Expedia opens door for sustainable travel with Green Key Program
One thing that we continue to see in the hospitality industry is that hotels attract customers by meeting consumer demands, and more and more, guests are looking to stay at environmentally responsible hotels.
It seems Expedia agrees. Working in conjunction Green Key Global, Expedia will implement the Green Key Eco-Rating Program into its website. By incorporating the ratings into its website, Expedia users will able to search for green hotels by destination and know that their choices are certified by a third party as environmentally sound.
The Green Key Eco-Rating Program is a system that rates hotels, motels and resorts on a scale from 1-5. These ratings come as the result of an in-depth assessment of the hotel’s business and environmental goals in areas such as corporate management, food and beverage operations, energy and water conservation, hazardous waste management and community outreach. Green Key also conducts on-site evaluations as part of determining a hotel’s rating.
We at TRT have seen firsthand how more hotels are going to great lengths to appeal to the eco-savvy traveler. Now Expedia is making strides in simplifying how these travelers find the hotels that provide exactly what they want.
Oftentimes we like to discuss “Sustainability around the world” and look at how different companies and organizations in different countries apply sustainable ideas and ideals to their work. Our favorite posts are, of course, the ones about hotels—we’re always excited to see when a hotel on another continent adopts new energy-saving practices or uses recycled materials in innovative ways, which is why this article on Treehugger around design-savvy eco-hotels caught our eye.
The hotels themselves are visually striking: in one case, a geodesic dome blends into its Swiss Alps surroundings, and in another, picture windows frame rooms overlooking an English cliff. But these designs stand out even more because the level of thought extends beyond aesthetic appeal.
For example, the ALT Hotel in Quebec, Canada uses a green heating system recovers heat from laundry water and exhaust, helping to save 7 kg of CO2 per room every day. At the 968 Park Hotel in Lake Tahoe, California, denim from blue jeans are used for insulation and an old pool fence was recycled to make furniture for its lobby.
A number of hotels go the extra mile to stand out design-wise and, increasingly, sustainability-wise. When the two work in combination, the best-looking hotels look even better.
Why competition in hospitality is both keen AND green
As a specialist in the preservation and sustainability of furniture assets, we work with hospitality clients that range from large chains that are household names, to smaller boutique customers. This provides us an invaluable broad, first-hand view of the hospitality market.
We've noticed that across California, renovation projects are underway to drive new business to hotels. Two good examples are the Hyatt Regency Suites Palm Springs and the Wyndham Palm Springs in sunny Palm Springs, CA. The hotels are renovating their hotel exteriors and guest rooms – between them to the tune of$35 million - with plans to finish by mid-to-late fall. The Wyndham will also be changing its flag to that of a Renaissance.
These hotels' renovations follow in the footsteps of several other Palm Springs hotels, such as the Riviera Resort and Spa, Holiday Inn Palm Springs City Center and Le Méridien Hotels & Resorts, all of which have spent millions of dollars in upgrades since 2004.
The reasons behind the growing number of hotel renovations in the area are many, and the drive for greener hotels is certainly one of those, and yet there is one over-riding driver - competition.
As technology advances and new trends develop, hotels need to keep up with each other as well as the desires and needs of demanding consumers.
In Palm Springs projects have focused on technological improvements, such as enhanced internet access and new gadget charging stations, as well as the introduction of more ecologically sound materials. Keeping up-to-date is especially important to the Wyndham in Palm Springs, where the new convention center has brought in a wealth of new customers. These consumers want to stay in quality hotels that deliver a great guest experience, but they also want to support chains that meet their greener values.
Should hotels feel forced to evaluate their offerings and upgrade in these ways? We would argue that with continued fierce competition for hotel guests combined with an ever-increasing public awareness of greener hospitality, many hotels are discovering they simply cannot afford not to.
Hotel chains go even further to promote sustainability
More large hotel chains are demonstrating their commitment to sustainability right in their home offices. In a recent post by Green Lodging News’ editor, Glenn Hasek, Hilton Hotels Corp., Wyndham Worldwide and Marriott International were all recognized for their efforts in promoting environmentally friendly practices from within their headquarters. Each of these hotel chains has either moved into a Leadership in Energy and Environmental Design (LEED) rated green building or is pursuing a LEED rating in existing buildings.
