Green Certification and Its Impact on Hotel Marketability and Profitability

Abstract

Purpose: The general objective of this study was to analyze the benefits and challenges of obtaining green certifications for hotels. Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library. Findings: The findings reveal that there exists a contextual and methodological gap relating to green certification and its impact on hotel marketability and profitability. Preliminary empirical review revealed that green certification significantly enhanced hotel marketability and profitability. Green-certified hotels attracted more environmentally conscious consumers, resulting in higher occupancy rates and increased customer loyalty. Additionally, these certifications led to substantial operational cost savings in areas such as energy and water use, and allowed hotels to command premium pricing. Overall, the findings demonstrated that adopting sustainable practices through green certification provided both environmental and economic benefits, positioning hotels for better success in the competitive market. Unique Contribution to Theory, Practice and Policy: The Institutional Theory, Resource-Based View (RBV) and Signaling Theory may be used to anchor future studies on green certification and its impact on hotel marketability and profitability. The study recommended that hotels pursue green certifications to enhance marketability and profitability, emphasizing their importance as strategic investments. It highlighted the theoretical relevance of Institutional Theory and the Resource-Based View (RBV), suggesting further research into normative pressures and specific resources. Practically, it advised hotels to adopt and communicate sustainable practices, engage guests in sustainability initiatives, and provide staff training. For policymakers, it recommended supportive policies, incentives, and public awareness campaigns. The study also encouraged future research into the long-term financial impacts of green certification and the role of technology in sustainability efforts. Keywords: Green Certification, Hotel Marketability, Hotel Profitability, Sustainability Practices, Operational Cost Savings, Eco-Friendly Accommodations, Energy Efficiency