Green hotels help corporates save costs

Driven by global regulations and increasing consumer demand, South African hotels are stepping up efforts to meet new environmental standards while passing on cost savings to corporate travelers.

This dual benefit has gained attention as businesses aim to reduce their carbon footprint by sticking to travel budgets.

Lee-Ann SingerFEDHASA Cape President said Travel news that South Africa’s hospitality sector was developing in response to international environmental regulations such as the Paris Climate Agreement and the EU Green Deal.

“The pressure is coming from both B2B partnerships and direct consumer demand for real sustainability efforts,” Singer said.

He added that the shift to green accommodation is not only regulatory but driven by growing demand from travel agents, DMCs and tour operators.

Growing within corporate travel

Companies that switch to green accommodations for corporate travel are starting to see significant savings along with reducing their carbon footprint. A recent HRS corporate travel report found that businesses using sustainable hotels reduced their carbon footprint by 27% and cut lodging costs by 17%.

“What’s encouraging is that sustainability and cost savings go hand in hand,” they said. Dear Moroke,Operations Manager at Corporate Traveler “Companies are looking for both environmental responsibility and competitive pricing from their accommodation partners, and the market is responding brilliantly.”

In response, hotels are adopting innovative technologies to improve their sustainability credentials.

Corporate Traveler says AI-powered energy management systems help optimize heating, ventilation and air conditioning systems, while smart water management systems monitor usage and detect leaks. IoT (Internet of Things) devices adjust lighting and temperature based on from employment, reducing unnecessary energy consumption.

Some hotels are also eliminating plastic waste through digital check-in options and replacing printed materials with smart mirrors that display sustainability information.

Green certificates

For South African hotels, achieving sustainability certification has become crucial to maintaining global competitiveness, Singer said.

He said certifications such as Fair Trade Tourism, Travelife and Green Key were recognized internationally and aligned with European standards, offering confidence in the global market.

“Hotels must ensure their certifications are recognized by the EU to avoid accusations of greenwashing. The industry is increasingly aware of the reputational and legal risks associated with greenwashing, and this is pushing businesses to adopt more transparent, verifiable sustainability practices.” he noted.

Challenges and predictions

The transition to sustainable practices is not without challenges, with hotels facing the complexities of navigating multiple certification schemes, high upfront costs for property retrofits and the lack of a single global standard, Singer added.

Despite these obstacles, innovations in sustainable hospitality are on the horizon. Singer predicts that future trends will include decentralized renewable energy solutions such as solar power, smart water management technologies and circular economy practices that aim for zero waste.

“The next step is helping companies move from measurement to meaningful action. When organizations can easily access sustainable options at competitive prices, it becomes natural to make environmentally responsible choices,” Moroke concluded.

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