Hilton Hotels recently relocated its headquarters, originally in Beverly Hills, CA, to McLean, VA. The new building is located in Tysons Corner and is a LEED Gold certified building. To qualify for the certification, the Hilton headquarters was built with a reflective roof, energy efficient windows and sustainable wood. The building uses 40 percent less water with low-flow plumbing equipment and a 10,000 gallon reservoir for preserving rainwater and air conditioner condensation. Furthermore, workers are encouraged to use low-emitting vehicles or bike to work by being offered special parking and showers for more convenience.
Similarly, Hasek noted that Wyndham’s headquarters is experiencing up to 30 percent improved efficiency with a brand new building complete with reflective roof, zoned heating and cooling systems, low-flow water fixtures, energy efficient lights and environmentally friendly materials such as paint, carpeting and furniture. Wyndham is also offering new incentives for employees to go along with their new building such as an in-house gym, dry cleaner, credit union and cafeteria. The idea behind these amenities is that employees can now do more while travelling less. Wyndham is also in the process of pursuing a LEED rating for its headquarters’ interior.
Last, but certainly not least, Marriot is working to improve its current headquarters through practices such as diverting waste through increased recycling and using biodegradable and permanent materials in its kitchens. Other ways Marriot is aiming to become more sustainable include using sustainable paper products, energy efficient lighting, and sending waste to composting facilities. Marriot also provides three hybrid cars for employees to use for business purposes.
Through these changes each hotel chain is making enormous strides in promoting and enforcing sustainability. While each has committed to improving the sustainability of their hotels, by improving the efficiency of their headquarters these companies are showing how truly dedicated they are these initiatives. Here at TRT, we are happy to celebrate these strides and are excited to see what they will do next.
With the rapid development of new technologies for environmental sustainability, we thought we'd take the opportunity to focus on places around the world that are making the most of them. As a way to spotlight efforts around the world, we've begun a series to keep us up with the happenings in what has become a global initiative: sustainability.
This week, we take a look at India, who is showing great progress in employing new greener technologies across various industries. In the hospitality industry, organizations such as the RambaghPalace in Jaipur are making use of new rain harvesting techniques to recycle water resources and reduce water consumption. Others, like JaiMahalPalace, have achieved success in utilizing similar water recycling techniques in their sewerage treatment and biogas plants.
But it doesn't end with hospitality; another area in which India is using new green technologies is construction. Green buildings are fast becoming home to several top businesses throughout India. To qualify as a green building, a building's management of energy, waste, materials and indoor air quality must meet a certain standard and its construction must be environmentally sustainable. One example of a green building is ITC's Green Centre in Gurgaon, which has reduced its water consumption by 40 percent and its energy consumption by more than 50 percent. The building uses materials and tools such as insulated glass and room sensors to appropriately adjust room temperatures.
Through its use of these new technologies and its commitment to further improving these methods, India is a fantastic example of the future of environmental sustainability, and we look forward to learning more about the actions that other nations are taking to conserve, protect and innovate as contributors to a global initiative for sustainability.
Hats off to Embassy Suites in Lake Tahoe: Energy reduction saves hotel $25,000 in the first 6 months
It was great to read this week that the Embassy Suites Lake Tahoe Hotel & Ski Resort in California has made a huge reduction in spending on energy. They have managed to spend $25,000 less than expected and the director of engineering at the 400-suite property, David Hansen, said that this could come close to a total of $500,000 in energy savings by the end of 2009!
The company compared this year's figures to last year's, and found the considerable drop. Amongst its staggering results, the resort found that its electricity consumption had been reduced by 575,000 kilowatt hours ($98,902 in savings) while natural gas consumption had dropped by 9,314 dekatherms ($67,709 in savings). Additionally, the hotel has experienced increased efficiencies in waste management, saving 48 tons of waste from being sent to landfill, translating to $15,250 in savings in waste management alone.
