An eco hotel is a property that prioritises sustainability and the implementation of initiatives to reduce its carbon footprint whilst still offering guests luxury and comfort.
But how can you be both sustainable and profitable without negatively impacting the guest experience?
In this post, we are going to explain how you can make your hotel eco-friendlier and how you can find the right balance between sustainability and profitability.
What is an eco hotel?
Consumers these days are favouring brands that drive positive change and reduce their negative impact on the planet and their surrounding communities. As a result, sustainability in business has become a huge lever in terms of market positioning and consumer trust.
An eco hotel is a property that has embraced this focus on sustainability and the environment.
Also known as green hotels, eco hotels are environmentally sustainable accommodations that continuously work to reduce their carbon footprint. They are committed to developing a strong sense of corporate social responsibility and strive to make a positive impact on the planet. This green approach can be particularly effective in the travel industry as hotels are notorious for consuming high levels of resources.
Although environmental awareness is not a new accommodation industry trend, the concept of an eco hotel has evolved recently. These days, eco hotels not only strive to reduce their waste and resource consumption – they also position themselves as profitable businesses that offer guests luxury and comfort. This has led to a new concept in hotel revenue management known as sustainable profitability.
How can you make your hotel more sustainable?
Before we discuss profitability, let’s take a look at a few initiatives that you can implement to make your hotel more environmentally sustainable so that you can promote your property as an eco hotel.
Here are a few ideas you might consider:
- Conduct a sustainability audit to assess energy consumption, waste management, water usage, and your hotel’s overall environmental impact.
- Source sustainable materials for construction and furnishings, such as reclaimed wood and solar panels.
- Implement sustainable practices into day-to-day operations, such as using eco-friendly cleaning products, offering guests the option to reuse towels and linens, and reducing plastic waste.
- Offer guests unique experiences that showcase the local culture and environment to add value to their stay.
- Incorporate sustainable design elements into your hotel’s aesthetic, such as using natural materials like bamboo and stone.
- Source local suppliers for your hotel restaurant, room service, and bar.
- Use high-efficiency water fixtures and LED lighting to reduce utility consumption.
- Provide eco training to your staff so that they are more aware of your sustainable waste management processes.
- Create recycling points around your hotel and encourage staff and guests to use them.
What’s the key to balancing sustainability and profitability?
As more people become aware of the impact of their actions on the environment, the demand for eco hotels will continue to grow, making it a wise investment for hoteliers who are willing to embrace sustainability. What’s more, with the right approach, an eco hotel can easily balance sustainability and profitability. The key comes down to implementing and following sustainable initiatives that are appealing to environmentally conscious travellers whilst still finding a way to be profitable.
So, how can you do this? What’s the secret?
One of the most effective strategies for this is working on your guest experience. If your guests have a unique and unforgettable experience when they stay at your hotel, it will increase their customer lifetime value. Plus, the happier they are, the more likely that they will spend money on ancillary services during their stay. Combining this extra revenue with the cost reduction associated with following sustainable practices will make your business more profitable in the long run.
Another important factor for balancing sustainability with profitability is making sure you are using the right revenue management tools.
At BEONx, we believe that sustainability is an exciting opportunity for generating long-term value for hotels. That’s why we have designed a sustainable profit platform that enables hotel revenue managers to embrace this new approach to sustainability and profitability. We want to empower our clients to make better decisions and deliver better experiences that enable a more sustainable, profitable future. We want to drive a new approach to revenue management that considers the entire customer experience, taking environmental, social, and governance factors into account so that eco hotels can achieve and maintain long-term financial success.