Balancing Hotel Needs and Guest Expectations

As conversations around sustainability grow across industries, hoteliers have to ask: Is this something we should be focusing on?

If you’re going for a higher star rating, sustainable operations initiatives may be a lot lower on your priority list than daily room cleanings, providing hair dryers and other star requirements. 

However, sustainability may be more valuable for your hotel than you realize. It can reduce water and energy consumption and staff workloads, potentially saving you money. Sustainable operations initiatives can also be marketing differentiators, helping you showcase the value of your hotel beyond good star ratings.

Below, we look at why sustainable tourism is one of the most valuable travel and hospitality trends and how to incorporate it into your hotel.

Sustainable tourism: Why hotels should care

Sustainable tourism is a concept that calls for businesses in the tourism sector to minimize environmental impacts and offer value to local communities to promote long-term business viability.

In the hospitality industry, this involves implementing practices that conserve energy and water, minimize waste and promote local economies — while still providing optimal guest experiences.

It’s becoming increasingly important for hoteliers to pay attention to sustainability, as it isn’t just a trend — it’s a growing global focus that’s set to impact every type of business in every industry. This is evident from the many global sustainability summits that have occurred over the past years and are expected to continue.

Further, according to a Booking.com survey, 53% of travelers are actively looking for accommodations that offer both comfort and innovative sustainability solutions. These factors transform sustainability from a “nice-to-have” to a “must-have.”

Eco-friendly operations are cost effective

Some sustainability initiatives can reduce hotel spending, potentially driving profitability while protecting the environment. For example, washing bed sheets at the end of guests’ stays and cleaning rooms when requested rather than daily lowers water, chemical and electricity usage, which is great for the environment and hotel costs.

These practices also reduce the amount of work cleaning staff have to do, minimizing labor costs. And they lower energy costs, cleaning supply expenses and wear and tear on equipment, which can be a huge money saver.

Sustainability is good PR

There’s a lot of coverage on sustainability in the media, with major and small news outlets expanding their climate desks over the last five years. This presents an opportunity for sustainable hotels to get more eyes on their services.

Sustainable practices highlight your concern for the environment, which can reflect well on your brand and gain media attention. Even if it doesn’t, it can promote a positive brand sentiment among guests (especially eco-conscious ones), improving your hotel’s image.

Guests care about environmental impact

Modern consumers increasingly prefer hotels with sustainable practices that enable them to contribute to environmental conservation. It’s worth noting, however, that customer expectations can vary depending on their travel destinations and the local culture.

For example, guests staying in remote destinations surrounded by nature may expect a greater focus on sustainability than those traveling to cities. So it’s important to consider your market segments when making sustainability decisions.

This is often easier for independent hotels and small establishments than big chain hotels because they don’t typically rely on their headquarters’ decision-makers. But still, it’s crucial for all hoteliers to think about sustainability and what it could look like in their establishments, no matter their size.

3 environmentally friendly initiatives that drive hotel revenue

You can implement sustainability initiatives across all different areas of your hotel, including dining, room amenities and operations. Here’s how:

1. Locally sourced produce

Modern consumers are paying more attention to what they consume and how ingredients are sourced. The global fresh food market was worth $94.61 billion in 2023 and is expected to grow to $153.18 billion by 2032 as more people demand natural foods.

So your hotel restaurant could be a great place to start a sustainability initiative. Get your produce from local suppliers instead of importing it to promote ingredient freshness and reduce your contribution to greenhouse gas emissions from fuel.

While going the local route may be more expensive than buying from cheaper suppliers in other areas, it’s worth it, as it can help you stand out from the competition. Plus, you can put the added costs in your price — after communicating the added value, of course.

However, don’t just choose any local supplier — make the most of your initiative (and make the additional expenses worthwhile for guests) by only buying seasonal, high-quality produce. It’s also a great way to get creative with your menu and incorporate seasonal, farm-to-table specials.

2. Refillable personal care products

If you want a low-cost sustainability initiative that delivers quick results, this is a guaranteed win. In fact, it has become a requirement in states like New York, Washington and California as legislators realize the devastating impacts of single-use plastic packaging.

Rather than buying travel-sized soaps, shampoos and other toiletries and stocking them in each room, buy them in bulk and add them to refillable containers. This reduces plastic waste and is, thankfully, relatively easy to implement. Plus, it’s often much cheaper than single-use options.

