The price of hotel sustainability: willing-to-stay and willing-to-pay?
20 experts shared their view
A recently published large-scale survey points out that the vast majority of travelers are keen on staying at hotel properties that engage in sustainability (1). Willingness-to-stay (WTS) is important to the extent in which hotels can capitalize on their sustainability endeavors through transparent communication. However, the same travelers seem to have difficulty in finding hotels committed to sustainability or simply are not aware that those hotels even exist (2); a topic discussed by the World Panel on Sustainability in Hospitality earlier this year (3). Beyond WTS, hoteliers are particularly interested in the willingness-to-pay (WTP). Findings from academic research are mixed, but recent studies point out that the willingness to pay a price premium to stay in hotels that have implemented sustainability practices is linked to the level of environmental concerns showed by individuals (4). Because ultimately, the price guests pay to stay at the property remains a major driver or barrier for travel decisions.
How should the industry communicate the added value of sustainability (rather than added cost) that resonates with guests that espouse similar values? How should the industry communicate to other segments which do not share the same values? How do we transform the perception that sustainability measures are simply a cost-reduction strategy rather than valuable and essential practices in this day and age?
The hotel industry needs to create a more thorough campaign which allows consumers to understand their interest in delivering sustainability. I would suggest a strong public awareness campaign. But such a campaign would require multi--brand commitments to sustainability and measurable progress using the same indicators. I would suggest making such commitments in specific destinations. Countries such as the Maldives or in the Caribbean, and the Asia Pacific are seeking to achieve a new level of sustainability which will require a macro view of how to Build Back Better in cooperation with industry. If the hotel industry were to make commitments to lower their carbon footprint at the destination level across-brands .. this would be ground breaking. A coalition of brands could potentially support the rebuilding of key destinations post-pandemic, via a new set of goals which attract both private and Foreign Direct Investment for energy efficiency, proper management of solid waste, measurable progress on sourcing new significant amounts of renewable energy, and creating systems of water conservation and waste water treatment that meet international standards. My company's vision is called the Marshall Plan for Tourism, http://www.eplerwoodinternational.com/marshall-plan-fund-reports/ We worked with the Pacific Asia Travel Association to create a model that would allow for public private collaboration on these key goals. Have a look!