Interaction between sustainability practices and the mediating role of hotel performance

Abstract

The success of hotels and their contribution to the destination depends on the development of sustainability practices. The aim of this paper is to study possible interactions between environmental, economic and social sustainability practices with each other and with hotel performance. In these interactions, hotel performance is not considered as the final dependent variable. Hotel performance may play a mediating role as it may be considered as a consequence of environmental sustainability practices and as a means for economic and social sustainability practices. From a PLS analysis using data from 365 Spanish hotels, we find that environmental sustainability practices influence hotel performance and economic and social sustainability practices; hotel performance positively influences economic and social sustainability practices; and economic sustainability practices influence social sustainability practices. Moreover, hotel performance mediates the relationship between environmental sustainability practices and the other two dimensions of sustainability practices; and economic sustainability practices mediate the link between environmental and social sustainability practices. This study has theoretical and practical implications because it shows that environmental sustainability practices contribute to hotel performance, creating value for shareholders and owners; and environmental practices and the availability of financial resources contribute to the development of economic and social sustainability practices, also creating value for other stakeholders.