pilot project finished!!!

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Hospitality & Tourism Management

1st semester 2010

The pilot project

Delivery date: 20.01.2011

Supervisor: Maria Zarechnova

Written by:Elina BormaneNora Horvath

Simona-Andreea Luca

Niklavs Svede

Aalborg 2011

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Table of contents

1. Introduction

.page 31.2 Green quality

programs..pag

e 3

1.3 Green

Key

..page 4

1.4 HanzaHotel

..page 5

2. Problem

statement

page 6

3. Methodology

page 7

4. Situation

.page 8

4.1 Analysis of environmental issues in hotel

industry..page 8

4.2 Analysis of environmental issues in

Latvia.page 10

4.3 Market segmentation in green quality

programmes.page 13

4.4 Market segmentation in Hanza

Hotel. page 17

5.

Analysis

.page 19

5.1 Comparison of Hanza Hotel and Axos Hotel preferences in

different market

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segmentation

...page 19

5.2 The affect of the Green Key in service management

system . .page 21

6.

Evaluation

page 26

6.1 Advantages of going green in market

segmentation.. page 26

6.2 Disadvantages of going green in market

segmentation.page 27

7.

Conclusion

..page 28

8. List of

references

.page 29

9. Attached files

1. Introduction

1.2 Green quality programmes

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For years, the goals of business and environment seemed hopelessly

irreconcilable.1

The clear reason of environmental pollution is the incredible rate of

technological progress that human beings produced.2 The negative

impacts of development can gradually destroy the environmental

resources3 such as water and air, forests, soil etc.4

However nowadays businesses and environment are no longer enemies.

Several green quality programmes can be found to solve the

environmental pollution issued by businesses. 5 Applying a green quality

programme to a business can cause a win-win situation: both for the

enterprise and the environment. 6 An eco-business might lead to an

economic benefit, energy- and cost-savings.7 The result of applying a

green quality programme is that businesses save the environmental

resources.

The writer ofEarth in the balance Al Gore believes that win-win situation

works with appropriate equipments because:

The result in many cases is a process that not only pollutes less but

lowers costs or improves quality. 8

1http://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdf, page1 [Accessed 13 Jan]2http://www.kamaszpanasz.hu/hirek/zoldovezet/61/kornyezetszennyezes [Accessed 15Jan]

3http://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppt,slide2 [Accessed 15 Jan]4http://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppt,slide4 [Accessed 15 Jan]5http://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdf, page2 [Accessed 13 Jan]6http://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdf, page1 [Accessed 13 Jan]7

http://www.isotanusitas.hu/kornyezet.html [Accessed 15 Jan]8http://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdf, page3 [Accessed 13 Jan]

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http://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://www.kamaszpanasz.hu/hirek/zoldovezet/61/kornyezetszennyezeshttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://www.isotanusitas.hu/kornyezet.htmlhttp://www.isotanusitas.hu/kornyezet.htmlhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://www.kamaszpanasz.hu/hirek/zoldovezet/61/kornyezetszennyezeshttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://www.isotanusitas.hu/kornyezet.htmlhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdf


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On the other hand it is not easy to be green - the price for being ecological

is high. 9

It takes relatively long time; and it is also said that businesses will never

get a financial return. The reason why environmental costs are increasing

is inflation and economic growth.10

There are advantages and disadvantages using these programmes; this is

going to be expanded later in the project.

1.3 Green Key

Tourism as one of the fastest growing industries is a major energy

consumer and the negative effects of tourism on the environment are

becoming greater every day. Therefore, to encourage directors and

owners of tourism accommodations to reduce their environmental impact,

the Green Key programme was created. Today the Green Key is an eco-

label for environmental management in leisure organizations.11

Green Keyis a programmeofFoundation of Environmental Education.12

The purpose of the programme is to develop an eco-label for

environmental issues.13

The programme started in 1994 in Denmark (in 1998 France joined and

started labelling camping sites) and it is supported by consumer groups,

NGOs, authorities, and business associations. 14

The Green Key is an eco-label for hospitality facilities that aims to

contribute to prevention of climate change and sustainable tourism byawarding and promoting good initiatives. The Green Key aims to changethe practices and behaviors of hospitality actors including enterprises,

9http://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdf, page1 [Accessed 13 Jan]10http://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdf, page1&page4 [Accessed 13 Jan]11http://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdf, page1 [Accessed 13 Jan]12http://www.green-key.org/ [Accessed 13 Jan]13

http://www.kmvk.nl/greenkey/criteria.lp, page 2 [Accessed 13 Jan]14http://ec.europa.eu/environment/emas/pdf/StepUp/EMASGuidelines_BIO_FinalSummaryBrochure_GreenKey.pdf, page1 [Accessed 13 Jan]

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http://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdfhttp://www.green-key.org/http://www.kmvk.nl/greenkey/criteria.lphttp://www.kmvk.nl/greenkey/criteria.lphttp://ec.europa.eu/environment/emas/pdf/StepUp/EMASGuidelines_BIO_FinalSummaryBrochure_GreenKey.pdfhttp://ec.europa.eu/environment/emas/pdf/StepUp/EMASGuidelines_BIO_FinalSummaryBrochure_GreenKey.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdfhttp://www.green-key.org/http://www.kmvk.nl/greenkey/criteria.lphttp://ec.europa.eu/environment/emas/pdf/StepUp/EMASGuidelines_BIO_FinalSummaryBrochure_GreenKey.pdfhttp://ec.europa.eu/environment/emas/pdf/StepUp/EMASGuidelines_BIO_FinalSummaryBrochure_GreenKey.pdf


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authorities, guests, local communities, and to involve them in increasingtheir responsibility towards their own environment.15

A tourism enterprise can get awarded with the Green Keyif it fulfills the

following international criteria set: 16

environmental management

staff involvement

guest information

water

waste and energy savings

washing and cleaning

food and beverages

indoor environment

parks and parking areas

green activities and

administration 17

1.4 Hanza Hotel

Hanza is a three-star family-run hotel.18 It is located in the center of

Latvias capital, Riga, a short distance from Riga Old Town.19 It is open all

year around and has a 24-hour front desk.20

Hanza Hotel is offering rooms for a wide target group:21 different facilities

and services are being offered throughout the year such as restaurant,

bar, newspapers, room service, laundry, car rental, rooms for disabled

guests, meeting/banquet facilities etc.22

15http://www.holland.com/meetings/uk/green-meetings/green-key/ [Accessed 13 Jan ]16http://www.green-key.org/ [Accessed 13 Jan]17http://www.kmvk.nl/greenkey/criteria.lp, page 3 [Accessed 13 Jan]18http://www.hanzahotel.lv/en/rooms [Accessed 17 Jan]19http://www.hanzahotel.lv/en/hotel_in_riga [Accessed 17 Jan]20

http://www.hanzahotel.lv/en/hotel_in_riga [Accessed 17 Jan]21http://www.hanzahotel.lv/en/hotel_in_riga [Accessed 17 Jan]22http://www.hanzahotel.lv/en/hotel_in_riga [Accessed 17 Jan]

