Green Branding and Consumer Trust: How Eco-Labels Influence Hotel Booking Decisions and Environmental Awareness among Millennial Travelers in the Hospitality Industry

Abstract: The modern hospitality industry is undergoing a significant transformation, as demand for sustainable travel becomes increasingly evident and eco-consciousness is growing. This is being driven by millennial travellers who are considering both the price tag and the impact on the environment. To counter this, hotels around the world have come up with green branding and third-party eco-labels as proof of their environmental commitment. However, corporate greenwashing has led to a lot of mistrust among consumers, who are increasingly aware of how important it is to have a good green brand and a valid eco-label. The interplay between green branding, consumer trust and eco-labels in the hotel booking decision-making process and consumer awareness of the environment is explored in this paper. Based on the signaling theory, green consumer behaviour and trust in tourism, the paper aims to examine the effects of the assurance of sustainability on the scepticism of travellers, the creation of positive attitudes towards the brand and the direct effect on purchasing intentions. Further, the study examines the role of environmental awareness in making people buy green products and operational challenges faced by the hoteliers in verifying their sustainability claims. Altogether, this study provides actionable recommendations for the hospitality industry leaders to align their greening programs to the values of Millennials and gain a sustainable competitive advantage.