In today’s evolving landscape of corporate responsibility, sustainability reporting has become a critical tool for businesses to communicate their environmental and social impact. However, misconceptions often cloud the effectiveness of these reports, particularly within the travel, hospitality and tourism sectors. In this Q&A, Alina Arnelle, chief sustainability officer at BeCause, delves into the common misunderstandings that can undermine sustainability reporting. She also explores the unique challenges and opportunities these industries face in advancing sustainability, and offers strategies to help companies bridge the trust gap with consumers through transparent and impactful reporting.
In your experience, what are the most common misconceptions hotels and tourism companies have about sustainability reporting?
A common misconception is that ESG reporting is simply extra bureaucracy driven by the recent increase in global sustainability legislation. With new laws mandating businesses to report on metrics like carbon emissions, energy consumption, water usage, and waste production, some companies in the travel and hospitality sector see the requisite data gathering and management as just another administrative task, missing its commercial potential.
The growing number of consumers choosing brands dedicated to reducing their environmental impact presents a significant financial opportunity. According to Booking.com’s 2022 Sustainable Travel Report, 71% of global travelers hoped to travel more sustainably the following year, marking a 10% increase from 2021. This trend subsequently intensified, with the 2023 survey showing a 5% increase. Companies can gain a competitive edge by leveraging sustainability data not just for regulatory compliance, but also to attract this rapidly growing demographic.
Sustainability is becoming increasingly important in the travel and hospitality industry. How do you see the role of technology evolving in helping companies manage sustainability data more efficiently and transparently?
Many companies are being held back in their sustainability efforts due to a lack of technology.
Too often, data is still managed manually through a complex and cumbersome series of spreadsheets, surveys, and emails. This inefficiency not only drains resources but also limits their ability to respond to growing regulatory demands and market opportunities. The natural next step is automation, with digital data management playing a central role in improving efficiency.
Integrating the right technology is crucial. Businesses need to adopt an AI-driven platform to replace manual processes, streamline data, ensure regulatory compliance, drive competitive advantage and modernize collaboration between travel and hospitality providers, distributors, and certification entities. Already ensuring accurate and reliable sustainability data for over 22,000 hotels, online travel agencies and marketplaces worldwide, the BeCause technology framework does just that.
One of the major challenges in sustainability is the trust gap between what companies claim and what consumers believe. How can hotels and tourism companies build trust with eco-conscious travelers?
A disconnect exists between brands’ perceptions of their sustainability efforts and consumer beliefs. Studies show that while consumers are willing to pay for sustainable options they are hindered by skepticism. Nearly 40% face difficulties in identifying meaningful sustainable accommodations and often distrust brand claims, according to Booking.com’s recent Sustainable Travel Report. As a result, their interest in sustainable travel has plateaued at 75%.
To overcome this challenge and build trust with eco-conscious travelers, businesses need reliable and transparent data. They must demonstrate that their commitment to people and the planet is genuine by ensuring that brand claims align with consumers’ experiences and are consistently communicated across all channels.
Given the projected growth in sustainable tourism, what are some of the key steps hospitality providers should take to ensure their sustainability efforts are both credible and impactful?
A key step is securing independently verified sustainability certifications from reputable organizations like Green Key. These certifications resonate with consumers because they provide a universal standard for comparing sustainable options. In fact, 45% of consumers say they find it appealing when they come across accommodation that has such a label, with 67% agreeing that all travel booking sites should use the same ones.
To help standardize, and substantiate, sustainability claims across the global market, hospitality providers and booking partners also need to collaborate to ensure consistent communication around these certifications.
Many companies struggle with decentralized and manual data management when it comes to sustainability reporting. Can you address these inefficiencies and what impact they have on sustainability programs?
Existing processes for managing sustainability data are plagued by inefficiency, manual work, and high costs, limiting companies’ ability to provide reliable sustainability data efficiently and transparently to consumers.
These manual methods keep the data siloed, with Information scattered across different spreadsheets and stakeholder inboxes, making it difficult to efficiently consolidate and cross-reference. Their fragmented nature also increases the risk of errors, potentially undermining consumer trust in the authenticity of claims. These processes are especially arduous for small hotels or chains that might not have dedicated sustainability managers.
Furthermore, these outdated, decentralized, and ineffective methods are also costly. Hotels alone spend $8 billion annually on these processes, yet still miss out on $13 billion in potential revenue from attracting green consumers. Consequently, they cost hotels $21 billion each year.
To address these inefficiencies and tap into the increasing demand for sustainability, hotels and travel brands must be able to seamlessly collect, analyze, and communicate their sustainability practices and data.
Consumers are increasingly demanding standardized sustainability certifications. How do you think the industry can move toward more unified and recognized sustainability standards?
The way forward is data standardization. Establishing standardized reporting and certifications across the hospitality and travel industry is essential for scaling sustainability practices. Unfortunately, prevailing sustainability data management practices are not fit for purpose. That is why companies need to digitalize the way they collect, measure, and communicate sustainability data. By establishing meaningful industry benchmarks, accurately tracking sector progress, and strengthening consumer trust in brand claims, we can move closer to achieving the industry’s sustainability goals.
Looking ahead, what do you see as the biggest opportunities and challenges for the hospitality sector in advancing sustainability, particularly in terms of meeting consumer expectations and achieving long-term business growth?
Growing global demand for sustainable travel and tourism represents a substantial commercial opportunity, with an expected compound annual growth rate of 23.8% between now and 2034, reaching over $12.8 million in net revenue.
However, the most significant challenge lies in the evolving legislative context. We are rapidly moving to a world in which all businesses will have to disclose their environmental and social impact- which is already the case in some regions, like the EU.
To meet consumer demand and future-proof their businesses, travel and hospitality companies must invest in the right sustainability technology and transform their data management systems.
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