Hotel guests factoring in ESG when travelling
Consumers think that governments and large companies should take responsibility for sustainability, according to the latest study from Pace Dimensions and BVA BDRC. The report found that, while only around a third of those surveyed were willing to pay more for sustainable products, the majority thought about sustainability when travelling.
Global Sustainable Hospitality Trends 2023 reported that there was an opportunity for competitive advantage for hotel businesses with an understanding of consumers’ values and priorities in the area.
At last we have the evidence of the consumer demand for sustainability. Wolfgang Neumann, chairman of the board of trustees, Sustainable Hospitality Alliance
Energy, water, waste and plastic were the top environmental concerns for those asked, with employee welfare and wellbeing close behind.
Fifty-nine per cent of respondents agreed that governments should be doing more to ensure that everyone was paid a fair wage and had an equal opportunity, while 58% agreed that large companies should be doing far more to help the environment and support communities.
The generations were divided, with Gen Y the most vociferous in expressing sustainable attitudes both generally and when considering the hospitality sector.
In terms of action taken, 31% were travelling and driving less, 25% were avoiding buying from companies with poor environmental reputations and 22% avoiding buying from companies with poor staff welfare reputations.
Looking more closely at the hotel market, there was variety across the market segments. Addressing the German market, price was much less important and ESG issues were more influential when deciding to book five-star hotels than in three star booking decisions.
The study found that, among five-star travellers in Germany, a sustainable hotel option could charge more than a 25% premium and receive fair market share.
The awareness of sustainability accreditations was a big challenge, with almost half of those asked not knowing any certifications at all when prompted. GenY were much more aware of the certifications than the Baby Boomers.
Within the corporate market, businesses were feeling the pressure to adhere to ESG requirements, not only from government bodies, but from their clients, teams and the wider industry. This was particularly true when hosting large external events.
After a strong focus on Covid precautions, hotels were seen as only just starting to incorporate ESG factors. It was difficult for businesses to assess these across different hotels, but businesses were willing to pay a reasonable increase in rates for a hotel with a strong ESG performance.
It can come as no surprise, given the current financial environment, that consumers are not willing to pay for more to be environmentally friendly. This does not mean that there is no room for hotels to use their ESG credentials to set themselves apart. We believe that clear information and benchmarking in the sector will help to help change consumer behaviour. Our study into sustainability certifications revealed that almost half of respondents (45%) did not know any certifications at all when asked, with the most well-known, ISO14001, only recognised by 25%. There is work to be done, but we this that, with access to the right information, consumers will become more proactive in their behaviour, making sustainability a true point of differentiation.Cris Tarrant, chairman & founder, BVA BDRC
For a detailed look at our research on sustainability and consumer behaviour, visit https://www.bva-bdrc.com/products/global-sustainable-hospitality-trends
About BVA BDRC
BVA BDRC is an award winning international consumer and business insight consultancy, conducting research in over 90 countries. The agency, part of Paris-based BVA Group, offers the complete range of research consulting and business transformation. We help brands get closer to their customers, improve customer experience and grow the bottom line. We joined the BVA Group in mid 2018. We have already seen significant benefits from joining a larger group, with fresh collaboration in emerging areas such as behavioural economics and Nudge theory, entry into new markets and a more extensive international network. The wider BVA Group has close to 1,000 staff across twenty offices in eleven countries, with a worldwide turnover of €185m. www.bva-bdrc.com
