Me: Do you want a robe in your closet?
Them: Yes
Me: Do you want slippers too?
Them: Sure
Me: And reliable internet connection?
Them: Definitely
Me: What about a welcome gift?
Them: Of course.
Me: And how much extra would you pay for these amenities.
Them: Silence
Fast forward to today and we could add:
Me: Do you want the hotel to prioritize sustainability?
Them: Certainly
Me: And how much extra would you be willing to pay for your room?
Them: Once again, Silence.
Herein lies the proverbial conundrum for hotels. Guests have always wanted everything, although they have not necessarily wanted to pay for it. But is it different for sustainability? Are guests talking the talk but not walking the walk? Or are they now walking the walk?
Globally, about four out of five travelers indicated they would like to stay in a hotel that practiced sustainability. This is about 7% higher than just prior to the pandemic, and almost 20% more than in 2016, less than a decade ago. These data echo the 82% of travelers who say sustainability in the hospitality industry is important to them. If you believe in survey data, then you will believe they are walking down that preverbal sustainability path.
But here is where the path gets bumpy. With such glowing numbers, why are not more guests staying in environmentally friendly hotels? Well, more than a third of those who said they didn't stay in a sustainable hotel during the past year, did not even know they existed. Another third said they just could not find any hotel options that work for them. And the other third said they did not know how to find them. And yet in 2021, sustainability remains the fourth most important priority for business traveler managers. (Interestingly, the "newcomer" to the study's top ten list was Diversity, Equity, and Inclusion; it came in at number one.)
The bottom line is that half of travelers still believe that, even in 2021, there were "simply aren't enough sustainable [hotel] options available." Ouch. Is Pogo right when he says, "I have met the enemy and he is us"?
Here is where Dr. Noriaki Kano comes into the picture.
Who?
Dr. Kano is a Japanese engineer and consultant who is a strong believer that customers' loyalty depends on their emotional reaction to products and services. He developed an analytical tool that will enable a business – including hotels – to understand how customers respond to what is offered and provided to them. In essence, he found that there are three basic response categories. The first one he calls Dissatisfiers. These are the "must haves" that you are required to provide your guests as part of the total hotel experience. If they are not provided, the guest will notice and be unhappy. Interestingly, in most cases, if they are provided, the guest doesn't even notice them. They are expected; they are almost invisible; there are just there.
I remember conducting a study for a consumer products company about what amenities a guest expected in his or her hotel room. Not surprisingly, soap was first on the list. Everyone checked that item. It clearly came out as the number one dissatisfier. In other words, just providing soap was not enough to make a guest happy. But if he or she walks into the bathroom, looks around, but finds no soap, you bet there would be an unsatisfied phone call to housekeeping. The same, of course, can be said of clean linens, well-lit hallways, safe parking and, increasingly, complimentary Wi-Fi as well as conveniently located electrical outlets for the myriad of smart phones, tablets, and laptops that guests bring today.
The second category Dr. Kano labeled Satisfiers. This is a case where, he says, after the basic requirements of the guest are met, the more they are met, the better. Think about the soap example. Instead of providing that tiny bar of a common brand that you can find in the sample-size aisle of any favorite supermarket or drug store, a small-scale artisan soap would qualify as "the more they are met, the better." These soaps are usually handmade in small batches, often by local craftsmen with natural, wholesome ingredients. And they can be used to help tell the story of your hotel or area. As famed celebrity chef Emeril Lagasse would say, "Bam! Let's kick it up a notch."
Kano named the third category, Delighters. These are the products, features, and services that go above and beyond what guests expect. They are the unexpected. The surprise. The lagniappe. The WOW! Upgrading a guest to a suite or an unanticipated small gift (think of the proverbial chocolate left of the pillow or the warm cookie placed on the desk) left in the guest's room are examples of Delighters that hotels often used. Another example that easily comes to mind is the towel animals that are a fun tradition in the cruise ship industry. From children to grandparents alike, passengers look forward to every night finding a towel configured into a different fluffy fabric animal propped up against the pillow on their beds.
However, in 2019, Norwegian Cruise Line (NCL) made the decision to eliminate these artfully folded towels to conserve resources. "We are committed to being a responsible corporate citizen by fostering a culture of awareness and respect for our world's resources…[and] to continually improve our sustainability culture through fresh innovation, progressive education, and open collaboration." So much for delighting guests with fluffy towel animals. Are they just considered a casualty of sustainability? What is the impact of their elimination on the guests' experience? Is it enough to move their emotional experience out of the Delighter category? And more importantly, what is the impact on costs and revenues, not to mention brand image.
Hence, the proverbial conundrum for hotels.
Most, if not all, hotels have integrated sustainable strategies into their operations. But the question hoteliers are always faced with is whether the costs of going green will increase bookings. Increase revenues. Increase profits.
Hotels are still in the initial stages of this implementing practices that are environmentally friendly and ecologically responsible. Driven by the consumers' choice to lead more environmentally friendly and ecologically responsible lifestyles, hotels are working to develop strategies that protect the environment for current and future generations of guests. And positive numbers are beginning to come in. Recent findings show that more and more people are looking to stay in an eco-sustainable hotel. I have seen data ranging from the mid-70s to the mid-90s percent of travelers who want to make more sustainable hotel choices in the future.
The bigger question is whether they are willing to pay more for their hotel experience. Here, too, the numbers are heading in a positive direction. Guests are beginning to put their money where their mouth is. A recent study shows that more than nine in ten say they are willing to pay more per room to stay in an eco-friendly hotel. A third of them say they would go up to 25% more, some up to 50% more, while a whopping 4% indicate they would be willing to spend an additional 51-75% for the experience of staying in a hotel that practices sustainability. Such sentiments are particularly important to younger generations and to women.
What is more interesting than the uptick in the numbers is the reasons behind the findings. First, guests believe that if a hotel is eco-friendly, that is proof of their attention to detail in other areas too. Second, they see these strategies as an indicator of the hotel's attention to the guest's overall experience. Finally, by incorporating sustainable practices into their operations, they "increase the likelihood that your guests will become brand advocates and lasting…loyalty." As world traveler and writer, Jason Heaton, pointed out, sustainability "is absolutely becoming more and more important to people. If your [hotel] can't commit to the health of our planet, then why should guests commit to you?"
This brings us back to messaging – i.e. getting the word out. All the great eco-friendly things that you have implemented in your hotel cannot drive one more room night if people do not know. Remember that an overwhelming majority of travelers believe that the tourism industry is not implementing eco-friendly practices. And hotels were the perceived to be the worst sector compared to the other travel/tourism segments, including cruise, air, bus, and train. As my father always used to say, If you do something nice for your customer, be sure to tell him.
Your REVPAR will thank you.
And about missing those little bottles of shampoo, conditioner, and hand lotion that I always brought home from my trips. They were not for me, nor did I used them for my guests. Instead, like many of you, I donated them to local homeless shelter. Now, we go to the dollar store or stop by the travel-size aisle to continue helping those in need. It is well worth it.
By Bonnie Knutson Professor, The School of Hospitality Business/MSU
