Five ways to increase profitability by focusing on sustainability (19459000)
Hotel waste is significant. According to estimates, the average hotel generates about one kilo per guest each night. This can amount to tens or thousands of kilograms per year for large resorts. Implementing waste reduction measures, however, can have significant financial rewards. Studies show that by reducing food waste by 30 percent, the hospitality industry could save up to 100 billion dollars annually. Reducing waste can also lead to lower costs and improved guest satisfaction, which are key factors in profitability. Here are five different ways that reducing waste will help you increase your revenue.
1 F&B Waste: Tight procedures and right systems
Hotels need to improve their food waste management. To tackle this problem, it is important to have the correct systems and policies in place. Two examples are the procurement and recipe management system. Revenue optimization departments and cultures that are strong will help cut costs, increase profits by double-digits and improve the customer experience.
Rethinking consumption of 2-Rooms & amenities
As part of their sustainability commitment, even luxury hotels have begun to implement bulk dispensers and use reusable amenities. This eliminates the need to purchase millions of plastic bottles for single-use. The end user is not only happy with this move, but it also reduces waste and saves money on waste disposal and procurement. Smart thermostats, efficient lighting, and renewable sources of energy can also lead to cost-savings.
Green up your 3-day events and conferences
Sustainable practices have become a major differentiator for luxury resorts hosting conferences and events. Corporate clients are increasingly demanding green certificates for their venues. They recognize the importance of these certifications in helping organizations achieve sustainability goals. Hoteliers can attract this profitable market by offering zero-waste events or those with low carbon emissions.
Guest engagement: Turn sustainability into an USP
Engagement of guests in sustainable efforts strengthens hotel brands and enhances guest experiences. The Gen. Z generation, known for its strong commitment to sustainable living, is reshaping industry priorities. Booking.com’s 2022 survey found that 72 percent Gen. Z respondents preferred sustainable travel and more than half would pay more for eco-friendly accommodation. By incorporating visible and impactful sustainability into their offering, luxury hotels can build loyalty among this segment.
Avoid greenwashing – credibility is the key
Avoid vague terms such as “eco-friendly” or “sustainable”, and provide evidence instead. Detail the actions taken such as local sourcing or reducing plastic single-use.
The certifications you obtain, like LEED and Green Key will give your sustainability efforts credibility, as well as reassurance to guests.
Third-party audits can help identify and verify claims made by hotels about their sustainability initiatives.
Transparency is key: Use data to show impact. For example, report the number of recyclables diverted away from landfills and the percentage of renewable energy. These results can be shared in guest communications and marketing materials.
Luxury hotels and resorts that reduce waste, reconsider resource consumption, and adapt to the needs of today’s travelers can create new revenue streams and protect the environment. In conclusion, each step towards sustainability will lead to a future that is more resilient and profitable.
