves help to “educate” the consumer where sustainable behaviors are concerned.

Marketers believe that wasteful consumption is a major deterrent to embracing sustainability. They note how certain customers unnecessarily waste food and water and feel that hotels should tackle this issue. The sensitive nature of approaching guests or imposing extra charges is acknowledged though.

Customers indicated a number of motivators including:

  • Children or parents acting as influencers: Use of education to raise child awareness of sustainability is one example. And parents who are themselves “environmentally conscious” could make this part of their children’s upbringing.

  • Trusted travel agents that might recommend hotels which practice green behaviors.

  • Social media: The premise here is that communicating ideas through such platforms can lead to them becoming trends that people will follow.

  • Requesting a nominal fixed extra charge in support of sustainability practices: Subjects expressed some willingness to pay this to the hotel but opposed the idea of percentage hikes.

  • Requesting non-monetary contributions such as more efficient use of hotel resources.

  • Rewards: These could be discounts or formal recognition of the client’s sustainable behavior during their stay.

  • Lower prices: The argument here is that green practices will help lower costs and, therefore, this benefit should be passed on to the consumer.

  • Creative marketing which appeals to consumer emotions using the likes of fear or inspiration.

Deterrents identified were:

  • Infrequent vacations, meaning that various other aspects were considered more important than sustainability.

  • Feeling detached from the hotel’s operations.

  • Poor awareness of sustainability within lower-tier cities.

  • Lack of tangible benefits from sustainability.

  • Belief that hotels fail to adequately inform the public about their green practices.

On this evidence, Rishi et al. recommend marketers targeting Indian consumers should adopt different approaches to sustainability depending on the city tier. They also point to the success of “gentle coercion” in other contexts and suggest this tactic might prevent any “anti-sustainability behavior” becoming ingrained among guests. Charges based on adding percentages to room tariffs should be avoided, whereas operators might examine the possibility of lowering the price of green products. Such gestures would highlight a visible benefit.

More targeted marketing is advisable, the author’s believe. Efforts should be made to reach those who visit luxury lodges more frequently as their interest in the hotel’s sustainability efforts could be stronger than among more casual guests. It is also important for communication to engage key influencers like parents, children and travel agents.

Hotels should repeatedly communicate their green activities as this can persuade consumers to behave similarly. Pointing out the positive effect of individual contributions can help increase the likelihood of this.

To read the full article enter 10.1108/JCM-09-2014-1155 into your search engine.

(A précis of the article “Marketing sustainability in the luxury lodging industry: a thematic analysis of preferences amongst the Indian transition generation”. Supplied by Marketing Consultants for Emerald.)

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