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http://www.holland.com/meetings/uk/green-meetings/green-key/http://www.green-key.org/http://www.kmvk.nl/greenkey/criteria.lphttp://www.kmvk.nl/greenkey/criteria.lphttp://www.hanzahotel.lv/en/roomshttp://www.hanzahotel.lv/en/hotel_in_rigahttp://www.hanzahotel.lv/en/hotel_in_rigahttp://www.hanzahotel.lv/en/hotel_in_rigahttp://www.hanzahotel.lv/en/hotel_in_rigahttp://www.holland.com/meetings/uk/green-meetings/green-key/http://www.green-key.org/http://www.kmvk.nl/greenkey/criteria.lphttp://www.hanzahotel.lv/en/roomshttp://www.hanzahotel.lv/en/hotel_in_rigahttp://www.hanzahotel.lv/en/hotel_in_rigahttp://www.hanzahotel.lv/en/hotel_in_rigahttp://www.hanzahotel.lv/en/hotel_in_riga


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2. Problem statement

Hanza Hotel is running its business successful. In order to keep the good

position it wants to improve, to grow bigger. To perfect oneself the tourism

enterprise has to adjust, to keep up with the trends and remain

competitive in hospitality industry.

This will promote prominent modifications and challenges such as:

maintain the clients who are active smokers, those who choose fast food

over ecological meals, in general- customers who are not concerned about

environmental issues.

After executing the green changes customer participation and willingness

to be a part of environmental friendly activities is necessary.

When going green it may attract a new target group- people who approve

of green lifestyle. It means that the company has to be aware of changes

in market segmentation.

The Problem Question

How to apply environmental-friendly programme as a part of

improvement initiative to Hanza Hotel without a great change in

market segmentation?

A great change is when Hanza Hotel looses the loyal customers and has a

completely new target group. The aim is to maintain the existent

customers and to attract new target group.

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3. Methodology

We are going to form a relevant solution to our problem question by

applying SWOT analysis, PEST analysis, by analyzing qualitative data,

evaluating and describing. We are going to turn our research into usefuldata.

The electronical interview with Hanza Hotels duty manager is going to be

one of the main sources used in the project. There is lack of proper

information on their homepage related to our problem question.

There is enough information available about our chosen topic on theinternet and in books, which we are going to use as sources.

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4. Situation

In this chapter the general situation in environmental issues in hotel

industry particularly in Latvia is going to be described and analyzed to

have an overall review.

This will help to answer and solve the problem question.

4.1 Analysis of environmental issues in hotel industry

Hotels are a wasteful business and need to do much to reduce their

impact on the environment23

Although individually hotels do not have a significant and obvious negative

impact on the environment, together they can be very wasteful and

consume huge amount of resources. It has been estimated that 75% of

hotels environmental impacts can be directly related to unreasonable

consumption. This is wasteful in terms of resources and it creates

unnecessary operational costs. The three key areas of environmental

impact are energy, water and waste. 24

First of all, hotels are huge water consumers. An average tourist who isspending his time in a hotel consumes about 1/3 times more water per

twenty-four hours than a local inhabitant.25 The whole tourism industry

itself abundantly consumes water resources in hotels, their swimming

pools and for tourist personal needs. These factors can also cause a lack of

water supply and water degradation, as well as increase the amount of

23http://www.economicallysound.com/resource_conservation/ [Accessed 17 Jan]24

http://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotels, slide 1 [Accessed 18 Jan]25http://vide.lu.lv/coastlearncd/tourism/why_problems.htm, [Accessed 18 Jan]

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http://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://vide.lu.lv/coastlearncd/tourism/why_problems.htmhttp://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://vide.lu.lv/coastlearncd/tourism/why_problems.htm


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waste water, which for many years has polluted tourist attracted locations

near seas and lakes, damaging the fauna and flora. This waste water

pollution can endanger people and animal health.26 Water is the liquid of

life, and our society has to save it.

Operating 24 hours a day, seven days a week, hotels in general use a lot

more energy per visitor than local residents as they provide various

amenities and services. It means using energy intense facilities such as

bars, restaurants, banquet facilities, lounges, offices and pools, and

spacious guest rooms.27

The third key area of environmental impact in hotel industry is solid wastegeneration, which is one of the most visible effects on the environment. It

is believed, that approximately 30 percent of waste in hotels can be

diverted through reuse and recycling.28 Trend toward recycling is growing

and likely to grow in the future. Many in the hospitality industry who have

not previously been affected by the issue of waste-disposal and the cost of

soiled waste removing and other related problems will find that their

situations have changed. They will eventually find it necessary to adopt arecycling programme.29

Of course, there are other issues in hotel industry that has effect on

environment. For instance, one of the problems for certain part of hotels is

the indoor air quality. In some of the lodging facilities it is allowed to

smoke in its premises. Bad indoor air quality can cause allergies,

asthmatic reactions and other undesirable diseases.30Increasingly, voters

and travelers are clamoring for clean air.

26http://vide.lu.lv/coastlearncd/tourism/why_problems.htm [Accessed 18 Jan]27 http://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotels, slide 1 [Accessed 19 Jan]28http://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotels, slide 1 [Accessed 19 Jan]29

Dittmer R. P., Griffin, G. G., 1993, Dimensions of the Hospitality Industry, Van Nostrandreinhold, New York, pp. 528-529 [Accessed 19 Jan]30http://ergo.human.cornell.edu/HotelEzra/HIAQ.pdf, slide 8, [Accessed 19 Jan]

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http://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://ergo.human.cornell.edu/HotelEzra/HIAQ.pdfhttp://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://green.hotelscombined.com/GreenYourHotelWhitePaper.php#environmental-impact-of-hotelshttp://ergo.human.cornell.edu/HotelEzra/HIAQ.pdf


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Interesting to mention, that animals like foxes, mice are getting in to the

recycle bins, where waste food is thrown. As a result feral animals are

better fed than native animals, and it means losing culture and wrecking

the environment at the same time.

