The importance of sustainability in hospitality marketing

Authored by- Naveen Dubey, Marketing Head, Alcostar group of companies

The hospitality industry in India has flourished at an exponential rate. A clear unlocking of the potential of the industry can be dedicated to the rising disposable income, increasing interest of millennials in leisure, and surging urban population. However, with this growth, consumers have new priorities and needs. Most people today do not like the thought of delighting themselves at the expense of dwindling natural resources.

Consumers do not feel positive about a brand if they disregard the local economy's wellbeing or add to the garbage piles. They have taken hold of the concept of sustainability and are making sure the products or services they use do the same. According to a survey conducted by NeilsenIQ, 46 percent of consumers prefer brands that consider sustainability to bring about change. And as the demands of new-age consumers change, marketers in the hospitality industry must embrace the significance of best sustainability practises.

Turning green: a boon for hospitality

Public and corporate sectors alike are increasingly focused on sustainability or social responsibility, and the hospitality business is no different. Additionally, other factors, including cost increases, strict government regulations, and competitive behaviour, have only encouraged companies to embrace sustainability and make it a priority for their organisations.

The issue of climate change is becoming more prevalent among consumers, who now expect brands to take charge and run their operations sustainably. As a result, it is clear that sustainability must be embraced and promoted effectively because it has a wealth of benefits.

Increases brand loyalty

The current generation of consumers is more ethically aware and seeks out brands that share their beliefs. Sustainable marketing might be on the organisation's agenda in order to effectively engage the public with their brand. Businesses may see higher customer retention rates if they successfully tie their brand image to a more important environmental or social cause, like the battle against climate change. As a result, brand-loyal clients typically make repeated purchases even when competitors offer reduced prices. In a McKinsey & Co. survey, 66% of all respondents stated to think about sustainability before making a purchase.

Ensures employee engagement

As today's employees prefer to work for companies that place a strong emphasis on making a positive impact, treating them as your top customer is the best way to keep them on board. Sincere sustainable marketing calls on organisations to enhance their ESG procedures, which can increase employee motivation Employees that respect sustainability may feel fulfilled if they work for organisations that place a high emphasis on ESG. According to a Marsh & McLennan analysis, companies with the highest employee satisfaction had ESG scores that were 14% higher than the global average. This was probably due to their good environmental performance. Therefore, it is obvious for marketers to highlight an organisation's values and beliefs as stewards of change.

Improves profits

The fact that sustainability projects often necessitate expensive up-front investments has in the past been seen by many corporate leaders as a barrier to success. Today, though, it's different because sustainable business practices can boost organisations' profits. A sustainable marketing campaign, for instance, might focus on an organisation's top ESG procedures. Organisations can cut operational expenses by using more sustainable technology, applications, and procedures. As stated by McKinsey & Company, sustainability reduces costs and can have a 60% impact on operating profits. Organisations can gain a competitive edge by adopting sustainable marketing techniques that make them more competitive in their marketplaces.

A sustainable opportunity

The hospitality industry in India has expanded significantly over the last few years and has plenty of room to develop even further in the future. According to a research analysis by Neosis, the Indian hospitality sector is anticipated to grow at a rate of 10.35% by 2028. However, because the industry depends so heavily on natural resources, these businesses must adopt the best sustainability practices if they want to grow.

Green marketing enables businesses to successfully sell their products while simultaneously preserving the environment. As a result, the organisation is likely to experience a rise in productivity, profits, employee engagement, and customer loyalty. The need of the hour is to inform the public about a brand's positive environmental endeavours. Furthermore, it is evident to stick with a genuine approach to attract sustainable brand visibility in order to thrive in the markets'