Will sustainability truly be able to trump affordability in hotels sector?

The global built environment accounts for around 40% of carbon emissions and, with hotels reportedly using more energy than office, retail or manufacturing premises, it’s clear the industry needs to undergo a dramatic transformation to become more sustainable. Given that hotels operate 24 hours a day, all year round, this isn’t a simple task, but it is crucial for attracting consumers. A recent survey on consumer habits conducted by Deloitte unsurprisingly reported a sharp increase in the number of people adopting a more sustainable lifestyle.

However, faced with the cost-of-living and energy crises, there is a concern that sustainability will take a back seat for consumers, stalling the hotel industry’s progress. Will sustainability truly be able to trump affordability for consumers when push comes to shove?

Cost hurdle

According to the latest Young Persons’ Money Index, 81% of young people feel anxious about money and finances. This is an increase of 14% on last year and the highest result recorded since the London Institute of Banking & Finance first asked the question in 2016. The cost-of-living crisis has sadly resulted in even those who would prefer a more sustainable hotel to prioritise an affordable option. With the most sustainable hotels often being accompanied by a hefty price tag, it remains to be seen whether the next generation’s demand for greener hotels will materialise in practice.

Progress on horizon

For luxury hotels, whose clientele can afford these increased price tags, the transition towards sustainability is already well underway. Large-scale measures can now range from incorporating sustainable building materials into the design process; creating circular waste management processes; and going plastic-free. For instance, Marriot International focuses on responsibly sourcing local materials to reduce the negative impact of its operations on the environment. In fact, 294 hotels within the Marriot International group are pursuing or have achieved LEED, BREEAM, or Estidama certification. Many hotel companies have also taken the step of committing themselves to the Science Based Targets initiative (SBTi) which defines best practices for net-zero targets.

Sustainability for all

There is a particularly pressing cost-incentive behind the net-zero transition in the hotel industry that should help incentivise sustainability measures across hotels of all sizes, however small steps these might be initially. Due to the current geopolitical climate, the cost of hotel energy usage is continuing to soar. Reducing the carbon footprint of these traditionally energy-intensive buildings is becoming more urgent than ever and could prove key to survival in the current uncertain economic climate.

There are now more than 500 travel-related companies that have signed the Glasgow Declaration on Climate Action in Tourism, which aims to halve emissions by 2030 and reach net zero by 2050. As a result, new hotel developments coming to market must prove they are paying far more than lip service to climate commitments.

With the knock-on financial benefits of reducing energy consumption likely to remain for the foreseeable future, sustainable initiatives are sure to lead to success in the hotel industry. While consumers continue to battle with financial struggles, the hotel industry must be bold and lead the way. Consumer demand for eco-friendly hotels in all price brackets will follow.