Written by: Philip Halanen, Head of Sourcing & Sustainability at Wyndham Hotels & Resorts EMEA
ESG has become a fundamental consideration for the modern-day hotelier.
We all know how devastating the Covid pandemic has been for the sector, with our livelihoods being put on pause for the better part of two years. In many cases, doors have been permanently closed. However, the industry is finding its feet again.
The next couple of years are going to be critical. Hotels are clawing back revenue and making up for lost time. To continue doing that successfully, they must be in tune with the post-pandemic travelling consumer — and that means taking sustainability seriously.
The pandemic period has led to an evolution of travellers’ preferences, with more than six in 10 (61%) stating a desire to travel more sustainably and almost three in four (73%) saying they would be more likely to choose accommodation if it has implemented sustainability practices.
Almost half (49%) believe there are not enough options for this kind of travel, meaning hotels that do invest time and resources into sustainable operations stand to benefit.
Business travellers are also on the lookout for environmentally sound hotels. Indeed, most corporate request for proposals (RFPs) now require environmental sustainability credentials, as these feed into their own businesses’ ESG performance.
From an investment perspective, hoteliers and hotel companies that demonstrate strong ESG values are far more likely to attract the funding to fuel growth.
The upshot of all this: More work is needed industry-wide to create clear policies and associated actions to deal with the climate threat and align with the values and priorities of customers and investors.
Long before the pandemic arrived in 2020, Wyndham Hotels & Resorts has been striving to make a positive impact on the places and communities where our hotels operate. As the largest hotel franchise in the world, we know how important it is to champion best sustainable practices. Minimizing our environmental footprint is just one of five key pillars that make up our strategic ESG framework. Much of that work is centered on our social responsibility strategy, Wyndham Green, which underpins our commitment to provide socially, ethically and environmentally responsible places to stay and work.
Helping Hoteliers Go Green
The five pillars, explained:
Climate change: Helping hoteliers minimize their impact on climate change by reducing emissions from their properties.
Energy efficiency and renewable energy: Becoming energy efficient and increasing the use of renewable energy across hotel estates.
Water conservation: Increasing water saving activity based on identification of risks and opportunities specific to each hotel property.
Waste diversion: Helping hotels manage waste smartly. This involves generating a better understanding of waste profiles and using that knowledge to divert more waste from the landfill.
Biodiversity: Protecting plant and animal life in and around hotel grounds by recognizing key biodiversity or protected areas, and implementing measures to safeguard them.
The Wyndham Green program is built around a toolbox of digital resources that includes key information on how to meet certification criteria; a data-tracking portal to measure progress of certain environmental performance metrics; and strategic sourcing material for franchisees.
Certification starts at Level 1 (Core) with six elements and progresses to Level 5 (Expert), with each stage adding a further five to seven elements.
Level 1 starts with the basics: The six criteria include towel and linen reuse; installation of energy efficient interior lighting; guest communication; and tracking of utility data. At the top end of the program, Level 5 covers several additional elements, from minimizing food waste and ensuring water-efficient flush fixtures in guest rooms to implementing strategies that minimize single-use plastics.
Crucially, Wyndham Green aligns with globally recognized standards such as LEED, Tripadvisor GreenLeaders and Green Key. From a recognition and familiarity perspective, this is important for both leisure and business customers.
Aligning with a program such as Wyndham Green represents a win-win proposition for properties. Not only does meeting ESG criteria help reduce the impact on climate change, but it also feeds into a strong business case that centers on the evolution of established customer preferences.
Indeed, the business case is strong on many fronts. Hotels are not immune to today’s volatile environment of increased operational costs, soaring energy prices and challenging supply chain crunches.
Green hotels are already winning
We know this to be the case. Within our portfolio of hotels, Wyndham Green properties performed better through 2021 when measuring RevPAR index scores. Many are saving on energy costs, with a 10% reduction in use carrying the potential to increase average daily rate (ADR) by $1.35 in full-service hotels and by 62 cents in select service hotels.
Meanwhile, many other quick payback best practices are being adopted. These include installing LED lighting and water-efficient flush and sink fixtures; lighting occupancy controls in low traffic areas; and carrying out basic preventative maintenance.
We also want to further accelerate this journey with our hotels and franchisees. For instance, we have introduced a brand standard requirement for all hotels to achieve a minimum of Wyndham Green Level 1 by April 2023.
Since relaunching the program in early 2021, we have enjoyed a hugely positive response and uptake across the EMEA region.
Across Eurasia, more than 80% of our franchise partners have already achieved the Level 1 standard or higher. In the Middle East, all our managed properties are at Level 1, and over half have already achieved Level 2. In Turkey, program engagement has exceeded 85% for the first time, while in the UK more than three in four of our franchise partners have achieved the brand standard. Across the whole EMEA region, we have a franchise engagement rate of over 70%.
These numbers are extremely encouraging, and we are actively encouraging existing and new Wyndham partners to join our sustainability journey. Could your hotel be next?
To discover more about Wyndham Green, head to https://corporate.wyndhamhotels.com/social-responsibility and www.wyndhamhotels.com/en-uk/wyndham-green-sustainability.