Change to sustainable practices or risk losing business: PACE Dimensions – Travel Daily

Change to sustainable practices or risk losing business: PACE Dimensions – Travel Daily
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New research reveals a tipping point in sustainable attitudes in hotel, leisure, and hospitality industry.
“Change practices or risk losing business” warns, PACE Dimensions. Proprietary research by leading specialist travel, leisure and hospitality management consultancy, PACE Dimensions, has shown that changes in both consumer and corporate buying behaviour relating to a brand’s ESG position. The research can drive significant opportunity for business and concludes that those failing to act will fall behind or risk devaluing profits and investments.

Conducted in association with BVABDRC and commissioned by PACE Dimensions, this is the first research of its kind to provide a deep dive into sustainability and how it impacts business planning and development across operation and across markets.

Key insights from the data include:
Quantifying the scale of opportunity presented by consumer and corporate buyers who are now actively seeking sustainability credentials when making purchasing decisions.
• All travellers have taken some steps, irrespective of whether they describe this as an overt ESG action.
• Thirty-eight percent of the world market positively seek and discriminate for hotels that are sustainable.
• Forty one percent (41%) of consumers say sustainable travel is important to them.
• Over 1 in 3 will “pay more to be environmentally friendly” and will “assess the eco-credentials of accommodation.
• What consumers care about differs from one geographic market to another particularly so when from different continents.
• Luxury consumers who pay more and are more discerning. Sustainability influences their choice more.
• Consumers have low awareness of industry standards and measures; there is a significant opportunity for hotel brands that effectively markets their sustainability credentials.
• The younger age groups are most vociferous regarding EGS. They are and will become the mass market for hotels over the next few years.
• Older age groups may be less vocal but take more action when it comes to choosing hotels which are more sustainable.
Highlighting why investors now assess sustainability, and price into asset value.
• Commercial property accounts for 40% of global carbon emissions, (30% Operational, 10% Embedded)
• Benchmarking, reporting, and working to reduce emissions now linked to investments.
• Legislation is forcing change across all areas of operation and investment.
• Avoid stranding assets through under investment in sustainable practices.

Tim Davis, Pace Dimensions, managing director, said “There is so much important discussion around the value and importance of ESG, yet in consulting with clients, we have found many do not feel furnished with sufficient robust data to make critical decisions for their business. As a result, we have worked together with BVABDRC to create this first of kind research that has the power to transform business performance relating to sustainability and ESG.

“Through the research we can provide an incredible wealth of insight and data to pinpoint relevant and significant opportunities (and threats) for business in relation to ESG across all areas of businesses operation. Gaining access to this research can guide hospitality, leisure, and travel businesses in modelling the sustainability opportunity commercially.’ Davis concludes.