4.2 Analysis of environmental issues in Latvia

The hotel industry forms a large and significant part of the whole tourism

industry and if not managed properly, it has the potential to be

disadvantageous to the social and natural environments within which it

functions. Hotels, as written before, are also resource intensive and in

order to reduce their impact, it is imperative to go green. All in all, many

greening initiatives are not expensive to implement and provide

substantial benefits to the business. Taking steps towards going green is

worthwhile for both consumers and businesses.31

To analyse what and how external factors affect the implementation of

environmental-friendly programme to the hotel, a PEST analysis can be

used. Organisation itself can not influence environmental factors, and

environmental factors can not influence industries or organisations

profitability.

The first element of PEST analysis is political factors. It is related with the

pressure and opportunities, which are offered by changes in government

and society attitude against industry, changes in political institutions, and

31http://green.hotelscombined.com/GreenYourHotelWhitePaper.php [Accessed 19 Jan]

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direction of political process, juridical questions and general legislative

environment.32

The second element of involves economic factors. Economic conditions

affect how easy or how difficult it is to be successful and profitable at any

time because they affect both capital availability and cost, and demand.33

The third aspect focuses its attention on forces within society such as

family, friends, colleagues, neighbors and the media. Social forces affect

our attitudes, interests and opinions (like ethical). These forces shape who

we are as people, the way we behave and ultimately what we purchase.34

Finally, unsurprisingly the fourth element is technology. Is related with

changes in technologies which can modify the competitiveness positions

of enterprise. Industries merge; new strategic groups arise; current

products are being improved, un process innovations cuts manufacturing

costs.35

In making a good PEST analysis scheme, subject should be a clear

definition of the market being addressed.36

32http://rokasgramata.lv/frontpage/index/section_id/79 [Accessed 17 Jan]33http://www.coursework4you.co.uk/essays-and-dissertations/pest-analysis.php [Accessed

17 Jan]

34http://www.learnmarketing.net/pestanalysis.htm [Accessed 18 Jan]35http://rokasgramata.lv/frontpage/index/section_id/79 [Accessed 17 Jan]36http://vide.lu.lv/coastlearncd/tourism/why_problems.htm [Accessed 18 Jan]

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4.2.1PEST analysis

PEST analyzing modelPolitical factors

What political factors affect the

situation?

Ekonomical factorsWhat economical factors affect the

situation?Social factors

What social factors affect thesituation?

Technological factorsWhat technological development

factors affects the situation?

PEST analysis about possibilities of successfully implementing an environmental-

friendly programme/going green to a hotel in connection with changes in the

market segmentation.

Political factorsWhat political factors affect

implementation of environmental-friendly programme?

Rising/decreasing taxes intourism and hotel business

Government have a verypositive and supportive attitudetowards hotel industry

Hotel must match up with allhotel law standarts/norms

Economical factorsWhat social factors affect

implementation of environmental-friendly programme and profit gain?

Competition

Unstable economical situation

Unnecessary much moneyresources spent onmaintenance (energy, wateretc.)

Inflation rates under/not undercontrol

Growth of the economicalindustry

Social factorsWhat social factors affect

implementation of environmental-friendly programme?

Changes in people lifestyle,habits

Consumers becoming

health consciousness Going green is fashionable,

people becoming fashiondeliberate

Changes in hotel industryfashion trends

People awareness ofenvironmental issues

Hotels image from consumerspoint of view

Technological factorsWhat technological developmentfactors affect implementation of

environmental-friendly programme?

New inventions, that allows tosave more water/energy

Improved technologies,

upgrades Communication through

Internet

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4.3 Market segmentation in green quality programmes

The market segmentation of green quality programs can be divided into

groups:

4.3.1 Behavioral Green Segment

This group of people thinks and acts green. Their intention is to protect

and improve the environment by using environmental-friendly products.

They are trying to adopt healthy habits such as eating organic food.37

Over the years the number of Behavioral Greens- consumers with themost environmental-friendly based attitudes and behaviors- has increased

by 7.3-million. In 2008, the number of these green consumers consisted

of 62.4-million adults who represented 29% of the total adult population.38

4.3.2 Green Consumers

The International Institute for Sustainable Development (IISD) describes

green consumers as follows:

Commitment to green lifestyles

Critical of their own environmental practices and impact

Looking for companies that incorporate green practices

37http://www.experian.com/small-business/think-green-consumers.jsp [Accessed 19 Jan]38http://www.fusbp.com/pdf/BeGreenBeAwareBeGreenAware.pdf[Accessed 19 Jan]

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http://www.experian.com/small-business/think-green-consumers.jsphttp://www.fusbp.com/pdf/BeGreenBeAwareBeGreenAware.pdfhttp://www.experian.com/small-business/think-green-consumers.jsphttp://www.fusbp.com/pdf/BeGreenBeAwareBeGreenAware.pdf


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Overstate their green behavior

Want environmental protection to be easy

Tend to distrust companies environmental claims

Lack knowledge about environmental issues, but eager to learn39

The IISD offers some broad generalizations regarding the

demographic characteristics of green consumers:

The majority of the green consumers are composed from young

adults who are influenced by their young children

The best green customers are those with money to spend (good

prospects for businesses at the high end of the market)

The key target market is formed from women because usually they

make purchases on behalf men

The less green consumers are born before 195040

4.3.3 Think Green Segment

This group of people thinks green, but they do not behave as a green

person. Over the past three years, the number of Think Greens has

increased by more than 4 million41.

39http://www.uwex.edu/ces/cced/downtowns/ltb/lets/LTB1106.pdf, page 2 [Accessed 19Jan]

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http://www.uwex.edu/ces/cced/downtowns/ltb/lets/LTB1106.pdf, page1 [Accessed 19Jan]

41http://www.experian.com/small-business/think-green-consumers.jsp [Accessed 19 Jan]

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http://www.uwex.edu/ces/cced/downtowns/ltb/lets/LTB1106.pdfhttp://www.uwex.edu/ces/cced/downtowns/ltb/lets/LTB1106.pdfhttp://www.experian.com/small-business/think-green-consumers.jsphttp://www.uwex.edu/ces/cced/downtowns/ltb/lets/LTB1106.pdfhttp://www.uwex.edu/ces/cced/downtowns/ltb/lets/LTB1106.pdfhttp://www.experian.com/small-business/think-green-consumers.jsp


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This segment tries to remain active and eat healthy. Their children are

grown-ups; therefore they have more time to pursue their interests. Home

is important to them; they like to spend time decorating and remodeling

the house.42

Think Green consumers believe thatenvironmental protection is the

responsibility of every person; the practical value of eco-friendly products

should be assigned; our everyday actions can affect the environment and

the environmental-friendly products are more expensive.5

Segment Snapshot

Established and midlife adults

College graduate or higher degree

High income

Typically married

Likely to own their homes

Liberal or conservative5

4.3.4 Potential Green Segment

This group neither behaves nor thinks about environmental issues and

remains on the fence about key green issues.

