Indeed, Google Search data shows that ‘sustainable hotels’ is a term that has steadily trended upward for the past five years. And a recent study by Deloitte indicates that sustainability is one of three major themes shaping the future of the travel industry, with a whopping one-third of American consumers saying they would take some kind of action—such as prioritizing hotels with higher sustainability ratings—in order to travel in an eco-friendlier way.
Not surprisingly, that figure is even higher for Gen Z and millennial consumers. “Younger generations embrace the rise of purpose, including in their consumer activities, and they align their behavior with their values,” said Matthew Usdin, a principal at Deloitte and one of the study’s authors. And while these consumers are often initially skeptical of brands, once they’ve established trust, they tend to engage repeatedly, spend more money and build longer relationships.
Moreover, Gen Z and millennials’ share of travel spend is set to rise sharply over the next several years. In fact, Deloitte projects that these generations will account for more than half of U.S. leisure trips in summer 2030, up from about a third in summer 2023.
Corporations are also making the commitment to sustainable travel, said Aurora Dawn
Benton, founder and principal of Astrapto, a company focused on sustainability initiatives for the hospitality industry. “Businesses increasingly insist on working with environmentally-conscious hotels and suppliers,” she said. “In terms of event space and corporate travel, sustainability is huge. It’s in every RFP I see.”
Usdin agrees “Many companies have made a commitment to emission reductions on specific timelines,” he said, adding that hotels should increase their role in empowering these buyers to make more climate-friendly choices. “Providers that deliver stand to burnish their brands and boost their market positions.”
It starts with data management
The sustainability spectrum is a long one. At one end are properties built from the ground up with sustainability in mind from the start. On the other end are existing properties that want to incorporate green practices into their operations. Most hotels fall into the latter category and run the gamut from those that want to replace or retrofit huge systems to those that prefer more modest changes.
Regardless of where the hotel is on the spectrum, it’s in the best interest of every property to adopt at least some eco-friendly practices, Usdin said. “These initiatives not only benefit the planet but also help properties save money, especially over the long term.”
Yet many hotels jump into the sustainability journey without doing their homework, Benton said, noting that the best place to start is with proper data management. “You have to know where the inefficiencies and gaps are before you can do something about them.” In many cases, that means getting back to basics—improving reporting, being consistent in technology implementation and leveraging technology properly.
“You have to know where the inefficiencies and gaps are before you can do something about them.”
Townsend Bailey, head of corporate responsibility for the Americas at IHG Hotels & Resorts (IHG), agrees. “There’s truth to the adage that you can’t manage what you don’t measure,” he said. To that end, the hotel company recently launched an update to its Green Engage platform, an internal sustainability system that gives hoteliers a way to track, measure and report on their carbon footprint and utility consumption. The platform also offers detailed technical guidance that hotels can use to implement green solutions.
Jean Garris Hand, vice president of Global ESG at Hilton, believes proper data management goes hand in hand with sustainability success. “The first step is always to look at the data and establish your baseline energy use.” Next, examine both the supply and demand sides of energy consumption. “If you want to reduce costs and prioritize sustainable sources, you must look at how you’re procuring energy as well as how much you’re using,” she said. A trusted energy partner can help properties navigate and control costs in areas like heating, cooling, lighting and water usage.
When savings are identified, Garris Hand suggests that hotels reinvest that money in sustainability projects that generate even more cost benefits. For example, investing in a building automation system—or reprogramming an existing one—enables properties to use energy only when and where it’s needed. The money the hotel saves can then be used to fund other sustainability projects that not only reduce the property’s environmental impact but also streamline efficiency and generate additional savings.
Vendor partners play a role
A large part of any hotel’s commitment to sustainability includes working with technology vendors who champion green business practices themselves and can help properties reach their environmental objectives.
“Choosing the right vendors is critical to success,” said Bryan Michalis, vice president of marketing & strategic initiatives at global hotel tech company Canary Technologies. “In addition to selecting suppliers who share the hotel’s sustainability values, it’s important to choose partners that offer 24/7 support and on-the-job training—and retraining—when needed. Your vendors should always be there for you.”
