Sustainability is not just a goal; it is a necessity
Water and power conservation are central to lowering hotels' carbon footprint
By Vishnu Rageev RJun 22, 2024
THE U.S. HOSPITALITY industry faces an environmental wake-up call as guests seek accommodations that align with their values beyond amenities alone. This trend has fundamentally changed how hotels approach sustainability, with many adopting practices such as reduced water consumption and energy conservation.
Large hotel chains like Hilton Hotels & Resorts and Marriott International have openly declared their efforts to minimize environmental impact. However, achieving meaningful sustainability requires franchise owners and operators to be on the same page.
"As a global hospitality leader, Hilton is dedicated to providing exceptional guest experiences," said Jean Garris Hand, Hilton’s vice president of global ESG. "However, we also recognize our profound responsibility to safeguard the destinations where we operate for future generations of travelers. Our efforts to reduce energy, carbon emissions, water usage, and waste are integral to Travel with Purpose, Hilton’s comprehensive environmental, social, and governance strategy aimed at promoting responsible travel worldwide.”
Sustainability goals
Lower CO2 emissions to limit global warming and climate change. Image courtesy: iStock Photo
The hospitality industry’s operations often leave a significant environmental footprint, involving high energy consumption, water usage, and waste generation. Hotels alone contribute approximately 1 percent of global carbon dioxide emissions, according to recent studies. Hotels accounted for around 363 million tons of carbon dioxide in 2021, roughly equivalent to the annual energy consumption of about 45.7 million homes out of the 36.3 billion tons released worldwide.
Hospitality organizations are adopting targets for sustainability. Hilton aims to reduce emissions by 75 percent by 2030, while Marriott has committed to a 30 percent reduction in carbon intensity by 2025. Other companies, such as Sonesta International Hotels, Hyatt Hotels Corp., G6 Hospitality, Wyndham Hotels & Resorts and Choice International, have also set their targets. However, achieving these goals depends on how quickly their franchise partners embrace the changes.
“Within our environmental goals, Hilton aims to achieve a 75 percent reduction in emissions intensity across our managed portfolio and a 56 percent reduction in our franchised portfolio by 2030,” Hand said. “These targets are science-backed and endorsed by the Science Based Targets initiative, aligning with the latest climate science and the Paris Climate Accords."
Ontario, CA, USA - November 30, 2023: Signage for Motel 6, Motel plus Studio, located on Vineyard Ave in Ontario, California. Image courtesy: iStock Photo
"G6 Hospitality moved to a fully franchised model in 2022," said Farah Bhayani, G6 Hospitality's general counsel and chief compliance officer. "We consistently share best practices with our franchise owners and implement brand standards based on our extensive, more than 60 years of experience as economy lodging operators, including waste reduction strategies."
To reduce water and energy consumption in hotels, the first step is to conduct an audit to measure and monitor current usage, identifying areas for improvement. This can be done independently or with a professional auditor. Water-saving measures, such as installing low-flow faucets, reusing towels, collecting rainwater and educating staff and guests about conservation can then be implemented.
For energy savings, switching to LED lighting, using smart thermostats and incorporating renewable energy sources can significantly reduce emissions. Regular monitoring and evaluation of these efforts, using meters and feedback, help ensure continuous improvement. Joining certification programs like Green Key or LEED can provide guidance and credibility. Finally, collaborating with suppliers, contractors, and local authorities, as well as engaging guests and staff, fosters a culture of sustainability and innovation.
Water wisdom
Outdoor shower head for the bath and showering cold water to body before jumping in the resort pool. Image courtesy: iStock Photo
Water used in hotels and other lodging facilities accounts for approximately 15 percent of total water use in commercial and institutional buildings in the U.S., according to U.S. Environmental Protection Agency. Hotels are increasingly adopting renewable water sources. Water efficiency remains a concern, including integrating sustainable practices within hotels, hotel-owned restaurants, cafes and bars, as well as collaborating to create social and environmental impact.
“We aim to cut our water intensity by 50 percent by 2030 from a 2008 baseline,” said Hand. “We’ve made significant progress towards these targets, and based on our latest reporting, we’ve reduced our emissions intensity by 45.1 percent and reduced our water use intensity by 26.5 percent across our managed portfolio of hotels.”
However, the transition to water efficiency is not just about conservation; it also involves redefining luxury. Hotels have the potential to reduce their water usage by providing ongoing training to staff that emphasizes the importance of water conservation.
The shift toward water efficiency in hotels goes beyond economics; it represents a commitment to a greener, more sustainable future for the hospitality sector and our planet. Associations like AAHOA and the American Hotel & Lodging Association play a crucial role in strengthening this sustainability push.
