How to Create the Sustainable Travel Products Customers Want - WHITE PAPER DECEMBER 2022
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In collaboration with Accenture How to Create the Sustainable Travel Products Customers Want WHITE PAPER DECEMBER 2022
Cover: Borchee, Getty Images – Inside: Getty Images
Contents
3 Foreword
4 Executive summary
4 Purpose of the report
6 Key insights
7 1 Introduction
7 1.1 The urgency of sustainable T&T development
10 2 Sustainable travel behaviour and the say-do gap
10 2.1 Studies on sustainable traveller behaviour
12 2.2 The sustainability say-do gap
15 3 T&T industry sustainable products approach
15 3.1 Defining sustainable travel products in the carbon emissions space
22 3.2 Case studies
27 3.3 A look ahead – evidence from other industries
29 4 Recommendations
32 5 Conclusion
32 5.1 Call to action
34 Contributors
35 Endnotes
Disclaimer
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project, insight area or interaction. The
findings, interpretations and conclusions
expressed herein are a result of a
collaborative process facilitated and
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but whose results do not necessarily
represent the views of the World Economic
Forum, nor the entirety of its Members,
Partners or other stakeholders.
© 2022 World Economic Forum. All rights
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How to Create the Sustainable Travel Products Customers Want 2
December 2022 How to Create the
Sustainable Travel
Products Customers Want
Foreword
Pedro G. Gomez Pensado
Head of Shaping the Future Jesko-Philipp Neuenburg
of Mobility, Member of the Global Travel and Aviation
Executive Committee, World Sustainability Lead, Accenture
Economic Forum
As the travel and tourism (T&T) industry recovers – What can the T&T industry learn from early
from the impact of the COVID-19 pandemic, the movers within the industry and from other
urgency of the need to combat climate change industries?
and other sustainability challenges has increased
dramatically. In response, T&T companies – What are the necessary steps the industry
are setting new sustainability targets while can take to help accelerate the adoption of
governments, regulators and customers push for sustainable travel offerings?
accelerated action.
In line with the World Economic Forum’s
Moving the T&T industry towards a more multistakeholder approach, this report was
sustainable future requires travel companies to produced with the input of multiple industry
step up their eco-conscious and sustainable T&T participants and experts, with Accenture partnering
product offerings to allow customers to understand with the Forum on research and thought leadership.
and adopt these products at an accelerated pace. We analysed more than 50 T&T companies, and
In this context, we set out to investigate how interviewed five leading industry companies for
different companies are defining and incorporating case studies and insights that are included in
sustainable travel products into their brands and this publication. Feedback was also sought from
presenting these products to customers. members of the Forum’s Global Future Council on
Sustainable Tourism, a community of leaders from
For this report we asked a few key questions: government, business and civil society focused on
generating principals and solutions for sustainable
– How does the T&T industry currently define tourism development.
sustainability and, in particular, “environmentally
sustainable” travel products? We hope that our findings will enrich the discussion
about what is possible and what works, and inspire
– Which “sustainable travel” options already exist action from all industry participants. While the
today? challenge is great, the sustainable transition of the
T&T industry is imperative to safeguard the privilege
– What are the challenges for customer adoption of global travel for generations to come. Let’s
of these options? accelerate this transition – which is well under way.
How to Create the Sustainable Travel Products Customers Want 3
Executive summary
Sustainability has risen to the top of the CEO successfully develop products that enable more
agenda and leaders across industries are stepping sustainable travel choices. As it currently stands,
up action.1 In travel, many companies are already in sustainable travel products are still in their infancy
the process of setting ambitious sustainability goals and obtaining the required funding and sponsorship
and developing corresponding strategies, including for relevant initiatives and products remains a prime
the transition to net zero.2 However, to achieve challenge for T&T companies. While the need for
these goals and transition to a more sustainable these products is becoming clearer, their value and
future, travel and tourism (T&T) companies must business case are still often challenged.
Purpose of the report
The purpose of this report is to make the case (including recommendations on how to design,
for accelerated investments in sustainable travel develop and offer sustainable travel products)
products by providing an analysis of the opportunities
and challenges of developing sustainability offerings. 6. Present a call to action to the T&T industry
More specifically, the intention is to: to further develop and offer more sustainable
travel products, including a call to action for
1. Provide transparency on the status of current T&T companies and platform players to share
research on sustainable traveller behaviour success stories
(including research from practitioners and
academia) Moreover, the goals outlined are intended to help
the T&T industry accelerate a flywheel model for
2. Supply an overview of the current sustainability sustainable traveller behaviour, as outlined in Figure
product landscape and composition (especially 1. Development of any new offerings typically
as it relates to decarbonization) requires a combination of capital, marketing and
human resource investment, as well as operational
3. Offer proof points in the form of real-life changes. As a result, leadership sponsorship is
examples of sustainability products from the required, as well as statistics that demonstrate an
T&T industry and beyond (including examples overall positive impact for businesses. The report
from other industries as well as success stories will showcase how sustainable offerings, when
from T&T companies) designed to address current say-do gap roadblocks,
should meet customer needs. Meeting these
4. Highlight roadblocks that are currently limiting needs will, in turn, be the drivers of higher growth
the adoption of sustainable travel products rates, shaping improvements in brand image and
helping secure the necessary leadership support.
5. Provide guidance to T&T companies on how Note that while this report focuses primarily on the
to overcome current roadblocks to accelerate environmental aspects, its findings are relevant to a
and benefit from sustainable traveller behaviour broad range of sustainability products.
