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To respond to the environmental demands of consumers, more and more hotels are increasingly striving to implement sustainable practices to satisfy the requests of environmentally conscious consumers. This paper aims to propose and test the relationship between these “green” initiatives and functional value as perceived by tourists, guest satisfaction and intentions to revisit the hotel and to spread positive word-of-mouth (WOM).

A sample of 378 guests who stayed in a three- and four-star hotel was used. Structural equation modeling (SEM) was used to test the proposed relationships. Confirmatory factor analysis and structural equational modeling were used to test the proposed model.

The results of the data analysis indicated that the impact of “green” practices on perceived value, satisfaction, intention to revisit and WOM. In addition, the positive effects of functional value on guest satisfaction and WOM are also confirmed.

Customers' revisit intention is not only created when hotels implement “green” practices, but also when the degree of customer satisfaction with the hotel increases. In this sense, managers are encouraged to pay more attention to environmental initiatives as an essential tool to increase the level of guests' satisfaction.

The study yields several implications that can be helpful for managers while devising green marketing strategies for the hotel sector. The results show that guests tend to develop greater levels of loyalty to a specific hotel when they are satisfied with the services offered by the hotel. In this sense, the environmental measures implemented by companies are a key strategic tool, given their essential role in the construction of perceived value, guest satisfaction as well as WOM and revisit intention.