The Scale Green conference, a groundbreaking event dedicated to sustainability in the short-term rental sector, made its debut at the Lumiere in London on April 23, 2024. The event, a brainchild of collaborative genius from Scale Show, EnviroRental, Sustonica, Qalia, and Nikki Mattei, was meticulously engineered to offer five hours of tightly packed programming that went beyond mere presentations. 

The format of this seminal gathering was designed not just for passive consumption but for active reflection and strategic planning. After each session, attendees were given a few precious minutes to digest and distill the insights shared. In their workbooks, they penned down the key takeaways, pondered over how these could be emulated in their own business practices, and identified potential roadblocks. 

This focused setup aimed to create a foundational roadmap for sustainability, with EnviroRental on hand for ongoing support as attendees move from planning to action.

The event provided numerous insights, laying the groundwork for a sustainable future in the industry. Here are four key takeaways for short-term rental managers looking to thrive sustainably.

Eco-Friendly Properties Are Gaining Platform Support

The latest traveler survey data from industry giants Booking.com and Expedia reveals that 59% of respondents desire to filter their accommodations for those with sustainable certification, underscoring an acute awareness and demand for eco-friendly stay options. However, the path to green accommodation is fraught with challenges, as 45% admit to struggling in their quest to find a sustainable stay.

Concurrently, the Office for National Statistics in October 2022 reported that 74% of adults and a striking 83% of teens reported feeling either very or somewhat worried about climate change. This widespread concern is a clear signal to the travel industry that sustainability is transitioning from niche preference to mainstream demand.

With sustainability becoming a top priority for guests, platforms are responding to this demand by making it easier to discover eco-friendly stays. Booking.com has added a filter for third-party certified properties, while Vrbo is emphasizing sustainable amenities and exploring ways to boost their visibility. Sykes Cottages, as part of its sustainability pledge, is actively promoting eco-certified listings. 

These moves by leading platforms signal a significant shift towards a future where eco-friendly accommodations don’t just exist on the periphery but are front and center, easy to find, and promoted as the preferred choice for an increasing number of travelers.

This alignment between consumer demand, societal concerns, and platform strategy suggests a promising horizon for property managers. Those who recognize and adapt to the sustainability trend not only align themselves with the values of their guests but also position their properties to benefit from increased visibility and support from the platforms that are now, more than ever, committed to promoting eco-friendly stays. 

Travelers Hesitant to Pay Premium for Sustainable Options, Onus On Operators

The conversation around sustainable travel is reaching a crucial inflection point, as recent Traveller Survey Data from Booking.com and Expedia uncovers some complex truths about consumer behavior. While a notable 43% of respondents signal a willingness to pay more for sustainable lodging options, a deeper dig reveals a more nuanced picture. 

The “Calmer Waters Ahead” report by OC&C Strategy Consultants in their Global Travel Outlook for March 2024 illuminates a startling discrepancy: although a significant majority of travelers (50%-70%) insist that sustainability influences their vacation choices, a mere fraction (circa 10%) exhibit any real inclination to pay a premium for it.

This apparent contradiction might initially perplex, yet it makes sense when considering broader societal expectations on corporate responsibility. A survey by B Lab UK sheds light on this phenomenon, revealing that a whopping 78% of respondents believe businesses should bear legal responsibility for their impact on both people and the planet. This perspective suggests that the onus of driving sustainability forward falls squarely on the shoulders of operators, rather than being a cost passed onto consumers.

Further analysis of this discrepancy suggests an evolving expectation among guests; sustainability is starting to be perceived not as a deluxe add-on but as an integral standard. Amidst escalating climate anxiety, there’s a growing demand for businesses to embody sustainable principles at their core. Today’s eco-conscious travelers are looking for more than just token gestures towards green initiatives; they seek out companies whose very operations reflect a profound commitment to environmental stewardship.

This shift implies a future where sustainability must be woven into the fabric of the travel industry, no longer positioned as an optional luxury but as a fundamental attribute of service. For businesses, this represents both a challenge and an opportunity—to reimagine how sustainable practices can be implemented in a way that resonates with this new era of travelers. 

Professional Managers Wield More Influence Than They Might Think

The Scale Green conference highlighted how property managers wield more influence than they might realize, often extending beyond the confines of their immediate operational sphere. Given their interactions with numerous suppliers for items like toilet paper, cleaning products, and shampoos, they have significant leverage to advocate for eco-friendly options. If sustainable choices aren’t already available, property managers can push suppliers to offer greener alternatives.

The logic is straightforward yet powerful—the more managers vocalize this demand, the stronger the incentive becomes for suppliers to transition towards eco-conscious offerings, thereby transforming market dynamics in favor of sustainability.

Beyond their supply chain, property managers also have the power to shape guest behavior, both within their properties and beyond. By switching to a 100% renewable energy tariff and promoting this change with pride, they can inspire guests to consider similar eco-friendly options at home. Many guests may not even realize that such tariffs are available

Adopting and showcasing eco-friendly practices with pride extends beyond mere operational adjustments—it’s about embedding these principles into the identity of the property and, by extension, the guest experience. When property managers wear their eco-consciousness with pride, they not only improve their own sustainability profile but also influence their guests to adopt similar behaviors. 

Through strategic choices and proactive communication, managers can leverage their unique position to foster a culture of environmental responsibility that resonates with guests long after their stay, proving that in the quest for a more sustainable future, property managers have more power than they might think.

Certifications Will Increasingly Be A Key Differentiator

Certifications have become a vital differentiator for sustainable accommodations. According to traveler survey data from Booking.com and Expedia, 60% of travelers have already chosen sustainable stays in the past two years. One way they’re identifying such stays is through filtering based on certification. In fact, Booking.com’s 2023 sustainable travel report found that 59% of travelers want to filter their options for properties with sustainable certification.

The push towards certifications arises as a direct counter to the skepticism surrounding greenwashing—a practice where businesses make misleading claims about their environmental efforts. In a notable move, Booking.com phased out its eco labeling, opting instead for a singular filter that prioritizes third-party certified listings, underscoring the demand for reliable markers of genuine sustainable practices.

In response to this demand for trustworthy certifications, new standards such as Travalyst‘s accommodation standards, Qalia’s Responsible Tourism Standard for Luxury Vacation Rentals, and Sustonica’s sustainability certification for short-term rentals have emerged. The tourism industry has also seen a rise in B Corps, further emphasizing the importance of credible certifications.

It would appear that the impact of these certifications is already manifesting in tangible outcomes. Data provided by Sustonica, via Digitrips, shows that since the introduction of a filter for sustainable certified properties, eco-certified accommodations have experienced a 9% increase in bookings. This statistic not only reflects a growing consumer preference for sustainable stays but also underscores the commercial viability of adopting eco-friendly practices.

Ufi Ibrahim of the Energy & Environmental Alliance emphasized the role of regulation in mainstreaming climate change considerations into every decision across the investment chain, facilitating a transition to net-zero and sustainable finance. She stressed the importance of prioritizing training and education on certifications, reporting, individual action, and seeking compliant proof sustainability certifications that are audit-grade.

Conclusion

The Scale Green conference showcased how platforms, managers, and operators can align with the evolving expectations of eco-conscious travelers. Whether it’s through enhancing visibility for eco-friendly properties, addressing the discrepancy between traveler intentions and willingness to pay, or leveraging the influence of property managers and the relevance of certifications, the overarching message is clear: sustainability is no longer a niche consideration but a fundamental expectation. 

Moving forward, businesses that embrace this shift will not only align with guest values but also position themselves for success in a future where sustainable practices are increasingly key to competitive advantage.