Abstract:
The concept of environmental sustainability is important to the hotel industry and one
of the motives of customer loyalty. With sustainability becoming a central concern
for businesses and consumers, hotels face growing pressure to adopt environmentally
friendly practices that conserve natural resources while enhancing their market
competitiveness. Nevertheless, there is a dearth of research in the Sri Lankan hotel
industry that examines the role of such practices in customer loyalty, especially when
moderated by customers’ environmental consciousness. In addressing this gap, the
paper in question examines how environmental sustainability practices, namely
energy efficiency, waste management, and sustainable local sourcing, impact
customer loyalty in the hotels that are functioning in the Matale District of Sri Lanka,
with particular attention to the moderating role of environmental consciousness. This
study employed a quantitative research approach, with data collected through
questionnaires from 384 hotel guests using a convenience sampling method. Both a
direct effect and a moderating effect were tested to analyse the relationships through
SPSS and the PROCESS macro by Andrew F. Hayes. The analysis showed energy
efficiency, waste management, and sustainable local sourcing were strongly
positively correlated with customer loyalty (r = 0.652–0.674, p < 0.001) and had
significant positive effects (β = 0.291–0.302, R² = 0.648). Customer environmental
consciousness further strengthened these effects (β = 0.176–0.187, p < 0.01). This
study is unique in demonstrating how sustainability practices within Sri Lanka’s
hospitality industry not only support environmental goals but also play a vital role in
shaping green consumer behaviour and strengthening long-term customer loyalty.
The study provides recommendations for hotel managers, policymakers, and
stakeholders to invest in credible sustainability practices.