How to Create the Sustainable Travel Products Customers Want 4
FIGURE 1 Flywheel model: how the report can affect the sustainability transition of the T&T industry
Causal chain
Signal/motivation:
1
1
Evidence that travellers not only
say they prefer sustainable travel The report will
products, but also act accordingly contribute to #1
Sponsorship:
2 Leadership in T&T companies is
more likely to approve budgets
5 2
for sustainability initiatives/
sustainable products
Flywheel model
Travel products: for sustainable traveller
3 T&T companies are more likely
to develop sustainable travel behaviour in T&T
products and offer them to travellers
Buying behaviour:
4 Travellers are more likely to book/buy
sustainable travel products
(and may even pay more)
4 3
Growth rates:
5 Higher growth rates of sustainable
travel products compared to
(non-sustainable) peer products
Source: World Economic Forum
and Accenture analysis, 2022
How to Create the Sustainable Travel Products Customers Want 5
Key insights
– Recent research on sustainable traveller reducing the green premium and providing
behaviour from both practitioners and academia suitable product value and impact, focusing
indicates that consumers are increasingly on customer incentives and recognition, and
demanding sustainable products. However, educating consumers through greater focus on
these are typically consumer surveys and product credibility and awareness.
therefore show only what travellers say they
would do (in terms of attitudes or intentions). Call to action
When it comes to tangible sustainable travel To drive the net-zero transition in the T&T industry,
behaviour, there is clearly a lack of research and there is a need to increase ambition where
empirical data. possible. More specifically, this report calls on T&T
companies, such as airlines, hotels, car rental and
– While consumer surveys show that travellers ride-sharing companies and others:
say they demand/prefer sustainable travel
products,3 the picture is often different when it 1. To develop more pilots and prototypes of
comes to their actual behaviour. This “say-do sustainable travel products and test them in the
gap” describes the discrepancy between what market
travellers say, in the form of their attitudes or
intentions, and what they eventually do, in terms 2. To share success stories about sustainable
of actual booking or buying behaviour.4 Our travel products (no matter how small) as well as
assumption is that while there is a say-do gap effective techniques
in travel, one of the main reasons is the lack
of compelling sustainable travel products that 3. To ensure alignment across the industry
adequately address the roadblocks that create on reporting standards, emissions impact
this gap. calculations, etc.
– While still in the early stages of development, 4. To work together to introduce comprehensive
within the T&T industry, companies have sustainable travel packages that offer a
started to design, create and offer sustainable seamless way for customers to incorporate
travel products. These apply to a wide range sustainable products throughout their journeys
of product approaches that differ across sub-
industries (e.g. aviation, hospitality, car rental 5. To align with vendors and supply-chain players
and services) and maturity levels (anything from on sustainability initiatives and offerings
additional information and services to truly new
sustainable core products). 6. To work with local governments, communities
and other organizations to improve awareness
– Other industries outside of travel provide and, where necessary, to help enable
examples of successful sustainable products. sustainable offering development
In retail (e.g. consumer goods, electronics,
fashion), for example, sustainable products show 7. To educate and work with employees on the
significant growth rates and even outperform sustainability mission and the range of offerings
traditional non-sustainable alternatives. available for customers
– There are also some proof points and success The report also calls on digital travel platforms, such
stories to be found within the T&T industry as booking sites, aggregators, global distribution
itself. Multiple company interviews highlight the systems and others:
accelerated growth rates of more sustainable
travel products in the wake of the industry’s 1. To provide more information about sustainable
post-COVID recovery as travellers increasingly travel products on their platforms
emphasize a wish to make sustainable choices.
2. To share data and insights on actual booking
– Several strategies can be used to address behaviour to allow for comparisons of
the say-do gap and build the foundation for sustainable vs. traditional products
a cycle of sustainable product development
that may improve traveller adoption. These 3. To provide transparency on the methodology
recommendations touch on increasing product behind emissions calculations, reporting, green
availability, improving the customer experience, badges and certificates
How to Create the Sustainable Travel Products Customers Want 6
1 Introduction
T&T company investment in sustainable
travel products must be seen in the
context of the increased urgency for the
industry as a whole to develop in a more
sustainable and resilient manner.
1.1 The urgency of sustainable T&T development
Sustainable development, defined by the United infrastructure, socioeconomic development and
Nations as “development that meets the needs overall well-being.10
of the present without compromising the ability of
future generations to meet their own needs”, is one The 2021 results of the Travel & Tourism
of the world’s greatest challenges and opportunities Development Index (TTDI) also provide further
and will depend on “building an inclusive, insights on the need for greater environmental
sustainable and resilient future for people and the sustainability in developing T&T destinations. The
planet”.5 Accounting for 11% of global emissions,6 index covers 117 economies and benchmarks
a share that is only expected to climb without factors and policies that enable the sustainable and
significant mitigation action, and 10% of global resilient development of T&T, including aspects such
GDP and employment in 2019,7 the sustainable as Business Environment, International Openness,
development of T&T is a critical component in Transport Infrastructure, Cultural Resources, Natural
tackling the world’s growing environmental and Resources and Environmental Sustainability. Figure
socioeconomic challenges. 2 backs up index results showing that economies
in Europe tend to have the highest scores for
In particular, this report focuses on the Environmental Sustainability, while economies in
environmental sustainability aspects of T&T due, in Asia, the Americas, sub-Saharan Africa and the
part, to the urgency of climate change. According Middle East tend to underperform. As a result,
to global expert and leader perceptions collected it is these latter regions’ tourism development
for the World Economic Forum’s Global Risks that is often at greatest risk from environmental
Report 2022, environmental risks account for half of challenges such as climate change, pollution and
the top 10 most severe risks facing the world in the loss of biodiversity. This is particularly problematic
next 10 years, with climate action failure, extreme for countries that depend on nature-based tourism.
