Hotel Sustainability Shouldn't Be Boring: Celebrate Impact!

As a sustainability professional working in hotels right now, I can see we've reached a critical turning point.

Most brands in 2023 have some sort of sustainability strategy, or otherwise are scrambling to create one. I am sure this issue of Hotel Business Review is overflowing with examples of hotels "going green".

What interests me most, and what my ramblings here will eventually describe, is the exciting opportunity we have that is unique to the tourism industry. An opportunity that every hotel business should be capitalizing on; hotel sustainability doesn't need to be boring!

Sustainability is a hot topic in the hotel industry right now, and it's not hard to see why. According to a study by the Cornell School of Hotel Administration, sustainability practices can reduce hotel operating costs by 6.5% per year, and the investment in sustainable technology can be recouped in as little as three years. Plus, 79% of guests are more likely to choose an eco-friendly hotel over a traditional one, according to a study by TripAdvisor, and 66% of travelers consider a hotel's environmental commitment when choosing where to stay, according to a study by Booking.com.

In fact, the same Booking.com study found that 87% of travelers want to travel sustainably, but 52% say they struggle to find sustainable travel options. This creates a huge opportunity for hotels to differentiate themselves from the competition by implementing sustainable practices, and to appeal to the growing number of travelers who are seeking out eco-friendly options.

The market has spoken. The hotel industry has got to make some big achievements on sustainability to remain relevant. We are ripe for disruption, and it goes beyond saying at this point that any big hotel brands that can't keep up will simply be left behind. Let's look at other industries for a moment and draw inspiration from the incredible progress being made.

IKEA has installed over 900,000 solar panels and 500 wind turbines across its operations, generating more renewable energy than it consumes. The company has also implemented a circular business model, with 60% of its products now made from renewable and recycled materials. Nike opened a net-zero distribution facility in Belgium in 2018. These buildings are designed to generate as much energy as they consume, primarily by renewable energy sources such as solar panels and geothermal heating and cooling systems, and incorporate sustainable design features such as rainwater harvesting, energy-efficient lighting, and green roofs to reduce their environmental impact. Adidas has developed a shoe called the Futurecraft Loop, which is made entirely from recycled materials and can be fully recycled at the end of its life. Apple achieved carbon neutrality across its entire supply chain in 2020.

Those are some fantastic achievements, and I could go on. Certainly, some points to learn from and replicate, as energy, water, and waste reduction are equally important to hotels as to all industries. But what's missing from those other industries, what they can never do as well as hotels, is our biggest value adding opportunity. To inspire our guests and make sustainability fun and experience driven. Our product isn't furniture or tennis shoes. Our product is the travel experience, and this is a product with much to gain from the positive side of sustainability.

First, a hotel needs to get the basics done right. You are measuring your energy, water, and waste. You have policies and procedures in place to safeguard your workers, the environment, and your community. You're not dumping trash into the sea, burning it, or serving up endangered species on your menus. You have goals to reduce your energy (and thus carbon), water, and waste. And all of this has some form of review and management process built into it, and it contributes to leadership performance reviews. These are the basics, and forgive me I've missed a few, we're not aiming for a comprehensive list here.

Big yawn. Nothing I've just described is making it onto your guest's Instagram feed. If you don't have those basics in place already, sorry but you are likely falling behind. If you do, great, welcome to business as usual for most industries in the 2020's. You are now prepared for survival in today's cancel culture of cynical scrutiny and social media shaming. You are armed and ready to face the woke masses with your head held high. But this is just the foundation, there is nothing incredible or exciting about it. This is what the entire manufacturing industry has been doing since the 2000's. This is what your local Starbucks does. We work in tourism – it's got to be fun! To make a compelling value proposition for sustainable tourism you must do more. However before going there, you must have the basics in place – your foundation to stand on – or else you're on a dangerous road to greenwashing.

What is greenwashing? While many definitions can be found, greenwashing essentially comes down to misrepresentation or even deception. Making false claims or generating false impressions about your sustainability performance. Using public relations and marketing to clean up your image, without making enough legitimate effort to really clean up your performance. There are material legal considerations and several large companies have ended up in court. Governments have woken up to the issue and new legislation against greenwashing is on the horizon. France's Climate and Resilience Law goes into effect this year, and the European Union is reviewing its Unfair Commercial Practices Directive potentially for 2025.

There are certainly some companies that get into greenwashing intentionally, or just don't care. And I believe many more that naively slip into a position where their story lines get out of control. This can be the result of marketing teams simply not being close enough to realities on the ground. Or of a lack of education and understanding of what sustainability really means and those basics that need to be in place. Before jumping into full blown community and conservation action, it's important that any business first gets its own house in line.

