CONSUMER BEHAVIOUR TOWARDS GREEN PRACTICES IN THE LODGING

INDUSTRY IN INDIA-2013

ABSTRACT

Purpose - The study explores the consumer attitude towards green

practices in the context of lodging industry and also assesses

their willingness to pay more for green hotels. The study also

assesses if there has been a change in consumer behavior towards

green practices since 2007 in India. The study also assesses

relationship between demographic variables and willingness to

pay for green practices. The study explores practices adopted

by hotels which influence consumers to stay in green hotels.

Design/methodology/approach- The study is an empirical work which

involves data collection from 131 consumers across India on green

practices in the context of lodging industry. The study builds

upon the earlier study conducted by the authors in 2007.

Findings- The study reveals that there is a shift in the consumer

mindset on paying for green practices in India. It has been found

that visible efforts undertaken by lodging firms in communicating

about green practices and also demonstrating tangible green

actions influences consumers willingness to pay more for green

practices.

Practical Implications- The findings imply that there is a

distinct segment of consumers who care for environment and also

seek to find more information. There is a substantial percentage

of consumers in India who are willing to pay for the green

practices. The lodging industry can take concrete steps which

would enable to attract more environmental conscious consumers

and also can adopt innovative strategies to communicate

information about green practices.

Originality/value-The paper brings in insights into consumer

behavior in the context of green practices adopted by the lodging

industry in India. It also traces the change in the consumer

behavior and willingness to pay for green practices since 2007.

The study shows shifts in the attitude and behavior in the

context of adoption of green practices and expectations from

industry as well.

Key words Green marketing, consumer behavior, environment,

lodging industry, India

Paper Type Research Paper

Introduction

As economies grow around the world, environment will become a key

concern globally for the businesses, society and governments. The

adoption of green practices across various businesses will become

increasingly important. Tourism sector specially lodging sector

is important as it is one of the largest employer as well as

million tourists travel on a yearly basis. According to an ILO

report, international tourism was affected by the global economic

and social crisis but is projected to grow significantly over the

coming decade (ILO Report, 2013). The United Nations World

Tourism Organisation (UNWTO) is expecting the sector‘s global

economy to provide 296 million jobs by 2019(ILO 2013). Long term

growth forecasts of 4.2% per annum growth over the ten years to

2023 are retained as demand from and within emerging markets will

continue to rise in significance. Travel & Tourism will continue

to grow, outpace growth of the wider economy and remain a leading

generator of jobs. (WTTC, 2013). Encouraging the development of

the Travel & Tourism (T&T) sector is all the more important today

given its important role in job creation, at a time when many

countries are suffering from high unemployment. The sector

already accounts for 9 percent of GDP, a total of US$6 trillion,

and it provides 120 million direct jobs and another 125 million

indirect jobs in related industries. This means that the industry

now accounts for one in eleven jobs on the planet, a number that

could even rise to one in ten jobs by 2022, according to the

World Travel & Tourism Council (Blanke and Chiesa,2013). Over the

past six decades, tourism has continued to expand and diversify;

it is now one of the largest and fastest-growing economic sectors

in the world. Many new tourist destinations have emerged

alongside the traditional ones of Europe and North America. From

1980 to 2011, international tourist arrivals (i.e., overnight

visitors) more than tripled worldwide, leaping from 279 million

in 1980 to 996 million in 2011, corresponding to an average

growth of 4.2 percent a year (Blanke and Chiesa, 2013).

Any initiative in this sector can have huge ramifications on the

environment and adoption of green practices as a way of life.

Green or eco friendly hotels refer to lodging establishments that

have made commitment to various ecologically sound practices such

as saving water, saving energy and reducing

waste(www.hometravelagaency.com).

By 2050, Earth’s population is expected to increase from 7

billion to over 9 billion and the world economy is projected to

quadruple with growing demand for energy and natural resources as

a result(OECD, 2012). It is estimated that a world four times

larger than today is projected to use 80% more energy in

2050(OECD, 2012). Also 70% of the population is projected to live

in urban areas by 2050 exacerbating challenges such as air

pollution, transport congestion and waste management.

Awareness of green practices can have an impact on the behavior

of consumers in choosing green hotels. Each consumer is impacted

with the broader changes in environment and is concerned. The

quality of life deteriorates with the environmental degradation.