weather and biodiversity loss making up the top Out of the 30 top scorers for Natural Resources, in
three.8 Moreover, the latest IPCC report9 (April a measure of availability of natural assets, 17 score
2022) found that limiting global warming to 1.5°C below average for Environmental Sustainability. In
may be beyond reach without immediate and deep the Americas and Asia-Pacific, where more than
greenhouse gas (GHG) emissions reduction across half of economies score above average for Natural
all sectors, with the failure to do so potentially Resources, less than 40% and 20% of economies,
amplifying the negative impact of climate change respectively, score above average for Environmental
on the world’s ecosystems, water and food supply, Sustainability.11
How to Create the Sustainable Travel Products Customers Want 7
FIGURE 2 Regional Environmental Sustainability pillar performance, 2021
Pillar score, 1–7 (best)
1 2 3 4 5 6 7
Northern Europe
Western Europe
Southern Europe
Eastern Africa
Eastern Europe & Eurasia
Eastern Asia-Pacific
South America
Western Africa
North and Central America
Southern Africa
South-East Asia
Middle East and North Africa
South Asia Global average
Source: World Economic Forum
Note: Data represents regional economy group means
scores for the Environmental Sustainability pillar. The
pillar measures the general sustainability of an economy’s
natural environment, protection of its natural resources
and vulnerability to/readiness for climate change. For
more information on the pillar and its components, please
see the Technical notes and methodology page of the
Travel & Tourism Development Index 2021.
How to Create the Sustainable Travel Products Customers Want 8
On average, high-income economies tend to have In this context, the private sector will play a vital
better overall Environmental Sustainability, due to role in enabling sustainable T&T development
typically lower levels of pollution and better nature and addressing the related global challenges.
preservation policies than in lower-income states. Investment in improving environmental, social and
However, on average, high-income economies governance (ESG) performance will be critical,
ranked in the index also produce around 50% more with sustainable travel products representing an
per capita GHG emissions than the index average.12 important mechanism for achieving this goal.
Therefore, while developed economies may typically
be better prepared to protect their environment, Reasons why companies should become more
they punch above their population weight when sustainable
it comes to contributing to global emissions and As highlighted in Table 1, there are multiple
climate change. Meanwhile, developing states are incentives available for the T&T industry to reduce
often less prepared to deal with the impact of the emissions and improve its overall ESG attributes.
climate challenge on their tourism economies.
TA B L E 1 Reasons for the T&T industry to invest in sustainability
Category Reasons to invest in sustainability
– Government and governing bodies forcing environmental standards that businesses must comply
with, such as enforcing the Paris Agreement, publishing Sustainable Development Goals (SDGs), the
Renewable Fuel Standard (US)13 and the Adopted Renewable Energy Directive (EU)14
– Certain jurisdictions considering setting policies15 and restrictions on the modes of transport allowed by
Regulatory and
range, region etc. For example, France is considering banning flights that take less than 2.5 hours by
policy environment
train. Additionally, Austria stipulated it would eliminate all domestic flights if an alternative train journey
shorter than three hours was available, as part of Austrian Airlines’ bailout condition16
– Various government subsidies, tax credits and other incentives are currently in place or under
consideration that may be relevant for sustainable products17
– As the impact of COVID-19 and current challenges have shown, the T&T industry is exposed to various local
and global risks. Improving sustainability enables companies to build resilience in the face of future headwinds
Resilience and risk
management
– Environmental risks such as climate change and pollution endanger natural assets and infrastructure that
are vital for many tourism destinations, making them a danger to T&T company operating conditions
– Consumers are being made aware of sustainable options and are beginning to choose these products
and services
– Companies that adapt can better capitalize on growing demands for more sustainable travel options and
Consumer and increase brand affinity among sustainable consumers, gaining a strategic and competitive advantage, and
stakeholder improving their brand image
expectations
– Stakeholders are increasingly focusing on sustainability performance, and businesses have an opportunity
to capitalize on this demand. According to the 2019 UNGC and Accenture CEO Study,18 62% of
customers want companies to take a stand on social, cultural, environmental or political issues, and 88%
of investors see sustainability as a driver of competitive advantage
– Based on the 2019 UNGC and Accenture CEO Study,19 99% of chief executive officers from companies
with more than $1 billion in annual revenue believe that sustainability will be important to the future
success of their business
– The UNGC and Accenture 2021 study20 highlights how investors and the capital markets are encouraging
sustainability focus, with 31% of chief executive officers citing them as among the most influential
stakeholders to manage future sustainability efforts
Investment and
operational benefits
– Inclination to contribute towards green practices is on the rise, thus providing companies with an
additional route to diversify their offerings and pave the way for profitability
– Some sustainable offerings can also help reduce operation costs; for instance, reducing room-cleaning
services in hotels improves sustainability and may also lower hotel expenditure
– Increased focus on workers’ rights/inclusive labour polices can lead to a more productive workforce21
How to Create the Sustainable Travel Products Customers Want 9
2 Sustainable travel
behaviour and the
say-do gap
Travellers want to be sustainable, but
there is a discrepancy between intention
and action.
