Skip to main content
SpringerLink
Log in

Pricing Strategy for Green Hotel Industry

  • Conference paper
  • First Online:
Tourism, Travel, and Hospitality in a Smart and Sustainable World (IACuDiT 2022)

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

  • 370 Accesses

Abstract

Holistic health and prevention are increasingly at the center of tourists’ decisions. Tourists expect to may continue their health and wellness lifestyles when they are away from home. Hospitality can find in the “health and wellness” sector a good response to the requalification needs for the post-COVID period. In fact, since 1900s, the hospitality niche of health and wellness has been increasing around the world, and it has been an important issue for the profit growth for the hospitality destinations. But what is wellness tourism? The Global Wellness Institute defines wellness tourism as travel associated with the pursuit of maintaining or enhancing one’s personal wellbeing. Several hotels have introduced green innovation as the innovation that emphasizes health, safety, and environmental friendliness and implementation of environmental management to ensure ecological wellbeing. One way for hotels to be environmentally friendly is to implement corporate social responsibility (CSR) initiatives. In this paper, we will study the effects of corporate social responsibility policies in the hotel industry. To do that, we will model a non-cooperative hotel competition using game theory concepts. We recall that game theory is a formal, mathematical discipline that studies situations of competition and cooperation between several involved parties and aims to help us understand situations in which decision-makers interact. The model consists in a competition between a CSR hotel and a state-owned (SO) hotel that set room rates. The choice of room rates can be made either simultaneously or sequentially. Our main result is that the CSR hotel profits more than the SO hotel, regardless of the order of movements.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 189.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 249.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Throughout the paper, we use the notation superscript S to refer the simultaneous decisions competition.

  2. 2.

    Throughout the paper, we use the notation superscript L to refer the sequential decisions with the CSR hotel acting as the leader.

  3. 3.

    Throughout the paper, we use the notation superscript F to refer the sequential decisions with the CSR hotel acting as a follower.

References

  • Aksöz, E. O., Aydın, B., & Yüsel, E. (2021). Tourists approaches to eco-friendly hotels and determination of green hotel preferences: The case of Eskişehir. Turizam, 25(2), 83–95.

    Article  Google Scholar 

  • Aljarah, A., & Alrawashdeh, M. (2021). Boosting customer citizenship behavior through corporate social responsibility. Does perceived service quality matter? Social Responsibility Journal, 17(5), 631–647.

    Google Scholar 

  • Anaya-Aguilar, R., Gemar, G., & Anaya-Aguilar, C. (2021). Challenges of spa tourism in Andalusia: Experts’ proposed solutions. International Journal of Environmental Research and Public Health, 18(4), 1829.

    Article  Google Scholar 

  • Birader, T. K., & Ozturen, A. (2019). Motivators and perceptions of island residents towards medical tourism in mainland. Journal of Tourism and Services, 10(19), 164–176.

    Article  Google Scholar 

  • Biswas, A. (2020). A nexus between environmental literacy, environmental attitude and healthy living. Environmental Science and Pollution Research, 27(6), 5922–5931.

    Article  Google Scholar 

  • Bogan, E., & Dedeoglu, B. (2019). The influence of corporate social responsibility in hospitality establishments on students’ level of commitment and intention to recommend. Journal of Hospitality Leisure Sport & Tourism Education, 25, 100205.

    Article  Google Scholar 

  • Bohdanowicz, P., & Zientara, P. (2008). Corporate social responsibility in hospitality: Issues and implications. A case study of Scandic. Scandinavian Journal of Hospitality and Tourism, 8(4), 271–293.

    Google Scholar 

  • Castillo, I., & Villagra, N. (2019). The communication of CSR. Analysis of the hotel sector. Revista Latina De Comunicacion Social, 74, 1580–1609.

    Google Scholar 

  • Chaffee, E. C. (2017). The origins of corporate social responsibility. University of Cincinnati Law Review, 85, 347–373.

    Google Scholar 

  • Chen, X., & Peng, Q. (2016). A content analysis of corporate social responsibility: Perspectives from China’s top 30 hotel-management companies. Hospitality & Society, 6(2), 153–181.

    Article  Google Scholar 

  • Cheng, H., & Ding, H. (2021). Dynamic game of corporate social responsibility in a supply chain with competition. Journal of Cleaner Production, 317, 128398.

    Article  Google Scholar 

  • Chrobak, A., Ugolini, F., Pearlmutter, D., & Raschi, A. (2020). Thermal tourism and geoheritage: Examining visitor motivations and perceptions. Resources, 9(5), 58.

    Article  Google Scholar 

  • Chung, K. C. (2020). Green marketing orientation: Achieving sustainable development in green hotel management. Journal of Hospitality Marketing & Management, 29(6), 722–738.

    Article  Google Scholar 

  • Dahlsrud, A. (2008). How corporate social responsibility is defined: An analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, 15(1), 1–13.