The consumer is becoming more sensitive to these concerns. The

younger generation is much more sensitive to environmental

concerns as compared to the older generation on account of

greater sensitization in their schools. Children do impact their

parents thinking and choices as well.

Manaktola and Jauhari (2007) have remarked that situations in

which two products are perceived equal on all aspects, except

that one is superior in its environmental performance,

environment benefits may determine consumer preference and choice

(Ottman, 1998). The products environmental performance may then

provide a distinct point of difference and influence consumer

choice (Manaktola and Jauhari, 2007).

There is a debate in literature on consumers willingness to pay

for environmental benefits (Reinhardt,1998).It may be 20 percent

or more (Roper Starch Worldwide, 1997). This may occur when

environment benefits the consumer exclusively rather than society

as a whole (Marcus, 2001).

Objective of the Study

This study builds upon the earlier work conducted by Manaktola

and Jauhari (2007) on consumer behavior towards green practices.

The study assesses the consumers attitude and behavior towards

green practices adopted by the lodging industry in India. It also

assesses consumers willingness to pay for green practices adopted

by the lodging industry. It also explores the variables which

impact consumers willingness to pay for green practices in India.

The study also studies if there is any change in attitude of

consumers towards green practices since the year 2007 in India.

It also tracks if willingness to pay for green practices has also

changed since 2007 in India.

The study assumes significance as environmental concerns are

becoming global concerns for well being of the society on the

whole. The green practices adopted by lodging industry could have

significant ramifications on environmental pollution. As the

tourism and hospitality industry grow in India and other emerging

economies, any interventions that can help mitigate environmental

impacts will be a big contribution to the society. The study

would have specific implications for the practitioners in the

lodging industry.

Hypotheses

Some of the following hypotheses were tested in the study:

The consumer attitude towards green practices in correlated with

behavior towards staying at green hotels

A positive attitude towards environment is correlated with

willingness to pay for green practices

Willingness to pay for green practices is linked with a

positive disposition towards green practices

Willingness to pay for green practices is linked with reward

points offered by the green hotels.

Willingness to pay has no relationship with demographic

factors such age, gender, income, family size.

Literature review

Many authors had earlier defined customer’s decision making as a

cognitive process but customers have a habit of baffling the

researchers. Empirical research indicates that, customers become

loyal to a single brand without going through a detailed decision

process suggested in formal models.

Social and environmental consequences of the unquestioning

pursuit of economic growth are also impacting customer’s choice.

As more customers are becoming aware of their impact on

environment, they prefer to do business with organizations that

deliver value in a responsible and resource-conscious manner.

Deloitte in a study found that green consumers in US are somewhat

older (Baby boomers) and have more average income and are likely

to engage in sustainable behavior while traveling, study also

found that Gen Y are most likely to pay extra to stay at a green

establishment (Deloitte, 2010).

Manaktola and Jauhari (2007) observed that in India, tangible

demonstration of an organization’s commitment towards the green

practices and visible actions can infuse higher degree of

confidence in consumers; they further found that consumer looks

for actual evidence of serious commitment to an environmental

cause before deciding to stay in the hotel.

HVS report 2008 cited in DW Akademie, 2012 states that LEED

certified hotels are becoming customer’s choice. LEED which

stands for Leadership in Energy and Environmental Design is a

third party verification of green buildings. LEED certified

buildings are intended to use resources more efficiently when

compared to conventional buildings. LEED certification is awarded

in three categories - platinum, gold or silver building. In

India, Ecotel certification is becoming popular, initiated by

HVS, is the “Hallmark of Environmentally Sensitive Hotels.”

Indian hospitality industry caters to the needs of 350 million

tourists - international and domestic. Tourism industry in India

contributes around six percent of total gross domestic product

and the industry is projected to grow. India's ITC hotel chain

was accorded the leadership in energy and environmental design

(LEED) award for its "world-class green practices." However, this

award is not representative of the larger picture of India's

hospitality industry. HVS, 2012. Manaktola and Jauhari, 2007

observed that “ecotourism in the Indian context has significant

implications for nature and culture conservation and rural

livelihood. Increasing environmental responsibility stimulates

implementation of environmental management in hotel industry.