2.1 Studies on sustainable traveller behaviour
Recent surveys and reports from practitioners prominent in the T&T industry. How travellers view
and academia indicate that travellers want to sustainable travel:
travel and consume more sustainably. This is a
behavioural change that is here to stay, increasing – 69% see sustainable travel as lessening their
the demand for sustainable travel options. Below environmental impact (Expedia)
is a snapshot of these changing behaviours and
attitudes. – 65% see sustainable travel as supporting the
local economy, culture and communities
Traveller priorities (Expedia)29
Increasing sustainability to combat climate change
ranks as the top environmental and social issue Traveller behaviour
for surveyed travellers in markets such as the Where travellers choose to stay and their mode of
UK, Australia and Japan.22 How customers value transport for travel is changing as they consider
sustainable travel choices: sustainable alternatives. How customers are altering
their travel behaviour:
– 96% say it is important that their travel spend
makes a positive impact in the places they – 75% want to use environmentally friendly
visit (Kind Traveler)23 modes of transportation for future trips
(Booking.com)
– 40% want to make more sustainable choices
compared to a year ago (Skyscanner)24 – 20% are choosing to travel by train instead
of car for longer distances (Booking.com)
– 4 out of 5 global travellers confirm sustainable
travel is important (Booking.com)25 – 28% do not mind travelling for a longer time
to reduce carbon emissions (Booking.com)
– 40% of those making more sustainable choices
over the past 12 months cite the pandemic as – 40% actively look for information related to
the catalyst to making sustainable changes sustainability while booking (Booking.com)
(Skyscanner)26
– 40% are aware of sustainable stay options
– 78% aim to stay at a sustainable property at and have seen these on an online travel site
least once in the next year (Booking.com)27 over the past year (Booking.com)
Traveller perception – 38% actively look for information on a
The practices most associated with sustainable property’s sustainability efforts before
or environmentally friendly travel, according to a booking (Booking.com)
2021 Agoda survey,28 are the use of renewable
energy and resources and reducing or eliminating – 46% have stayed in sustainable
single-use plastics. Globally, people are looking for accommodation over the past year at least
ways to give back to the environment, and this is once (Booking.com)
How to Create the Sustainable Travel Products Customers Want 10– 41% of those who stayed in sustainable The debate about consumers’ willingness to pay
accommodation did so to help reduce their more for sustainability still has no clear answers,
environmental impact (Booking.com)30 as these contradictory survey results indicate. In
general, price is just one of many factors that hinder
Although the surveys covered here show that increasing demand and the actual purchase of
travelling sustainably is increasingly important for sustainability products. According to The Human
people, they also highlight that a large share of Paradox report from Accenture, consumers are
travellers are still not prioritizing sustainable options. increasingly facing complex choices that are driven
For instance, when asked, the majority of Booking. by evolving forces ranging from inflation to social
com’s31 survey respondents said they would not movements, with 60% of consumer saying that
be willing to pay more for travel activities to ensure their priorities keep changing because of everything
they are giving back to local communities, while a going on in the world. Unsurprisingly, while nearly
Skyscanner 2021 survey32 found that the majority of 70% of consumers are worried about the impact of
people prioritize cost above all other factors when climate change on their lives; the report adds that
booking flights. they continue to struggle to make sustainability a
top priority over other needs.33
FIGURE 3 Survey feedback on sustainable behaviour preference across the traveller journey
Booking Accomodation
96% agree that it is 46% of global travellers
important to them that have stayed in
their travel budget makes sustainable
a positive impact in the accommodation at least
places they visit2 once during the past year1
START END
Research Travel Future travel
40% actively look for 90% of consumers look 65% of consumers
information related to for sustainable options would like to opt for
sustainability while booking when travelling3 environmentally friendly
travel1 transport or lodging
on their next trip3
Source: World Economic Forum and Accenture
Notes: 1. Booking.com, Sustainable Travel Report, 2022; 2. Kind Traveler, 10 Global Trends at
the Intersection of Travel, Philanthropy and Sustainability, 10 March 2022; 3. Expedia, The Rise of
Sustainable Travel, the Conscious Traveller and What Your Brand Needs to Know, 2022.
How to Create the Sustainable Travel Products Customers Want 112.2 The sustainability say-do gap
Even though numerous consumer behaviour studies companies are continuously attempting to build
suggest that travellers want to be more sustainable, products that cater to this need, the maturity level
the uptake of sustainable travel products and the nature of these products vary greatly.
anecdotally does not signify an accelerated trend
just yet. As sustainable offerings are relatively Industry and expert interviews conducted for this
nascent, there is limited data/research on actual report and multiple consumer behaviour studies34
purchasing behaviour. This discrepancy, called the have helped identify a range of roadblocks that
sustainability say-do gap, was also highlighted can help explain the gap between consumers’
during the company interviews conducted for this claims and what they are doing in practice. These
paper. Recent surveys have identified that travellers roadblocks can be classified or clustered into
want more information on companies’ sustainability six main categories: limited availability, lack
practices or would like their offerings to be more of awareness, low credibility, price premium,
transparent, intuitive and easy to access. Research cumbersome purchasing experience and lack of
on different industries reveals that although rewards/acknowledgement.
FIGURE 4 Illustration of the sustainability say-do gap in travel
The say-do gap is the discrepancy between what consumers say
and what they do in practice
Say Gap Do
Traveller’s thoughts while planning for upcoming travel Traveller’s thoughts while making the booking
ROADBLOCKS
Can’t find any carbon Green badges and
I care about the I will choose a sustainable offset programmes are
footprint information
environment not well defined
alternative regardless of Limited availability
hurdles
Lack of awareness
I am not sure what Green flight/hotel
Let's make the
sustainable options options are expensive
exist
Low credibility booking fast
Price premium
Cumbersome purchasing experience
Lack of rewards
Traveller claiming to seek sustainable Traveller not booking a sustainability-driven trip
booking options
High Willingness to opt for sustainable travel Low
Source: World Economic Forum and
Accenture analysis, 2022
How to Create the Sustainable Travel Products Customers Want 12These roadblocks are industry-agnostic, and this 2. Lack of awareness: Although the concept
report elaborates on how each is a hindrance to of sustainability has been catching up post-
the growth in uptake of sustainable products in COVID, consumer awareness of sustainability
the T&T industry. concepts and related products is often
limited. In particular, consumers may lack
1. Limited availability: The overall lack of an understanding of what the current T&T
sustainable product alternatives has created sustainability challenges are, what behaviour
an availability roadblock in the T&T industry. they or the industry can modify to address these
The majority of travel products on the market challenges, and what sustainability products are
are not necessarily sustainable. Moreover, currently available or how they work.
