Key Sustainability Themes in the Hospitality Industry
In this blog
The hospitality industry is increasingly focusing on sustainability, driven by growing customer and employee expectations, regulatory requirements and the need to reduce environmental impacts. Key themes include energy efficiency, water conservation, waste reduction and biodiversity protection.
Lodging providers are adopting various sustainable practices such as using energy-efficient appliances, integrating renewable energy sources, implementing water-saving fixtures, reducing food waste and eliminating single-use plastics. These efforts help reduce operational costs, enhance the brand image and improve guest satisfaction.
The industry also emphasizes social considerations, including diversity, equity, inclusion, employee well-being and human rights. Engaging both employees and customers in sustainability initiatives is crucial for success.
WWT offers sustainability services to assist the hospitality industry in measuring carbon footprints, understanding the impact of AI on energy consumption and providing visibility on supply chain emissions. By adopting these practices, the hospitality sector can build resilience, enhance reputation and contribute positively to society and the environment.
Sustainability plays a vital role in the hospitality industry as it is highly dependent on a healthy environment to provide memorable experiences for guests. Moreover, sustainable practices help reduce the industry's significant environmental footprint, which includes high water and energy consumption, waste generation and greenhouse gas emissions. By adopting sustainable practices, hospitality organizations can gain a competitive advantage, improve their brand image and ensure long-term resilience.
Hotel guests, investors, owners, employees and brands worldwide are increasingly interested in responsible environmental practices, sustainable tourism, social welfare, corporate governance and transparency. Rising customer and employee expectations are pushing the hotel industry to prioritize decarbonization initiatives, environmental stewardship and responsible social policies. Research indicates that eco-friendly stays can boost guest loyalty across a range of sustainable hotels. A recent survey found that 88% of travelers consider sustainability when booking hotels.
Many large public hotel companies have already committed to meeting targets set by the Paris Climate Agreement to reduce greenhouse gas (GHG) emissions. The sector must reduce its emissions by two-thirds by 2030 and 90% per room by 2050 to contribute to the goals set out in the Paris Climate Agreement. This includes adopting energy-efficient measures, integrating renewable energy sources and implementing comprehensive waste management programs.
The hotel industry is increasingly focusing on climate change through initiatives and strategies aimed at reducing its environmental impact. Hotel companies' climate-related initiatives typically focus on four key areas: energy efficiency, carbon emissions, water conservation and waste reduction.
These efforts not only reduce the environmental footprint, but they also enhance the brand image and operational efficiency of lodging providers.
We explore each of these key areas:
Energy consumption & efficiency
Energy accounts for 3-6% of hotel operating costs and 60% of their carbon footprint. On average, U.S. hotels spend $2,196 per room annually on energy.
Energy consumption has increased 25-30 percent over the last decade and is forecasted to continue growing due to more demanding standards and the development of electronic equipment.
In total, the hospitality sector consumes significant amounts of energy annually, totaling around 20,910 gigawatt-hours (GWh), enough to power approximately 1.2 million homes.
Hotels are increasingly implementing energy-efficient measures such as LED lighting, energy-efficient appliances and improved HVAC systems. They are also integrating renewable energy sources like solar panels and wind turbines to generate clean electricity on-site. Other common practices include making operational changes by using utility benchmarking and temperature adjustments.
Implementing energy-efficient measures and sustainable practices in the hospitality industry is crucial to reducing energy consumption and its environmental impact. This is especially important now, given the anticipated growth of AI and its increasing energy demand. Data centers, already significant energy consumers, will see their consumption rise further. Hospitality leaders looking to leverage AI and technology must be mindful of these new energy impacts.
Water consumption
The hospitality industry can significantly impact water resources, with hotels using an average of 1,500 liters (about 396.26 gal) per room per day, far exceeding local water consumption in some regions. In some locations, tourism uses over eight times more water per person on average than the local population. The largest uses of water in hotels and lodging facilities are restrooms, laundry operations, landscaping, commercial kitchens, and heating and cooling.
Hospitality establishments are focusing on conserving water by implementing water-efficient fixtures like low-flow toilets and faucets. They are also recycling and reusing water through greywater systems.
Waste
The hospitality industry generates a significant amount of waste, including food waste, packaging and other materials. Hotels are adopting waste reduction practices and circular economy principles to minimize waste generation and promote recycling and reuse including measures such as:
Reducing food waste: Optimizing inventory management, portion control and donating surplus food to local foodbanks and charities.
Recycling and composting: Establishing recycling stations and composting organic waste to divert it from landfills.
Eliminating single-use plastics: Replacing plastic items with biodegradable or reusable alternatives. Some solutions include transitioning from single-use plastic bottles to bulk dispensers for bathroom amenities, using hotel apps for digital key cards, sourcing non-plastic straws, and replacing plastic water bottles with glass or metal ones.
Addressing biodiversity loss
The hospitality industry is actively working to protect biodiversity through various initiatives and strategies. For instance, hotels and resorts can collaborate with local conservation organizations, create nature trails, and offer guided eco-tours to educate and inspire guests about the area's rich biodiversity. Additionally, hotels can focus on sustainable procurement by sourcing food from sustainable suppliers, prioritizing local products and promoting the benefits of sustainable nutrition to guests.
These strategies not only help protect biodiversity but also enhance the guest experience.
Case study
A luxury hotel in Arrábida Natural Park, Portugal, provides insights into the environmental and social sustainability practices hotels can adopt. The hotel has implemented energy efficiency measures, reduced water consumption, minimized waste, and controlled and protected local fauna and flora to promote unique natural landscapes. Social practices include building relationships with charitable institutions, providing high-quality services to consumers, and creating a safe and healthy work environment. These practices have not only reduced operational costs but also enhanced the hotel's reputation and guest satisfaction.
Local and sustainable sourcing
Some hospitality chains focus on sourcing local and sustainable products to reduce the environmental impact of transportation and support local communities. For instance, Hyatt encourages local artisans in certain regions to display their crafts in Hyatt gift shops and provides guests the chance to volunteer with local businesses or actively participate in conservation initiatives in other regions.
Sustainable growth of the hospitality industry
These themes highlight the industry's efforts to operate in an environmentally responsible and resource-efficient manner. Our second article will examine achieving these objectives while promoting social responsibility and supporting local communities. The industry has already undertaken significant collective efforts to help reduce the environmental footprint and enhance the brand image and operational efficiency of its member hospitality businesses. These efforts and additional ones like them are crucial for the hospitality industry to build resilience, enhance reputations, reduce costs and meet regulatory requirements while contributing positively to society and the environment.
WWT can assist the hospitality industry in various aspects of the sustainability challenges they face. WWT's sustainability services include many relevant offerings such as measuring carbon footprints, providing visibility on supply chain emissions and understanding the impact of AI on your energy consumption. From its unique CarbonTechAware database to its responsible AI expertise, WWT's team provides the technology solutions necessary to operate a modern, sustainable hospitality group.