Guest comfort wins over climate in hotel industry

Hotels slow down on sustainable investments

Tourism accounts for about 7% of total CO2 emissions globally, with the hotel industry accounting for a significant share in addition to aviation. From a Inventory by ING Research shows that sustainability is not a top priority at many hotel chains in the Netherlands. Guest comfort still wins out over climate ambitions. After a first wave of low-threshold energy-saving measures, further sustainability in the sector is stalling. Several hotels are stalling on investments because of economic uncertainty and the impending VAT increase. But consumers are not cooperating either: today's ING Q&A shows that a majority of hotel guests consider sustainability to play little to no role in their choice of hotel. Yet further sustainability is inevitable to make the sector future-proof. This requires a clear and consistent government policy as well as a more active demand for more sustainable solutions from hotel guests and other partners.

Concrete climate ambitions missing

A survey by ING Research among the 20 largest hotel chains operating in the Dutch market shows that more than half of the hotel chains have not publicly published concrete climate targets. Some hotel chains have no more than a general CSR statement on their website. Moreover, many hotel chains' sustainability reports are very brief, including those of some large international chains.  

Hospitality industry reluctant to invest in sustainability this year

After Dutch hospitality businesses, including hotels, restaurants and holiday parks, have been catching up in terms of energy-saving investments in recent years, this year they are marking time. This is because the most low-threshold water and energy-saving investments, such as water-saving showerheads and LED lighting, have now been realised. Further sustainability requires substantial investments, which many hotels and hotel chains want to wait with, partly because of economic and geopolitical uncertainty. In addition, several hoteliers say they are holding off on sustainable investments because of all the uncertainty surrounding the planned VAT increase in 2026.

Encouraging more sustainable behaviour among hotel guests needed

Besides energy and water savings, waste reduction, curbing food waste and more sustainable behaviour among hotel guests are also crucial factors to further reduce CO2 emissions. Changing the behaviour of hotel guests is, in theory, a relatively inexpensive solution that can yield significant CO2 savings. By cleaning hotel rooms less frequently and not changing towels daily, water and energy consumption can be saved. Hotels are therefore increasingly turning to this, although not at the expense of comfort, is the prevailing belief in the industry.

Sustainability plays little to no role in hotel choice

How sustainable is hotel guest behaviour? For a majority (77%) of hotel guests, sustainability often does not yet play an important factor in hotel choice in practice, according to today's ING Question. Interestingly, this is also true for a majority of people in their twenties, or the so-called GenZ generation, who are mostly seen as the most sustainable generation. Despite growing sustainability awareness, price remains the decisive factor in hotel choice for most guests. Almost 80% of hotel guests are not willing to pay extra for a more sustainable room. Some 20% are, mainly guests aged 60 and above.  

Current financial rewards seem ineffective

Small financial incentives, such as discounts or a free drink, seem little effective in persuading hotel guests to behave more sustainably. Today's ING Question shows that only one in 10 hotel guests is willing to skip daily cleaning if there is a small reward in return. For skipping the daily towel change, the willingness is even lower: only 5% of guests agree to this in exchange for a free drink. Introducing a surcharge for daily cleaning, for example, has a bigger impact. For instance, a majority of hotel guests refrain from doing so if there is an extra cost involved.

Transition to a more sustainable sector

“Although many hotels have already taken steps towards sustainability, further sustainability is needed to future-proof the sector,” says Sjuk Akkerman, Sector Banker Leisure and Services at ING. “The government can play an important role in this by providing a reliable framework and financial incentives. At the same time, hotel guests and other stakeholders, such as tour operators and booking platforms, should be encouraged to make more conscious and sustainable choices. This creates room for a profitable business case around sustainability. With consistent regulations, reliable data and smart business models, the transition to a more sustainable sector can be accelerated. This requires a good interplay between government, industry and hotel guests.”