consumer behaviour is influenced not just by
the functionality of a product but also by its In the Booking.com survey, 31% of travellers
aesthetics, quality, comfort and overall appeal. surveyed confirmed that they didn’t know
Therefore, sustainable products need to meet sustainable accommodation existed and 29%
consumer expectations in these areas to be a said they didn’t know how to find it. Additionally,
competitive option. 29% of respondents who haven’t stayed in
sustainable accommodation this year believed
A Booking.com 2022 survey of global travellers there weren’t any options in their preferred
found that 32% claimed non-sustainable travel destination, 10% thought they were available
options appealed to them more, 26% said the only in remote areas and 8% believed they
same about sustainable travel destinations and seem less luxurious.36 This highlights the fact
27% said sustainable travel did not provide the that low levels of awareness about sustainable
expected luxury and comfort. This highlights practices among travellers inhibit them from
that travellers perceive a lack of comparable choosing more sustainable options.
sustainable options.35
How to Create the Sustainable Travel Products Customers Want 133. Low credibility: Consumers want to be When asked about how a seamless experience
reassured that companies’ sustainability claims would affect customers’ booking behaviours,
are credible and verifiable. This has created 32% of respondents declared that they would
a need for more transparency in reporting, like T&T companies to suggest things to do and
including enhanced certifications and verified places to visit while on holiday. Likewise, 34% of
labels for sustainable products. global travellers said they would be encouraged
to make more sustainable travel choices on
Seven out of 10 travellers surveyed by Expedia online travel agency (OTA) platforms if the
have avoided a travel destination or transport platforms offered a sustainable filter option, with
option due to a perceived lack of credibility 36% wanting such travel platforms to use clear
in relation to an organization’s sustainable labelling to help them more easily identify when
practice commitments.37 According to Booking. something was sustainable.41
com’s survey, 57% of customers claimed
they would feel better about staying in a 6. Lack of rewards/acknowledgement:
particular accommodation if they knew it had a As customers increasingly adapt to green
sustainable certification.38 practices, providing ways for them to make their
efforts more visible would encourage them to
4. Price premium: While this is not always the continue on this path. To bridge this roadblock,
case, sustainable travel is generally perceived customers would have to feel rewarded for their
to be more expensive than its traditional efforts, both physically and emotionally. This
counterpart. As the willingness to pay a includes supplying tools to help them publicize
premium for more sustainable products varies their actions on social media, providing some
by customer segment and is ever-evolving, physical recognition and delivering a product
customers often drop out from purchasing that looks different to showcase the customer’s
the sustainable alternative due to actual or sustainable choice (e.g. a green boarding pass
perceived higher prices. or different-coloured seats on a plane). Some
16% of customers surveyed who have stayed
About 74% of consumers surveyed said it at sustainable properties within the past year
costs too much to be more sustainable when highlighted how ideal such properties are for
travelling, with only half willing to pay more sharing stays on social media.42
for more sustainable transport, activities and
lodging. Moreover, 26% of travellers39 said While certain mature products have paved the way
they wouldn’t choose a destination, lodging or for a breakthrough, some companies with nascent-
transport option that is committed to supporting stage products are still debating on how significant
the local community and culture if it was more the return on investment (ROI) would be. Focusing
expensive. Some 59% of respondents from on these roadblocks would help companies
a Vacationer survey stated cost as their most close the current say-do gap. Additionally, some
important factor when booking travel, 34% interdependencies exist across the six roadblocks,
were willing to pay something extra up to $50 allowing companies and the industry at large to
to lower their carbon footprint from the trip, and address multiple issues within the same initiative.
22% were not willing to pay any premium.40 For example, companies that struggle to optimize
the right purchasing experience must deal with a
5. Cumbersome purchasing experience: lack of customer awareness of and exposure to
Consumers want sustainable products and existing sustainable offerings. As part of the process
wish their purchasing process to be hassle- of refining the purchasing experience, it is important
free and intuitive. Having to go out of their way to ensure that customers are presented with all of
to research the sustainability of a product or the sustainable options offered by the company
to purchase such a product is considered a and that they clearly understand the sustainability
major roadblock. Moreover, customers want benefits, as well as any other potential travel
sustainability information and associated experience benefits those offerings can provide.
labelling to be easily accessible.
How to Create the Sustainable Travel Products Customers Want 143 T&T industry
sustainable
products approach
Sustainable products offer a path towards
reducing carbon emissions.
Sustainable travel products currently being offered sustainable travel products built around
in the market address environmental and social decarbonization practices. Decarbonization is one
factors – products that touch on issues such as of the most critical sustainability challenges facing
water safeguarding, waste management, worker the T&T industry. Companies’ approaches to
and community inclusivity and the protection of carbon emissions can help inform the development
natural and cultural heritage. However, for the of broader sustainability product portfolios.
scope of this report, the focus is on environmentally
3.1 Defining sustainable travel products in the carbon
emissions space
As T&T companies start or mature their net-zero travel segments were analysed in this section, as
journey, many create their sustainable products well as three main product configurations. These
around several decarbonization levers, which are three segments were chosen due to their large
usually aligned with their sustainability strategy. As share of the overall T&T industry and because they
an example, three different categories across the are some of the largest and more direct conduits for
aviation, hospitality and car rental and ride-sharing travel emissions.43
How to Create the Sustainable Travel Products Customers Want 15Product categories
Different categories exist in relation to achieving level with compensation strategies, and passing
carbon neutrality or net-zero targets. As shown through more robust reduction and zero-emissions
in Figure 5, these can be grouped into three strategies. After analysing 50-plus T&T companies
main decarbonization levers spanning a scale and interviewing five representatives from the
of companies’ effort and integration levels. aviation, hospitality and car rental and ride-sharing
Sustainable travel products are built according ecosystem, 12 mainstream sustainability features
to these categories, starting with a low effort were found.
