How Sustainable Hospitality Transforms the Industry

From the dawn of time, nature has provided us with everything: shelter, sustenance, beauty, and serenity. Even as we've built cities and industries, like the booming hospitality sector, we remain connected to the natural world that sustains us. Now more than ever, we must acknowledge how our actions affect the environment.

In fact, over three-quarters of people today actively seek out ways to make their vacations more eco-friendly. The demand for sustainable hospitality is undeniable, but the question is: Are we meeting that demand, and if so, how? And if not, why is that?

What Is Sustainable Hospitality?

The simplest way to explain sustainable hospitality is to consider it as the industry going green. However, it's really much more than that. Sustainability in the hospitality industry represents the efforts made to balance environmental, social, and economic responsibilities within the industry. It means making decisions that ensure the long-term stability of natural and man-made systems. This balance is often described through the "three P's" of sustainability: People, Planet, and Profit.

Many leading hospitality brands have already embraced this concept. They implement it across four key pillars:

• Healthy buildings
• Green operations
• Social sustainability
• Supply chain sustainability

These pillars guide businesses toward energy-efficient structures, promote social responsibility, and reduce environmental impact while driving business recovery and growth. Now, the industry sees sustainability as a continual process and an ongoing effort to improve operations and innovate rather than a simple one-time goal.

Why Sustainability Matters in Hospitality

The focus on sustainability within the hospitality industry has been a gradual process spanning several decades. It began as early as the 1960s, when people first realized the harmful impact of pollution, leading to the rise of environmental awareness.

Then came the 1973 energy crisis, which pushed the hospitality industry to focus on energy conservation due to soaring costs. By the 1980s, sustainability had taken center stage on the global political agenda, especially once the Brundtland Commission published its landmark report defining sustainable development as a means of meeting the needs of the present without having to compromise the ability of future generations to meet their own needs.

Then, this concept of sustainability found its way into the hospitality industry as a strategic initiative to align with the growing demand for eco-conscious practices from consumers, governments, and stakeholders.

Fast forward to today, and the stakes are higher than ever. The World Sustainable Hospitality Alliance reports that climate change is now one of the greatest risks facing the world, affecting businesses and communities everywhere. Global carbon emissions have surged by nearly 50% since 1990, and extreme weather events are becoming more frequent, hitting the hospitality industry hard. Moreover, operational costs are rising due to these climate disruptions, as well as entire tourist destinations are becoming less viable because extreme conditions are taking their toll.

In this context, sustainability has surely surpassed being a trend and turned into a responsibility. According to Deloitte's ConsumerSignals, 51% of global consumers are worried or anxious about climate change. As more people prioritize environmental issues in their purchasing decisions, Deloitte's Sustainable Consumer 2023 survey found that a growing number of consumers have stopped making purchases—including those in the hospitality sector—due to ethical or sustainability-related concerns.

Key Trends Shaping Sustainable Hospitality

Although sustainability in hospitality has solidified as a long-term commitment, it continues to be influenced by emerging trends that shape how these practices evolve. These trends encompass:

ESG principles

One of the most impactful trends shaping sustainable hospitality is the adoption of ESG (Environmental, Social, Governance) principles. This approach requires hotels to focus on environmental sustainability, social inclusivity, and ethical governance across their operations.

In the environmental sector, ESG policies encourage reducing pollution, carbon emissions, and waste. This often involves integrating renewable energy sources, reducing water usage, and enhancing energy efficiency. Moreover, ESG standards demand a diverse and inclusive workforce at all levels, helping hotels improve their ethical and social reputation along with their sustainability.

Energy management

Energy consumption remains one of the most significant contributors to the hospitality industry's carbon footprint, with 60-70% of a hotel's utility costs attributed to electricity. As a result, energy management has become a focal point in sustainable hotel operations.

Many hotels are adopting IoT-enabled energy management systems that adjust energy usage in real-time. By using smart thermostats, occupancy sensors, and machine learning algorithms, hotels are reducing both their energy consumption and operational costs.

Reducing food waste

The hospitality industry is also tackling one of its biggest challenges: food waste. It's estimated that one-third of all the food produced actually goes to waste every year. A significant portion of that is attributed to the hospitality industry and its many sectors.