The hotel began its energy saving efforts in January of this year after completing a property survey. The Lake Tahoe team then began rolling out a series of energy-saving improvements at the cost of an estimated $200,000. Hansen told investors that it was estimated to take two years for payback, but the systems have produced far greater results than predicted. Adjusted figures now show that property owners will recover their investment within 10 months.
The process began with the purchase of a web-based energy management system which allows the property to better manage heating and cooling in meeting rooms, ensuring that heating and cooling was not being used while the spaces were unoccupied. Motorized dampers were then installed on outside air returns, allowing the hotel to be cooled without air-conditioning during Lake Tahoe's short summers.
We've talked a great deal about energy spend reform on our blog. In this case, anyone can see that the efforts put forth have yielded truly significant results. The resort has implemented many more small changes in its continued efforts to save energy including a new laundry system, pumps which run at variable frequencies and fans being put on timers.
All in all, these small changes have resulted in huge savings in both energy and money and the hotel's efforts really should be celebrated! It just goes to show what can be achieved when energy efficiency is properly assessed.
Happy Fourth of July: Celebrate with some cut-price luxury
It is no surprise to hear that luxury hotels are feeling the impact of the economic downturn. But as we've said before, the hospitality industry is a robust one and when the going gets tough, we see from our customers – from boutique hotels through to international chains, they're ready to respond.
This Fourth of July, 37.1 million Americans are expected to travel more than 50 miles from home. In the wake of hard financial times, even luxury hotels are putting their best foot forward with a mixture of extraordinary discounts and some really innovative online campaigns to broaden communications with potential customers.
With the typical U.S. hotel's net operating income expected to fall 37.8% in 2009 and a predicted further decline of 9.2% in 2010, it's no surprise that hotels are turning to online marketing, social media and new web initiatives to boost awareness of their deals. Competition is rife. Services are becoming more tailored at the point of booking from what will be stocked in the mini-bar, through to delivery time of breakfast.
Hotels are still being built, although at a sporadic rate. An estimated 48,000 fewer hotel rooms will be built this year, a 23% drop from last year, according to Smith Travel Research.
In the interim – it's a time of opportunity: for hotels to innovate at every level – from room design, services and how they market, and for consumers to support the industry and our own economy by trying out some of the best hotels in the world.
From all of us here at The Refinishing Touch, we would like to wish everyone a happy Fourth of July weekend!
Digital Fallout: Cathode ray tubes, lead, and where to take that bulky TV set…
Last week, we drafted a post about the switchover to the digital signal and the impact on America's estimated 219 million television sets, of which 2.8 million households are completely unready for the transition.
As a business, we know from the number of armoire conversions we've completed for hospitality clients in the past 3 years and the thousands of units we've transformed and saved from the landfill, that this is much broader than a consumer problem – with every guest room in America's hotels, casinos and motels housing a television set, this is a real challenge for the hospitality industry.
Although the challenge to prepare for the switchover may have been different for these groups, there is one common problem now for those that have decided to invest in new digital sets – just how to disperse of old television sets easily, cost-effectively and of course in an environmentally-friendly way. It's no surprise to learn that television sets are not built with the environment in mind: even just the cathode ray tubes contain several pounds of highly toxic lead. Recycling is essential to prevent this from entering the environment.
TV manufacturers are making moves in the right direction. From Sony and LG which have recycling programs managed by recycling firm Waste Management, to group efforts supported by the likes of Panasonic, Sharp and Toshiba, there is a consensus in the industry that there need to be recycling programs in place. It's estimated that at present around 20 percent of televisions are recycled – the rest heading to landfills. So with the switchover, there could be a wave of abandoned TVs.
We're going to be conducting a survey among consumers and the hospitality industry to see if they are disposing of analog television sets, and just where they think the responsibility should lie: with them as the owners - or with manufacturers, local government, federal government or retailers. Or even the commercial TV networks.
We'll be linking this survey to our website over the next few weeks, so if you'd like to participate please keep reading. We'll be sharing our results in the next month or so.
Meanwhile, if you are getting rid of your old set, make sure you are recycling it and that you do so through a socially-responsive organization.