"The hotel industry plays a crucial role in reducing water usage by implementing water-efficient practices in core areas like laundry, food and beverage, and landscaping," AHLA said in its website. "We prioritize water conservation without compromising comfort. Our members are measuring their water consumption and adopting practices that save millions of gallons annually. Many have installed high-efficiency toilets, showerheads, and faucets that use at least 20 percent less water than standard models while saving energy and performing as well or better.”
According to AHLA, guests are participating in linen and towel reuse programs, which help cut down on laundry, conserving water and energy. These programs have a notable effect, given that laundry uses up 16 percent of a hotel's water consumption.
AHLA said water use is further minimized through practices such as water-smart landscaping, efficient irrigation, leak detection and repair, and efficient pool maintenance. Moreover, some hotels are implementing greywater recycling and rainwater harvesting technologies to reuse water.
Energy efficiency
The entrance of the historic Hilton Hotel in downtown Washington DC. Founded in 1919 by Conrad Hilton, Hilton is a chain of hotels with almost 4,000 locations around the globe. Image Courtesy: iStock Photo
Energy efficiency in the hospitality industry influences guest satisfaction. Prioritizing sustainability and investing in energy-saving measures not only aids decarbonization but also enhances the guest experience. Energy management systems, like smart HVAC and lighting controls, adjust to occupancy and preferences, ensuring ideal conditions while reducing consumption. This attention to detail leaves a lasting impression on guests, encouraging them to return or recommend the hotel. Focusing on energy efficiency allows hotels to advance sustainability and boost guest satisfaction.
"Hilton works closely with property owners and operators to raise awareness of available renewable technology and connect them with local renewable energy incentives," said Hand. Across the Hilton portfolio, many hotels are investing in both onsite and offsite power. Seven managed properties in the U.S. have opted to purchase 100 percent renewable energy during their procurement contract renewals. These agreements enable properties to purchase renewable power when onsite installations are not feasible.”
Hotel Marcel in New Haven, Connecticut, operates on 100 percent renewable electricity, making it fossil-fuel free. Similarly, the Hilton Garden Inn Faroe Islands uses renewable energy from a local plant that captures leftover energy from various industries. Hilton Vienna Park also uses 100 percent electricity generated by a local hydropower plant. It features a Room Energy Management System, solar window foil to reduce energy waste, and energy-efficient lighting. For the past decade, it has been recognized for its sustainability efforts and awarded the Austrian Eco Label certification, the first national eco-label for tourism worldwide.
The Hyatt Regency hotel shot from the Congress Street Bridge spanning the Colorado River directly across from the downtown skyline of Austin, Texas. Image courtesy: iStock Photo
Electricity accounts for 58.9 percent of hotel utility costs, increasing at a CAGR of 3.7 percent from 2019 to 2023. Smart technology can reduce energy use while maintaining guest comfort. Most electricity in the hospitality sector is used for space cooling and lighting, with lighting alone consuming 20,910 gigawatt-hours annually. Energy-intensive water heating systems underscore the need for efficient solutions and water conservation practices to enhance sustainability in hotels.
“We support innovation to make this transition possible,” said Hand. “Our investment in Fifth Wall’s climate technology fund keeps us at the forefront of sustainability. LightStay, our award-winning sustainability management platform, is used by over 7,600 properties worldwide to measure and manage environmental and social impact. It tracks energy, water, and waste usage, providing insights and best practices to reduce consumption and waste. Since 2009, our hotels have saved over $1 billion in utility costs through LightStay.”
The World Travel & Tourism Council's Hotel Sustainability Basics initiative, which helps hoteliers improve their sustainability ratings, recently surpassed 1,700 verified hotels across 70 countries. Hotel groups from France, China, Mexico, India, Germany, South Africa, the Philippines, and Norway have joined the initiative.
AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
The collaborations align academic programs with industry workforce needs.
It will provide data, faculty development, and student engagement opportunities.
THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.
Their efforts build on the foundation’s scholarships and link academics to workforce needs, AHLA said in a statement.
"We're not just funding education—we're investing in the alignment between academic learning and professional readiness," said Kevin Carey, AHLA Foundation president and CEO. "These partnerships give us the insights needed to support students and programs that effectively prepare graduates to enter the evolving hospitality industry."
ACPHA will provide annual reports on participating schools’ performance, enabling the Foundation to direct resources to programs with curricula aligned to industry needs, the Foundation said.
