From Linear to Circular: A Study of Hospitality Industry’s Shift towards Sustainability

Abstract

Circular Economy (CE) has gained significant focus in recent years as an innovative model for sustainable development, especially in industries that strongly impact the environment, such as hospitality and tourism. This study explores the application of CE strategies—reduction, reuse, recycling, redesign, replace, and rethink—in the realm of the hospitality sector. The study explores ways major players in the industry, including Indian Hotels Company Limited (IHCL), EIH Limited, and ITC Limited, are adopting these strategies to reduce waste, conserve resources, and enhance sustainability. Using a business case analysis method, the research investigates the practical implementation of CE practices and their impact on operational efficiency, cost reduction, and customer satisfaction. The study findings show that adopting CE principles not only promotes environmental sustainability but also ushers competitive advantages in an increasingly eco-conscious market. Although, challenges such as high initial investment costs, a lack of standardization across the industry, and the need for stronger regulatory frameworks remain barriers to widespread adoption need to be addressed. The study proposes managerial implications through recommending policy interventions and collaborative efforts across stakeholders to foster a more sustainable future for the hospitality industry.