A lack of access to investment capital continues to hold back a lodging industry desperate for a foothold towards economic recovery. More than ever before, operational cost savings can have a significant positive effect on hoteliers abilities to maintain adequate staffing levels and positive guest experiences.
One overriding theme reported at this year's conference was the concern that hotel guests would begin to notice an impact on service and hospitality as lodging groups cut staff in an effort to weather the downturn.
Lollis quoted Charles Henry of Hotel Capital Advisers as saying: 'We're all slashing costs like mad. Hopefully we’re not slashing so much that they affect the customer.'
Maintaining customer experience levels during tough economic conditions isn’t a challenge unique to the lodging industry, but the hospitality business is arguably one of the more transparent working environments. It's vital then, that when cost savings need to be made out of financial necessity, that these cuts are entirely invisible to guests wherever possible.
Hospitable people are by far the greatest asset of the lodging industry. Yet cuts are being made to staff while many organizations continue to dispose of and replace high quality furniture assets simply because they appear to be in poor condition. This is clearly a false economy when advanced refurbishment techniques are readily available that could make such an immediate impact on any business's bottom line.
At The Refinishing Touch, we strongly believe that the cost implications of refurbishment over replacement can play a significant role in reducing the human cost of the recession, as well as helping lodging groups come out of the economic gloom in the strongest possible financial position.
The hospitality dilemma: Dwindling budgets, increased demands
At The Refinishing Touch we are in the enviable position of being close enough to hear the detailed needs of our clients in the hospitality industry, and being able to respond with the right solution. Our expertise has allowed us to bring sustainability and cost-saving to some of the world’s best-known brands, innovators, and historical buildings - and to do the same for government bodies and colleges.
It's impossible to ignore the current climate and its impact on the hospitality industry. The industry is reeling to meet the demands of an ever changing marketplace – hoteliers need to have realistic rates while trying to attract travelers, causing a seemingly irreconcilable conflict.
In recent weeks, many of our partners, and prospects have been saying the same thing: in the face of dwindling budgets, modernization projects seem impossible. Some have reached a point where funds have been frozen by the Board or shareholders, stopping all upgrade projects in their tracks or before they've even started.
How then are customers satisfied and budget constraints met? What exactly is the solution in a damned-if-you-do, damned-if-you-don't climate? An article in a recent issue of Hotel Interactive caught our attention. In the article, Steve Belmonte offers up a two answer response to this very issue.
On one hand, Belmonte advises that sometimes there is a need for owners and managers to take a close look at their current situation. If they have found themselves deferring necessary upgrades due to a lack of available funding, and using the downturn as an 'excuse,' then maybe they should consider repositioning themselves in the market. On the other hand, Belmonte takes the opportunity to encourage solid fiscal responsibility, with practices like competitive bidding through each level of service, until a recovery plan is in place and the business is back on track for success.
Sound advice, and we couldn't agree more. With the economic climate as it is today, every penny counts. We've been in the business of cost-effectively improving the value of in-house assets since the day we were founded in 1971.
Belmonte concludes that whatever happens, hotels need to provide a good service to customers. Travelers have expectations for the quality of services and furnishings that they will receive when they book a room.
As our clients will tell you, refinishing furniture is an affordable way for hotels to ensure customers receive the quality they expect, even in a difficult period for the industry. Happy customers share their experiences and come back. With some alternate approaches and innovation the dilemma can be resolved.
Cost drives consumer choice of hotels: NYC and LA survey reflects downturn
Last week we announced our findings of the major influences over travelers' hotel bookings. As our business and client base covers the entire continental United States (and beyond), we wanted to get a feel for how the current economic climate is influencing buying habits across more than one state, and so polled hotel visitors on both sides of the country, namely LA and NYC.
What did we find? Well, on each coast cost was the single largest influence. Respondents in NYC and in LA agreed that room rate was the largest single factor that they took into consideration - for both vacation visitors and those on business. It's no surprise to hear that hotels need to lower costs to attract visitors, and easy to sympathize with the challenge of lowering prices in a downturn.
