Hotels generate significant waste, with estimates suggesting that the average hotel produces about 1 kilo of waste per guest per night. For large luxury resorts, this can translate into tens of thousands of kilos annually. However, implementing waste-reduction measures can yield considerable financial benefits. For instance, studies reveal that a 30-percent reduction in food waste could save the global hospitality sector up to USD 100 billion annually. Moreover, reducing waste often results in lower operational costs, improved efficiency and increased guest satisfaction – key drivers of profitability. Following are five ways in which reducing waste can help to increase revenue.
1-F&B waste: tight procedures and the right systems
Food waste is a critical area for improvement in hotels. Implementing tight policies and procedures for data entry and having the right systems in place – ones that talk to each other – are key for tackling this issue. Procurement and recipe management systems are just two examples. A strong revenue optimization department and culture will also help to cut costs and increase profits in double digits, whilst enhancing the customer experience.
2-Rooms and amenities: rethink consumption
Even luxury hotels are increasingly turning to reusable and refillable amenities as part of their commitment to sustainability and implementing bulk dispensers for toiletries, eliminating the need for millions of single-use plastic bottles annually. This move not only reduces plastic waste, but also saves on procurement and waste disposal costs, and is accepted and expected by the end-consumer. Additionally, the use of smart thermostats, energy-efficient lighting and renewable energy sources can lead to significant cost savings.
3-Events and conferences: time to go green
For luxury resorts that host conferences and events, sustainable practices are becoming a key differentiator. Many corporate clients now demand green certifications for venues, recognizing their importance in achieving organizational sustainability goals. Offering zero-waste or low-carbon events can make a hotel more attractive to this lucrative market segment.
4-Guest engagement: turn sustainability into a USP
Engaging guests in sustainability efforts not only strengthens a hotel’s brand, but also enhances the guest experience. Gen. Z, known for their strong commitment to sustainability, are reshaping the industry’s priorities. According to a 2022 survey by Booking.com, 72 percent of Gen. Z respondents expressed a preference for sustainable travel options and over half were willing to pay extra for eco-friendly accommodations. Luxury hotels that cater to this group by integrating visible, impactful sustainability initiatives into their offerings can gain a competitive edge and build long-term loyalty.
5-Avoid greenwashing: credibility is key
• Be honest and specific: avoid vague claims such as ‘eco-friendly’ or ‘sustainable’ without providing evidence. Clearly detail the steps taken, such as sourcing locally or reducing single-use plastics.
• Seek certifications: obtaining recognized green certifications, such as LEED or Green Key, lends credibility to sustainability efforts and reassures guests about their validity.
• Engage in third-party audits: independent assessments of sustainability practices can identify gaps and validate claims, ensuring a hotel’s initiatives stand up to scrutiny.
• Communicate transparently: use data to demonstrate impact, such as reporting the amount of waste diverted from landfills or the percentage of energy sourced from renewables. Share these results in marketing materials and guest communications.
By reducing waste, rethinking resource consumption and aligning with the values of modern travelers, luxury hotels and resorts can unlock new revenue streams while safeguarding the planet. To conclude, every step toward sustainability is a step toward a more profitable and resilient future.
Judith Cartwright,
founder and managing director of Black Coral Consulting
blackcoralconsulting.com
@jhalkenhaeusser
