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Alyahia, M.; Azazz, A.M.S.; Fayyad, S.; Elshaer, I.A.; Mohammad, A.A.A. Greenwashing Behavior in Hotels Industry. Encyclopedia. Available online: https://encyclopedia.pub/entry/54700 (accessed on 11 May 2024).
Alyahia M, Azazz AMS, Fayyad S, Elshaer IA, Mohammad AAA. Greenwashing Behavior in Hotels Industry. Encyclopedia. Available at: https://encyclopedia.pub/entry/54700. Accessed May 11, 2024.
Alyahia, Mansour, Alaa M. S. Azazz, Sameh Fayyad, Ibrahim A. Elshaer, Abuelkassem A. A. Mohammad. "Greenwashing Behavior in Hotels Industry" Encyclopedia, https://encyclopedia.pub/entry/54700 (accessed May 11, 2024).
Alyahia, M., Azazz, A.M.S., Fayyad, S., Elshaer, I.A., & Mohammad, A.A.A. (2024, February 02). Greenwashing Behavior in Hotels Industry. In Encyclopedia. https://encyclopedia.pub/entry/54700
Alyahia, Mansour, et al. "Greenwashing Behavior in Hotels Industry." Encyclopedia. Web. 02 February, 2024.
Greenwashing Behavior in Hotels Industry
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This entry is adapted from the peer-reviewed paper 10.3390/su16031050

Greenwashing has become a pervasive phenomenon in the tourism and hospitality sector, posing significant challenges and potential reputational damage to green hotels.

greenwashing patronage green hotels

1. Introduction

The growing concern for environmental preservation has led to a surge in demand for eco-friendly hotels [1][2][3] that is aligned with the efforts of hospitality businesses to reduce the negative consequences of their activities on the environment [4]. Eco-friendly hotels, also known as green hotels, aim to minimize their negative environmental impact by implementing eco-friendly practices such as recycling, lessening waste, utilizing energy-efficient appliances and lighting, and serving locally sourced and organic food [4][5][6]. However, these practices can be costly for hotels, as they often require investment in new equipment and infrastructure [5]. As a result, some hotels may engage in greenwashing, which is the act of making misleading or deceptive claims about their environmental performance [7][8]. For example, a hotel may encourage guests to reuse towels and bed linens or expect their room to be cleaned less frequently to conserve water and energy, while the actual goal is to reduce costs [7][9]. Even when hotels are genuinely implementing sustainable practices, customers may still distrust these green initiatives due to the perception of greenwashing [8][10] or the difficulty of distinguishing between real and fake green claims [11][12]. Both actual and perceived greenwashing can damage a hotel’s image and reputation, which can ultimately impact guest perception, attitudes, willingness to pay, brand trust, and staying intentions [7][8][12][13]. Greenwashing can also diminish the collective and global efforts to protect the natural environment, which is one of the key resources for the tourism and hospitality industry [4]. This makes green hotels susceptible to the negative impacts of greenwashing; therefore, green hotel managers need to be proactive and prevent or mitigate the negative impacts of perceived greenwashing to ensure the continuity and success of their sustainable initiatives or operations.

2. Greenwashing in Hotels

Greenwashing is a form of corporate deception that uses environmental claims to mislead consumers about an organization’s eco-friendly practices or about the environmental benefits of its products and services [2][14][15]. It is the propagation of an unfounded or misleading environmental image and involves practices or acts that seem environmentally conscientious but have an underlying purpose of cost cutting and profit optimization [2]. Greenwashing occurs when companies use buzzwords such as “go-green”, “environmentally friendly”, and “eco-friendly” to create a false impression of environmental responsibility [1][7][14]. The relevant literature [7][8][9][16][17][18] revealed that hotel greenwashing involves various practices such as misleading guests with fake or unreal hotel environmental initiatives. For example, some hotels may use masking tactics to persuade or encourage guests to engage in eco-friendly programs, such as reusing towels/linens and conserving water/electricity, to protect the environment while these practices are mainly intended to reduce operating costs and maximize profits in the name of sustainability. Greenwashing also includes overstating the hotel’s green image and selectively disclosing positive eco-friendly information and/or concealing information about the hotel’s negative impacts on the environment or attributing them to other factors. Making vague or unsubstantiated claims about the hotel’s environmental practices through the use of eco-friendly marketing buzzwords such as “green” or “sustainable” without having any actual environmental initiatives is another common greenwashing practice.
Business organizations use greenwashing tactics to improve customer support and boost profitability [1]. Up to 98% of eco-friendly products/services involve some sort of greenwashing practice [17]. Nonetheless, greenwashing can cause various negative consequences [8][16]. Greenwashing can undermine the trust between a hotel and its guests. When guests feel that they are being misled by green hotels, they are less likely to trust those hotels. According to a study by Nimri et al. [12], one in every three travelers doubted hotels’ green claims. That is, when hotels made exaggerated or misleading claims about their environmental practices, hotel guests might be skeptical or doubtful of hotels’ green claims. Although deceptive tactics may result in short-term benefits, these misleading green claims will eventually erode consumer trust [1]. Studies have shown that perceived greenwashing unfavorably impacts guest confidence in the credibility of the sustainable performance or claims of green hotels [5][7][16] and retail businesses [17].
Greenwashing can also adversely affect patronage intentions toward eco-friendly hotels, particularly intentions to stay in green hotels or participate in hotels’ green initiatives. When hotels make environmental claims that are not genuine, it evokes customers’ suspicion or skepticism of these claims. Such skepticism can minimize customer participation in a hotel’s green initiatives, e.g., linen reuse programs, and decrease the likelihood of revisiting the hotel [2]. Green-hotel patronage is degraded when customers believe that eco-friendly practices are merely a way for hotels to save money, rather than a genuine commitment to sustainability [19]. Prior research [11] reported that hotel greenwashing practices had negatively influenced green behavioral intentions. In the same vein, Ling and Aziz [1] revealed that perceived greenwashing fear had a negative influence on green-hotel patronage. Research also showed that greenwashing negatively impacted green brands [20] or led to brand avoidance [13].
Tourists’ tendency to pay extra money for eco-friendly services can also be influenced by their perception of hotel greenwashing. In this context, a study by Pulido-Fernández and López-Sánchez [21] revealed that only guests with increased green intelligence were willing to pay extra for sustainable destinations. Likewise, a study by Casado-Díaz et al. [22] revealed that hotel guests were willing to pay a premium for actual sustainable initiatives such as water conservation. Recently, Majeed and Kim [8] concluded that the perception of greenwashing determines customers’ behavioral intentions toward green hospitality enterprises.

