Almost Half of European Hoteliers See Major Climate Impact, Yet 75% Reluctant to Invest in Sustainability
The new joint study from Booking.com and Statista finds 41% of European hoteliers anticipate a significant impact from climate change over the next three years. Despite the apparent urgency of the situation, nearly 75% say they’re still hesitant to invest heavily in sustainability.
The study also revealed that among those considering investments, nearly 70% view long-term cost savings as a more compelling reason than guest perception or attracting eco-conscious travelers.
“Saving the planet” was not even listed among the possible answers. That’s odd, in light of ample examples of severe climate crises and extreme weather events like wildfires, floods, and heat waves all over Europe.
Greece is a country renowned for its historical sites, white-washed buildings, and having one of the six Blue zone communities within its borders. Last April, the nation experienced the largest fire in its history, covering 370 square miles.
In Romania, Lake Techirghiol turned into a pink lake in July 2023 for the first time due to extremely high temperatures and salinity.
Many European hoteliers hope to turn the tide. They have genuine interest to pave the way towards a sustainable future. “The hotel industry is one of the biggest polluting industries on the planet and it is our responsibility to set an example and make an impact in the area of sustainability,” says Liliana Alves, Sustainability Manager at Octant Furnas, the Azores, Portugal.
Investments Aren’t Sustainability-Focused
Phocuswright’s report, “The State of Travel Funding,” notes a massive decline from $11.7 billion in 2022 to $4.6 billion in 2023. And they further predict a weak 2024.
Anna Schneider, senior research and intelligence analyst at Lufthansa Innovation Hub, noted that AI investments constitute 60-70% of travel and mobility companies’ annual investments. This trend shows no signs of slowing down due to its impact on operational efficiency and personalization of travel experiences.
But where would sustainability fit if the tourism industry does realize its importance? James Lever, chief technology officer of Weeva, explains, “A lot of hotels think that it’s super expensive to become sustainable.”
Ritesh Raj, COO of global accommodation booking platform CuddlyNest, believes that “many hoteliers just don’t realize how beneficial eco-friendly practices can be. They might think it’s an extra expense rather than seeing the long-term gains. It’s surprising how many people still don’t get this.”
Why Should Hotels Prioritize Sustainability When Travelers Are Uncertain
Both Phocuswright‘s and Booking.com’s recent reports reveal that travelers are unfamiliar with sustainable travel and its key components. Although 45% of travelers believe traveling more sustainably is important, it is not their primary consideration when planning or booking a trip. Additionally, 28% of travelers report feeling fatigued by constant discussions about climate change.
Researchers in a recent climate action study surveyed 130,000 individuals across 125 countries. Most respondents (89%) called for political action to combat climate change, believing it would force industries to pivot. However, the Economist Impact Survey found that policymakers want to promote public transport primarily rather than subsidize renewable energy or set environmental certification standards.
Leading by Example: European Hotels Embrace Sustainability Despite Industry Reluctance
As the hospitality industry continues to grow — 6,195 hotels under construction as of 2024’s first quarter — several European hoteliers are investing in sustainability, setting themselves apart in a competitive market.
Hoteliers like Verena Brandtner-Pastuszyn, owner of Henriette Stadthotel Vienna, see ecofriendliness as a key differentiator. She explains, “This realization made us choose to invest in sustainability over other areas, as it aligned with our values and provided a unique distinction.”
Much has changed since the early 2000s. Michaela Reitterer, owner of Boutiquehotel Stadthalle in Vienna, Austria, refers to this period as the “stone age of sustainability,” when investing in solar roofs and aiming for energy independence was a novel concept. But even then, she believed sustainable tourism was the future of travel.
Many hoteliers, like Adriaan Bartels, general manager of Cashel Palace in Ireland, believe sustainability may not lead to immediate cost savings. Bartels says they invested $43,000 in a food waste digester to produce reusable fertilizer for gardens and crops. The payback on this complex composting machine will be four years.
Related: 9 Ways Eco-Lodges Recycle Water
Iris Lam, Director of Sustainability and Global Development for Mandarin Oriental Hotel Group, agrees that setting aside capital for sustainable investments will futureproof businesses and meet anticipated legislation. “Mandarin Oriental is a relatively small player on the world stage, but from the strength of our brand, we use our voice to advocate for change along the value chain.”
“Many owners are driven by what the right thing to do is, rather than by cost,” says Janine Marshall, General Manager at One Aldwych, London. She continues, “We have an innate sense of responsibility for the environment and the world around us.”
Alves agrees. “My mission is to help people create an emotional connection with nature, inspiring change that lasts beyond each visitor’s stay. I deeply believe that by raising awareness and educating, we can build a more sustainable future for everyone.”
Co-founder of Martinhal Resorts in Portugal, Chitra Stern was so inspired by the impact of nature on our wellness and cognitive function that he delivered a setting where the next generation lives well, holistically and connects with nature in their daily lives.”
Certifications as Trophies: Why Practical Sustainability Efforts Should Take the Lead
The average traveler does not know about sustainability certifications like GSTC, EarthCheck, GreenKey, LEED, SASB, or ISSP. But Dominic Dubois, Director of Sustainability at the Six Senses Crans-Montana, Switzerland, says “that even for professionals within the industry, it can be hard to stay up-to-date with which certification to apply for since the market is so saturated and de-centralized.”
He also notes that despite being ahead in sustainable practices, many industry leaders do not allocate resources toward obtaining certifications and believes hoteliers should prioritize tangible advancements over certifications.
Investing in sustainability may be both a responsible and strategic choice that enhances guest experiences and distinguishes properties in a crowded market.
Alves says Octant Furnas’ three consecutive GreenKey Certifications represent commitment and inform guests that by choosing to stay with a GreenKey establishment, they are helping make a difference for the environment. “We want everyone who visits us to fall in love with our land and develop a deeper environmental awareness,” she says.
This article was originally published on Media Decision (but written by me).
Emese Maczko is a travel blogger behind Eco Lodges Anywhere. Having explored several destinations around Europe, the US, Indonesia, and Australia, and resided in Germany, the United Kingdom, and Luxembourg, Emese possesses a keen understanding of diverse cultures and an appreciation for the beauty of each destination she visits. She advocates for sustainable travel and ecotourism.