How Hotels Can Capitalize on the Growing Demand for Sustainable Stays

In a global context where the effects of climate change are becoming increasingly evident, both governments and consumers are demanding more responsible actions from companies. The tourism sector, particularly hotels, faces the challenge of meeting the growing demand for sustainable options while also building trust in their environmental practices.

The Importance of Sustainability in Tourism

Interest in sustainable tourism has been on the rise, driven by increased awareness of the need to protect the planet. According to Booking.com's 2022 Sustainable Travel Report, 71% of global travelers expressed a desire to travel more sustainably in the coming year, reflecting a growing consumer commitment to eco-friendly travel options. However, interest in sustainable tourism seems to have plateaued at 75%, as indicated by the latest report from Booking.com. While this stabilization does not diminish the importance of sustainability in tourism, it does highlight the challenges consumers face in finding and booking truly sustainable options.

Challenges in Offering Sustainable Stays

One of the main challenges is the lack of trust and transparency in sustainability claims made by brands. While the availability of eco-friendly accommodations is increasing, identifying sustainable options outside this category is less evident. Consumers often wonder if the hotel they have booked genuinely prioritizes sustainability or if they are simply victims of "greenwashing." A 2023 Booking.com survey found that nearly 40% of consumers are skeptical about the sustainability of available travel options, and about 50% consider them too expensive, likely because these options tend to target the luxury market.

Nonetheless, 45% of consumers find it appealing when they come across accommodations with sustainability labels, and 67% agree that all booking sites should use the same certifications or sustainable labels.

The Need for Standardized Certifications and Reporting

To meet the demand for sustainable stays and ensure confidence in their claims, hotels must obtain recognized certifications, such as those granted by Green Key. These certifications should be clearly communicated through different booking partners using consistent terminology. However, those involved in quantifying, analyzing, and communicating sustainability in the hospitality sector know that this mission is not simple.

Establishing standardized reporting and certifications in the hotel industry is essential for scaling sustainable practices. Effective data management is central to creating these standards, but current sustainability data management practices do not allow for this. Many hotels, even those that are part of large chains, still collect and communicate their sustainability data manually, using emails and spreadsheets. This decentralized and error-prone process results in inconsistent experiences across properties and is also costly.

The Cost of Not Adapting

Estimates suggest that hotels spend nearly $8 million annually on sustainability reporting using these fragmented and manual approaches without achieving meaningful results. Moreover, because each eco-certification standard requires data based on its own parameters, the data cannot be easily reused, creating a significant barrier to innovation and the expansion of sustainable initiatives across the industry.

Similar challenges apply to booking partners like online travel agencies (OTAs). To communicate a hotel's sustainability credentials to their customers, OTAs often receive a list of hotels in a spreadsheet from different certifiers and then must manually match these hotels with their database before creating a sustainability category within their booking channels. As a result, it is almost impossible for OTAs to process the information in real time, fueling consumer skepticism about the validity of a travel provider's sustainability claims.

A Modern Approach to Sustainability Management

In 2024, no hotel or booking partner should manage sustainability data manually. This practice not only causes them to lose revenue from the growing market of eco-conscious travelers but also puts them at serious risk of failing to comply with sustainability reporting requirements and government regulations. Governments worldwide, including the European Union, have begun implementing these standards for all companies operating within their borders.

If outdated and siloed practices are the problem, combining a hotel's sustainability data with the requirements of eco-certifiers and government regulators into a centralized, interconnected database is the modern solution. While sustainability data management software has existed for many years, until recently, no system had addressed the specific needs of hotels.

With the introduction of sustainability data management technology designed specifically for the hospitality industry, both hotels and the tourism industry now have a more efficient way to handle their sustainability data. This solution acts as a hub or intermediary, centralizing all hotel sustainability data and efficiently channeling it between all relevant parties inside and outside the organization.

Benefits for All Stakeholders

Hotels benefit from more direct access to various sustainability certification frameworks, allowing them to obtain more certifications more quickly and cost-effectively. Booking platforms can also connect with eco-certifiers through the database and automatically validate a hotel's eco-labeling in real-time, eliminating the possibility of "greenwashing."

The demand for sustainable travel options remains strong, but consumer fatigue has started to set in. To alleviate this fatigue, hotel service providers must redouble their efforts to build trust through accurate and consistent sustainability reporting, using recognized certifications that inspire confidence in travelers seeking to reduce their carbon footprint.

Beyond the economic benefits, investing in a more automated, centralized, and intuitive sustainability data management system will help hotels save on operational costs, comply with reporting and regulatory obligations despite increasing regulations, and gain a competitive edge. Most importantly, these actions enable more responsible tourism, providing travelers with sustainable and reliable options and ensuring that their travel experiences positively impact the environment and local communities.