NATIONAL ECONOMICS UNIVERSITY

FACULTY OF TOURISM AND HOSPITALITY

------------------------------------------------------------

GROUP ASSIGNMENT 1 

of 

HOUSEKEEPING OPERATION MANAGEMENT

Group: 3

Class: IHME

Intake: 62

School year: 2021-2022

Hanoi, January 2022

Members of group:

Phan Thanh Son

Vu Thi Thao

Pham Phuong Thao

Nguyen Phuong Anh

Ha Que Anh

Nguyen Thanh My

Bui Thao Phuong

Table of Contents
A. INTRODUCTION
1. Fundamental definition
2. About Meliá Hotels International

B. 3I’S FRAMEWORK OF ACCOMMODATION SUSTAINABILITY

MANAGEMENT (FASM) APPLICATION IN MELIÁ HOTELS
INTERNATIONAL
1. Institution
2. Implementation
3. Implication

C. CONCLUSION
A. INTRODUCTION: MELIÁ HOTELS INTERNATIONAL 
I. Fundamental definition

 UNWTO defined Sustainability Development as "Tourism that takes full

account of its current and future economic, social and environmental
impacts, addressing the needs of visitors, the industry, the environment and
host communities”.

 Sustainable tourism should:

 Make optimal use of environmental resources that constitute a key

element in tourism development, maintaining essential ecological
processes and helping to conserve natural heritage and biodiversity.
 Respect the socio-cultural authenticity of host communities,
conserve their built and living cultural heritage and traditional values,
and contribute to inter-cultural understanding and tolerance.
 Ensure viable, long-term economic operations, providing socio-
economic benefits to all stakeholders that are fairly distributed,
including stable employment and income-earning opportunities and
social services to host communities, and contributing to poverty
alleviation.

 Sustainability should include an obligation to future generations. It is related

with ethical use of resources and preserving and sharing between people
(Bhushan and Jauhari, 2008). Creating enterprises at the cost of destroying
others and the environment is not sustainable (Bhushan and Jauhari, 2008).
There will be costs that would be borne by future generations. 

II. Meliá Hotels International

  Meliá Hotels International is a Spanish hotel chain which was founded by
Gabriel Escarrer Julia in 1956 in Palma de Mallorca. The company is one of
Spain's largest domestic operators of both holiday resorts and urban hotels,
and the 17th biggest hotel chain worldwide. It is also unique among the 20
largest international hotel groups in having an origin in leisure and the ideal
size to combine exceptional hospitality with management that is efficient
and close to its stakeholders.
 The company formerly operated under the name "Sol Meliá" for decades. In
2011, it began a new stage in its development under the brand name that
represents its present and its future: Meliá Hotels International.
 Currently the hotel chain operates 374 hotels in 40 countries on 4 continents
under the brands Meliá, Gran Meliá, ME by Meliá, Paradisus, Innside by
Meliá, TRYP by Wyndham, Sol Hotels and Club Meliá.

B. 3I’S FRAMEWORK OF ACCOMMODATION SUSTAINABILITY

MANAGEMENT (FASM) APPLICATION IN MELIÁ HOTELS
INTERNATIONAL

Macro environment
The United Nations (UN) Sustainable Development Goals (SDGs), launched in
2015, ‘are the blueprint to achieve a better and more sustainable future for all’ and
they look to ‘address the global challenges we face, including those related to
poverty, inequality, climate, environmental degradation, prosperity, and peace and
justice’ (United Nations 2018). At the same time, the United Nations Global
Compact (2018) argued that meeting these goals ‘will take an unprecedented effort
by all sectors in society’ 

Micro environment
Environmental practices are positively related to willingness to disseminate
positive word-of-mouth and hotel revisit intention. In other words, environmentally
friendly accommodation is very important ịn  adding value to the experience of
staying at the hotel, generating customer satisfaction which will lead to a
willingness to disseminate positive comments on the establishment and also to stay
there again. 
 I. Institution

