June 2009

Green Meetings

THE PRICE IS RIGHT

by Chris Durso

A new report shows how people feel about paying more to travel green — and why they expect more than recycling bins when they do
 

How much of a premium do attendees place on sustainable travel to your meetings? More than you might think, even in this economy - but as of yet, hotels, airlines, and other travel companies haven't found a way to meet the demand in a way that travelers feel is genuine and worthwhile.

These are among the conclusions of Going Green: The Business Impact of Environmental Awareness on Travel, a new report from market research firm PhoCusWright. "Companies throughout the travel industry have really adopted green as a great practice," said Carroll Rheem, PhoCusWright's director of research and the report's lead researcher. "We wanted to focus on the business side of things, to take a clinical approach to it. Rather than focusing on best practices, we wanted to understand the business aspect of green."

To that end, Rheem said, PhoCusWright - with industry partners Hospitality Sales and Marketing Association International (HSMAI) and Sustainable Travel International (STI) - surveyed two groups: on the consumer side, adults who reflect the "general U.S. travel population," and on the industry side, suppliers and "influencers" such as airlines, hotel companies, travel media, online travel agencies, car-rental companies, and cruise lines.

Among the report's key findings, from its executive summary:

  • Green is mainstream: "More than four out of 10 U.S. travelers (44 percent) consider environmental impact to be important to them when planning travel."
  • Consumers are sensitive to hype: "A majority of U.S. travelers (56 percent) are skeptical of what companies tell them about their green practices."
  • There is a significant market for price premiums: "Just under a third of travelers indicate a willingness to pay some sort of premium for green travel."
  • The travel industry is not yet satisfying consumers' green needs: "Only 8 percent of travelers believe it's easy to find green travel options."

Taken together, these findings suggest that travelers want to go green - but they're leery of "greenwashing," and want to see companies offer something beyond what Rheem calls the "low-hanging fruit" of recycling and conservation. "This group is incredibly savvy," Rheem said, "so if you're going to charge a premium to reach them, you really have to be at the cutting edge of green technology and you have to go beyond what is the norm." She added: "The most important thing for companies to recognize and work toward is the lack of trust that consumers have. They want to do the right thing, but what seems to be very lacking is [an industry-wide] standard, and without it, no matter what you do, people just aren't sure how green your efforts are."

And, indeed, efforts are under way to develop worldwide standards for eco-friendly travel - including the 32-member Partnership for Global Sustainable Tourism Criteria (GSTC). But what's needed at this point, Rheem said, is for a name brand to take the lead. "As a program, [GSTC is] looking to certify the certifiers," Rheem said. "While the efforts are noble and can help the industry side, from the consumer perspective, it's not making things any clearer. I'm of the opinion that until a well-known travel rating brand or guide throws their hat in the ring, consumers aren't going to be able to make sense of it."


Take Away

There are many definitions of "green," "sustainable," and "environmentally friendly." For its Going Green report, these are the areas that PhoCusWright concentrated on:

Reduction of consumption: electricity, fuel, water

Reduction of harmful output/recycling: solid waste, waste water, pollutants, gas emissions

Product procurement: renewable/sustainable, nontoxic, organically grown, recycled
missions offset: investment in specific offsetting projects, purchase through diversified providers.


Christopher Durso is executive editor of Convene.
Green Meetings is sponsored by Seattle's Convention & Visitors Bureau, www.visitseattle.org.