Scotty Terr Hotel is a 100-room hotel that has been owned and operated independently by the Scotty family for 17 years in the town of Berteson, Ontario. Peter Scotty is the CEO of hotel and his two sisters, Sarah and Jane, are part of the management team of the hotel that employs 15 full- time and 28 part-time seasonal employees. Employees working at the hotel are continuously trained to be service-oriented and are required to report all guest feedback back to managers to use during management

team meetings.

Scotty Terr is a four-star hotel with higher quality services and amenities including a fitness centre, a pool, 24-hour room service, concierge services and free parking. In-room amenities at the hotel include high quality bedding and towels, a flat-screen television, a microwave, a coffee

maker and free Wi-Fi and Bluetooth connectivity. The hotel has also just introduced keyless entry and a contactless check-in/out procedure using a kiosk in the main lobby.

The Situation

As the main decision makers for the hotel, Peter, Sarah and Jane have sat down to review the last 6 months of operations, the financial statements, guest feedback and online reviews and to reflect upon the overall strategic direction of the

Scotty Terr Hotel. In their meeting, Peter, Sarah and Jane have noticed that electrical costs are more variable than in previous years and that the overall cost of electricity has gone up. Rising electricity costs without an increase in revenues means that the hotel will be losing money and that is a concern.

Peter, Sarah and Jane have also noticed an increase in guests frequenting the hotel who are under the age of 40. These younger guests have been providing feedback in the Scotty Terr Hotel surveys and in online review forums that congratulates the high-quality hotel service but criticizes the Scotty Terr for its lack of sustainability initiatives. The overall customer rating of the hotel is trending downward as of late and that is another point of concern for the management team.

"Sustainability" has come up in the biannual review meetings for Scotty Terr Hotel in the past few years out of the stakeholder analysis conducted every 6 months by the management team to collect important information to help make evidence-based decisions about the strategy and operations of the hotel. Sustainability is not a new concept to the management team therefore, but it was not considered to be a main priority in the past. Peter, Sarah and Jane are considering whether it is the time to take sustainability more seriously and how much it would impact the two concerns already identified.

The Decision for Action

As the concept of "sustainability" has been mentioned increasingly more by the hotel guests, Peter, Sarah and Jane want to explore how a sustainable approach could help with the variable and rising electrical costs and continued guest satisfaction. As the management team does not have the time to investigate this business case for sustainability for the hotel, Peter, Sarah and Jane agree to allot $2500.00 of the hotel's profits to pay a Sustainability Consultant Team to research and present a business case for sustainability. They have agreed to provide the Sustainability Consultant Team with past and present energy data for the Scotty Terr Hotel as well as a couple of other hotels in their competitive set to analyze as a part of the sustainable business case building process.

1. Identify and explainthreerecommendations on how the management team at Scotty Terr Hotel can address the issues of rising electrical costs and increased guest feedback for sustainable initiatives in the hotel.
2. What impact will these recommendations have on the daily operations of the hotel and on the Triple Bottom Line?
3. Prioritize the recommendations you have discussed in the "Business Case for Action" section. Which recommendation should the hotel do first, second and third? Why?