    Article  Google Scholar 

  • Dimitrovski, D., & Todorović, A. (2015). Clustering wellness tourists in spa environment. Tourism Management Perspectives, 16(1), 259–265.

    Article  Google Scholar 

  • Edlin, G., & Golanty, E. (2019). Health and wellness. Jones & Bartlett Learning.

    Google Scholar 

  • Ferreira, F. A., Ferreira, F., & Gomes, C. F. S. (2022). Price-setting hotel competition with corporate social responsibility. In Proceedings of the 12th International Conference on Industrial Engineering and Operations Management (IEOM) (pp. 325–333).

    Google Scholar 

  • Font, X., & Lynes, J. (2018). Corporate social responsibility in tourism and hospitality. Journal of Sustainable Tourism, 26(7), 1027–1042.

    Article  Google Scholar 

  • Franco, S., Caroli, M., Cappa, F., & Del Chiappa, G. (2020). Are you good enough? CSR, quality management and corporate financial performance in the hospitality industry. International Journal of Hospitality Management, 88, 102395.

    Article  Google Scholar 

  • Franzoni, S., Sarwar, H., & Ishaq, M. (2021). The mediating role of HRM in the relationship between CSR and performance in the hospitality industry. Sustainability, 13, 13699.

    Article  Google Scholar 

  • Ghaderi, Z., Mirzapour, M., Henderson, J. C., & Richardson, S. (2019). Corporate social responsibility and hotel performance: A view from Tehran, Iran. Tourism Management Perspectives, 29, 41–47.

    Article  Google Scholar 

  • Global Wellness Tourism Economy. (2018). Global Wellness Institute. https://globalwellnessinstitute.org/wp-content/uploads/2018/11/GWI_GlobalWellnessTourismEconomyReport.pdf

  • Groshev, I., & Krasnoslobodtsev, A. A. (2017). World market of medical tourism. World Economy and International Relations, 61(10), 87–95.

    Article  Google Scholar 

  • Gutierrez-Martinez, I., & Duhamel, F. (2019). Translating sustainability into competitive advantage: The case of Mexico’s hospitality industry. Corporate Governance: The International Journal of Business in Society, 19(6), 1324–1343.

    Article  Google Scholar 

  • Habibi, A., Mousavi, M., Jamali, S. M., & Ebrahim, N. A., (2021). A bibliometric study of medical tourism. Anatolia, 1–18.

    Google Scholar 

  • Han, H., Yu, J., & Kim, W. (2019). Environmental corporate social responsibility and the strategy to boost the airline’s image and customer loyalty intentions. Journal of Travel & Tourism Marketing, 36(3), 371–383.

    Article  Google Scholar 

  • Ioannidis, A., Chalvatzis, K., Leonidou, L., & Feng, Z. (2021). Applying the reduce, reuse, and recycle principle in the hospitality sector: Its antecedents and performance implications. Business Strategy and the Environment, 30(7), 3394–3410.

    Article  Google Scholar 

  • Lambertini, L., & Tampieri, A. (2010). Corporate social responsibility in a mixed duopoly. In Working paper (Vol. 723). University of Bologna.

    Google Scholar 

  • Latapí Agudelo, M. A., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1), 1–23.

    Article  Google Scholar 

  • Lewis, A., (2021). What is greenwashing & CSR in the hospitality industry? https://www.highspeedtraining.co.uk/hub/greenwashing-and-csr-in-the-hospitality-industry/

  • Liu, M., Liu, Y., Mo, Z., Zhao, Z., & Zhu, Z. (2019). How CSR influences customer behavioural loyalty in the Chinese hotel industry. Asia Pacific Journal of Marketing and Logistics, 32(1), 1–22.

    Article  Google Scholar 

  • Miranda, D. D. P., & Cantallops, A. S. (2012). Responsabilidad social empresarial en el sector turístico: Estudio de caso en empresa de alojamiento de la ciudad de Santa Marta, Colombia. Estudos e Perspectivas Em Turismo, 21, 1456–1480.

    Google Scholar 

  • Mohammed, A., & Al-Swidi, A. (2020). The mediating role of affective commitment between corporate social responsibility and eWOM in the hospitality industry. Journal of Sustainable Tourism, 29(4), 570–594.

    Article  Google Scholar 

  • Moyeen, A., Kamal, S., & Yousuf, M., (2019). A content analysis of CSR research in hotel industry, 2006–2017. In D. Crowther, S. Seifi & T. Wond (Eds.), Responsibility and governance. Approaches to global sustainability, markets, and governance (pp. 163–179). Springer.

    Google Scholar 

  • Navarrete, A. P., Escolano, L. M. S., & Martos, J. C. M. (2021). Spa tourism in Western Europe: Reconceptualization and new space functions in a comparative perspective. Boletin De La Asociacion De Geografos Espanoles, 88, 1–39.