4.3.5 True Brown Segment

They are not environmentally conscious and may have negative attitudes

about products and companies that promote themselves as safe for the

environment.

42http://www.experian.com/small-business/think-green-consumers.jsp [Accessed 19 Jan]

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While its the smallest of the four segments, there is a downward trend

indicating consumers in this group are evolving into one of the other three

green segments as environmental consciousness grows.43

True Brown may be a target group for marketers. Nowadays those who

manage to get in touch with True Browns are more likely to build long-

term relationships with these consumers. Therefore if True Browns migrate

to greener segments, marketers would enjoy enhanced brand loyalty and

support.6

This green segment represents the smallest segment of consumers. They

are ambitious, self-confident and status-driven adults who value self-

discovery and individualism. True Browns make decisions quickly. The

entertainment industry plays an important role in their lives.

Segment Snapshot

Mainly young, established adults

Education ranges from high school through postgraduate studies

High income

Typically single or married

Likely to own their homes

Conservative44

43

http://www.targetmarketingmag.com/article/riches-niches-connecting-true-browns-403940/1, [Accessed 19 Jan]44http://www.experian.com/small-business/true-browns.jsp [Accessed 19 Jan]

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4.4 Market segmentation in Hanza Hotel

Hanza Hotel is trying to attract both individuals and groups.45 It is suitable

for business travelers and people who travel on leisure purposes.46

Opening Hanza Hotels homepage, the pictures make the first impression

about the tourism enterprise. They reflect peaceful and relaxing, elegant

and modest environment.

4.4.1 Families

As the hotel is a family-run business, it aspires to maintain the ambienceof one. It is eligible for a family stay because of the vast availability of twin

rooms and a free public parking place nearby. It is important for a family

because families enjoy traveling by a car, spending quality-time

together.47 A car rental service is accessible at the front desk if a car is

needed.48

4.4.2 Students

By choosing to stay at Hanza Hotel a student may save money for the

public or private transportation because the hotel is located close to the

Old city, where the main tourism objects and entertainment places are to

be found.49 Low season is the most eligible time for this target group: it is

possible to stay at the hotel for affordable price.50 For instance if two

students want to stay at Hanza Hotel for a weekend in February

(18.02.2011-21.02.2011), it would cost them 87 Euros for a double room.51

45 From the interview [Accessed 16 Jan]46 From the interview [Accessed 16 Jan]47http://www.independenttraveler.com/resources/article.cfm?AID=334&category=2[Accessed 16 Jan]48http://www.hanzahotel.lv/en [Accessed 16 Jan]49http://www.hanzahotel.lv/en [Accessed 16 Jan]50http://www.smartertravel.com/travel-advice/season-cost-Five-tips.html?id=11416[Accessed 16 Jan]51

http://www.booking.com/hotel/lv/hanza.html?sid=a3c32f7059ec860b2de313464fcb00b5;origin=disamb;srhash=727265574;srpos=2[Accessed 17 Jan]

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4.4.3 Business travelers

Hanza Hotel offers availability for a wide number of rooms, free wireless

internet and a conference room of 55 m2 with all the equipment needed

and professional personnels assistance.52 It is suitable for individual

business travelers and for groups.

[] business people are frequent customers as well due to excellent

location and the service quality offered53

4.4.4 People who are interested in history

The hotel is located in a historical place: in past it was a place where

merchants used to cross roads, sell goods and after a long day traders

accustomed to stay and rest.54

4.4.5 Overnight travelers

Travelers, who are staying at the hotel overnight and going further with

their traveling in early morning, may find Hanza Hotel fitting to their

52

http://www.hanzahotel.lv/en [Accessed 17 Jan]53 From the interview [Accessed 16 Jan]54http://www.hanzahotel.lv/en [Accessed 17 Jan]

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needs: it is possible to arrange to have a take- away breakfast, front desk

is working 24 hours55 and guests always appreciate the responsiveness

and willingness to help from behalf of receptionist.56

4.4.6 People who are devoted to refined sensuous enjoyment

The hotel possesses its own restaurant which offers food and drinks from

all of Riga's former partners in Hanseatic League along the coast.

Customers who are interested in this, those who are gourmets may also

follow the head- cooks notes online57 related to the restaurant Hanza Pub.

Restaurant focuses on fresh fruit vegetables and green salads all bought

in the nearby Central Market are our guarantee of healthy food served

through the day from breakfast till night.58

5. Analysis

In this chapter a comparison of Hanza Hotel and Axos Hotel will be

presented. Both of them are rated as 3 star hotels, but there is a

difference: Axos Hotel has been awarded as a green hotel, Hanza Hotel

has been not. The purpose of comparison is to show the distinction and

the impact of the change in market segmentation after going green.

In sub-chapter 5.2 it is assumed that Hanza Hotel applied a green quality

programme. Possible changes in service management system related to

the problem question are being taken into consideration.

5.1 Comparison of Hanza Hotel and Axos Hotel preferences indifferent market segmentation

55http://www.hanzahotel.lv/en [Accessed 17 Jan]56

From the interview [Accessed 16 Jan]57http://dienaspiedavajums.blogspot.com/ [Accessed 17 Jan]58http://www.hanzahotel.lv/en/restaurant[Accessed 18 Jan]

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Axos is a three-star hotel in Greece. It is located in the most well-known

seaside village Platanias; close to a sandy beach and a historical town.59

Axos Hotel has been awarded as a fully-green hotel.60 While maintaining a

high level of comfort and services for the guests, Axos Hotel continues to

offer extra care for the environment and nature in everyday activities:

changing all lights in the rooms with energy saving light bulbs (it

uses less electricity than standard bulbs to do the same job)

putting a special bin for the used batteries in the reception area

replacing all the batteries with recharged ones for all the remote

controls of the rooms

friendly use to the environment detergents

using a special jacket for the hot water tank in order to save at list

20% energy

using a special mechanisms on balcony doors and windows to save

electric energy from the air-conditions

putting in all the rooms recycle bags for paper, plastic and

aluminium

helping the guests to find healthy and green activities during their

stay at the hotel

61

The main market segment of Axos Hotel is environmental-friendly

customers.62 Compared to Hanza Hotel the target group is differently

oriented. In both cases there are dissimilar needs and preferences: Axos

59http://www.axos-hotel.gr/ [Accessed 18 Jan]60http://www.axos-hotel.gr/info.php?catid=2[Accessed 19 Jan]61

http://www.axos-hotel.gr/info.php?catid=2[Accessed 19 Jan]62 Abraham Pizam, 2005, International encyclopedia of hospitality management, page[Accessed 19 Jan]

