Increasing numbers of brands around the world these days are focused on creating and promoting a sustainable strategy that demonstrates their sense of corporate social responsibility. This is primarily because of increasing pressure from consumers for them to address environmental concerns and take a proactive stance against issues such as climate change and waste reduction, especially when it comes to younger generations. In fact, consumer demands for positive action have become so vocal that many businesses are now seeing it as a key lever for success in competitive markets. And the hospitality industry is no exception.
So, why do you need a sustainable strategy in your hotel? What exactly does sustainability mean for your hotel? Do you need to overhaul your business strategies in order to remain relevant completely, or are there other less drastic strategies that you can implement in order to show the world that your hotel is socially responsible? And how does all this boost your total revenue?
Let’s find out.
What is a sustainable strategy?
The travel and hospitality sectors have always had a reputation for having a considerable impact on the environment through the consumption of energy, water and consumable goods. You only have to think about the resources that go into washing all the dirty sheets and towels that your guests use to understand how much goes into running a hotel. And this makes modern consumers uncomfortable, especially when it comes to younger generations. Younger generations are all about reducing their carbon footprint and generating as little waste as possible, primarily due to the accelerated effects of climate change that we are now witnessing.
A sustainable strategy addresses this shift in the market and this desire to protect the natural environment from further harm due to unnecessary excess. Hotels these days are doing what they can to push the message that they care about the environment and strive to create a sustainable business that cares about the world in which we live, not just about profits.
The sustainability strategy you choose doesn’t have to break the bank or involve a complete overhaul of your business practices though. Sometimes even the smallest of changes can have a positive effect on your reputation as a sustainably responsible hotel. For example, you could add a water-bottle filling station in your lobby instead of providing plastic water bottles in your room or focus on reducing paper usage and your carbon emissions. Every step you take is a step in the right direction.
Why you need a sustainable strategy in your hotel
Let’s take a look at the two fundamental reasons you need a sustainable strategy in your hotel: the promotion of long-term authentic sustainability that boosts your reputation, and the impact it has on total profit management.
Perhaps the biggest reason for needing a sustainable strategy is that growing concerns about climate change coupled with the effects of the recent pandemic have resulted in increased global awareness of the importance of protecting the environment in which we live. Businesses from all walks of life need to adapt to this growing consumer demand if they are to stay relevant and profitable now and in the near future. This means offering more environmentally friendly products and services and creating a healthy global ecosystem that is able to adapt its current unique vulnerability to environmental damage.
For example, according to Booking.com’s 2021 Sustainable Travel Report, 73% of travellers are more likely to choose a hotel if it has implemented sustainability practices. The survey also concluded that 61% of respondents claimed that the pandemic had inspired them to pursue more sustainable forms of travel going forward. This goes to show how important it is for you to create a strategy built around long-term sustainability. It’s the only way to stay relevant in the ever-expanding ecotourism boom that is dominating the industry. Consumers are demanding an improved guest experience that embraces green and sustainable practices.
Total profit management
Working towards sustainability in the hotel industry also means finding more efficient ways to improve revenues and profitability. The most effective strategy for this involves shifting from a traditional revenue management philosophy to one built around the concept of total profit management.
By working with sustainabiity in mind, and focusing on total profitability, you will directly impact your bottom line, and be not only environmentally, but also financially sustainable. Let’s see some examples:
- Making decisions for your business to be more sustainable, such as investing in energy efficiency, reducing waste, or working with local partners, will also be more cost-efficient.
- Studying your guest journey and consumer behaviour, will allow you to identify new revenue opportunities, and maybe stop investing in any service that is not attractive to your guests.
BEONx’s Total Profit Platform has been designed in response to this precise need for more advanced revenue management tools focused on this concept of total profit. That is why our Total Profit Platform includes a state-of-the-art revenue management solution for hotels, as well as a selected set of partner applications, allowing you to analyse and optimise beyond a simple revenue per room calculation, taking into account additional streams from each and every touchpoint during a guest’s stay, such parking, lounges, meeting spaces, restaurants and spas.
BEONx’s RMS relies on an advanced algorithm that understands how weight should be given to historical data at any given time, in line with changes in customer behaviour and predicted demand trends. What’s more, our HQI™ (Hotel Quality Index) takes into account the strategies and behaviours of your competitors, providing you with all the information you need in order to design a sustainable strategy that helps you stand out from the masses and stay relevant in an increasingly sustainability-focused society.