Nevertheless, it appears that environmental performance of Indian

hotel industry is well below international practice.”

There is an empirical evidence that visitors from developed

countries are more likely to make buying decisions based on

companies green policies as compared to visitors from less

developed countries (Ayuso, 2006; El Dief and Font, 2010; Miller,

2003). Tourism decisions made by travelers in particular are

significantly influenced by ‘green tourism’ (Fairweather et al.,

2005; Hjalager, 1999).

Chafe and Honey, 2004 states that travelers are likely to repeat

their experience with eco-friendly hotels after their first

exposure to such property and 69% of respondents (Danish

tourists) expressed willingness to pay a premium to stay in eco-

labeled hotels.

Consumers expect businesses to make money in more responsible way

(Lane, 2006), growing public concern for environmental impacts

has increased pressure on organizations to pursue sustainable

development principles (Banerjee, 2008). A “triple-bottom-line”

approach adds environmental and social elements to the economic

bottom-line (Maak, 2007; Doherty, 2007; Clark, 2006; Mathisen,

2006; Ashley & Haysom, 2006). Hospitality providers can

strengthen their brand identity and improve customer loyalty if

they provide an opportunity to their guests to remain true to

their environment friendly values. (Deloitte, 2010)

Most large hotels worldwide are implementing environmental

initiatives into their routine practices. (Bohdanowicz &

Zientara, 2008), one of the reason influencing this decision is

customer buying decisions. Hotels are getting involved in CSR

activities to gain competitive advantage (Bohdanowicz & Zientara,

2008). Manaktola and Jauhari, 2007 suggest that environmental

performance of a hospitality business may provide an opportunity

for product differentiation.

Hospitality organizations are looking for environmental friendly

products and processes, these initiatives are given a social face

but it is argued that economic considerations are the key drivers

of this action (Choi and Parsa, 2006 ). Impact of environment

friendly practices result in lower operational costs and less

harm to the environment (Claver-Cortes et al., 2007). Cost

savings is one of the most significant factors influencing

implementation of green practices in a hotel. (Brebbia and

Pineda, 2004). Puma Hotels UK is set to save £58,000 on water

consumption by switching over to new showerheads. As cost of non-

renewable energy is increasing, implementing green energy

practices will provide competitive advantage to the hotel, cost

saving can be passed on to the customers creating a win-win

situation. Green Hotelier 2012 August 29.

DW Akademie, 2012 reports that many hotels are getting the benefit of lower costs by

"going green". It states that The Hilton group, have saved $147

million worldwide by reducing its energy and water consumption by

an average of 15 percent in 2011. Indian hotel chains have for

starters, warmed up to the sustainability agenda in the marketing

rather than business sense (Manaktola and Jauhari, 2007).

Methodology

The study has been carried out across India. Convenience sampling

was adopted and consumers were tapped from various cities of

Northern Southern eastern and western India. The study deployed a

structured questionnaire which explored consumer expectations on

green practices form the lodging industry . The questionnaire

also mapped their behavior towards staying at these hotels if

hotels adopted green practices. The instrument also explored the

consumers disposition towards environmental practices and the

willingness of consumers to pay for the green practices. A sample

of 131 consumers were administered the questionnaire. Pilot

testing was done for about 15 consumers and minor modifications

were made based in initial testing. Demographic data was also

collected for the sample. The data was collected deploying

Likert’s scale. Correlation analysis, multiple regression and

factor regression was conducted to understand the factors which

contribute to consumers choice of staying at hotels investing in

green practices. The data analysis has also given insights on the

demographic factors which are correlated with consumers

willingness to pay.

Profile of the Sample in the study

The sample consists of 63 male and 68 female respondents. The

respondents hail from various cities across various cities of

India such as Delhi, Mumbai, Kolkata, Varanasi, Lucknow, Bhopal,

Lucknow The average of the respondents is 34 years and average

qualification is post graduation, The age of respondents varies

from 22 to 64 years.42 percent of the respondents are in the age

group of 22 to 30 years while as 58 percent of respondents are in

the gae group of 31 to 64 years. The sample has a capacity to pay

and majority of the respondents travel at least 1-2 nights every

month and work in the private sector. Average size of the family

3.6. The average income of the consumer in the sample if Rs

120000-Rs 150000 per month. (1USD =60INR in Nov 2013). 25% of the

respondents stay at luxury hotels while as 22 percent of

respondents stay in budget hotels. 42 percent of respondents

spend 1-2 nights per month in a hotel. 61 percent of the

respondents live independently while as 39 percent live in joint

families. 55 percent of respondents have a post graduate or a

higher qualification.