FIGURE 5 Sustainable travel product categories
nies
ompa
f effort to c
o
Level
Level of integration of sustainability within core products
Compensation Reduction Zero emissions
Neutralizing customers’ proportion of CO2 emissions Reducing customers' CO2 emissions by investing Developing a zero-emission product
by investing in carbon offsets in industry-specific carbon mitigation options by investing in non-pollutant technologies
Sustainable aviation Latest aircraft
Aviation fuels (SAF) usage Electric/hydrogen-powered aircraft1
generation
Low-quality High-quality
carbon offset carbon offset Partial usage
(technology-based|nature-based) (technology-based|nature-based) Energy of renewable Low-carbon Entire property
Hospitality efficiency menu powered by RE
energy (RE)
Car rental and sharing- Full electric
Hybrid electric vehicles vehicles
ride-sharing Avoidance carbon offsetting Removal carbon offsetting
Enabler | Visibility
All sectors Carbon calculators, filters and green badges
Source: Accenture Travel analysis, 2022
Note: 1. Product is not available in the
current market; however, it will be available
in the future.
How to Create the Sustainable Travel Products Customers Want 16Compensation
First, carbon-offsetting services are a common efficiency (e.g. bringing renewable energy to remote
choice offered to customers by most companies communities through solar panels) and developing
covered in this analysis. These are defined as GHG treatments (e.g. methane capture from animal
a method of compensating carbon emissions waste for clean gas cooking).
outside of a company’s value chain. They can
be divided into low-quality carbon offsets, also Conversely, removal offsets include nature-based
called avoidance offsets, and high-quality offsets, projects such as soil sequestration, reforestation
usually referred to as carbon-removal offsets. and afforestation, as well as technology-based
Avoidance offsets prevent carbon that would options that encompass direct air capture (DAC)
have otherwise been released into the atmosphere and, more broadly, carbon capture, usage and
whereas removal offsets capture and store carbon storage (CCUS). Both removal and avoidance
in geological and ocean reservoirs, land vegetation offsets are offered to the final customer through a
or products.44 These include nature-based practices third-party organization, such as myClimate45 or
such as preventing deforestation and forest Cool Effect.46 In terms of costs, avoidance offsets
degradation, as well as projects aimed at protecting are often less expensive than removal offsets,
grasslands that would otherwise be converted into especially the tech-based ones. Prices range from
croplands. There are also tech-based projects that $5 to $30/tCO2 for avoidance offsets to $20 to $40/
focus on improving household devices (e.g. building tCO2 for nature-based removal offsets and $450 to
cooking appliances that use less heating material $900/tCO2 for tech-based solutions.47
such as wood), boosting renewables and energy
Reduction
On the other hand, companies with net-zero a 15–20% reduction in fuel consumption and a
strategies adopt reduction alternatives by investing reduction in the same range for CO2 emissions.52
in industry-specific carbon mitigation options. These Although customers do not typically get to choose
options can greatly vary by segment. what aircraft they fly on, the introduction of carbon
calculators providing carbon emissions data for
Aviation flights can help lead to more sustainable choices.
For the aviation industry, two main options are Calculators can show that routes flown by newer
available:48 the uptake of sustainable aviation planes generate fewer emissions, thereby pushing
fuels (SAF) and the acquisition of latest- sustainability-conscious travellers to choose these
generation aircraft. Currently, the availability of flights over options serviced by older aircraft.
SAF is limited: it represents less than 1% of total
aviation fuel demand.49 However, it has an average Hospitality
CO2 reduction potential of 80%,50 and several On the hospitality side, several hotel companies
airlines and businesses are rallying to achieve 10% are currently following three principal reduction
SAF demand and supply by 2030 through coalitions practices.53 The first is to work towards energy-
such as Clean Skies for Tomorrow.51 The latter is efficiency practices,54 encompassing, lighting,
triggering the inclusion of SAF uptake services for the provision of hot water, catering services, and
leisure and corporate travellers through different heating, ventilation and air-conditioning (HVAC)
airlines’ websites. Costs vary depending on the SAF optimization.55 Measures in this regard include
pathway used. Biofuels made of waste fats, oils and the appropriate setting of internal temperatures,
greases are currently the only ones in commercial retrofitting spaces for better insulation, installing
use and represent the less expensive option. Today, low-energy lighting (LEDs) and occupancy sensors,
customers who would like to include a portion of and other HVAC optimizations.