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Hotel mostly attracts families and couples due to its apartments and

studios which can hold up 3 to 4 people.63

This customer segment spends much discretionary income on comfort,

pleasure, time-savers, eating out and entertainment, their health, their

homes, and staying young64

This specific target group considers environmental practices when

choosing a holiday or business destination, a hotel, and an airline

company. They pay attention to the raw materials they want to know the

origin of it, under what kind of conditions it is grown and its impact on the

environment once it lands to the trash bin. 65

The target group in Hanza Hotel is wider. The company is offering rooms

for families, students, business travelers, people who are interested in

history, overnight travelers and people who are devoted to refined

sensuous enjoyment. Hanza Hotel tries to cater every costumer

individually. At one point of view it is easier to handle them than the green

customers because of the lack of special needs and expectations.

These customers need a personalized and enjoyable stay at a particular

hotel.66 In order to give them that Hanza needs to take some facts into

consideration such as lifecycle passage and the stage of development.

On the other hand Hanza Hotel is trying to attract green customers as

well. The hotel has already applied some undistinguished green

initiatives.67 This segment might be small at the moment, but there are

signs that it is growing.

63http://www.axos-hotel.gr/ [Accessed 19 Jan]64http://www.strategicmarketsegmentation.com/hotel-market-segmentation/ [Accessed19 Jan]65 Abraham Pizam, 2005, International encyclopedia of hospitality management, page[Accessed 19 Jan]66

http://www.performancesalessystems.com/Why-Hotels-Need-Effective-Customer-Relationship-Management-CRM-Implementations.html [Accessed 19 Jan]67 Questionnaire [Accessed 16 Jan]

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One response by hotel operators and tourist destinations to the growth of

the green consumer has been the developing of environmental awards

and badges, which allow hotel operators and tourist destinations to

promote their environmental credentials68

5.2The affect of the service management system after

implementing a green quality programme in Hanza Hotel

When applying any improvement initiative, the company has to be aware

of the prospective changes in service management system and actualproduct of outcome69. In this case- when a hotel is planning to go green by

implementing a green quality programme in order to improve and not to

lose their existing clientele, but also attract a new target group. All the

parts of service management system have to be considered carefully.

5.2.1The Service concept

A customer has his expectations; he knows what he wants, when he books

a room at a regular hotel70. The basic hotels function is accommodation71,

but the hotel industry has grown72 and to keep up with the times, when

competition is fierce and customers expectations are increasing, making

renovations is necessary in order to succeed73.

68 Abraham Pizam, 2005, International encyclopedia of hospitality management, page 207[Accessed 19 Jan]69 Fitzsimmons, A. J., Fitzsimmons, M. J., 2004, Service Management operations, strategy,information technology, fourth edition, McGraw-Hill/Irwin, New York, page 68 [Accessed19 Jan]70 Bowe, T. J., Kothler, F.,Makens, C. J., 2006, Marketing for Hospitality and Tourism, fourthedition, Pearson education International, New Jersey, page 391-393 [Accessed 19 Jan]71 Vallen, G. K.,Vallen J. J.,2009, Check-in, Check-out: Managing Hotel Operations, eightedition, New jersey, page 4 [Accessed 19 Jan]72

Walker, R. J., 1999, Introduction to Hospitality, second edition, Prentice Hall, NewJerseypage, page 78-79 [Accessed 19 Jan]

73http://www.bizjournals.com/twincities/stories/2002/03/18/focus1.html [Accessed 19 Jan]

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The basic product of Hanza Hotel is a room with breakfast included in the

service package, which is the tangible part. Intangible service is the

availability to contact the front desk 24 hours74.

The change in a service concept would be- the new service package also

includes customers participation and awareness of using a product. The

new product likewise consists of environmental friendly policy applied to

the hotel. The problem would appear, if a customer does not want to take

a part75 in environmental-friendly activities, which are the main component

of improvement initiatives.

5.2.2 Market segmentation

If the hotel is changing to an environmental-friendly tourism enterprise, it

has to satisfy the needs of existing customers and also has to be ready for

new, in green lifestyle interested target group.

After making green changes, customers willingness and competence to

participate76 is relevant to maintain the green way of thinking. Customers

also may need to learn new skills.77

Existing loyal customers could be divided in two groups:

1) Customers, who are willing to participate

2) Customers, who do not care about the environmental-friendly

innovations and are not willing to be a part of them

74www.hanzahotel.lv[Accessed 19 Jan]75 Fitzsimmons, A. J., Fitzsimmons, M. J., 2004, Service Management operations, strategy,information technology, fourth edition, McGraw-Hill/Irwin, New York, page 106 [Accessed19 Jan]76 Fitzsimmons, A. J., Fitzsimmons, M. J., 2004, Service Management operations, strategy,information technology, fourth edition, McGraw-Hill/Irwin, New York , page 106 [Accessed19 Jan]77

, Fitzsimmons, A. J., Fitzsimmons, M. J., 2004, Service Management operations, strategy,information technology, fourth edition, McGraw-Hill/Irwin, New York, page 71 [Accessed19 Jan]

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The first group does not cause any queries about following the new green

policy. The second one has to be taken into account.

Customer resistance to new forms of service transactions may be

explained by the need to learn a radically new script78

If not making any solutions or compromises, these loyal customers may be

lost effortlessly.

A positive aspect in market segmentation after going green is the brand

new target group- environmental-friendly lifestyle supportive people.

Market segmentation could change if there would be some modifications

in prices. Possible changes in prices for the room should be considered.

Responding to environmental challenges has always been a costly and

complicated proposition79 to the company.

5.2.3 Service Delivery system

While going green the hotel should pay attention how the green

innovations are linking together with existing operations. The balance

between the core service and new green activities has to be maintained.

Without doubt there will be new technologies implemented in the hotel.

Personnel as well as customers need to have a good knowledge80 about

practicing green initiatives. The employees have to be educated in order

to satisfy the guest and deliver services consistently to customers. The

new services need to meet strategic intensions (to economize on

power/water saving, stay competitive, make a good image etc.) to retain a

good quality.

