How Does Sustainability and Innovation Work Hand-In-Hand in the Hospitality Industry?

Source: Hotel Executive

When it comes to the past and current state of sustainability in the hospitality industry, the stats are truly staggering. Did you know that the hotel industry is responsible for around 1 percent of the world's carbon emissions? And that, according to research, hotels are responsible for 21 percent of negative environmental impacts due to tourism? Unfortunately, whether it be due to a lack of awareness or other factors, hospitality has made quite a mark on our world's environment. This includes issues with significant resource consumption, including that of water and energy, as well as food waste, use of plastic and even transportation.

Sustainability: It is a word that has become a larger and larger component of business operations across all industries, first as a simple sprinkle within growth plans and now as a leading driver of conversation between executives as they work hard to achieve that competitive edge required to become true market leaders.

However, the hospitality industry has lagged in its adoption of sustainable business practices, which has thrown a wrench in providing today's hotel guests with the best stay experience possible. After all, individuals are placing an increasing importance on sustainability in their lives, and their desire to be a real solution to a serious environmental problem is quite evident in the choices they make and the companies they choose to engage with on a daily basis.

With this it is essential that hotels at least begin to take steps towards eco-conscious practices and begin exploring innovative sustainable solutions to implement, which will unlock the door to accelerated business success, all the while significantly helping the environment. Without that crucial marriage between sustainability and innovation, the hospitality industry is simply spinning its wheels. With this it is essential that hotels at least begin to take steps towards eco-conscious practices and begin exploring innovative sustainable solutions to implement, which will unlock the door to accelerated business success, all the while significantly helping the environment. Without that crucial marriage between sustainability and innovation, the hospitality industry is simply spinning its wheels.

Walking the Talk

Luckily, we are starting to see a remarkable uptick in movement towards sustainability. Some of the hotel industry's major players have already proven they are up for the challenge, making significant commitments to embracing sustainability and looking to innovation to pivot their operations. According to the Hotel Tech Report, a lot of headway has been made in recent years:

- IHG and Marriott both removed all single-use toiletries by the end of 2021, saving over 200 million bottles globally each year at IHG, and over $14 million each year at Marriott

- Caesar's Palace saved a total of 30 million gallons of water by implementing a towel reuse program that cuts back on loads of laundry and replacements

- Over 60 hotels are part of the Sustainable Hospitality Alliance, an organization that makes up 4.5 million hotel rooms, or 25 percent of total hotel rooms, across the world

- 1 Hotels, a sustainability-focused hotel brand, has pledged $120,000 in funding for emerging business leaders with ideas in the clean energy space

And according to Business Traveller, Hilton plans to reduce waste at their multiple locations by over 50 percent by 2030. In fact, they became the first major hotel brand to set carbon targets in alignment with the Paris Climate Agreement and as approved by the Science Based Targets initiative (SBTi).

It's important to note that, according to the United States Green Building Council, being a LEED-certified hotel costs just 1-2 percent more than a hotel that's not LEED-certified. Imagine how much of an operational impact can be made with such a small investment, not to mention the gratitude you'll find from hotel guests who want to live greener, more eco-conscious lifestyles.

Hospitality of the Past

When it comes to the past and current state of sustainability in the hospitality industry, the stats are truly staggering. Did you know that the hotel industry is responsible for around 1 percent of the world's carbon emissions? And that, according to research, hotels are responsible for 21 percent of negative environmental impacts due to tourism? Unfortunately, whether it be due to a lack of awareness or other factors, hospitality has made quite a mark on our world's environment. This includes issues with significant resource consumption, including that of water and energy, as well as food waste, use of plastic and even transportation.

The stats around plastic alone are enough to raise significant concern. It has been shown that around 8 million pieces of plastic find their way into our oceans daily, and that hotels are a significant contributor to this problem. And according to the United Nations Environment Programme, around 1 million plastic bottles are purchased every minute, and nearly 5 trillion plastic bags are used each year globally. It is crucial that today's hotels take a moment to digest the facts associated with their business operations and identify ways to reduce their carbon footprint, and identifying areas where plastic waste can be reduced is an excellent place to start.

This is not to say that the hospitality industry isn't well-intentioned. After all, the sector lives and breathes providing people with the best experience possible, including in the hotel and motel realm. It seems that one barrier that hospitality organizations have faced is a major lack in innovation. How is it possible for hotels to improve their carbon footprint, emissions, etc. if they are not aware of the impact they are making? And if they are aware, do they know of the tools that are available to help them go about change?

