{"id":13355,"date":"2016-11-04T17:41:22","date_gmt":"2016-11-04T21:41:22","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/hyatt-environmental-sustainability-in-hospitality-industry\/"},"modified":"2016-11-04T17:48:49","modified_gmt":"2016-11-04T21:48:49","slug":"hyatt-environmental-sustainability-in-hospitality-industry","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/hyatt-environmental-sustainability-in-hospitality-industry\/","title":{"rendered":"Hyatt: Environmental Sustainability in Hospitality Industry"},"content":{"rendered":"

Climate Change for Global Travel and Tourism<\/u><\/strong><\/p>\n

Global travel and tourism industry has experienced rapid growth over the past years, accounting for 9.8% of global GDP in 2016 [1]. While the sector is expected to grow 4% annually over the next decade, concerns arise regarding the impact of climate change on the future of global travel and tourism industry landscape.<\/p>\n

Hospitality sector, in particular, is highly susceptible to changes in climate patterns and ecosystems\u2014crucial factors when people make their travel decisions. This directly has direct economic implications on hotels\u2019 profitability. As climate change escalates, hotels are faced by increasingly serious business threats. Rising sea levels is one of the major threats to hotel real estate assets, in particular resort hotels located near coastal area. According to UNEP, a 1-meter rise in sea level could submerge almost 60% of resort hotels in the Caribbean region [2]. Faced by pressing climate change concerns, leading global hospitality companies have come up with various operating procedures and project initiatives aimed at reducing the level of GHG emissions at hotel properties across the globe.<\/p>\n

 <\/p>\n

Ambitious Environmental Vision<\/u><\/strong><\/p>\n

Hyatt is a leading global hospitality company with more than 600 properties with especially strong footprint in the upscale and luxury hotel segments. In the past few years, the company has shifted its growth strategy from a previously capital intensive model to a more asset-light approach, similar to those of competitors, in order to diversify its cash flow streams and grow more quickly. It was not until a decade ago or so that Hyatt had begun to aggressively franchising its brands, mostly in the upscale segments, where Hyatt is not directly involved in the day-to-day operations and where operation models are less complex compared to those of luxury hotels. Majority of Hyatt\u2019s luxury hotels are still either owned or managed by Hyatt [3].<\/p>\n

Recognizing the extent to which climate change can adversely impact the global travel industry, Hyatt has incorporated environmental sustainability initiatives into its overall business strategy. In 2014, it announced environmental sustainability vision for 2020 for all of its hotels. The mission, which combines both short-term and long-term strategies, will focus on 3 major areas [4], [7]:<\/p>\n