3. Green building initiatives

Utility costs are on the rise — electricity prices rose by 3.6% in the U.S. in 2024, and sewer and water rates have been increasing by 4% annually. This makes it essential for hotels to invest in sustainability efforts that lower their energy consumption.

New builds have an opportunity to set themselves up for long-term sustainability success by introducing an initiative stage. Opt for renewable energy solutions, put systems in place to reuse greywater, and install green roofs instead of conventional roofs. Green roofs can lower cooling loads by 70%, minimizing the burden on your air conditioning.

Even if you’re operating out of an older building, you can still benefit from green energy by changing windows to bring in more natural light and ventilation and installing solar panels. While these are substantial initial investments, they can save your hotel a lot of money in the long run.

How to communicate sustainability commitments

Communicating sustainability efforts can bring more attention to your hotel and help it stand out from the competition. It can also help guests prepare for changes if any of them will impact their stay. So include your initiatives in marketing campaigns, highlighting how they improve guest experiences and promote sustainability.

This isn’t to say that you should hype up everything you’re doing — focus on noteworthy changes that make you stand out, such as using locally sourced produce and implementing features that are trending on social media.

Beyond mentioning your initiatives in marketing campaigns, highlight them on a dedicated page on your website. This way, customers interested in learning more about your efforts can do so seamlessly.

It’s also a great idea to communicate efforts via strategic influencer partnerships. Work with green influencers who align with your hotel’s values to spotlight your initiatives across audiences that value sustainability efforts. These audiences may be more likely to book with you after learning about your initiatives.

The future of sustainable tourism

If the many recent sustainability summits and media coverage of climate issues are any indication, people will continue to expect businesses in the tourism sector to introduce sustainability initiatives.

The key to success (meeting expectations and realizing cost savings) is adopting low-cost, easy-to-implement practices that provide quick time-to-value. For example, you can start by reducing how often cleaning staff change sheets and clean rooms before moving to more resource-intensive measures like upgrading windows or installing solar systems.

To get ideas and find opportunities to improve sustainability, organize brainstorming sessions with your team. Everyone will likely have a different view of what it means to be sustainable and, based on their experiences with your hotel, thoughts on areas you can improve, so you may get some excellent ideas.

Introducing sustainability practices now could make you a trendsetter. Despite some hotels making sustainability efforts, not much is happening in big cities and capitals because there’s little to no motivation for adoption.

To promote industry-wide change, stakeholders in the hospitality industry need to introduce larger and more appealing incentives. For example, bodies like the European Hotelstars Union could award points for sustainability initiatives in the future.

This is already happening in the restaurant industry, with Michelin Guide inspectors awarding the Michelin Green Star, which recognizes restaurants’ sustainable practices. The Dubai Department of Economy and Tourism (DET) also awards the Dubai Sustainable Tourism (DST) Stamp, a strategy that encouraged 83 restaurants to prioritize sustainability between 2023 and 2024.

If you run a luxury or 5-star hotel with a restaurant, you could start by implementing sustainability initiatives in dining to win the Green Star before other rating bodies follow suit.

This isn’t to say that you shouldn’t make an effort if you don’t have a restaurant. With sustainability on the rise in most industries, it’s likely that the hospitality industry will catch on in the near future. Implementing initiatives now could place you ahead of the curve when that eventually happens.

Commit to sustainability without compromising your bottom line

Sustainability is a growing opportunity for better business practices and cost savings. However, not all practices are feasible for all hotels. To determine which ones are practical for your hotel, consider what sustainability initiatives your guests might value most and how they would fit within your larger revenue management practices.

Not sure where to start? With Lighthouse, you get the data you need to understand hospitality patterns and trends and better prioritize your eco-friendly efforts to meet guests’ sustainability expectations.

Our solutions also facilitate stronger revenue management by helping you forecast demand and set competitive room prices. This allows you to effectively budget for sustainability practices to enhance your environmental responsibility and overall profitability.

Wondering how to strengthen your revenue management to better support commitments to sustainability? Learn how to leverage revenue management automation!

About Lighthouse

Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.

Trusted by over 65,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners – their success is our success.

This article originally appeared on Lighthouse.