Thomas Kube, incoming ACPHA executive director, said the partnership shows academia and industry working together for hospitality students. The collaboration with ICHRIE includes program analysis, engagement through more than 40 Eta Sigma Delta Honor Society chapters and faculty development.
“Together, we are strengthening pathways to academic excellence, professional development and industry engagement,” said Donna Albano, chair of the ICHRIE Eta Sigma Delta Board of Governors.
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U.S. holiday travel is down to 44 percent, led by Millennials and Gen Z.
Younger consumers are cost-conscious while older generations show steadier travel intent.
76 percent of Millennials are likely to use AI for travel recommendations.
NEARLY 44 PERCENT of U.S. consumers plan to travel during the 2025 holiday season, down from 46 percent last year, according to PwC. Millennials and Gen Z lead travel intent at 55 percent each, while Gen X sits at 39 percent and Baby Boomers at 26 percent.
PwC’s “Holiday Outlook 2025” survey found that among those not traveling, about half prefer to celebrate at home and cost concerns affect 43 percent, rising to 50 percent for Gen Z non-travelers. Visiting friends and relatives remains the main reason for holiday travel, cited by roughly 48 percent of those planning trips.
Younger consumers are more cost-conscious, while older generations show steadier travel intent. This split influences travel operators’ planning: younger travelers may require clear value, bundled perks and flexible options, whereas older travelers respond to reliability and convenience. Despite overall spending pressure, travel remains a key priority, reflecting its social and emotional importance during the holidays.
PwC surveyed 4,000 U.S. consumers from June 26 to July 9, with 1,000 each from Gen Z, Millennials, Gen X and Boomers, balanced by gender and region.
Generational spending patterns
Gen Z plans a 23 percent reduction in spending after last year’s 37 percent surge, while Boomers expect a 5 percent increase. Millennials are largely flat, down 1 percent and Gen X edges up 2 percent. Overall holiday spending is down 5 percent, with gift spending falling 11 percent, while travel and entertainment budgets remain stable, increasing 1 percent.
Households with children under 18 plan to spend more than twice as much as households without, averaging $2,349 compared to $1,089, highlighting the focus on family-centered experiences.
For travel and hospitality operators, these patterns suggest stronger conversion potential among older cohorts with steadier budgets and the need for clear value and cost transparency for younger travelers. Consumers are prioritizing experiences and togetherness over material gifts. Flexible fares, transparent pricing and bundled benefits such as Wi-Fi, breakfast, or late checkout can reinforce value and encourage bookings, especially among younger demographics. Gen Z’s pullback makes price-to-experience ratios decisive.
AI, timing and travel strategy
About 76 percent of Millennials say they are likely to use AI agents for recommendations, signaling a shift to “assistant-first” travel discovery. Operators must provide structured, AI-readable content, including route maps, fees, loyalty policies and inventory availability. Brands that do not may be invisible in AI-driven search and recommendation systems.
This year’s late Thanksgiving on Nov. 27 compresses the holiday booking window. Short-haul visiting-friends-and-relatives trips may see bunched reservations, increasing demand for early inventory visibility, simple cancellation policies and accurate last-minute availability. Operators should hold a portion of inventory for late bookings, streamline mobile checkouts and maintain flexible policies to capture last-minute travelers.
Strategies should be generationally targeted. Boomers and Gen X respond to comfort, reliability and multi-generational options, while Millennials and Gen Z require clear value and AI-optimized offers. Focusing on VFR travel through “home for the holidays” packages, flexible dates, partner transport and easy add-on nights can capture demand in key residential hubs.
Despite overall spending declines, travel remains a priority. Operators that deliver transparent value, AI-ready content and offers tailored to each generation can maintain bookings, convert last-minute demand and meet consumers’ evolving holiday expectations.
A TravelBoom Hotel Marketing report found that Americans continue to prioritize travel despite inflation and economic uncertainty, but with greater financial caution. About 74.5 percent plan a summer vacation and 17.5 percent are considering one, showing strong demand linked to careful budgeting.
Global hotel RevPAR is projected to grow 3 to 5 percent in 2025, JLL reports.
Hotel RevPAR rose 4 percent in 2024, with demand at 4.8 billion room nights.
London, New York and Tokyo are expected to lead investor interest in 2025.
GLOBAL HOTEL REVPAR is projected to grow 3 to 5 percent in 2025, with investment volume up 15 to 25 percent, driven by loan maturities, deferred capital spending and private equity fund expirations, according to JLL. Leisure travel is expected to decline as consumer savings tighten, while group, corporate and international travel increase, supporting RevPAR growth.