Findings and Analysis

The statistical analysis was conducted on STATA 7.0. Different

variables were summarized. The correlation, multiple regression

and factor analysis was carried out to have a better insight on

the consumer behavior.

There are distinct changes in consumer behavior since the year

2007. The study explores the consumer behavior and their attitude

towards green practices in the context of lodging industry.

Consumer attitude towards expectations on use of green practices in the lodging

industry

A number of factors were used to assess the expectations of the

consumers on the use of green practices in the lodging industry.

It was found that the 12 variables were reduced to a single

factor (eigen value) which explained ninetly nine percent of the

variance.

(principal component factors; 1 factor retained)

Factor Eigenvalue Difference Proportion Cumulative

-----------------------------------------------------------------

---------------------------

1 7.45425 6.49813 0.6212 0.6212

2 0.95612 0.17684 0.0797 0.7009

3 0.77928 0.17214 0.0649 0.7658

4 0.60714 0.07984 0.0506 0.8164

5 0.52729 0.10506 0.0439 0.8603

6 0.42224 0.11299 0.0352 0.8955

7 0.30925 0.02924 0.0258 0.9213

8 0.28001 0.02495 0.0233 0.9446

9 0.25507 0.06371 0.0213 0.9659

10 0.19136 0.06167 0.0159 0.9818

11 0.12969 0.04139 0.0108 0.9926

12 0.08831 . 0.0074 1.0000

Factor Loadings

Variable | 1 Uniqueness

-------------+---------------------

h1 | 0.84395 0.28775

h2 | 0.76617 0.41298

h3 | 0.72930 0.46812

h4 | 0.88069 0.22438

h5 | 0.85299 0.27241

h6 | 0.84270 0.28985

h7 | 0.83868 0.29662

h8 | 0.82417 0.32075

h9 | 0.54396 0.70411

h10 | 0.70019 0.50973

h11 | 0.82800 0.31441

h12 | 0.74524 0.44462

The following variables are more significant contributors to the

consumer’s expectations from the lodging industry towards green

practices. Using sensors or timers to save electricity; have

active recycling program; training of all employees for better

environmental performance; prompt disposal of packaging to reduce

waste; utilizing environment friendly cleaners; deploying energy

saving lamps; provide environmentally friendly products; have

visible communication about green practices and participation in

an environmental partnership program such as ISO 14000. This

clearly points out that the consumers are looking at very visible

efforts on green practices by the lodging firms.

The implication is that the consumers look for very visible cues

on caring for environment by the lodging firms. These should be

communicated very clearly to the market.

Consumer behavior towards green practices in the lodging industry

The factor analysis was conducted for 12 variables which

influence a consumers willingness to stay in the hotel. There are

two factors which emerge out as important as their eigen value is

more than one. The two factors explain 69 percent of the

variance. These are as follows:

(principal component factors; 2 factors retained)