In the end, the Sustainable Hospitality Alliance has made it clear that the hotel industry must cut down its carbon emission per room by 2050 to make sure there is no increase in carbon emissions. A tall order, yes, but not impossible.

Intersection of Sustainability and Innovation

Together, sustainability and innovation have the capacity to completely transform both hotel operations and the guest experience. Automation is an excellent example of this avenue for transformation. While it is not a new technology, automation in the hotel environment has the ability to make a sizable positive impact. One way is by changing the checking in/checking out experience that guests are accustomed to. Through automation, guests can completely bypass the traditional method of checking in and checking out, as well as having to use a plastic key card to get in and out of their rooms.

This kind of technology falls in line with hotel digitization, which is crucial in reducing the carbon footprint (which is massive in the hotel space). Digitization allows today's hotels to considerably lessen their use of paper, including that for receipts, bills and invoices, which can be replaced by such things as emails or QR codes. Not only is this solution better for the earth but also offers hotels another path towards seamless operations.

Energy management solutions are across the board one of the more important innovations for the industry as optimization of energy usage will make a huge impact on a hotel's ability to be sustainable. Such solutions include smart sensors (e.g., motion tracking), climate control systems (e.g., smart thermostats) and automated lighting. Real-time monitoring is also of serious value as it only allows for the usage of energy when it is truly needed.

There are many innovations in water conservation that hotels can leverage in their sustainability efforts, which include upgrading to energy efficient laundry equipment. Providing guests with the ability to reuse towels and linens will make a big difference - and help hotel operations as it cuts down time normally spent and improves productivity. Additionally, changing outdoor landscapes to those that require less water for irrigation but are also still appealing to guests are a great change. Some hotels are even opting to use fake grass!

In the case of food waste, the first step is to provide hotel staff with training on sustainability, what it means for the environment and discuss how they can contribute to the hotel's overall sustainability goals. Utilizing smart technologies, such as smart refrigerators and inventory systems, help staff track food consumption. Be sure to regularly conduct waste audits to identify inefficiencies and develop targeted waste reduction strategies. Composting also makes a big difference.

Hotels can tackle the issue of emissions generated from hotel stay-related transportation by offering various sustainable mobility options, such as through access to e-bikes or e-scooters. Also, providing EV charging stations, hotel shuttles and carpooling programs will help hotels achieve their sustainability goals.

Profile of the Modern Hotel Guest

It's been found that consumers often make choices around the products they buy and the companies they engage with based on their mutual values, and commitment to sustainability is one of those values. In fact, research shows that choices around travel and accommodations are significantly influenced by commitments to sustainability.

According to Business Traveller, a 2021 study found that 81 percent of travelers said they plan to choose a sustainable accommodation option in the coming year. Additionally, a survey conducted by Booking.com in 2020 found that 53 percent of respondents want to travel more sustainably for their future trips.

The 2023 Sustainable Travel Report has additional insight into the modern hotel guest, reporting that 65 percent of travelers would feel better about staying in a specific hotel if they knew it had a sustainable certification or label.

Finally, in an Agoda Sustainable Travel Trends Survey of 18,327 adults in 14 markets, it was found that 73 percent of tourists prefer to stay at hotels that have adopted sustainable practices over hotels that haven't.

Considering the importance of sustainability to today's guest, it's crystal clear hotels must deeply assess how they operate and determine if there are opportunities to improve their practices, leveraging innovation to make things happen. With the right kind of tools and support, hotels can get to where they want - and need - to be.

Hospitality's New Frontier

The next great big idea in sustainability is undoubtedly on the horizon that can only be made possible with the foundational support of innovation, solutions crafted by the foremost thought leaders and then adopted by pioneering hospitality brands. There will undoubtedly be more opportunities to be eco-conscious as innovative endeavors come to fruition, all the while identifying opportunities to improve or streamline hotel operations and providing guests with the experience they desire and deserve.

As industry executives, it is up to us to stay vigilant, to engage in close collaboration with those who support our operational efforts to ensure all opportunities to be sustainable are explored. There is no problem too large or small - it's simply a matter of recognizing the symbiosis between sustainability and innovation.