Data indicates that food waste within the hospitality sector is distributed across various establishments as follows:

• Restaurants: 22%
• Pubs: 19%
• Hotels: 9%
• Quick service restaurants: 8.3%
• Staff catering: 2%
• Leisure venues: 7%
• Service providers: 3%
• Healthcare facilities: 13%
• Educational institutions: 13%

To combat this, many are implementing practices such as sourcing food locally, adopting farm-to-table dining, and reducing plate waste by offering smaller portion sizes. The shift toward sustainable dining not only helps reduce waste but also enhances the guest experience by offering fresher, locally sourced meals that reflect the destination's culture.

Carbon footprint measurement

Accurately measuring and tracking carbon emissions is a critical part of sustainable hospitality. Thousands of hotels worldwide have adopted the Hotel Carbon Measurement Initiative (HCMI), allowing them to better assess their carbon footprint and make informed decisions about reducing their environmental impact. This system enables hotels to set and meet ambitious sustainability goals while offering transparency to eco-conscious guests who prioritize staying at green-friendly properties.

Sustainable guest experiences

Sustainability is becoming a central part of the guest experience as more travelers prefer eco-friendly accommodations. Research shows that close to 60% of travelers now prefer hotels that embrace eco-friendly initiatives, such as reducing single-use plastics. Additionally, about 30% of travelers are open to paying extra for green amenities like electric vehicle (EV) charging stations.

Hotels are responding by offering services that emphasize sustainability, such as paperless check-ins, digital room keys, eco-friendly amenities, and various other innovations in hospitality. These changes help reduce waste as well as enhance the guest experience. Sustainable guest services resonate particularly well with younger generations, such as Gen Z, 64% of whom are willing to pay more for eco-friendly options.

Challenges of Implementing Sustainable Hospitality Practices

Hospitality management may recognize the importance of implementing sustainable practices and have the desire to adopt green initiatives, but many businesses face significant challenges in doing so. Sustainability practices demand careful planning and resources to overcome challenges from high upfront costs to inconsistent regulations.

Cost of initial investment

A big barrier to adopting sustainable practices in the hospitality industry is the upfront costs. Installing energy-efficient systems, switching to renewable energy sources, or retrofitting buildings for better sustainability can require significant initial financial outlay. For smaller establishments, in particular, these costs can be prohibitive.

Operational disruptions

Implementing sustainable solutions can often lead to operational disruptions. For instance, renovations to install eco-friendly infrastructure or implementing new waste management systems may require temporary closures or interruptions in service, which can be costly for businesses that rely on steady income and continuous operations.

Lack of awareness and expertise

Many hospitality businesses struggle with a lack of knowledge regarding how to implement sustainable practices effectively. Without proper guidance or expertise, it can be difficult to navigate the myriad of green technologies, certifications, and best practices available. Furthermore, training staff on sustainable operations can require time and resources, which adds to the challenge.

Inconsistent regulations

Sustainability regulations vary greatly by region and country, which can make it difficult for hospitality companies to standardize practices across their properties. While some regions may offer incentives for sustainable practices, others may lack clear guidelines or support, creating a patchwork of policies that businesses must navigate.

The Bottom Line

We owe it to nature and future generations to keep striving for sustainability in everything we do. As it becomes more mainstream, it's time to expand our efforts. This starts by embedding the principles of sustainability—environmental, economic, and social—into every level of a company's mission.

The hospitality industry has the opportunity to lead by example, but to do so, we must continue to educate ourselves and stay updated on emerging trends through hospitality conferences and formal education. At César Ritz Colleges, with the Bachelor of Science in Hospitality Business Management, we can build a future where green practices aren't just admirable, but integral. So, let's ensure that sustainability is not just an initiative but a collaboration of established leaders, academic institutions, and future hospitality professionals.

Frequently Asked Questions (FAQs)

What are the benefits of sustainable hospitality?

Sustainable hospitality offers many profits, including enhanced brand reputation, lower long-term costs, and resolutions to the growing demand for eco-friendly travel options.

What are the three Ps of hospitality sustainability?

The three Ps of hospitality sustainability are people, planet, and profit. They emphasize the needed balance between social, environmental, and economic sustainability.