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Top 10 Hospitality Trends & Innovations in 2023

Are you curious about which trends & startups will soon impact your hospitality business? Explore our in-depth industry research on 1 980 Hospitality startups & scaleups and get data-driven insights into technology-based solutions in our Hospitality Innovation Map!

The hospitality industry was massively hit during the COVID pandemic. Today, as travel resumes and countries across the world remove travel restrictions, the tourist inflow is more than ever. This forces hotel and property owners to automate manual tasks via advanced technologies such as AI, robotics, contactless technologies, and IoT devices, to save time and money. In addition, tourists expect a better guest experience which leads to the adoption of voice technology, chatbots, immersive technology, and other in-room technologies. This data-driven report examines the top hospitality trends and innovations impacting companies in 2023.

Innovation Map outlines the Top 10 Hospitality Trends & 20 Promising Startups

For this in-depth research on the Top 10 Hospitality Trends & Startups, we analyzed a sample of 1 980 global startups and scaleups. The result of this research is data-driven innovation intelligence that improves strategic decision-making by giving you an overview of emerging technologies & startups in the travel, tourism, and hospitality industries. These insights are derived by working with our Big Data & Artificial Intelligence-powered StartUs Insights Discovery Platform , covering 2 500 000+ startups & scaleups globally. As the world’s largest resource for data on emerging companies, the SaaS platform enables you to identify relevant startups, emerging technologies & future industry trends quickly & exhaustively.

In the Innovation Map below, you get an overview of the Top 10 Hospitality Trends & Innovations that impact companies worldwide. Moreover, the Hospitality Innovation Map reveals 20 hand-picked startups, all working on emerging technologies that advance their field.

Top 10 Hospitality Trends & Innovation

• Artificial Intelligence
• In-Room Technology

Internet of Things

• Immersive Technology
• Internet Marketing
• Touchless Technology
• Personalization
• Connectivity

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Tree Map reveals the Impact of the Top 10 Hospitality Trends

Based on the Hospitality Innovation Map, the tree map below illustrates the impact of the Top 10 Hospitality Trends. Startups and scaleups are developing solutions to bring digitalization and automation to the hospitality industry. This is why artificial intelligence and in-room technologies such as keyless doors, online ordering, and integrated guest applications are the top trends in the industry. The competitiveness in the industry makes organizations adopt IoT & connectivity, immersive technologies, robotics, personalization, and internet marketing to achieve maximum guest satisfaction and attract more customers. Additionally, increasing consumer awareness encourages hotels and restaurants to adopt sustainable practices to reduce their carbon emissions.

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Global Startup Heat Map covers 1 980 Hospitality Startups & Scaleups

The Global Startup Heat Map below highlights the global distribution of the 1 980 exemplary startups & scaleups that we analyzed for this research. Created through the StartUs Insights Discovery Platform, the Heat Map reveals high startup activity in the US, UK, and India.

Below, you get to meet 20 out of these 1 980 promising startups & scaleups as well as the solutions they develop. These 20 startups are hand-picked based on criteria such as founding year, location, funding raised, and more. Depending on your specific needs, your top picks might look entirely different.

Top 10 Hospitality Trends & Innovation in 2023

1. artificial intelligence.

The ability of artificial intelligence to do traditionally human tasks at any time of day means that it is becoming more and more significant in the management of the hotel industry. This would imply that hotel owners can save a lot of money, get rid of human mistakes, and provide better service. Through the implementation of AI, a lot of tasks can be automated, such as price forecasting and predictions through historical data to improve hospitality services.

Sysotel automates Revenue Management

Sysotel is an Indian startup that develops an automated revenue management platform, SYSIRMS , for the hospitality sector. SYSIRMS uses artificial intelligence along with human inputs to automate the process of market research, demand forecasting, and pricing analysis. The system further extracts hotel data to give insights into inventory and customer management. The startup also offers SYSCM for managing the bookings through various online listings. Its solutions allow hotels to automate their processes and have competitive prices to increase their revenue.