    Google Scholar 

  • Osti, L., & Goffi, G. (2021). Lifestyle of health & sustainability: The hospitality sector’s response to a new market segment. Journal of Hospitality and Tourism Management, 46, 360–363.

    Article  Google Scholar 

  • Pícha, K., & Navrátil, J. (2019). The factors of lifestyle of health and sustainability influencing pro-environmental buying behaviour. Journal of Cleaner Production, 234, 233–241.

    Article  Google Scholar 

  • Qian, J., Law, R., Wei, J., & Li, X. (2021). Progress of hotel corporate social responsibility research in terms of theoretical, methodological, and thematic development. Journal of Hospitality Marketing & Management, 30(6), 717–737.

    Article  Google Scholar 

  • Rela, I. Z., Awang, A. H., Ramli, Z., Md Sum, S., & Meisanti, M. (2020). Effects of environmental corporate social responsibility on environmental well-being perception and the mediation role of community resilience. Corporate Social Responsibility and Environmental Management, 27(5), 2176–2187.

    Article  Google Scholar 

  • Serra-Cantallops, A., Peña-Miranda, D. D., Ramón-Cardona, J., & Martorell-Cunill, O. (2018). Progress in research on CSR and the hotel industry (2006–2015). Cornell Hospitality Quarterly, 59(1), 15–38. https://doi.org/10.1177/1938965517719267

    Article  Google Scholar 

  • Sharma, E. (2019). A review of corporate social responsibility in developed and developing nations. Corporate Social Responsibility and Environmental Management, 26(4), 712–720.

    Google Scholar 

  • Štefko, R., Jenčová, S., & Vašaničová, P. (2020). The Slovak spa industry and spa companies: Financial and economic situation. Journal of Tourism and Services, 20(11), 28–43.

    Article  Google Scholar 

  • Thorne, S. (2021). Are spas and wellness still considered luxurious in today’s world? Research in Hospitality Management, 11(1), 9–14.

    Article  Google Scholar 

  • von Heimburg, D., & Ness, O. (2021). Relational welfare: A socially just response to co-creating health and wellbeing for all. Scandinavian Journal of Public Health, 49(6), 639–652.

    Article  Google Scholar 

  • Wang, C., Nie, P.-Y., & Meng, Y. (2018). Duopoly competition with corporate social responsibility. Australian Economic Papers, 57, 327–345.

    Article  Google Scholar 

  • Wang, L., Togtokhbuyan, L., & Yadmaa, Z. (2021). Visual analysis of the international wellness tourism WOS literature from 1992 to 2019. International Journal of Spa and Wellness, 4(1), 1–16.

    Article  Google Scholar 

  • Wong, A., Koseoglu, M., Kim, S., & Leung, D. (2021). Contribution of corporate social responsibility studies to the intellectual structure of the hospitality and tourism literature. International Journal of Hospitality Management, 99, 103081.

    Article  Google Scholar 

  • Xu, X., Xiao, G., & Gursoy, D. (2017). Maximizing profits through optimal pricing and sustainability strategies: A joint optimization approach. Journal of Hospitality Marketing & Management, 26(4), 395–415.

    Article  Google Scholar 

  • Young, J., Maxwell, H., & Peel, N. (2021). Leisure meets health: Important intersections and alternative discourses. Annals of Leisure Research, 24(3), 275–282.

    Article  Google Scholar 

Download references

Acknowledgements

This article is a result of the project “GreenHealth-Digital strategies in biological assets to improve wellbeing and promote green health” (Norte-01-0145-FEDER-000042), supported by North Portugal Regional Operational Programme (NORTE 2020), under the PORTUGAL 2020 Partnership Agreement, through the European Regional Development Fund (ERDF).

We are also grateful to the Foundation for Science and Technology (FCT, Portugal) for financial support by national funds FCT/MCTES to UNIAG, under the Project no. UIDB/04752/2020.

Author information

Authors and Affiliations

  1. School of Hospitality and Tourism, Applied Management Research Unit (UNIAG), Polytechnic Institute of Porto, CiTUR, Rua D. Sancho I, 981, 4480-876, Vila do Conde, Portugal

    Flávio Ferreira & Fernanda A. Ferreira

  2. Applied Management Research Unit (UNIAG), Vila do Conde, Portugal

    Cristina Rodrigues

Authors
  1. Flávio Ferreira
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Fernanda A. Ferreira
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Cristina Rodrigues
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Flávio Ferreira .

Editor information

Editors and Affiliations

  1. University of West Attica, Athens, Greece

    Vicky Katsoni

Rights and permissions

Reprints and permissions

Copyright information

© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Ferreira, F., Ferreira, F.A., Rodrigues, C. (2023). Pricing Strategy for Green Hotel Industry. In: Katsoni, V. (eds) Tourism, Travel, and Hospitality in a Smart and Sustainable World. IACuDiT 2022. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-29426-6_5

Download citation

Publish with us

Policies and ethics

Search

Navigation