Here at The Refinishing Touch we know cost is a driving factor, because we see it from the other side. The breadth of hospitality businesses we deal with from boutique hotels, global chains and casinos, to luxury resorts, each face the challenge of cost-conscious consumers, and seek solutions to protect their bottom line.
In our research, cost was followed by location- something that can't be changed by any owner or General Manager. But other factors, such as amenities and initiatives in place, just like cost, are barriers that need to be overcome. The bottom line is that consumers need to be given a good price to stay in accommodation that gives them a great experience.
This is a subject that has crept up in conversation several times this week alone from owners and managers we know in the industry: How do you compete to provide the best guest rooms, reception areas, customer service and overall customer experience in a downturn?
The need to succeed in order to survive, and to compete on price to succeed.
The two seem diametrically opposed. But they're not. In the next week, we're going to be blogging, talking to the press, and explaining our thoughts on this key subject: there are trends to be bucked, and we have a wealth of ideas and experience to share.
Green hospitality firmly on the agenda for first global summit
We are pleased to see 2009 bringing the first Annual Global Renewable Energy Networking Summit. Taking place April 15 through 17, it will bring together visionaries and leaders in green hospitality at the Bear Creek Mountain Resort and ConferenceCenter in Macungie, PA.
The president of EcoGreenHotel, Scott Parisi and the president of National Energy Services Company, John Grillo will co-deliver the keynote address at the summit. Parisi and Grillo will be joined by Kevin Mahoney of Innovative Hotel Management, Chris Lewis of OTO Development and Lorrie Miller of the Hampton Inn in Easton, PA for a discussion panel entitled ‘Green Hotels: The Future’.
Executive chairperson Clare Misquitta said: "[This] presentation will offer a rare opportunity for hospitality professionals to learn about their trend-setting strategies for implementing meaningful green initiatives in lodging facilities across the spectrum - from mom-and-pop motels to major luxury chains.”
This summit upholds all the principles by which we run our own business – and any event which proactively promotes a greener hospitality industry gets our vote! We plan to track the main news and themes that result from the summit and will share our thoughts here on the TRT blog.
Top five trends impacting the hospitality industry
If you've been watching this space, or even just stumbled on our blog for a quick look, you will have noticed that we're intrigued and invested in hospitality industry. As news of today's hard-hitting times continues to drape the pages of just about every publication available, we've taken note of some trends; and highlighted five that seem to be at the forefront of the airwaves and editors' minds in the wake of the current downturn:
1.Travel industry's gloomy outlook – The airline industry has reported some of the largest passenger declines since the early 1980s.
2.Hospitality cutting back – Amenities and luxuries in hotels being reevaluated by some of the industry's largest luxury hotels.
3.Hotels working to get the world traveling again – Hotels have begun offering low rate travel packages as a means to put bodies back in rooms that have been showing vacancies more often than not.
4.Government involvement – The stimulus bill looks to create jobs across all industries, and is estimated to create or maintain 346,000 jobs for the hospitality industry.
5.Hotels turn to asset management – Hoteliers have begun turning to asset management as a means to save on bottom lines while maintaining the quality of stay on their properties for travelers.
But it's not all doom and gloom: In the next week we're going to look and question some possible benefits that have come from each of these.
Last week, The US House of Representatives voted for an official extension to the analog switch off from the original date of February 17, 2009 to June 12, 2009.
Though almost all stations are already broadcasting in digital, the Washington Post reported that an estimated 14 million households across America still depend on analog broadcasts.The delayed date comes as a response from the government after many speculated whether the government was following all necessary steps to provide assistance for Americans through the transition.
Consumers who elect to keep their analog televisions will need a converter box to receive digital broadcasts.
A Neilsen research note from January of 2009 found that more than 6.5 million households were not ready for the switch and more that 3.7 million consumers are still on a waiting list to receive vouchers from the Department of Commerce that promises a discount on converter boxes.
At TRT, we are continuing in our initiatives to work with key players in the hospitality industry to ensure that they are ready for the digital transition.Hoteliers purchasing new digital flat screen TVs are faced with needing to house the new TVs in armoires that cannot accommodate the size and shape of the new TVs.By working with existing assets, we have been able to provide an economically sound solution to our customers with our armoire modification process.