Indeed, as operational costs rise and staffing challenges continue to affect the industry, technology plays an outsized role in helping properties achieve their sustainability goals, said Fayyad Sbaihat, president of Onity, a global leader in electronic access and integrated smart solutions. “Technology has become the most trusted partner in sustainability efforts as well as in cost-effectiveness and guest satisfaction.”
Davidson Hospitality Group works with a number of vendors to meet its environmental objectives. According to Chris Richardson, vice president of engineering and sustainability, the company is especially interested in reducing its energy and water consumption. To that end, it partners with Insite to monitor energy usage in real time and make adjustments as needed to reduce the organization’s carbon footprint. Davidson is also the first hospitality management company to partner with Duracell’s Procell InSite program, which enables the company to monitor battery consumption across the enterprise and take a proactive approach to device management.
Additionally, the company works with VivoAquatics to reduce water consumption and chemical usage in its pools and other water facilities. “We’re very committed to sustainability, and our strategic partnerships help us achieve our goals,” he said.
Likewise, BWH Hotels has implemented a global sustainability program called ‘Because We Care’ with vendors who share the same values. “We’re partnering with providers that help our hoteliers enact meaningful change,” said Michael Morton, the company’s senior vice president of brand management. Initiatives include solar panels, geothermal heating for pools and hot tubs, and sustainable lighting solutions, to name a few.
“The EV revolution is here. By embracing it now, you can get ahead of the competition.”
One solution that is increasingly on every hotel’s radar is electric vehicle (EV) charging. In fact, research by Goldman Sachs indicates that electric vehicles will make up approximately half of new car sales worldwide by 2035. A demand for onsite charging solutions will logically follow.
According to Aaron Luque, founder and CEO of EnviroSpark, an industry leader in the design, installation and operation of EV charging solutions, hotels should add EV charging stations sooner rather than later. “The EV revolution is here. By embracing it now, you can get ahead of the competition.”
Hotels that add EV charging stations to their list of amenities can expect to welcome an additional segment of travelers, he says. “These guests, which include a number of younger consumers, might not have considered the hotel otherwise.” Additionally, since the vast majority of EV-driving
consumers charge their vehicles overnight when at home, their expectations are the same when traveling. “They expect their vehicles to be fully charged and ready to go when they start the day.”
In March, IHG announced an agreement with EnviroSpark to make its EV chargers available to all IHG-branded properties across the U.S. and Canada. “The partnership reflects our shared commitment to a sustainable economy and aligns with the rising demand for eco-friendly travel options,” Luque said. Dan Mills, founder of Hospitality Energy, a developer of EV charging solutions for the hospitality industry, agrees that EV-related initiatives are here to stay.
He warns, however, that many EV solution vendors don’t understand the hospitality market and may push properties to purchase more than they need. “That’s a disservice to the industry,” he said, noting that hotels should partner with vendors that offer flexible buying options, allowing them to begin with a basic program and add stations when needed.
When it comes to return on investment, Mills says it can happen quickly—often within three years—particularly considering federal and state tax credits as well as incentives from private companies. “The barrier to entry may be lower than you think.” Similarly, Luque notes that some EV charging solution companies will work with local utility operators to bring charging stations to hotels at no upfront cost. “We can install, operate and maintain the stations, while the hotel enjoys the increased business that comes with offering the amenity,” he said.
A change in mindset
According to Kevin Ruhman, hotel segment leader for North America at Schneider Electric, a global specialist in energy management and automation, major changes in mindset are boosting the sustainability movement in the hospitality industry. One of the biggest, he says, is that hotels are educating their engineering departments in sustainability practices. “Until recently, engineers were given a basic directive to ‘keep the lights on.’ Now, they’re asked to take a bigger-picture approach and look at infrastructure to make sure everything is running at peak efficiency. I’ve never seen this before, and the impact is huge.”
In fact, hotels are educating employees across the organization—from front desk staff to housekeeping—on the importance of sustainability. “At Hilton, we’re heavily invested in collaboration,” Garris Hand said, noting that the company frequently highlights properties that have achieved sustainability success, and the employees who played a significant role.“We want to inspire our team members and partners around the world by letting them know what’s possible.”