78Fitzsimmons, A. J., Fitzsimmons, M. J., 2004, Service Management operations, strategy,information technology, fourth edition, McGraw-Hill/Irwin, New York, page 106 [Accessed19 Jan]79http://archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdf, page 46 [Accessed 19 Jan]80

Fitzsimmons, A. J., Fitzsimmons, M. J., 2004, Service Management operations, strategy,information technology, fourth edition, McGraw-Hill/Irwin, New York, page 71 [Accessed19 Jan]

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5.2.4 Culture and philosophy

When introducing Hanza Hotel to green initiatives, it is relevant that the

employees are competent, educated about the new philosophy that

company follows. They have to be well informed about the green

changes, have to know the expected result and why these changes are

being made.

The key word in the definition of perception is individual.81 Individual

approach is relevant when reaching out to the customer. A group of

customers who do not want to be a part of green innovations should be

considered as a challenge. Employees should know how to react whenfacing this group. They are the ones, who make the communication with

clients. That is why the staff members should be well prepared and

enlightened in the new green culture.

Also the green activities should be proposed within the personnel, because

employees make the first impression about after entering the hotel.

5.2.5 The Image

The image of the green hotel should not be disregarded. Environmental-

friendly image may be a useful tool for conserving the existing loyal

clients, likewise for attracting new customers. It is expedient to illustrate

the change in philosophy of going green and to underpin it with

reasonable arguments.

The focus of the image would change. When booking a room by using

internet, a customer would see what kind of company Hanza Hotel is.

Implemented green programme would display the hotels new view of

hospitality business. The image may be used as an important instrument

of communication with existing and potential clients.

81 Bowe, T. J., Kothler, F.,Makens, C. J., 2006, Marketing for Hospitality and Tourism, fourthedition, Pearson education International, New Jersey, page 213 [Accessed 18 Jan]

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5.2.6 SWOT analysis applied to Hanza Hotel

INTERNAL FACTORSStrengths Weaknesses

Excellent location

High quality of services

(trained employees)

Differentiated services, for

example, take-away breakfast

Individual approach to specific

requests

Green initiatives

Own restaurant

Ecological products for the

use of making healthy food

Lack of marketing expertise

Reputation is not formed yet

Rated as a 3 star hotel,

although the hotel is close to

have 4 stars (may lead to a

wrong impression about the

hotel)

EXTERNAL FACTORS

Opportunities Threats

Expanding the market

segmentation by attracting

environmental friendlyoriented customers

Gaining a certificate for

practicing green initiatives to

be the premier green hotel

in the district

Lack of local people as

customers (competitors may

use this as their opportunity toextend their market

segmentation)

Unstable economical situation

in country, increase of taxes82

Fierce competition

82http://www.internationaltaxreview.com/Article/2613640/IMF-forces-Latvia-to-increase-VAT-rate.html [Accessed 19 Jan]

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6. Evaluation

In this chapter advantages and disadvantages are being evaluated. If

Hanza Hotel is willing to go green, there has to be more advantages than

disadvantages in order to benefit from the change in market

segmentation.

6.1 Advantages of going green in the market segmentation

The concept of going green- becoming more environmentally aware and

then putting that awareness into practice83- has been frequently

practiced in hospitality and tourism businesses nowadays.

The first advantage of going green for a business besides protecting the

environment is the amount of money that can be saved in a long term.

According to Microsoft, turning off your machine every night, or putting it

into "hibernate" mode so that the screen uses no energy, can save $90

per computer over the course of a year84

One approach that can be applied in the process of saving more energy is

using new devices, which seem to be more economical. Therefore, it is

possible to reduce the overall cost and the amount of bills. After few

months it is feasible to save money and protect the environment by

practicing green initiatives.

83http://www.ehow.com/facts_5032914_advantages-disadvantages-corporations-going-

green.html [Accessed 20 Jan]84http://www.ehow.com/facts_5032914_advantages-disadvantages-corporations-going-green.html [Accessed 20 Jan]

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Another advantage is to gain independence for a business by producing its

own energy. It may maintain a good image and lower the costs for both

the enterprise and a customer in a long run.

One more benefit of going green is paying fewer taxes. It may affect the

price of the room in a positive way. The hotel would spend less money on

taxes, so the customer would get the room for a more affordable price. In

this case the price would not be the crucial factor influencing a great

change in market segmentation.

The 2009 federal stimulus bill contained approximately $50 billion in

funding to promote clean energy. Among the incentives are tax

deductions for businesses that can cut their building's energy

consumption by 50 percent85

6.2 Disadvantages of going green in market segmentation

To begin with, it is expensive for a hotel to turn into an environmental-

friendly enterprise. It is not common yet, although there is a tendency

which shows growth in practicing environmental-friendly initiatives.86 The

companies which are providing the implementation of green practices are

still in a process of development. It is a long progression to gain the

appropriate level of knowledge. To even up the losses a possibility of

increasing the price for staying at a hotel could be established. Otherwise

the customer may choose a lower cost accommodation.

In order to be ecological a particular enterprises employees and

customers need to gain knowledge how to use the green quality

programme in practice. It takes time to enact intended activities.

85http://www.ehow.com/facts_5032914_advantages-disadvantages-corporations-going-

green.html [Accessed 21 Jan]86http://www.hotel-online.com/News/PR2007_3rd/July07_OrlandoGreen.html [Accessed 21Jan]

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Going green may not fit to some of the loyal customers expectations. It is

complex for them to participate in the process of green lifestyle. They may

be indolent to recycle, to smoke outside, to save energy etc. Unwillingness

to be involved in specific activities may cause a great change in market

segmentation.

7. Conclusion

In order not to loose the existing clients of Hanza Hotel, the following facts

should be taken into consideration:The hotel should cater for every customer individually because they need

a personalized and enjoyable stay at the particular accommodation.

If Hanza Hotel applies a green quality programme as a part of

improvement initiative it should try to keep the costumers willingness and

competence to participate.

The tourism enterprise should think of keeping more or less the same

prices in order to avoid a great change in market segmentation.It is trendy to be green nowadays. Therefore the change is positive in the

image and has an impact of keeping the loyal customers.

In order to attract the green market segmentation Hanza Hotel should

have an extra care for environment and nature in every-day activities.

While doing it they should again cater for every client individually.

To expand the hotels target group it should provide the appropriateconditions for special needs which has been described in details under the

chapter Market segmentation in green quality programmes.

To get green clients the employees should be well-prepared in green

culture.

The change in the image has to be taken into consideration in this case as

well it attracts the prospective target group.