Sustainable Policy
- Melia Hotels International published its ‘Global Corporate Social Responsibility
Model’ in 2015, which is based around six key principles, namely ‘human right’,
‘employability’, ‘local development and the fight against climate change’,
‘university and knowledge sharing’, ‘culture’, and ‘leadership and reputation’
(Melia Hotels International 2018).
Meliá Hotels International wants to be a model for a better world and leave a
legacy that can be enjoyed by future generations. It therefore follows the principles
below:
 Managing its business with integrity, consistency and responsibility as core
elements 
 Expanding and strengthening the criteria of responsible management in the
tourism industry 
 Generating social and economic value for the company and its stakeholders
  Being constantly alert in the identification, prevention and mitigation of
negative impacts and risks that are inherent to its activity 

- To achieve this, Meliá has designed a set of guidelines around which to work:
 Promoting corporate values and the principles of sustainable development as
the backbone of responsible management, putting people at its heart
  Being close to stakeholders and listening to them actively, openly and
personally, and promoting platforms for teamwork 
 Being key in cooperating with various stakeholders in the search for high-
impact solutions for society 
 Finding the balance between the needs of present and future generations and
for the economic and social development of destinations and the
expectations of stakeholders
  Mitigating the impact of our activity on the environment, respecting
destinations and making responsible use of natural resources
  Contributing to the reduction of social differences and poverty through the
creation of opportunities wherever the Company operates
  Being sensitive to the social and development needs of our employees 
 Understanding our customers

Further, the company claimed that it had integrated the Sustainable

Development Goals (SDGs) that a hotel company could help to support with
 its Corporate Social Responsibility Model’ (Melia Hotels international
2018). More specifically Melia Hotels International (2018) claimed that the
integration of the SDGs into its Corporate Social Responsibility Model
would, inter alia, ‘ensure a consistent management model that seeks
continuous improvement’, ‘promote a model of responsible management in
the value chain’ and ‘make the fight against climate change a key objective
in hotel management.’

Given that Meliá seeks to have a positive impact on the environment and respond
to local needs, the design of the model has allowed Meliá to align the CSR strategy
on an international level with the necessary adaptability and flexibility needed to
ensure that these actions can be implemented in each region or country

Each year, using different tools and training initiatives, new employees are
informed of Meliá's CSR commitments and of the Company's different public
commitments as well as those that have been integrated into the Code of Ethics.

II. Implementation
Meliá Hotels International has once again been recognised as a leader in
sustainability in the hotel industry. Despite the profound impact of the
pandemic on the travel industry, Spain's largest hotel company has
continued to strengthen its commitment to help combat climate change and
preserve the future of travel destinations.
Meliá is making great progress on decarbonising facilities as a primary goal
as an element of its environmental efforts:
  In 2015 it signed up to the commitments defined at COP21 in Paris,
updating them after the Katowice summit to limit the average increase
in global temperature to less than 1.5º. To help achieve this, the company
is working in several different areas, beginning with the design and
construction of more efficient and sustainable hotels, as well as several
projects to reduce its carbon.
 Over the last 5 years, investments in implementing sustainable criteria
have amounted to 25 million euros, including the development of the
CO2PERATE project to improve energy and water management in hotels
through the use of artificial intelligence, and also increasing its purchases of
clean energy.
 61% of the hotel portfolio currently uses renewable energy sources
(100% in Spain, France, Italy, Germany and the United Kingdom).
  With regard to waste management, in 2018 Meliá created a roadmap to
eliminate single-use plastics and is currently participating in a pilot
project to create a circular hotel economy in Mallorca, transforming
organic waste into compost to be donated to local farmers and later buying
produce from them.
 To reduce food waste, Meliá is using technologies such as Leanpath,
which allows the registration and monitoring of organic waste and the
adoption of measures to reduce food waste by up to 30%.
 The company also performs well in the management of human capital,
where it has continued to promote diversity, equality and inclusion. One
of the highlights in this area is its participation in Closingap, a cluster of
Spanish companies formed in 2018 to provide greater visibility for the
contribution of economic and social value made by women. Also of note is
its recent partnership with the “CEO for diversity" project supported by the
CEOE Foundation and the Adecco Foundation.

III. Implication
The third principle is Implication, which highlights the importance of
sustainability measurement, Rewards and Risk. 