Factor Eigenvalue Difference Proportion

Cumulative

-----------------------------------------------------------------

-

1 7.23260 6.20561 0.6027 0.6027

2 1.02700 0.17090 0.0856 0.6883

3 0.85610 0.12956 0.0713 0.7596

4 0.72654 0.09122 0.0605 0.8202

5 0.63532 0.22921 0.0529 0.8731

6 0.40611 0.07944 0.0338 0.9070

7 0.32668 0.08559 0.0272 0.9342

8 0.24109 0.04727 0.0201 0.9543

9 0.19381 0.04188 0.0162 0.9704

10 0.15193 0.03395 0.0127 0.9831

11 0.11798 0.03314 0.0098 0.9929

12 0.08484 . 0.0071 1.0000

Factor Loadings

Variable | 1 2 Uniqueness

------------------

+--------------------------------------------------

c1 | 0.85858 -0.05428 0.25989

c2 | 0.78770 0.14048 0.35979

c3 | 0.79253 -0.16265 0.34545

c4 | 0.88485 -0.09844 0.20735

c5 | 0.83212 0.09103 0.29930

c6 | 0.88464 -0.15145 0.19448

c7 | 0.79842 0.21113 0.31795

c8 | 0.62772 0.60248 0.24298

c9 | 0.58511 0.48758 0.41991

c10 | 0.71350 -0.28827 0.40781

c11 | 0.70763 -0.43487 0.31015

c12 | 0.77795 -0.13942 0.37535

There are two sets of factors in the context of green practices

adopted by the lodging industry which matter to the consumer. The

first factor is a very clearly visible initiative towards green

initiatives. Using sensors for saving electricity, Training of

all employees for a better environmental performance, active

recycling and prompt disposal of waste , clear communication of

the green program to all employees are key aspects which matter

to precipitate the decision to stay at a green hotel.

The second factor is related with deploying energy saving light

bulbs in the rooms. This is one of the visible demonstrations of

green practices adopted by hotel.

Environmental Orientation

Orientation towards environment was also assessed through factor

analysis. The ten variables deployed for measuring environmental

orientation got reduced to two factors. Please see the results

for factor analysis.

(principal component factors; 2 factors retained)

Factor Eigenvalue Difference Proportion

Cumulative

-----------------------------------------------------------------

-

1 4.70734 3.55784 0.4707 0.4707

2 1.14950 0.17539 0.1149 0.5857

3 0.97411 0.19060 0.0974 0.6831

4 0.78351 0.14350 0.0784 0.7614

5 0.64001 0.03840 0.0640 0.8254

6 0.60161 0.15237 0.0602 0.8856

7 0.44924 0.13820 0.0449 0.9305

8 0.31104 0.09209 0.0311 0.9616

9 0.21895 0.05424 0.0219 0.9835

10 0.16470 . 0.0165 1.0000

Factor Loadings

Variable | 1 2 Uniqueness

----------------

+-------------------------------------------------------

e1 | 0.80071 -0.31101 0.26214

e2 | 0.62207 -0.36727 0.47813

e3 | 0.47764 0.71168 0.26537

e4 | 0.73708 0.26597 0.38598

e5 | 0.79218 -0.36405 0.23992

e6 | 0.79824 -0.25377 0.29842

e7 | 0.74696 0.17201 0.41247

e8 | 0.73076 0.16814 0.43772

e9 | 0.60626 0.29291 0.54666

e10 | 0.42846 0.00831 0.81636

The two factors explain 98% of the variance in consumer

orientation towards environment. The first factor is about an

understanding that environment is to be valued. The factor

explains that consumers feel that environment will be damaged

beyond recovery if it is not protected. They are also willing to

accept some inconvenience in order to protect the environment.

However, they also feel that seeking information about hotel’s

environmental responsibility is inconvenient. This has

implications for the lodging industry. Hotels would have to take

steps to clearly communicate about the efforts that they are

championing so that the consumers can take that into

consideration for making their choices for staying there.

Who should pay for green practices?

The table 1 given below compares consumer behavior in India

towards green practices in 2007 and 2013.

INSERT TABLE 1 HERE

There is a distinct change in consumer behavior in terms of who

should pay for the green practices. In the year 2007, there were

33 percent of consumers who felt that the costs for green

practices should be shared between consumers and the hotels.

However, in the year 2013, nearly 43 percent of the consumers

feel that costs should be shared between consumers and hotels. 17

percent of consumers in 2013 feel that they should pay for green

practices as against 15 percent in the year 2007. 52 percent of

consumers felt that hotels should absorb the costs for green

practices in 2007 . This declined to 40 percent in the year 2013.

There is a clear trend on consumers willingness to pay for green

practices. Also they are willing to stay at hotels which engage

in green practices.

How much more should consumers/hotels pay for the green

practices?

It is an interesting question to explore that how much more are

consumers willing to pay towards green practices. The findings

are listed in the table 2 below.

INSERT TABLE 2 HERE

It has been found that in 2007, 40% of the consumers were willing

to pay between 2 and 10 percent more of the costs for green

practices. In the year 2013, 81 percent of the consumers are

willing to pay between 2-10% more for green practices. This is a

very stark contrast between the year 2007 and 2013. Also almost

30 percent of consumers are willing to pay 30 percent more for

hotels engaging in green practices.

