The Impact of Green Hotel Practices towards Customer Attitude, Satisfaction, and Willingness to Pay Premium: The Case of Green Hotel in Java, Indonesia

• Main Author: Fathir Ruswandi (19015166), Anisa
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/25627
• Institution: Institut Teknologi Bandung

Tourism sector in Indonesia has been experiencing a constant growth in the past decade <br /> <br /> making it one of the country’s major sources of income. This development however often <br /> <br /> corresponds with over-consumption of energy and resources which caused an <br /> <br /> inconsiderable amount of hazardous waste. Since the hotel industry is the main sector of <br /> <br /> tourism industry, government has pushed hotels to adopt sustainable practices in which <br /> <br /> created the concept of Green Hotel. In addition, consumers are becoming more aware of <br /> <br /> hotel’s environmental impacts and a new market of eco-friendly customers has emerged <br /> <br /> in the hospitality industry. Hotels which claim to be environmentally friendly started <br /> <br /> implementing measures to reduce wastage of water, electricity and other natural <br /> <br /> resources. However, these activities are often done despite the lack of research and <br /> <br /> understanding on customer’s green attitude and behavior. This research explores <br /> <br /> customer’s attitude towards hotel’s eco-friendly practices and the impact it has on <br /> <br /> customer satisfaction. This research also investigates the level of support by the <br /> <br /> customers, through measuring their willingness to pay premium for environmentally <br /> <br /> friendly practices by hotels. Questionnaires were distributed to the public and students of <br /> <br /> SBM ITB as well as other universities all across Java, Indonesia. The analysis of the <br /> <br /> results indicate that the customers are willing to support environmentally friendly <br /> <br /> practices by hotels, when they don’t have to pay premium for it and it does not affect <br /> <br /> them personally. The analysis also indicated that a customer’s attitude towards <br /> <br /> environmentally friendly practices by the hotels has significance effect towards both; <br /> <br /> customer satisfaction and willingness to pay premium. Unlike attitude, satisfaction has <br /> <br /> no-significance towards willingness to pay premium.