SAF in their flight have to pay on average $650/
tCO2. If paying for full SAF, Accenture analysis While hotels can follow specific and more targeted
shows that this translates to more than $200 per actions, products in this sector are usually defined
trip for a New York to London flight that in an as green when a third-party organization certifies
economy cabin on average generates 320 kg of compliance in relation to the measures described
CO2 emissions. It is important to note that customer above. Examples of such certifications include
payments for SAF are used by the airline towards those provided by the Global Sustainable Tourism
future purchases of the fuel. Council (GSTC) and the Leadership in Energy and
Environmental Design (LEED) system. However,
The second option is the introduction of latest- as highlighted by Marriott International in the case
generation aircraft. Airlines regularly upgrade study section of this report, the definition of a
to the latest available aircraft, a process that is sustainable product needs to be complemented
cost-effective given the cost-reduction benefits with other practices aimed at reducing, for example,
involved. Usually, new aircraft generation brings waste and by-products from water and plastic
How to Create the Sustainable Travel Products Customers Want 17usage and food, given that a significant part of Lastly, practices such as including low-carbon
the environmental impact in the hospitality sector menus in catering services are gaining more
comes from these resources. In fact, some criteria popularity. Initiatives such as the Cool Food Pledge,
highlighted in the certification process encompass where businesses commit to reducing 25% of
safeguarding water resources, minimizing waste, the GHG emissions associated with the food they
maximizing reuse and other social aspects such serve by 2030 relative to a 2015 baseline, are
as promoting health and well-being and increasing currently rallying more and more hospitality service
the social and economic benefits for local companies to join these types of pledges.59
communities.56
Car rental and ride-sharing
Another reduction pillar comes with the increasing Regarding the car rental and ride-sharing segment,
use, if only partial, of renewable energy (RE), the main reduction approach comes with the
which is, according to the sector decarbonization introduction of hybrid-electric vehicles (HEV),
approach (SDA), the most relevant in terms of where two types of configurations currently exist.
meeting science-based targets. As described The first is the plug-in hybrid electric vehicle (PHEV),
by the Sustainable Hospitality Alliance, practices powered by an internal combustion engine (ICE)
include on-site renewable energy through wind or and energy stored in a battery. These cars can
solar power and ground sources of energy. Also, operate on full electric mode for 30–60 km before
“near-site” renewable energy can be procured switching to regular fuel. The share of kilometres
by hotels through power purchase agreements that can be electrified translates into an exhaust
(PPAs), sleeved PPAs, where an intermediary pipe (tailpipe) CO2 emissions reduction of 15–55%
utility company handles the transfer of money and compared to full ICE cars.60 Even though the
RE on behalf of the buyer57 or community solar reduction potential is significant, market shares of
panels. Hospitality providers can also support utility new vehicle registrations in different geographies
renewables through the purchase of renewable continue to be low. In 2021, PHEVs’ market share
energy certificates (RECs) in order to help countries in Europe was 9%, followed by 2% in China and
upgrade their power grids. Actions taken in this 1% in the US.61
space are also considered in the criteria for green
certifications or badges, which are usually displayed The second type of configuration is the hybrid-
on a company’s website along with its carbon and/ electric vehicle (HEV) powered solely by petrol,
or water footprint information.58 If properties end up which provides simultaneous energy through
being fully powered by RE, they can be classified regenerative breaking to batteries embedded in
under the zero-emissions category. the car. These types of cars can be classified into
micro, mild and full hybrid vehicles reaching CO2
emissions reductions of 3%, 15% and up to 30%
respectively.62
How to Create the Sustainable Travel Products Customers Want 18Zero emissions
Zero-emissions products are defined as those that hospitality companies’ websites, mainly through
produce no carbon emissions. In terms of zero- green badges or information for customers.
emissions products, different maturity levels exist,
depending on the sector. Car rental and ride-sharing
In car rental and ride-sharing, a zero-emissions
Aviation product is commercially available today in the
In the aviation industry, two products are currently form of battery-electric vehicles (BEVs). BEVs
under development: electric aircraft and hydrogen represent the primary technology pathway,
propulsion aircraft. Electric aircraft use electric translating into the highest global EV share in 2021
motors to generate energy that is stored in high- for light-duty vehicles, achieving 71% of global
density batteries; these can achieve 100% zero sales for all cars compared to 29% for PHEVs.66
emissions if the electricity is generated through Although current BEV penetration is low within the
renewable sources. However, due to the additional broader automotive market, it is expected to grow
weight that these batteries bring and the further due to new mandates being proposed by some
technological development required, such aircraft governments; for example, the requirement for a
would be viable only for short-haul ranges (of minimum of 100% BEVs by 2035 in the EU, 20% by
less than 500 km) from 2040 onwards. A similar 2025 in China and 50% by 2030 in the US.67
scenario applies for hydrogen propulsion aircraft,
where hydrogen combustion needs to be produced Currently BEVs, available as light-duty vehicles (LDV)
through renewable energy sources in order to get a and heavy-duty vehicles (HDV), are powered by
100% zero-emissions aircraft. As research is still at a pack of batteries recharged through an electric
the development stage in this field, it’s more likely power source and have a typical driving range of
that this product will become available from 2040 240–640 km.68 These products are made visible to
onwards, specifically for regional and narrow- customers through green badges and filters available
body aircraft.63 in car rental and ride-sharing websites and apps.
Hospitality Companies within the aviation, hospitality and
In hospitality, a zero-emissions product already car rental and ride-sharing industries often follow
exists: renewable sources of energy are available, several decarbonization approaches at once when
as are circularity practices for water collection it comes to building an environmentally sustainable
and waste recycling. In fact, some hotel chains’ travel product. The availability of sustainable
properties are already entirely powered by RE.64 travel products depends on how difficult it is to
However, transitioning to these practices requires abate emissions. This is driven by the stage of
significant investment and is dependent on the development of decarbonization technologies within
availability of sustainable technologies in different their respective industry, as highlighted in the A Net
geographical areas.65 When the latter difficulty is Zero Roadmap for Travel and Tourism report.69
overcome, such practices can be highlighted on
Visibility
Visibility products such as carbon calculators, travel offerings and understand the impact they can
filters and green badges can serve as enablers make. It is essential to achieve alignment across the
for all of the sustainable product types. These industry on the methodologies behind these tools to
products enable travellers to identify sustainable help overcome say-do gap roadblocks.