How many more reward points for the green practices?

It has been found that 71% of consumers in 2007 expected higher

reward points for engaging in green practices. In 2013, 75% of

the consumers expected to get higher reward points.

Attitude towards Environment

The findings suggest that different consumers have different

attitudes towards environment. There is just 5 percent of

consumers who actively seek environment related information and

deploy the same in making decisions about staying in green

hotels. This category can be labeled as active green consumers.

There is a large category of consumers who pay attention to

information when presented but don’t think otherwise about it.

This represents about 72% of the consumers.

There are also 23% of the consumers who do not look for

environment related information but feel that they should look

for such information.

Correlates of willingness to pay for green practices

The correlation analysis carried out between various variables

and willingness to pay yields the following results reflected in

table 3:

INSERT TABLE 3 HERE

The above table has important implications for the practitioners and

the policy makers. People who have a positive disposition or are

champions for environment are more likely to pay more for green

hotels. The knowledge of green practices also impacts the behavior of

consumers to engage in green practices. The evidence of a hotel

engaging with green suppliers and engaging in purchasing green

products and participating in environmental partnership programs are

positively related with willingness to pay more for green hotels.

These have clear implications for the hotel industry. If they want

consumers to choose them, they will have to take tangible efforts to

consciously engage in green practices and also clearly communicate

them to the consumers.

Correlates of Consumer Choice

The table 4 illustrates the variables which are linked with

consumers choosing to stay in green hotels.

INSERT TABLE 4

While choosing to stay in a hotel the following aspects are

considered important by the consumersin India. Linen reuse,

Installing active systems for detecting and repairing water

leakages. Participation in an environmental program sch as ISO

14000 and deploying environmentally friendly products are

considered as important factors in choosing to stay in green

hotels.

Demographic Variables and willingness to pay for green practices

To study the impact of demographic variables on willingness to

pay, multiple regression analysis was carried out. Willingness to

pay was treated as the dependent variable . Gender, age,

education and family size were considered as independent

variables. The results of the multiple regression are documented

in the table 5.

INSERT TABLE 5

It was found that age and average family size are predictors of

willingness to pay for green practices. Gender and average family

size were not seen as predictors of willingness to pay for green

practices in India. This means that there is more sensitivity to

environment with age and also a higher level of understanding of

consequences of environmental pollution. Also a smaller family

size would mean that the consumer is willing to pay more if the

hotel engages in green practices.

Conclusion and implications of the study

The study has several interesting findings.

There is a distinct difference in consumers behavior towards

choosing to stay in green hotels since 2007 in India. There is

also an increase in the proportion of consumers who are willing

to pay for green practices in India since 2007. As against 40% in

2007, there are 80% of consumers who are willing to pay 2-10%

more for green practices adopted by the hotels. This is indeed

very encouraging. The willingness to pay for green practices is

also influenced by age of the consumers and the family size. In

the study, it has been found out that the gender and education

profile of consumers do not impact the willingness to pay for

green practices. Education is a surprising factor as

theoretically consumers with higher education could be considered

more aware.

It can also be concluded through this study that the willingness

to stay at green hotels is influenced by investments that the

hotel makes in creating a tangible evidence towards green

practices. Linen reuse, dealing with suppliers and making

purchases for green products are all influencers towards choosing

those hotels. Enrolling in a green program such as ISO 14000 have

all positive influence in choosing a green hotel. Using sensors

or timers to save electricity; have active recycling program;

training of all employees for better environmental performance;

prompt disposal of packaging to reduce waste; utilizing

environment friendly cleaners; deploying energy saving lamps;

provide environmentally friendly products; have visible

communication about green practices and participation in an

environmental partnership program such as ISO 14000 . This

clearly points out that the consumers are looking at very visible

efforts on green practices by the lodging firms.

The study also reveals that though the consumers care for

environment it is only a very small fraction of consumers which

is 5 percent who actively seek information on environment. A

large percentage – nearly 75% look at environmental information

with interest but do not actively go looking for it. This does

have a strong implication for practitioners and policy makers.

