A roadmap for sustainable hospitality

Customers are demanding sustainable travel options

Like many other consumers, travellers are increasingly concerned about climate change and the environment. Sixty-eight per cent of respondents to the Deloitte’s Global State of the Consumer Survey described climate change as an emergency and Booking.com reports that 53% of global travellers say they’re more determined to travel sustainably than they were a year ago. And for a large and growing segment of travellers, it’s become more and more important to choose travel brands that embody their values.

Today, sustainable practices can be essential to the health of your business—not to mention the communities you operate in. Whether you’ve already made significant changes or are just starting to move from intention to action, sustainable hospitality can take many forms. To help you to get the most from your efforts, Deloitte looks at some of the sustainability factors specific to the hospitality industry and the type of affect each activity can have.

But first, how is “sustainable hospitality” defined? It depends whether you ask customers, employees or management. Large hotel chains, local operators and small ownerships groups will likely also have varied environmental, social and governance (ESG) priorities, as will the corporate and client-facing divisions of a business. Despite these differences, sustainable hospitality enables the future of travel for years to come by minimising the impacts of hospitality while maximising positive influence of hospitality on consumers, communities and the planet.

Perspectives, priorities and considerations

Energy efficiency

Hotel operators are adopting automated energy management systems, like real-time monitoring and dashboarding, combined heating, power and cogeneration systems that capture and reuse excess heat and AI-based HVAC. An Italian resort operator implemented such a system, reducing energy consumption in 11 sectors from HVAC to lighting while providing real-time visibility into usage.

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Renewable energy

In addition to onsite solar and wind generation, some hotels are exploring geothermal, biofuel and hydrogen fuel cell technology. One Japan-based hotel group uses plastic waste to power a hydrogen fuel cell generator that creates 450,000 kWh of power while reducing CO2 emissions by 200,000 kg annually.

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Water usage

Hotel companies are conserving and reusing water through low-flow faucets, toilets and showerheads; smart irrigation controllers; continuous-batch washing machines; and rainwater collection and desalination. For high-water-use properties, one global hotel group uses an automated metre system that updates water usage reports every 15 minutes and sends out leak alerts.

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Waste management

Many hotels are eliminating single-use plastics, using biodigesters to help process food waste, donating excess edible food, recycling and using on- or offsite composting. A five-star hotel in the US collaborated with a food waste management provider to implement a waterless distributed digestor, which processes all of the property's food waste and turns it into compost, diverting it from landfills.

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Chemical usage

Many hotel operators have switched to nontoxic, environmentally friendly and biodegradable chemicals in housekeeping and other areas. As an example, one hotel group follows EU Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) and US Environmental Protection Agency (EPA) Chemicals of Concern programme guidelines for reducing use of toxic supplies.

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Sustainable sourcing

Efforts focused on seasonal ingredients, onsite gardens and local supplier partnerships can help to reduce supply chain complexity and cut emissions. A German hospitality group set minimum sustainability standards and corporate social responsibility (CSR) criteria for its products and services. The group also sources cage-free eggs and sustainably certified and fair-trade coffee at its hotels.

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In sustainability as in life, however, one size doesn’t fit all. A successful environmental initiative should be tailored to the particular property, considering factors such as:

Age. Is the hotel a new build? If not, does it need major upgrades?
Location. Urban or rural? Hot and sunny or colder climate?
Size. How big is the building? How many rooms?
Configuration. What's the ratio of guestrooms to public space? Indoor to outdoor space? Overall footprint and roof space? Orientation of the available spaces?
Unique features. What services and amenities does the hotel offer?
Incentives. Does the local, regional or national government offer environmental tax credits, subsidies or other incentives? How could those influence return on investment?

Three opportunities for implementation

Some sustainability changes can be implemented immediately and may require little investment. Others may require a co-ordinated multi-year effort. Deloitte sees three major areas of opportunity:

Assessing operational updates

Operational changes are crucial for improving hotel sustainability. To start, hotels can conduct comprehensive energy audits to identify areas where energy consumption can be reduced. This may result in small fixes like changing out a filter or replacing lighting that provides quick reductions in energy usage while driving down the hotel’s carbon footprint. They may also inform capital plans for larger infrastructure changes like replacing the HVAC system at the end of life. Water conservation measures, such as installing low-flow fixtures and implementing laundry and irrigation efficiency, also play a vital role in sustainability efforts. Furthermore, waste management programmes, including recycling and composting, can significantly decrease the volume of waste sent to landfills. Operational efficiencies can be found throughout a hotel and often can be implemented with little to no impact on the guest experience.

Involving guests

Hotels can make sustainability initiatives an interactive experience for guests by providing information about their green initiatives in guest rooms and public spaces, encouraging guests to participate in conservation efforts like reuse towels and linens. Offering eco-friendly amenities, such as toiletries in refillable containers, can reduce single-use plastic waste. Some hotels even incentivise guests for sustainable behaviour, like offering discounts for opting out of daily room cleaning. Hotels should also consider seeking feedback on their sustainability efforts to prioritise actions that guests are motivated by. By involving guests in sustainability initiatives, hotels not only reduce their environmental impact but also raise awareness and foster a sense of ownership among their clientele.

Workforce engagement

Training and educating staff about eco-friendly practices, waste reduction and energy conservation can lead to more efficient operations and can cause a ripple effect where staff bring these practices to their homes and their communities. Staff can also serve as ambassadors, promoting sustainable practices to guests and encouraging their participation. Moreover, recognising and rewarding employees for their contributions to sustainability efforts can boost morale and motivation. Ultimately, a committed and informed workforce is an invaluable asset in achieving and maintaining a sustainable future for hotels. Learn more about Deloitte’s perspective on acquiring, retaining and rewarding frontline employees in the hospitality industry.

Whatever improvements you make, take the opportunity to share them transparently and honestly with your customers, celebrating and reinforcing your commitment to sustainability. And as your sustainability journey continues, make sure that you track, quantify and disclose your improvements in environmental and financial impact reports.

How Deloitte can help

If you're ready to move the sustainability needle, Deloitte can help. Our extensive global network can help to deliver sustainability knowledge in hospitality, tax, energy, transportation, food systems, waste management, utilities and other critical areas. Deloitte’s strategic and operational specialists are ready to help you to tackle your highest priority sustainability initiatives and help drive transformation in areas from tax advisory, data analytics and change management to renewable energy, energy efficiency and sustainable sourcing.
Contact us today.

Author

Katrina Goulden
Senior Manager, ESG Strategy, Deloitte US
kgoulden@deloitte.com

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