 The sustainability measurement index of the company has a holistic

approach encompassing financial and non-financial benefits. 
 The S&P Global Corporate Sustainability Assessment (CSA) is the most
comprehensive assessment in the world of the performance in sustainability
of more than 10,000 companies across all industries. In 2019 and 2020,
Meliá ranked first in the global hotel industry, and in 2021 maintains its
leadership in Europe and Spain. In particular, the company leads the world
in the Governance and Economic dimension, once again achieving the top
score among all the companies evaluated in terms of Climate Strategy.  
 Governance: Meliá understands that the best way to move towards an
ethical and responsible management model is to ensure the integration of
sustainability in their Governing Bodies. In 2020 Meliá created a
Sustainability Committee. The creation of the Sustainability Committee is a
link between the management and the operation of the company.
 Environment: At present, almost 60% of the electrical energy consumed by
Meliá hotels worldwide is renewable energy, with the figure rising to 100%
 in Spain. In addition, the company has already reduced its CO2 emissions by
more than 15%. 
 Economic: 
 In 2020, Meliá was named by the Wall Street Journal the seventh best
company in the world in sustainable management, and also has
extensive experience in developing sustainability projects. Meliá has
developed and presented many sustainability projects that would
contribute positively to improving the competitiveness and
sustainability of Spanish industry. 
 One of the recent projects is the project presented to the Spanish
Ministry of Industry, Commerce and Tourismin early 2021, which
aims at transforming and reviving the tourism sector by adopting a
more sustainable and responsible model. The objective is to reduce its
Scope 1 and 2 environmental footprint to zero and to reduce Scope 3
emissions.

 After measurement it’s important to highlight the best practices and share
awards and rewards with stakeholders. Meliá also incentivizes their
employees, suppliers and other stakeholders to participate in green drives. 
 With their investors - customers, they have a loyalty program called
MeliáRewards, where the frequent consumers can enjoy benefits and
exclusive offers. 
 On the occasion of World Environment Day 2021, which was
celebrated on 5 June, Meliá Hotels International announced the launch
of “The planet we love", a project they have been working on in
months with Climatetrade which represents a major step forward in
the company's commitments to the environment and the transition to a
low-carbon economy. As a result, members of the MeliáRewards
loyalty programme can now exchange points for carbon credits
certified by the United Nations to support a selection of projects in
developing countries to reduce greenhouse gas emissions. 
 Meliá Hotels International became the first hotel company in the
world to offer loyalty programme members the chance to become
directly involved in compensating their carbon footprint through the
purchase of carbon credits to assign to certified and guaranteed
projects. The involvement of customers in its environmental
commitments through this project is a new step forward in the
integration of ESG criteria (Environmental, Social and Governance)
in the Meliá Hotels International value chain, which has led the
 company to aim to reduce emissions by 51% before 2035 (Scope 1
and 2). 

 It is also imperative to analyze the risks and barriers if any in achieving

sustainable goals and objectives. The Implication level emphasizes
analyzing the divergent outcome and possible barriers in achieving the
desired results. 

Meliá's Risk Management model is based on COSO methodology. The Risk

Management Model is shared by the entire organization. This means that
every year, both business units and corporate areas would participate directly
and use standardized criteria to identify and assess those risks that affect
them directly.

To talk in more detail, let us look into an instance. In the 2020 Consolidated
management report, Melia identified one of their emerging risks, which
stand in their way of fulfilling sustainability goals, is Destinations with
water shortage.

 For Meliá and the entire hotel industry, the risk of water shortages and/or
droughts can have a negative impact on the business in several ways:
Damage to facilities and equipment; Insufficient supplies due to problems
with water sources; Increase in operating costs due to limited access to
water; Discontinuity of operations and/or loss of business; Breach of service
quality standards and customer dissatisfaction; Loss of attractiveness as a
tourism destination.

 To anticipate this risk, Melia has prepared 3 plans, which include:

 An Environmental and Energy Management System "SAVE" which
monitors 95% of the water use in their hotels and allows them to measure,
control water consumption and evaluate water-related risks and
opportunities. 
 Working with the Aqueduct Water Risk Atlas, which allows them to identify
areas with the highest risk of water stress worldwide and adopt any
necessary preventative measures.
 Voluntarily participating in CDP Water Security, a prestigious international
ranking which measures their capacity to ensure water safety and quality.
C. CONCLUSION
The report defined the concept as development that meets the needs of the
present without compromising the ability of future generations to meet their
own needs. This has been a study into how 3i’s Framework of
Accommodation Sustainability Management (otherwise known as FASM) is
applied in the hospitality industry, with the exemplary subject of Meliá
Hotels International.