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Kimpton's Earth Care Program

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on 21 February 2014

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Transcript of Kimpton's Earth Care Program

Kimpton's Earth Care Program
By
Francesca Powell
Tara Burgin
Luis Sicairos
Lacey Matson

What are the benefits of Kimptons environmental sustainability initiatives?
What Challenges face the EarthCare Program?
Kimpton Hotels
Putting EarthCare Into Action
Non disruptive & cost reducing practices.
Investing in water and energy conservation.
Environmental programs generated new business
Receiving significant coverage in local newspapers and travel publications.
Helps when hiring and keeping employees engaged.

How would you justify the EarthCare program to Kimpton’s board of directors and stockholders? What is the business case for this program?
Lower long term operational cost
Reduction of waste
Cater to customers so they will feel more at home
Environmentally friendly
Better environment for future generations

U.S Hotel Industry
Has a significant environmental impact.
Green lodging program to encourage state employees to select certified hotels.
Many opportunities to reduce environmental footprint.
Despite much potential the environmental progress in hotel industry have been limited, only undergoing easy to implement cost saving initiatives.

Founder Bill Kimpton wanted to create “A home away from home”.
Customization with personalization.
Employee autonomy.
Local efforts evolved into companywide Kimpton cares program .
2/3 of guests are traveling on business.
To differentiate itself the company had to continue to find innovative ways to offer services that addressed the needs and values of its customers.

EarthCare program was not put in place until February 2005.
Comprehensive program of environmental initiatives.
Split into five geographic regions, who had weekly meetings to discuss progress, ideas and barriers encountered.
No new product or service to cost more than its replacement or affect customer perceptions or satisfaction.
Team of eco champions learned national rollout effort would have its share of potential operational risk/ challenges.
Even with certain challenges executives believed EarthCare program was smart as well as right thing to do.

What are its Cost?
Resistance by general manager to centralize initiative.
Slow pay back period/ lower rate of return for green investments
Benefits not seen by customers.
Time consuming.
Risk in experimenting with new products.
Regional differences in recycling.

Resistance from staff to new products and procedures.
Potential price increases.
New procedure might exceed budget.
Making people care.
Full transcript