Additionally, many hotel companies require properties to monitor their energy consumption and report the findings. “Similar properties can then be compared,” Ruhman said, noting that hotels are often incentivized—sometimes in competition style—to reduce their carbon footprint. Still other companies and brands are announcing their sustainability goals to stakeholders and customers. Three years ago, IHG launched ‘Journey to Tomorrow,’ a 10-year business plan that sets out ambitious commitments to drive positive change for people, communities and the planet with a goal of shaping the future of responsible travel.
“A core part of the plan is reducing energy use and carbon emissions in line with climate science,” Bailey said, noting that the company is committed to a 46 percent reduction in carbon dioxide emissions for its owned, leased, managed and franchised hotels by 2030. “Leading brands have adopted science-based programs to improve sustainability, and they’re making their goals public,” said Scott Lenger, hospitality vertical lead at Carrier, a global provider of intelligent climate and energy solutions. “"Environmental stewardship is on the minds of hotel owners and operators everywhere, and that momentum will only continue to build."
To be sure, sustainability is a journey and not a destination, said John Taylor, senior vice president of public affairs at LG Electronics USA, which supplies the hospitality industry with energy-efficient products, including high-definition TVs and digital displays. “Sustainability is good business. It enhances profitability and builds guest loyalty across all age groups, especially younger travelers,” he said. “There’s a growing recognition that we all have a responsibility to save the planet, and there are concrete actions we can take to make that happen.”
Market sustainability to guests
Just as staff education is important, so is buy-in from guests. According to Benton, there are easy ways to communicate the sustainability message to consumers, beginning with a few words at the hotel website. Follow up with in-room signage that welcomes travelers and states the property’s environmental commitment.
Another way to promote sustainability initiatives is through seminars and workshops on green topics, such as responsible tourism or how to reduce plastic use. Or offer information to guests about eco-friendly activities and events in the area.
Also, make sure that online travel agents know about the hotel’s sustainability program. “Many OTAs utilize search tools and filters that help consumers make greener travel choices,” she said. Others display certifications from trusted third-party groups indicating that a property meets certain sustainability levels. (See sidebar, page 18.)
Whatever you do, Benton advises, do it with authenticity. “Don’t make statements you can’t back up,” she said, citing the number of companies being called out for inflated sustainability claims. The practice, known as greenwashing, describes exaggerated, unsubstantiated or false marketing claims about an organization’s environmental sustainability that make the business appear more eco-friendly to consumers.
Even well-intentioned organizations can fall prey to greenwashing if they overstate the effectiveness of their initiatives or fail to accurately measure the environmental data, she says. “Again, it comes back to proper data management and accurate reporting. Don’t state publicly what you can’t verify.”
The fallout from even one false claim can erode guest trust and damage a brand’s reputation. “Green-washing makes guests more likely to dismiss all your environmental claims, even the ones that are legitimate, and they’ll also be less likely to trust the brand in the future.”
‘It’s not all or nothing’
The race to sustainability can easily become overwhelming for hospitality providers. Change is coming daily it seems, and it involves all segments of the industry. “This is the first time I’ve seen operators, investors and consumers coming together,” Ruhman said. “Operators want to reduce energy and are motivated from a cost standpoint. Investors are increasingly being pressured by shareholders to invest in sustainability efforts. And consumers are seeking eco-friendly travel options. When you have a mix of all three, there’s no going back.”
The thing to remember about sustainability, he says, is that hotels don’t have to go ‘all in’ at once. “Start with something basic, get past the ROI, and then get more. It’s not all or nothing. Even small efforts add up over time.”
At the end of the day, sustainability is good for the planet and profitability. “Being committed to responsible environmental practices isn’t just the right thing to do, but the right thing to do for business,” said IHG’s Bailey, noting that by minimizing their environmental impact, hotels can save money, meet evolving guest expectations, and boost the bottom line in addition to preserving the earth for future generations. “No longer a ‘nice to have,’ sustainability practices are necessary for forward-thinking hotels,” he concluded. “And they are core to the way we’re supporting our business at large.”