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8. List of references

Articles:

1.http://www.archone.tamu.edu/epsru/Course_Readings/Readings_09/Its

%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdf - Harward

Business review, May-June1994. Its not Easy to be Green, pg. 1-4.[online]

2.http://www.bizjournals.com/twincities/stories/2002/03/18/focus1.html -

Andrew Tellijohn, 17 March 2002, 11:00 pm. Hotel competition drives

renovation [online]

3.http://www.ehow.com/facts_5032914_advantages-disadvantages-

corporations-going-green.html - an eHow Contributor, 2011.Advantages &

Disadvantages of CorporationsGoing Green. [online]

4. http://www.entrepreneur.com/marketing/networking/article53188.html -

Misner, I., 2002. Word-of-Mouth: The Worlds Best-Known Marketing Secrets.

[online]

5.www.entrepreneur.com/marketing/networking/article53188.html - Misner,

I., 2002. Word-of-Mouth: The Worlds Best-Known Marketing Secrets. [online]

6.http://www.experian.com/small-business/think-green-consumers.jsp -

Experian Information Solutions, 2011. Think Green Consumers Mailing List

[online]

7.http://www.experian.com/small-business/true-browns.jsp - Experian

Information Solutions, 2011. True Browns Mailing List[online]

8. http://www.independenttraveler.com/resources/article.cfm?AID=334&category=2 - Genevieve S. Brow, 2011. Family Car Travel [online]

31
http://www.archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://www.archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://www.archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdfhttp://www.archone.tamu.edu/epsru/Course_Readings/Readings_09/Its%20Not%20Easy%20Being%20Green_Walley_Whitehead.pdf


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9. http://www.internationaltaxreview.com/Article/2613640/IMF-forces-Latvia-

to-increase-VAT-rate.html - Euromoney Institutional Investor PLC, 15

December 2008. IMF forces Latvia to increase VAT rate. [online]

10. http://www.fusbp.com/pdf/BeGreenBeAwareBeGreenAware.pdf - Experian,2007. Be Green, Be Aware, Be GreenAware [online]

11. http://www.performancesalessystems.com/Why-Hotels-Need-

Effective-Customer-Relationship-Management-CRM-

Implementations.html - A Sales and Marketing Effectiveness and Custom

Development Company, 2010.Why Hotels Need Effective Customer

Relationship Management (CRM) Implementations [online]

12. http://www.targetmarketingmag.com/article/riches-niches-connecting-

true-browns-403940/1 - Denise Hopkins, 4 March 2009. Riches in Niches:

Connecting to True Browns [online]

13. http://www.targetmarketingmag.com/article/riches-niches-connecting-

true-browns-403940/1 - Bill Ryan, November 2006. Lets talk business [online]

Books:

1. Bowe, T. J., Kothler, F.,Makens, C. J., 2006, Marketing for Hospitality and

Tourism, fourth edition, Pearson education International, New Jersey

2. Dittmer R. P., Griffin, G. G., 1993, Dimensions of the Hospitality Industry,

Van Nostrand reinhold, New York

3. Fitzsimmons, A. J., Fitzsimmons, M. J., 2004, Service Management

operations, strategy, information technology, fourth edition, McGraw-

Hill/Irwin, New York

4. Hollensen, S., 2003, Marketing Management A relationship Approach,

Pearson Education Limited, Essex

5. Vallen, G. K.,Vallen J. J.,2009, Check-in, Check-out: Managing Hotel

Operations, eight edition, New jersey

6. Walker, R. J., 1999, Introduction to Hospitality, second edition, PrenticeHall, New Jersey

32
http://www.performancesalessystems.com/Why-Hotels-Need-Effective-Customer-Relationship-Management-CRM-Implementations.htmlhttp://www.performancesalessystems.com/Why-Hotels-Need-Effective-Customer-Relationship-Management-CRM-Implementations.htmlhttp://www.performancesalessystems.com/Why-Hotels-Need-Effective-Customer-Relationship-Management-CRM-Implementations.htmlhttp://www.performancesalessystems.com/Why-Hotels-Need-Effective-Customer-Relationship-Management-CRM-Implementations.htmlhttp://www.performancesalessystems.com/Why-Hotels-Need-Effective-Customer-Relationship-Management-CRM-Implementations.htmlhttp://www.performancesalessystems.com/Why-Hotels-Need-Effective-Customer-Relationship-Management-CRM-Implementations.html


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Brochures:

1. Summary brochure from green Key to EMAS , 2009. [online]. Available at:

[Accessed 10 January 2011]

2.The green Key-AN ECO-LABEL FOR LEISURE ORGANIZATIONS, 2009.

[online]. Available at:


Internet sources:

1. Axos Hotel, Friendly to the Environment. [online]. Available at:


2. Axos Hotel, Welcome to Axos Hotel in Rethymno - Crete. [online].

Available at: < http://www.axos-hotel.gr/> [Accessed 19 January 2011]

3. Baranovskis Normunds, 2011, Hanza Pub Special offer. [online].

Available at: [Accessed 19

January 2011]

4. Developement Portal, 2008, Is it worth to be green? [online].

Available at: [Accessed 15

January 2011]

5. Economically Sound, 2011, Rescource conservation. [online].

Available at:


6. GeoInteractive Geography Resources,2011, ENVIRONMENTAL

IMPACTS OF TOURISM, slide 2, 4. [online]. Available

at: [Accessed 15 January 2011]

33
http://ec.europa.eu/environment/emas/pdf/StepUp/EMASGuidelines_BIO_FinalSummaryBrochure_GreenKey.pdfhttp://ec.europa.eu/environment/emas/pdf/StepUp/EMASGuidelines_BIO_FinalSummaryBrochure_GreenKey.pdfhttp://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdfhttp://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdfhttp://www.axos-hotel.gr/info.php?catid=2http://www.axos-hotel.gr/http://www.isotanusitas.hu/kornyezet.htmlhttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://ec.europa.eu/environment/emas/pdf/StepUp/EMASGuidelines_BIO_FinalSummaryBrochure_GreenKey.pdfhttp://ec.europa.eu/environment/emas/pdf/StepUp/EMASGuidelines_BIO_FinalSummaryBrochure_GreenKey.pdfhttp://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdfhttp://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdfhttp://www.axos-hotel.gr/info.php?catid=2http://www.axos-hotel.gr/http://www.isotanusitas.hu/kornyezet.htmlhttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppthttp://www.geointeractive.co.uk/environmental%20impact%20of%20tourism.ppt


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7. Green Hotels & responsible Tourism Initiative, 2010, How to increase

your bottom line by going green? [online]. Available at: [Accessed 15 January 2011]

8. Green Hotels & responsible Tourism Initiative, 2010, Environmental

impact of hotels. [online]. Available at:


9. Hanza Hotel, HanzaHotels homepage. [online]. Available at:

http://www.hanzahotel.lv/en [Accessed 19 January 2011 ]