3. Green Trust

Green trust is a type of brand trust that is specifically related to a company’s environmental practices. It is described as the belief that a corporation is committed to operating in an environmentally responsible way and provides products and services that meet the environmental expectations of its customers [23]. Green trust is built through the honest and transparent presentation of business environmental facts, as well as the provision of products and services that are truly environmentally friendly [24]. It is driven by consumers’ environmental consciousness and their recognition of the eco-friendliness of a firm’s products and services. Ultimately, green trust is the consumers’ confidence that eco-friendly service providers will actually deliver on their sustainability claims [5].
Green trust is important because it can influence consumer behavior [25]. Trust is the willingness to rely on another party based on the assumption that the party will be able, dependable, and honest. As a result, consumer trust can have a significant impact on behavioral decisions [26]. When consumers trust the green initiatives of a company, they are more likely to purchase its products and services, even if they are more expensive than those of competitors. They are also more likely to participate in the company’s environmental initiatives and recommend it to others [5]. Conversely, a lack of green trust can have a negative impact on consumer intentions to participate in green activities. For example, a study by Rahman et al. [2] discovered that customers are reluctant to be involved in hotel green initiatives, e.g., towel and bedsheet reuse, because they do not trust that hotels are truly committed to sustainability.
Brand trust is a complex concept that encompasses both consumers’ confidence in a brand’s reliability and their willingness to act on that confidence [27][28][29][30]. Thus, behavioral intentions, or the willingness to act toward a brand in certain ways, are a fundamental component of brand trust [28][29][30]. Customers are less likely to trust companies that market new products with false or misleading green declarations and overstate the green benefits of their products [23]. Thus, building green trust is essential for encouraging consumers to engage in environmentally responsible hospitality initiatives in the future [5].
Greenwashing in the hotel industry can influence consumers’ environmental patronage by affecting green trust. In other words, green trust is a key factor that influences how consumers respond to hotel greenwashing. If consumers perceive that a hotel is deceptive or untrustworthy, they are less likely to trust the hotel’s green endeavors and are less likely to stay in the hotel or pay extra for its green products and services. A study by Rahman et al. [2] found that guests were more likely to be skeptical of hotels that had an ulterior motive for their green practices. This skepticism, in turn, negatively impacted guests’ intentions to experience eco-friendly initiatives or revisit the hotel. Similarly, a study by Peng and Chen [10] explained that the perception of greenwashing has a detrimental impact on customer confidence and trust in the credibility of hotel green initiatives, ultimately leading customers to cease purchasing the green products or services provided by hotels.

4. Patronage

Tourists can support green hotels in a variety of ways, including expressing their preference for green hotels when making reservations, spreading positive WOM about their experience in eco-friendly hotels, showing willingness to pay extra money to stay in green hotels, and returning to green hotels for future stays [31]. Environmentally conscious customers are willing to stay in green hotels and pay more for sustainable hospitality products and services [2][21][32]. However, the prevalence of greenwashing is threatening tourists’ willingness to patronize green hotels. When hotels make false claims about their sustainability practices, it can erode customer trust and lead them to hesitate to pay extra for green hotels or even lead them to avoid the hotel brand altogether [7][13][33]. Even when hotels genuinely adopt eco-friendly initiatives, some guests believe that they should pay less for green hotels, as they view these initiatives as hotel tactics to reduce the level of comfort or save expenses [22]. González-Rodríguez et al. [32] reported that research on green-hotel guests’ willingness to pay premium prices remains scarce and provides inconclusive results. Likewise, the relationship between greenwashing and tourist patronage is complex and remains understudied.

