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BuckheadFunds > Startups > Sustainability Drives Consumer Choice For Travelers

Sustainability Drives Consumer Choice For Travelers

News Room By News Room August 19, 2023 6 Min Read
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Rich ‘Raz’ Razgaitis co-founded FloWater in 2013 with a singular mission to put an end to single-use plastic water bottles.

Travel contributes a disproportionate amount of greenhouse gas emissions into our atmosphere, and a powerful and growing movement has emerged within the travel and hospitality industry to show a commitment to environmentally friendly practices.

Consider that the 2,000-room New York Hilton Midtown now runs on a cogeneration plant that reduces its carbon footprint by over 30%, or that Royal Caribbean cruise ships use purification systems that remove 97% of sulfur dioxide emissions from their exhaust. Not satisfied with incremental steps, the Hotel Marcel in Connecticut is the country’s first net-zero energy hotel and generates all of its power needs through solar panels.

While it would be nice to believe that brands were making these choices for purely altruistic reasons, the reality is that these businesses are responding to consumer demand. For example, a survey commissioned by my company found that nearly 6 out of 10 travelers would prefer to stay at hotels that prioritized eco-friendly practices such as eliminating single-use plastics. That same study found that 30% of travelers would be willing to pay more to stay at hotels with green amenities, including available EV charging stations.

And while it’s true that this survey represents just one data point, it is consistent with the numbers we’ve seen in other research. A 2021 sustainability survey by Virtuoso found that 78% of luxury travelers prefer doing business with companies with strong sustainability policies, while a 2022 survey found that 75% of travelers would pay more for eco-friendly options if they knew how those funds were being used. And in the U.K., 61% of electric vehicle drivers consider EV charging stations a key factor when booking a hotel.

Whatever study you look at, one trend is abundantly clear: Demand for sustainable options and policies from the travel industry is not only strong but continuing to grow year after year.

It’s also worth noting that while many of these travel operators are making changes based on consumer preference, some are also responding to a growing number of laws meant to accelerate the trend. California and New York have both passed bills banning single-use toiletry bottles in hotels. To get ahead of this trend, mega-hotel chains such as Marriott and Hyatt enacted policies to remove all single-use toiletries from their properties.

Meanwhile, hotel chains and resorts as diverse as the Four Seasons, Hyatt and Disneyland have all launched initiatives to include water refill stations throughout their properties. In an interview with the New York Times (subscription required), Janet Redman, the climate and energy director for Green Peace, stated: “The travel world isn’t ignoring the severity of climate change. Many are even trying to find a way to slow it down so that tourism can keep thriving.”

How Hospitality Leaders Can Take Action

So what can hospitality leaders do to bring their businesses up to this new standard of sustainability that consumers expect? Here are a few options to consider.

• Decarbonize. Embracing energy efficiency and lowering your carbon footprint is appealing to guests and can also serve as a potential cost-savings where renewable energy sources, such as solar panels, are available and affordable.

• Reduce single-use plastics. Instead of offering guests single-use plastic water bottles, provide them with purified water through refill stations (full disclosure: my company offers these services, as do others.) Likewise, single-use plastic toiletries can be replaced with refillable bottles or recyclable packaging. Replacing plastic utensils with biodegradable bamboo ones can also give your guests a positive impression of your sustainability efforts.

• Reduce water usage. Installing water-efficient fixtures, such as flow regulators on showerheads or self-closing faucets that can shut off if inadvertently left on, can provide significant water savings. Even forgoing the use of pressure washers for cleaning can reduce the amount of water your property uses.

• Go car-free. Provide your guests with alternatives to driving their cars. Bikes and electric golf carts are excellent transportation in isolated areas. If you’re in an urban location with mass transit, provide guests with maps, schedules and guides to help them navigate your city’s trains and buses.

Remember that while many sustainability practices require an upfront investment, they can quickly pay for themselves by reducing waste and energy usage. In travel, good for the Earth is also good for business. If your hospitality brand isn’t prepared to adapt to this new reality, you could be increasingly out of step with your customers’ needs.

Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?

Read the full article here

News Room August 19, 2023 August 19, 2023
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