The influence of green practices by non-green hotels on customer satisfaction and loyalty in hotel and tourism industry

TLDR: In this article, the impact of green practices in non-green hotels on customer satisfaction and their loyalty is measured using Structural Equation Modeling (SEM) and customer satisfaction mediates the relationship between green practice and loyalty.

Abstract: Environmental issues are one of the most pressing global concerns the world has currently to address and which has become most critical recently. Malaysia is having to determine its own response to contemporary problems such as water pollution, air pollution, waste disposal, climate change, global warming, deforestation and haze which have plagued Malaysia for some time. Green practices are an important aspect to be explored in the hotel industry. This study aims to measure the impact of green practices in non-green hotels on customer satisfaction and their loyalty. The structural model of the inter-relationships among green practices, customer satisfaction and customer loyalty is developed and executed using Structural Equation Modelling (SEM). The study found that Green Practices in the hotel industry have a significant effect on Customer Satisfaction and Loyalty. Furthermore, Customer Satisfaction mediates the relationship between Green Practice and Loyalty. Thus, hoteliers, of both a green and a non-green status, need to show concern and to participate in conserving the environment to survive in a competitive environment.