5. The Mitigating Role of Green Authenticity and Green Transparency

Preventing or handling the adverse effects of real or perceived greenwashing helps both eco-conscious consumers and eco-friendly businesses. It also protects the environment and makes a more sustainable future possible.

5.1. Green Authenticity

Authenticity refers to the quality of being true to oneself, regardless of what others think [34]. It is the act of being genuine, trustworthy, and consistent [35]. In business, authenticity means being true to business values and beliefs and acting in a way that is consistent with those values and beliefs [35]. Green authenticity refers to the extent to which an enterprise’s environmental claims are genuine and credible [36]. Business organizations nowadays are increasingly being urged to adopt eco-friendly practices and market themselves as green brands. However, if businesses fail to provide authentically eco-friendly products and services, their green marketing tactics can be perceived as greenwashing [37]. Over the years, there has been an increase in demand for authentic brands [38], and consumers have become more skeptical of corporate claims about the environmental benefits of their products [39]. Likewise, tourists, among other stakeholders, are increasingly interested in the authenticity of eco-friendly claims made by tourism and hospitality enterprises [36]. As a result, it is essential for green hotels to fulfill their environmental promises in order to maintain their credibility and customer trust.
The expanding prevalence of greenwashing is causing a number of negative consequences for businesses [4]. In particular, greenwashing can lead to consumer distrust of corporate environmental claims and negative patronage intentions towards green services [8]. This can damage businesses’ reputations and make it difficult for them to attract and retain customers. This is where green authenticity can play a key role for business organizations to avoid the negative consequences of greenwashing [38][40]. Green authenticity is the business’s genuine commitment to sustainability and environmental protection. Authentic green businesses are forthcoming about their environmental practices and make credible claims about the environmental benefits of their products and services. When customers perceives a green business enterprise to be authentic, they tend to believe its environmental practices, which boosts customers’ trust in its products/services and stimulates their positive intentions [35][36]. Furthermore, green authenticity can help companies to differentiate themselves from their competitors. This can give the company a competitive advantage that enables it to attract new customers and charge premium prices for its products. Research has shown that green authenticity has a number of positive benefits for businesses. For instance, green authenticity can aid companies in winning their customers’ trust and fostering loyalty [35][36]. Green authenticity can also help businesses to distinguish their authentic eco-friendly products/services and capitalize on their genuine environmental benefits to charge premium prices [38][40].

5.2. Green Transparency

Transparency is the disclosure of information by an organization to its stakeholders [41]. It is a compound concept that can be characterized by three key elements: truthfulness, accountability, and engagement [42]. Truthfulness refers to the provision of accurate and complete information, even when it is negative. Accountability refers to the willingness of an organization to take responsibility for its actions and decisions. Engagement refers to the process of involving stakeholders by providing them with the information they need to make informed decisions. Transparency is particularly important for hotels, as consumers are increasingly demanding information about the sustainability practices of the businesses they patronize. Hotels can build trust with environmentally conscious customers when they become transparent about their eco-friendly performance/initiatives and when employees demonstrate sufficient knowledge and awareness of green issues [8][43]. Conversely, the deliberate failure to disclose information about eco-friendly initiatives, i.e., green hushing, or the selective sharing of green information can raise customer doubts about a hotel’s sustainability performance [8][43].
Green transparency is the practice of being open and honest about a company’s environmental practices. It includes disclosing information about the environmental effects of the company’s services, products, and operations; setting clear sustainability goals; and being accountable for its actions [41][42]. Thus, green transparency can contradict or mitigate the perception of greenwashing and its associated outcomes in a number of ways. First, green transparency reflects a company’s real commitment to sustainability and its willingness to be held accountable for its actions. This builds trust with consumers and makes them more likely to believe the company’s environmental claims. Trust is essential for building strong customer relationships [28][44], and green transparency can help companies to establish themselves as credible and trustworthy entities in the sustainability sphere [5]. Moreover, green transparency helps to address customer concerns. When customers have access to information about a company’s environmental practices, they can make more informed decisions about the products they buy and the companies they support. This is especially important for environmentally conscious consumers, who are increasingly looking to patronize businesses that are committed to sustainability [21]. Corporate transparency has also been shown to positively contribute to guest patronage. This is likely because customers value organizations that are honest and accountable [45]. Corporate transparency encourages customers to engage in eco-friendly programs or initiatives, as indicated by the study of Vaccaro and Echeverri [46]. Additionally, transparency can help customers to make informed decisions about which hotels to patronize. According to Majeed and Kim [8], customer perception of greenwashing is determined by the hotel’s green efforts, for example, divulging green facts, using green marketing, and sharing green expertise. This suggests that hotels can reduce the risk of being perceived as greenwashing by being transparent about their sustainability practices.

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Subjects: Management
Contributors MDPI registered users' name will be linked to their SciProfiles pages. To register with us, please refer to https://encyclopedia.pub/register :
Mansour Alyahia
,
Alaa M. S. Azazz
,
Sameh Fayyad
,
Ibrahim A. Elshaer
,
Abuelkassem A. A. Mohammad
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Update Date: 02 Feb 2024
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