Major cities continue to attract strong demand and investor interest, particularly London, New York and Tokyo. APAC is likely to post the strongest growth, fueled by recovering Chinese travel, while urban markets remain poised for continued momentum.
Lifestyle hotels are emerging as the new “third place,” blending living, working and leisure. The trend is fueling expansion into branded residences and alternative accommodations. JLL said investors must weigh regional performance differences, asset types and lifestyle trends when evaluating opportunities.
Separately, a Hapi and Revinate survey found fragmented systems, inaccurate data and limited integration remain barriers for hotels seeking better data access to improve guest experience and revenue.
Fragmented systems, poor integration limit hotels’ data access, according to a survey.
Most hotel professionals use data daily but struggle to access it for revenue and operations.
AI and automation could provide dynamic pricing, personalization and efficiency.
FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.
“The Future of Hotel Data” report, published by hospitality data platform Hapi and direct booking platform Revinate, found that 40 percent of hoteliers cite disconnected systems as their biggest obstacle. Nearly one in five said poor data quality prevents personalization, limiting satisfaction, loyalty and upsell opportunities.
“Data is the foundation for every company, but most hotels still struggle to access and connect it effectively,” said Luis Segredo, Hapi’s cofounder and CEO. “This report shows there’s a clear path forward: integrate systems, improve data accuracy and embrace AI to unlock real-time insights. Hotels that can remove these technology barriers will operate more efficiently, drive loyalty, boost revenue and ultimately gain a competitive edge in a tight market.”
AI and automation could transform hospitality through dynamic pricing, real-time personalization and operational efficiency, but require standardized, integrated and reliable data to succeed, the report said.
Around 19 percent of respondents cited communication delays as a major issue, while 18 percent pointed to ineffective marketing, the survey found. About 10 percent reported challenges with enterprise initiatives and 15 percent said they struggled to understand guest needs. Nearly 46 percent identified CRM and loyalty systems as the top priority for data quality improvements, followed by sales and upselling at 17 percent, operations at 10 percent and customer service at 7 percent.
Meanwhile, hotels see opportunities in stronger CRM and loyalty systems, integrated platforms and AI, the report said. Priorities include improving data quality for personalized engagement, using integrated systems for real-time insights, applying AI for offers, marketing and service and leveraging dynamic pricing and automation to boost efficiency, conversion and profitability.
“Clean, connected data is the key to truly understanding the needs of guests, driving amazing marketing campaigns and delivering direct booking revenue,” said Bryson Koehler, Revinate's CEO. “Looking ahead, hotels that transform fragmented data into connected data systems will be able to leverage guest intelligence data and gain a significant advantage. With the right technology, they can personalize every interaction, shift share to direct channels and drive profitability in ways that weren’t possible before. The future belongs to hotels that harness their data to operate smarter, delight guests and grow revenue.”
In June, The State of Distribution 2025 reported a widening gap between technology potential and operational readiness, with many hotel teams still early in using AI and developing training, systems, and workflows.
Hyatt partners with Way to unify guest experiences on one platform.
Members can earn and redeem points on experiences booked through Hyatt websites.
Way’s technology supports translation, payments and data insights for Hyatt.
HYATT HOTELS CORP. is working with Austin-based startup Way to consolidate ancillary services, loyalty experiences and on-property programming on one platform across its global portfolio. The collaboration integrates Way’s system into Hyatt.com, the World of Hyatt app, property websites and FIND Experiences to create a centralized booking platform.
World of Hyatt members can earn and redeem points on experiences booked through Hyatt websites, including wellness programs, cultural activities, ticketed events and local collaborations, the companies said in a statement. Members can also access FIND Experiences, which includes activities and auctions where points can be used to bid on events.
"In our search for an on-brand platform to power experiences and tap into ancillary revenue opportunities, Way's collaboration has been a true unlock for us," said Arlie Sisson, Hyatt’s senior vice president and global head of digital. "After a thorough evaluation of potential solutions, Hyatt chose Way to power the next chapter of our digital strategy by streamlining operations, elevating brand differentiation, enhancing personalization and, most importantly, delivering care at every touchpoint in the guest journey."
The Way initiative spans Hyatt’s portfolio, covering cabana rentals, in-room amenities and partnerships with local providers, the statement said. Way’s technology supports real-time translation, more than 100 currencies, multiple payment methods and data insights to help Hyatt manage operations globally.
"Hyatt set a high bar and Way is proud to bring their vision to life," said Michael Stocker, Way’s co-founder and CEO.
"The platform supports enterprise needs while preserving the guest experience."