10. Hanza Hotel, Restaurant / Hanza Hotel in Riga. [online]. Available at:


11. Holland, Green Key. [online]. Available at:


12. Hotel Market Segmentation, Hotel Market Segmentation & Hotel

Customer Segments. [online]. Available at: [Accessed 19 January 2011]

13. Kamasz Pamasz, 2009, The consequences of environmental

pollution. [online]. Available at:


14. News for the hospitality executive, 2007, Going Green - the Number

1 Trend in the Hotel Industry. [online] . Available:

[Accessed 17

January 2011 ]

15. Online booking, 2011, Hanza Hotel. [online]. Available at:


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sid=a3c32f7059ec860b2de313464fcb00b5;origin=disamb;srhash=727265

574;srpos=2 > [Accessed 17 January 2011]

16. Sustainable Tourism, 2011, Non- sustainable seaside tourism

problems. [online]. Available at:http://vide.lu.lv/coastlearncd/tourism/why_problems.htm [Accessed 18

January 2011]

17.The Green Key, 2009,AN ECO-LABEL FOR LEISURE ORGANIZATIONS,

Available at:


18. The Green Key, The Green Key homepage.[online]. Available at:


Additional sources:

1. Personal interview

Name of the person interviewed: Elina Stepanova

Interviewed by: Elina Bormane, Nora Horvath, Simona-Andreea Luca,

Niklavs Svede

Date and time: 17 January 2011, electronically

Name of the person interviewed: Elina Stepanova

Interviewed by: Elina Bormane, Nora Horvath, Simona-Andreea Luca,

Niklavs Svede

Date and time: 17 January 2011, electronically

9. Attachments

Interview

1. How is the business going (in general)?

35
http://www.booking.com/hotel/lv/hanza.html?sid=a3c32f7059ec860b2de313464fcb00b5;origin=disamb;srhash=727265574;srpos=2http://www.booking.com/hotel/lv/hanza.html?sid=a3c32f7059ec860b2de313464fcb00b5;origin=disamb;srhash=727265574;srpos=2http://vide.lu.lv/coastlearncd/tourism/why_problems.htmhttp://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdfhttp://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdfhttp://www.green-key.org/http://www.booking.com/hotel/lv/hanza.html?sid=a3c32f7059ec860b2de313464fcb00b5;origin=disamb;srhash=727265574;srpos=2http://www.booking.com/hotel/lv/hanza.html?sid=a3c32f7059ec860b2de313464fcb00b5;origin=disamb;srhash=727265574;srpos=2http://vide.lu.lv/coastlearncd/tourism/why_problems.htmhttp://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdfhttp://www.kmvk.nl/cmslib/www.kmvk.nl/greenkeyorg/files/Factsheet_Green_Key_v1.pdfhttp://www.green-key.org/


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In general the business is going well- there is a tendency of number

of guests increasing.

2. What is the average booking per day?

To answer this, many aspects have to be taken in consideration:

On weekends- the hotel usually is more booked than in the

beginning of week or even booked 100 %

The situation is changing rapidly- the expected number of

guests may vary (increase/decrease, it depends on many

factors)

Holiday season

Unexpected weather conditions etc.

3. What are Hanza Hotels the target groups?

Target groups: individual travelers, groups of tourists and business

travelers.

Most of the guests are people from abroad, Latvians as guests

commonly never reach more than 1-5 % of total number of

customers during the month. Mostly our customers travel on leisure

purposes, although business people are frequent customers as well

due to the excellent location and the service quality offered.

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From October- April our customers are more individual and business

travelers, nonetheless during May- September the number of group-

leisure travelers increases noticeably (usually every day there is at

least one group (sometimes even 3 or 4 groups at once) of leisure

travelers staying at the hotel).

4. Does the hotel offer any kind of loyalty programme, discounts or any

other bonuses?

The hotel comes forward with exclusive price offers and

individualized, special services to its loyal customers.

Occasionally there are special offers being made to new customers,

such as stay 3 nights, pay for 2 etc.

5. Does the service package include all elements the customer

expects? Have these elements met the standard and quality

criteria?

We are trying to meet all the expectations of our guests within

limits. We are implementing all the standard criteria of quality in a

high level, which is why we do not position ourselves as a 3 star

hotel, but as a 3+ star hotel. In order to gain the 4th star we just

need to establish few additions that are requirements for this rate.

6. How will you cater for the customers particular needs and

expectations?

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First of all, we are trying to do everything it takes to make our

customer feel good and comfortable. Guests always appreciate the

responsiveness and willingness to help from behalf of receptionists.

The rooms invariably are in a perfect order and clean. Breakfast is

solid and the choice offered is wide (starters, main course),

everyone is welcomed to try delicious dishes and drinks at Hanza

Pub within the business lunch and a la carte. We are taking a good

care of business guests basic and specific needs. The service is fast,

of a high quality and responsibility.

If a guest has an extra demand, we try to meet it. We are also

making the monitoring of our guests by using questionnaires, as well

as appraising guest left references online, which is a good

opportunity to see what we need to sharpen up.

7. How is the whole service management system- culture (internal

environment), image (marketing), concept and delivery system

(technologies used, for example, for booking)?

The number of employees is comparatively small; therefore the

process of organizing, communication and delivery is fast.

Hanza Hotel cuts a fine figure. Albeit the hotel was opened in 2007,

maintenance and renewal operations are made constantly. The

volume and quality of services are being improved on a regular

basis. Every one of employees fulfills its duties conscientious with a

high level of responsibility. Staff members are amiable, cooperative,

friendly and always willing to help.

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About the registration of guests- when they arrive, they are asked to

fill out the registration papers in order to save the information.

Check- in and check- out proceeds very quickly, it takes just few

minutes. The guest is given the entire necessary information- city

map, tips, directions, information about the most beautiful and

remarkable tourism objects nearby etc.

8. Have you applied anything green (non-smoking, power/water

saving, food etc.)?

We are putting into effect the green initiatives:

Power saving- for instance, if there is no one in a room for

employees, the light has to be turned off, likewise economical

light- bulbs are used

Waste paper is given for Lgatnes Paprfabrika for recycling

We are encouraging our guests to think and act green, for

instance taking in consideration water and power saving during

their stay

Due to the safety policy it is not allowed to smoke inside the

building, but guests are allowed to smoke outside.

2 times a year fire prevention measures are taking place at the

hotel, so the employees are prepared for emergencies. First aid

classes are planned to be held in the nearest future

The groceries are bought from tested and reliable distributors,

focusing on ecological food

The only working company of paper industry in Latvia. One of its operations is to recycle waste paper

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pilot project finished!!!

Documents