The pandemic allowed India’s travellers to reflect on what is truly meaningful. What emerged in our consumer interactions and surveys during this 15-month period is growing sensitivity towards the planet and a shift towards a sustainable environment and travel. And a key element is the hospitality sector.
Climate change is going to see far reaching impact for the hospitality business. Global warming is resulting in higher temperatures in summers and water shortage, necessitating additional spends to ensure comfort of guests. The changing weather patterns are giving rise to a higher incidence of cyclonic activity with flooding, soil erosion and natural disasters, which are a clear downside for business.
A PRUDENT APPROACH
Hotels will need to factor sustainability as an important element in their strategy and financial plans – this is an imperative. Anticipating potential challenges basis trends and predictability models are a necessity, based on the location and changing patterns. Investments will need to be phased to ensure long term viability and limit the immediate impact. This is more so as hotels are struggling in this COVID era. Energy conservation is equivalent to cost optimisation with a clear upside from a financial perspective.
Equally, given the growing consumer focus towards sustainability, the positive brand rub off and consumer goodwill generated will be significant for the business. Further, most global government authorities are increasingly concerned on the environmental challenges. They have accordingly started
levying taxes and penalties on properties that do not comply with set energy saving standards and protocols.
SHIFTING PRIORITIES
Our analytics reveal that customers are increasingly opting for nonstandard accommodation, away from crowded areas. There is a definitive shift in demand for villa stays, personalised with a private chef and concierge services as well as plantation bungalows in the midst of tea or coffee estates, heritage havelis, colonial lodges and even a heritage fort. This is a clarion call for hospitality players to move away from squeezing maximum rooms into limited space. A long-term approach is imperative,
including a focus on lifetime cost rather than short term returns.
The hotel industry’s push towards sustainability will also see a growing pressure on governments and authorities to create a favourable tax regime and incentives to support and build on sustainability goals.Â