A lot can be done to create greater awareness of ones actions on

environment. People are not even aware of consequences of their

actions. For every ton of paper, how many forests disappear. The

use of conventional sources of energy and pollution from using

substandard equipments all have a great bearing on environment.

Strong campaigns should be taken up across the globe to sensitise

and also exert pressure on the hotels to choose green vendors and

also for consumers to influence them positively so that they

start preferring green hotels over the others.

The study also reveals that consumers look for tangible evidence

of deploying green practices. So visible communication should be

communicated at various places in the hotel and also in the rooms

as well. A small film on green initiatives, in the restaurants,

menu cards and displays at various places could reinforce the

messaging and the care that the hotel demonstrates for the

environment. The advertising campaigns on the social media and

association with environmental initiatives could further help to

communicate with consumers that the hotel cares about green

practices.

The study demonstrates that consumers are willing to pay more for

the green practices. This should definitely be leveraged and the

ability to deploy green practices over the entire life cycle of

the stay of a consumer should be looked at. Right from checking

in, to products in the room, food items, waste disposal, water

management, energy management, billing, design of the hotel and

equipment deployed could all be looked at from a green

perspective. The training of employees, signing up for green

program and involving all stakeholders to subscribe to green

philosophy is all a part of the green strategy.

Age and family size impact the willingness to pay for the hotel

engaged in green practices. It has been found in the study that

the gender and education do not impact willingness to pay for

green practices in the context of lodging industry in India. This

is something that could be tested with bigger samples as well.

Different stakeholders can also influence the green strategy

adopted by the hotels. NGOs could create more sensitization with

the supplier network. Government can offer tax advantages to

firms that engage in green practices. The consumers could be

given more rewards or could be offered tax rebates for adopting

green practices and patronizing green brands.

Education at school and university level could have compulsory

courses on environment and green practices. In order for hotels

to adopt green practices, green orientation has to be a way of

life. The same must be shared as a common value within the

organization and must have a very strong support from the top.

Adopting green practices can truly become a great source of

competitive advantage. The current study demonstrates that

consumers are willing to pay more for hotels engaged in green

practices.

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Table 1: Consumer Behavior towards Green Practices in India

Variable 2007 2013No of consumers who feel that costs shouldbe shared between consumers and hotels

33% 43%

Percentage of consumers who feel that consumers should pay for the green practices

15 17

Percentage of consumers who feel that hotels should absorb the cost

52 40

Table 2: Willingness to pay for green practices in India in lodging industry

Variable 2013 2007Hotels should pay for50 to 100% of costs for green practices

5% 40%

Consumers are willing to pay for 2-10% of the costs while staying at a green hotel

81% 40%

Consumers willing to pay for 8-10% of the costs

30%

Table 3: Correlates of willingness to pay for green practices

Variable Correlation value(.05 level of significance)

Encourage business with environment friendly service providers

0.19

Knowledge about Environmental 0.20

friendly purchase practicesLike reading informative materialson environment

0.18

Important to save the environment 0.17Environmental activitist 0.23Hotel must participate in environmental partnership or certification program

0.18

Tables 4: Influencers for consumers for staying in green hotels

Variable Correlation coefficient(.05 level of significance)

Choice of a consumer for staying in a green hotel and Hotel participation in an environmental program and participation in ISO 14000 certification program

0.32

Choice of a consumer staying in ahotel and hotel offering linen for reuse

0.48

Choice of a hotel and active system for detecting and repairing water leakage

0.44

Choice of a hotel and providing environment friendly products

0.23

Table 5: Multiple Regression to study impact of demographic variables on willingness to pay for green practices

Equation Obs Parms RMSE "R-sq" F P---------------------------------------------------------------------- 132 5 2.21 0.13 4.93 0.001

------------------------------------------------------------------------------ | Coef. Std. Err. t P>|t| [95% Conf. Interval]-------------+---------------------------------------------------------------- gender | -.45 .39 -1.16 0.250 -1.23 .32 age | .06 .024 2.53 0.013 .0133 .1087 ed | -.21 .190 -1.11 0.269 -.588 .1655avg fasz | -.22 .062 -3.61 0.000 -.351 -.102 _cons | 7.71 1.11 6.92 0.000 5.510 9.921