The digital switch has its affect on consumers, business owners and industry players alike.How have you been affected by the switch?
As Valentine's Day approaches, we've found ourselves curious about how this Hallmark holiday would fare against the big bad recession. In times full of doom and gloom, the hospitality industry is finding that in the battle between money woes and love, love has overcome- so far.
Valentine's Day 2009 couldn't fall on a better day. Not only are Valentine's Day lovers lucky to have a Saturday to celebrate, they also have a long weekend. Here in the States Monday, February 16th is Presidents Day, and for most- a day off.
Hospitality players have already been slashing prices in efforts to keep people traveling. Airline fares are down, and hotels are offering Valentine's Day weekend packages at discounted rates- even throwing in a bottle of champagne and rose petal baths in some establishments!
USA Today reported that consumers are expected to cut back this Valentine's Day, but a local Maryland newspaper has quoted managers from jewelry stores and restaurants that have yet to see any major cut backs in sales, nor are they expecting to see those effects.
However you or your loved ones choose to spend this coming weekend, we at The Refinishing Touch would like to extend our wishes to everyone for a Happy Valentine's Day and a relaxing long weekend.
In a time when most everything is uncertain, people are looking for strength and stability anywhere they can find it. News of companies cutting thousands of jobs has saturated nearly every medium of communication for what is coming on about 5 months now, and American’s are joined by their fellow global citizens in wondering when it’s all going to turn around.
President Obama has tirelessly spent the last focal weeks urging members of Congress to pass his stimulus bill that has outlined what we’re sure will not be the last of his efforts to begin the climb out of this deepening recession. His bill proposes tax cuts that are estimated to put Americans back to work with the creation of between 1.2 million to 3.6 million jobs, and an estimated 346,000 of them are expected to go to the hospitality industry.
An article in USA Today recently stated that the majority of the jobs expected to come out of Obama’s bill will only replace those lost to the recession. As we continue to hear about members of Congress dividing amongst party lines over the facets of the $819 billion bill, we as Americans are left yearning for a ray of hope. As members of the hospitality industry we continue to look to any opportunity that will bring positive change to our industry. We as Americans look to our Congressional representatives and urge them to come to a compromise with one another that will both nationally and globally present a bill to begin the long journey out of hardship that lies ahead of us.
Earlier in the week, we blogged about the American Recovery and Reinvestment Act of 2009 and the views of the U.S. Travel Association, in support of the suggestions put forward by Roger Dow, the association's president and CEO. For anyone in doubt, figures show that following a decline in the lodging and the airline industries in the final quarter of 2008, predictions for 2009 are bleak.
PricewaterhouseCoopers announced a revised lodging forecast earlier this month, based on current forecasts for the U.S. economy combined with historical data from Smith Travel Research. In this, PricewaterhouseCoopers forecasts an 11.2 percent decrease in room revenue per available room (RevPAR) during 2009 - after a 1.9 percent decline in 2008.
The forecast for room occupancies also shows a decline. Robert Mandelbaum, of PKF Hospitality Research states: "This is… the lowest in 30 years."
Airlines are also declaring a marked decrease in customers. USA Today reported that Las Vegas airport has experienced its biggest passenger decline since 1981. The numbers released by the Clark County Department of Aviation include a 14.1% decline in December to about 3.2 million, and highlights how the recession has undercut Las Vegas tourism. This reflects the biggest year-over-year percentage decline since traffic fell from 10.3 million in 1980 to 9.5 million in 1981.
Despite this, Delta Air Lines which has seen the biggest losses, remains optimistic. CEO Richard Anderson admits that Delta will still be in the red in the traditionally weak first quarter, but overall he is "expecting profitability in 2009 and a growing cash position." This is due to the fact that Delta expects to save about $5 billion through lower fuel prices this year, about a $1 billion through capacity cuts and $500 million in streamlining benefits from its merger with Northwest.
With less disposable income to spare people will travel more selectively. This means that all elements of the hospitality sector: airlines, public transportation, hotels, motels, resorts, and restaurants, need to deliver a consistently strong customer experience and to promote their services to encourage visitors.