The experiment
This is an experiment.
I want to make my first article an open source article. Indeed, the article hereunder is only a draft of an article on ecolabels in the touristic sector. I want you
to contribute to it by reading this post and giving your feedback, tips and
ideas. Based on this feedback, I will elaborate, shorten or change the article.
Ideas I have not elaborated yet are in brackets […]. The following article might contain inaccuracies - please let me know.
Would you like to
contribute to this experiment? Leave a reply (click on the word 'posts' under the article) or email me answering the following set
of questions:
- What did you like?
- What would you change?
- What do you want to know more about?
- Ideas, feedback, tips?
The article
Ecolabels in tourism are plentiful and diverse.
What does it cost and, above all, what does it yield? Let’s have a closer look
at the case of Flanders.
Diversity
Worldwide there are 48
ecolabels which apply to touristic companies according to the website
ecolabelindex.com. The fact that an overview site of ecolabels exists is
exemplary for the problem in the sector. There simply are too many ecolabels to
understand for normal people. What are the differences between those labels?
A first distinction
between ecolabels is their range. Geographically speaking, some ecolabels
operate worldwide. Others operate in specific areas. Nordic Swan, for example, is
an ecolabel which covers mostly touristic companies in Scandinavia. Green Key
or Travelife have a worldwide presence. Sector wise speaking, some ecolabels
certify a wide range of sectors. Others are specialized to touristic companies.
[What is more
beneficial for companies?]
Secondly, companies
issuing the label can be NGOs, governments or companies. These types of
organizations have different motivations.
[What is the influence
of the type of organization: motivations, examples etc.? ]
Thirdly, ecolabels
differ with regard to quality. A first dimension of quality is the set of
criteria which an organization has to meet. A second dimension is the control
procedure. Does a physical audit take place? And how frequently are companies
reassessed? Some ecolabels in the touristic sector remind of greenwashing. Consumentenbond, a Dutch consumer association
investigated five different ecolabels and judged only one label (Green Key)
credibly. Some labels allowed hotel owners to certify themselves. Other labels
implicitly allowed child labor.
An interesting fact is
that a same ecolabel can mean something else in a different country. In the
Netherlands, for instance, Green Key has three levels (bronze, silver and gold)
and applies to a wider range of touristic companies than the Green Key label in
Flanders.
Costs
The costs
for an organization to get an ecolabel are threefold. Firstly, a company has to
make internal costs. The company has to implement necessary changes to its
operations, infrastructure and organizational structure in order to meet the
criteria of the ecolabel. Secondly, the company has to pay verification costs. Indeed,
an audit takes place to verify whether the company effectively meets the
criteria of the label. Thirdly, the company has to pay a yearly fee to the
organization issuing the label. For the certified company, this fee allows the
use of the label in its communication. For the issuing organization, this fee
enables the organization to operate.
These costs
differ according to the size and type of a touristic company. A hotel with 100
rooms will face higher internal costs than a simple bed and breakfast. Costs
payable to the issuing organization are also higher, because of a more
elaborate verification audit. Furthermore, issuing organization have different
prices for different types of touristic companies. Green Key Flanders, for
example, charges a lower price for youth hostels than other types of
organization. This kind of price differentiation allows the label to penetrate
in lower-cost market segments.
[Give an indication
of height of costs for tourism ecolabels in Flanders]
Benefits
What are
the benefits of an ecolabel for a touristic company? To answer this question,
let’s have a look at the motivations of two distinct groups of companies. A
first group of entrepreneurs have an ecolabel out of conviction. A second group
of companies think business.
Companies
which get a label out of conviction typically are smaller companies, where the
owner manages his company. These people are aware of the importance of sustainability.
They want to convey this message to their customers.
Companies,
which get certified because of economic reasons, typically are larger
businesses. Think of an international hotel chain which needs an environmental
policy in order to differentiate itself from other chains. An ecolabel simply
is part of their business strategy to target the environmental customer niche.
It is a matter of branding.
Customers
who want to sleep in a certified hotel, generally want to pay a higher price
for this. This creates higher margins and makes this target group attractive.
[Exploration
of sustainable customer segment]
[Exploration
of how to lever an ecolabel to get more customers and increase margins]
Flanders
[Give an overview of
the labels in Flanders]
In September 2013 Joris Depouillon worked at Green Key Flanders.
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