Community and conservation efforts (and results) offer a massive value add to any hotel or tourism business. Because it's fun. Because it's a good-news story that travelers can place themselves into the midst of. It satiates that deep empty hole that we collectively found at the center of our modern existence while we were all trapped at home during the pandemic and forced to reflect on our lives. Even a decade earlier there was momentum for "travel with purpose" and "voluntourism" and that has only grown. Travelers want to transcend the traditional "tourist" barrier as passive observers and cross those boundaries to engage and interact. So, let's offer that interaction. Let's provide meaning and purpose all at the same time. Even if only to justify the carbon footprint of travel or for bragging rights on social media. I prefer to believe that we are offering our guests a level of hope and optimism, enabling them to actualize a genuine and deep-seated desire to create good in the world.

According to a study by the Center for Responsible Travel, the global market for voluntourism was worth around $173 billion in 2019, and is projected to reach $194 billion by 2027. This represents a significant growth opportunity for travel companies that offer voluntourism experiences, as well as for non-profit organizations that partner with them. The same study found that voluntourism can have a positive impact on local communities when it is well-planned and properly implemented. Another trend in purpose-driven travel is "transformative travel," which involves seeking out experiences that challenge and inspire personal growth and self-discovery through community development.

An example of transformative travel might be participating in a service project that involves working alongside local community members to build sustainable infrastructure, such as a community center or clean water system. These industry statistics and market research data suggest that the growth of "travel with purpose" and voluntourism is a long-term trend driven by a desire among travelers to make a positive impact on the world while also enjoying unique and meaningful travel experiences.

We accomplish positive impact on community and conservation best through partnerships. Our teams are experts in running hotels, and in that arena, it is solely our responsibility to manage sustainability and limit all potential negative impacts. But outside the hotel, we don't need to become experts in wildlife research or community development. Hotels are in an ideal position to partner with local experts, government agencies, and NGOs to create positive impacts in the local area. Because with each guest arrival comes revenue from outside, an economic influx.

This flow of finance can be channeled in many ways to support the local economy, the first of which is of course local hiring and goods and services. Setting aside some funds for community services is a smart investment, considering those critical services and infrastructure the hotel needs to operate, like hospitals, roads, schools, etc. And of course, we can think beyond self-preservation and partner with agencies to tackle the larger issues. To take on challenges which our guests will be proud to be a part of.

Six Senses sets aside 0.5% of hotel revenue at each location to be spent outside the hotel and invested in local community and environmental projects. These funds are decentralized – they don't come to our corporate office – but are restricted for impacts at the local level. It's a funding mechanism that ensures with each guest arrival there is investment into community and conservation at that location. It mitigates business risks relating to loss of community services and environmental product disruption. But most importantly it drives long term projects that yield measurable positive impacts for our wildlife, environment, and communities, that we can articulate for our guests and welcome them to participate in. I'll share some examples.

Regarding wildlife, across our group of 20 hotels in 2022 we protected and conserved seven endangered species and four critically endangered species. Over 2,000 trees were planted, 5.78 acres of habitat was protected or restored, and over 33 metric tons of trash was removed from the environment. Specific wildlife projects at the hotels, however, are much more interesting. For example, Six Senses Ninh Van Bay in Vietnam has partnered with a local NGO to protect critically endangered monkeys that live nearby, and that population increased to 153 individuals in 2022. Our guests often see these monkeys while hiking, and there is a great value-add from involving guests in the conservation efforts and celebrating the impact they are funding just by visiting the hotel.

All hotels ultimately support local communities in some way, beginning with the provision of career opportunities. With focused effort we can do more. Across Six Senses access to clean drinking water and sanitation is now being provided to 120,467 community members. In 2022, an additional 17,545 people have improved medical care, and 7,977 have improved waste management services. At Six Senses Zighy Bay in Oman, we are supporting a school for girls in a region that otherwise offers few opportunities, and together in 2022 we improved access to education for 374 students. There is support for skills development and livelihoods, and our guests can visit and learn about traditional crafts and culture in a respectful way.

Cultural conservation is an often overlooked yet important aspect of sustainable tourism. A great opportunity to keep travel interesting, and a great risk if the world becomes white-washed and generic, and therefore less interesting for travel. At Six Senses Rome we have partnered with a church next to the hotel and worked to restore the historical façade of that building, which also houses ancient artifacts which guests have a tour to view and learn about the achievements they are supporting.

Each and every hotel has great potential to benefit its local community and environment. The hotel business is part of an ecosystem, both natural and economic, and no business can operate in isolation. Once the basics of sustainability are in place and all the right boxes are ticked, there is a massive opportunity to make meaningful progress outside of the hotel. Move pat the basics and make sustainability fun and inspiring. Not only because it's a good thing to do, but also because it improves the product, it adds value to the visitor experience. Travelers want to do more and hotels are poised to offer it. Celebrate those impacts!

Reprinted from the Hotel Business Review with permission from www.HotelExecutive.com.