Impact of Sustainability Commitment in Hotel Industries

1Bibhuti B Pradhan, Sasmita Mohanty


The hospitality industry faces significant challenges along with the new competition in the sharing economy from novel types of supply. Among other websites that offer lodging like “Homeaway”, “Airbnb”, and “Niumba” have a significant impact in the field, transforming existing conditions and the demand for the conventional hospitality industry. In this sense, a differentiation-based strategy may help prevent decreases throughout sales and productivity. The primary goal of this paper is to examine how dedication to sustainability has a significant impact on performance of the company in terms of economy and in this new environment could be called a sustainable approach. The results obtained indicate that there's no positive correlation between better financial performance and sustainability; nevertheless, sustainability engagement is related to a minimum size, which can also have beneficial consequences in terms of economy of scale and potentially focus on productivity. Hotels more dedicated to environmental concerns are found in places with a lower density of “Airbnb apartments” and this geographical distribution could be more optimistic than a circumstance with large concentration of visitors in specific areas with detrimental community externalities.


Hospitality industries, Hotels, Productivity, Profitability, Sustainability.

Paper Details
IssueIssue 6