Top 10 Ways Sustainability Can Benefit Your Hospitality Business
With over 700,000 hotels and resorts worldwide and the travel & tourism sector contributing over 10% to the global GDP, the urgent need for sustainability within the hospitality industry is undeniable. Becoming a sustainable business can be beneficial in many ways, such as:
Enhancing brand reputation
Attracting new guests
Creating long-term business stability
Improving community engagement
Cost-savings
The importance of sustainability in hospitality
Sustainability is important for hospitality businesses because it can lead to significant cost savings, boost efficiency, and enhance profitability. By adopting sustainable practices like energy conservation and waste reduction, businesses and hotels can lower operational expenses and improve their bottom line. Embracing sustainability also attracts eco-conscious consumers willing to pay more for environmentally friendly products and services, creating new revenue opportunities and enhancing brand loyalty.
Travel is a major contributor to global economic activity and environmental impact, so adopting sustainable practices in the hospitality industry is no longer a choice but a necessity. By going green, we can help preserve our planet, reduce waste, and contribute to a more sustainable future for generations to come.
So, how can sustainability benefit your hospitality business and help drive its success? Let’s take a look.
Kicheche Mara North, Kenya
1. Enhanced Brand Reputation: Adopting sustainable practices can differentiate your brand and showcase your commitment to responsible business operations. In an era where consumers prioritise ethical choices, this can significantly enhance your reputation and appeal within the industry.
2. Cost Savings: Implementing sustainable measures, such as reducing energy and water consumption and minimising food waste, directly impacts your operational costs, leading to substantial long-term savings. A previous study found that, according to the US Green Building Council (USGBC), owners of sustainable buildings saw an average ROI improvement of 19.2% for existing building sustainable projects and 9.9% for new projects, showing that investing in sustainable building practices can lead to lower costs and positive returns on investment for property owners.
3. Attracting Eco-Conscious Guests: More and more travellers are looking for eco-friendly accommodations, with 76% of travellers wanting to travel more sustainably. By embracing eco-friendly practices, you can tap into this growing market and attract guests who value responsible hospitality experiences.
4. Compliance with Regulations: Governments are tightening regulations on environmental practices. For example, the EU is actively engaging all stakeholders to make sure EU climate and environmental laws are effectively implemented, and the US Environmental Protection Agency (EPA) enforces regulations on air and water quality, waste management, and pollution control. By proactively adopting sustainable initiatives, you can ensure compliance with current and future regulations, mitigating risks and avoiding potential penalties.
5. Employee Engagement: Involving your staff in sustainability initiatives creates a sense of purpose and engagement. In a recent study, 69% of employees said they are looking for companies and businesses to invest in sustainable efforts, including reducing carbon emissions, using renewable energy and reducing waste. Many employees want to feel proud to work for a company that prioritises sustainability, with nearly a quarter considering leaving a job to work for a more sustainable business.
6. Positive Guest Experience: Sustainability can enhance the overall guest experience. From eco-friendly amenities to locally sourced food, sustainable practices resonate positively with guests, driving satisfaction and loyalty. Encouraging guests to get involved in local community programs and supporting sustainable initiatives can significantly enhance their overall experience. They may feel a deeper connection to the destination and appreciate the opportunity to contribute positively to the local area.
7. Long-Term Resilience: Sustainability helps to futureproof your business by using fewer limited resources and reducing risks to the environment. This means you can better handle market challenges and changes and make your business more durable and adaptable.
8. Access to Green Certifications: Achieving recognised status within the industry can boost your credibility and enhance your reputation. Sustainability certifications can help establish your business as a leader in ethical and sustainable practices, earning recognition and trust from customers, partners, and stakeholders. These certifications show your commitment to sustainability, setting you apart against competitors and attracting like-minded individuals and organisations to collaborate with.
9. Community Engagement: Embracing sustainability strengthens community relationships and benefits local providers, creating a sense of shared responsibility and supporting the local economy.
10. Innovation and Differentiation: Pursuing sustainability encourages innovation within your business, enabling you to find alternative ways to operate efficiently while reducing environmental impact. Embracing new technologies and practices sets you apart from competitors, offering unique selling points and enhancing your market position. For example, implementing innovative and sustainable guest services can attract environmentally conscious travellers, improve guest satisfaction, and differentiate your hotel in a competitive industry.
How The Long Run Can Help You
The Long Run 4C framework supports tourism businesses' journeys to becoming more sustainable. Standing for conservation, community, culture and commerce, this framework helps tourism businesses adopt a holistic sustainability strategy, ensuring long-term prosperity for people and nature.
Tswalu Kalahari Reserve, South Africa