Monday 25 July 2011

Reporting and green tourism – what happens when consumers know?

Emissions from tourism matter – they account for around 5-14% of total global emissions.  Developed countries produce considerably more GHG emissions per capita than developing nations, and one reason among many is the availability of time and money for leisure. 

Carbon emissions from leisure pursuits is a sensitive issue.  On the one hand, denying people air travel or even the experience of a heated swimming pool would be politically unrealistic.  On the other hand, consumers themselves are becoming increasingly interested in their personal impacts, and consumer goods companies from Puma to Unilever have been quick to respond, by reporting their impacts and showing annual improvements and innovations.

The same cannot be said of the leisure industry.   Few report on their emissions at the corporate level – but the rare leaders who do suggest some interesting conclusions.  Figure 1 shows emissions from a selection of firms in transport, holidays, casinos and hotels.   Two dimensions are relevant: emissions per customer, and per unit of spend.

For an individual trying to reduce their discretionary carbon footprint, the emissions-per-customer metric is highly relevant.  For example, a luxury hotel stay (measured on a room-night basis – HKS and Intercontinental) is clearly less green than a stay at a holiday park (Centre Parcs and Holidaybreak).

For a company looking to produce a more efficient product and deliver more value to their customers, the dimension of emissions per unit of revenue is most relevant.  For example, compare the two hotel groups, Intercontinental and HKS (Hong Kong and Shanghai), both targeting the high end of the market.  HKS is likely to keep costs low by reducing energy consumption relative to revenue, presumably without changing the quality of the experience.  This will help them boost their financial surplus, which can be invested in services their guests actually value.

At the moment, consumer tools like GoodGuide.com focus on goods rather than services.  Given the importance of leisure to global emissions, change cannot be far off.  When these tools are available for holidays, travel, and other leisure experiences, those companies that have already invested in their own sustainability – and reported transparently – will be the first to benefit.