Sustainable product configurations presented to customers
Having now laid the groundwork on the different sustainable product configurations will be analysed
environmentally sustainable approaches that below: ancillary, bundled and embedded products.
companies undertake, the following three main
How to Create the Sustainable Travel Products Customers Want 19FIGURE 6 Sustainable travel product configurations
Industry Product configuration of sustainable features
Ancillary product Bundled product Embedded product
– SAF usage services – Latest aircraft generation
Aviation – Avoidance and/or removal carbon offsetting – Electric/hydrogen-powered aircraft1
– Avoidance and/or removal carbon offsetting – Energy efficiency
Hospitality – Low-carbon menu – Entire property powered by RE
– Low-carbon menu
Car rental and – Hybrid electric vehicles
– Avoidance and/or removal carbon offsetting
ride-sharing – Full electric vehicles
Source: Accenture analysis, 2022
Note: 1. Product is not available in the current
market; however, it will be available in the future.
Product configurations included in the framework
above are the ones offered at the time of booking.
Ancillary products
A sustainable ancillary product represents an add- In Lufthansa Group, customer uptake of
on to a product or service provided by a company. sustainability ancillaries is reaching nearly double-
These are chosen on a more voluntary basis than digit percentages at some airlines. For United
bundled/embedded products and are often found Airlines’ SAF ancillary products, emissions
as part of the booking process. For example, reductions achieved in just one year are 15 times
Lufthansa Group includes sustainable features and higher than the combined reductions through
information at different touchpoints of the customer carbon offsets over the lifetime of the programme,
journey, from the booking experience and in-flight despite higher carbon-abatement costs. The
services to the provision of sustainability information success of the different ancillary types may also be
after the trip. However, particularly in hospitality, a driven by the market segments to which they are
wider range of ancillary products may be offered offered. In the case of United Airlines, the success
throughout the customer experience. These include of SAF offerings mentioned above were targeted at
offerings chosen by customers – for example, corporate clients while carbon offsets were offered
selecting low-carbon menu items or electing for to retail customers. Further details on the Lufthansa
reduced room-cleaning services. Group and United Airlines examples are given in the
case study section of the report.
For the industry segments within the scope of
this paper, typical ancillaries include carbon-
offsetting services.
How to Create the Sustainable Travel Products Customers Want 20Bundled products
A bundled product includes a sustainable feature to bundle their products by including carbon
or ancillary attached to it and sold as a package. compensation options and/or a percentage of
This type of configuration typically gives customers SAF, creating a greener offering. Also, car-sharing
less flexibility to opt out and is usually targeted at companies such as Uber have a bundled product
a specific travel segment and geography. In the that includes carbon compensation options,
case of hotel companies, these bundled products specifically in the Latin American market where the
can include carbon compensation options as well EV penetration is low.
as low-carbon menus. Airlines are also starting
Embedded products
Embedded products include a sustainability flown on the latest-generation aircraft and green
feature that is set within a product and sold as certifications achieved through practices such
a core offering. For airlines, this means using as RE can help such offerings to stand out in the
the latest-generation aircraft or the electric and hospitality space.
hydrogen-powered aircraft that are currently under
development. For hotels, embedded products can Companies’ approaches when defining a
include full or partial RE usage as well as energy- sustainable travel product are usually based
efficiency practices. For car rental and ride-sharing on the availability and cost of decarbonization
companies, sustainable products have the highest technologies. Evidence collected so far shows that
penetration in the market through BEVs and HEVs. customers naturally opt for sustainable products
In fact, as testified by Uber, the availability of EVs when the choice requires little additional effort when
has increased four-fold in the past year, with these searching, booking and paying for them. In that
vehicles carrying more than 13 million people in sense, car rental and ride-sharing companies seem
2021. Further details on Uber’s product categories to be ahead of hotels and airlines, given that an
are described in the case study section below. embedded zero-emissions product is available at
Particularly for embedded products, the use of a competitive price. However, examples from other
visibility tools is key to enabling customer decisions industries illustrate additional practices that T&T
and competitive differentiation. For example, carbon companies could follow to increase the uptake of
calculators can help customers identify flights sustainable products.
How to Create the Sustainable Travel Products Customers Want 213.2 Case studies
CASE STUDY 1
Amadeus IT Group
Amadeus70 is a travel services company that provides IT emissions, thus allowing them to make more sustainable
solutions to a range of T&T companies including airlines and choices. Also, offering carbon-offsetting options to travel
travel agents. Its solutions connect travellers to the journeys agencies will help to extend the impact of these solutions.
they want through travel agents, search engines, tour
Although some of these products are already on the market,
operators, airlines, airports, hotels, cars and railways.
further research and innovation are needed to help the
In the race to support the industry to decarbonize and company advance faster towards decarbonization. In 2021
achieve its own targets, Amadeus is currently strengthening Amadeus invested €787 million in research and development
its sustainability value proposition. With nearly 2 million towards technology solutions that help boost operational
reservations processed per day in 2019, the company is in a efficiency for their customers, efficiencies that in many
key position to inform and help raise awareness about each cases are linked to improved environmental efficiency. A
traveller’s carbon footprint. lack of standardization and precision in carbon calculation
methodologies is currently hindering the credibility and uptake
In this regard, Amadeus is starting to partner with other
of these features. However, coalitions such as Travalyst, of
companies to offer sustainability features such as carbon
which Amadeus is a member, aim to address these challenges
calculators that can be integrated into Amadeus’ travel
and help build the critical mass needed to drive alignment for
distribution platforms. This will help airlines and travel agents
the industry.
provide visibility to their customers about their flight’s carbon
How to Create the Sustainable Travel Products Customers Want 22You can also read