Proppos builds a Food Items Recognition Solution

Proppos is a Spanish startup that offers FastPay, a self-checkout solution for restaurants. The solution is a plug-and-play installation that uses computer vision and artificial intelligence to automatically recognize food items and generate the bill accordingly. The startup’s food recognition platform is customizable and allows clients to train and deploy models for various checkout needs. In addition, the solution minimizes the customer wait timing and queues at billing counters of restaurants, airports, and train stations, resulting in higher productivity and customer satisfaction.

2. In-Room Technology

The air conditioning and the temperature are the two areas of smart technology that are most frequently encountered in hotel rooms. Customers can now remotely control their rooms thanks to the recent launches of digital devices and apps by big companies like Hilton Hotels.

Tmrw Hotels offers Digital Guest Systems

Tmrw Hotels is a Hungarian startup that builds advanced digital guest systems to enhance guest satisfaction throughout its customer journey. The startup’s phone application digitalizes and automates the processes of bookings, check-in, check-out, upselling, and payments. The application works as a digital key hence eliminating the need for a physical key or keycard. In addition, it offers an integrated payment platform for self-checkout and electronic invoices. The startup enables hotels, hostels, and Airbnbs to save costs while increasing efficiency and reducing their carbon footprint.

Jurny provides Application for Device Control

Jurny is a US-based startup that offers Software-as-a-service-based management solutions for hospitality businesses. The startup’s Access Control System makes it possible to control several devices through one application. The user can integrate and remotely control devices such as a smart thermostat, cameras, co2 & noise sensors. Further, the startup also offers solutions for AI-based pricing, automatic guest screening, and reputation tracking. The startup’s solutions allow hospitality management companies to save time and enhance their overall guest experience.

3. Internet of Things

IoT-connected gadgets are used to improve the visitor experience and the hotel management system for workers and administrators in a smart hotel. The hospitality sector has good potential to improve smart hotel rooms with automation systems. The convenience and comfort of the guests are boosted, and the efficiency, cost savings, and contentment of the guests benefit hotel owners and operators.

MYRA builds a Self Check-in Kiosk

MYRA is a Spanish startup that develops a self-check-in and check-out kiosk for hotels. The Myra STAND is a self-check-in kiosk that comes with a 15.6-inch touchscreen display, an inbuilt ID scanner, a keycard dispenser, a high-resolution camera with an active infrared, and an integrated payment solution. The kiosk comes with an integrated firewall and uses encryption for secure communication and data protection. The kiosk is fully customizable as per the hotel’s requirements. The startup also offers other self-service solutions such as Myra COMPACT , Myra Zip , Myra ONLINE , and Myra BOLT . The technology allows hotels to speed up the guest arrival process and increase operational efficiency.

Kartan Technologies provides IoT-based Employee Monitoring

Kartan Technologies is an Indian startup that develops IoT solutions for the hospitality industry. The startup’s end-to-end mobile application and web solution enable IoT-based employee monitoring. Each employee is given a digital ID card which allows them to mark smart attendance, and auto-update entry and exit times. The employers are able to track the geo-locations of the staff and assign tasks accordingly. The solution further ensures that no guest is left unattended and gets service on time.

4. Immersive Technology

According to a recent survey, the increasing use of immersive technologies like augmented and virtual reality will push consumer-facing companies, like those in retail, consumer goods, and travel, to increase investment in new capabilities and experiences to blend physical and virtual worlds. If they don’t, they risk falling behind.

Hotelverse offers a Hotel Immersive Experience

Hotelverse is a Spanish startup that develops an API platform for an immersive experience of the hotel. The startup has built innovative UX processes that allow property owners to showcase a 3D digital twin of their hotel to the customers while booking their stay. Its API platform integrates with any booking engine or property management system. Hotelverse enables guests to have a virtual tour of a room, restaurants, spa, garden, and other amenities of the hotel. As a result, hotels are able to up their sales and eliminate the middleman for bookings.

Aryel offers SAAS Marketing Platform

Aryel is an Italian startup that offers a Software-as-a-service marketing platform to make marketing campaigns engaging with augmented reality (AR). The custom webAR allows travel agencies and hotels to create AR content through drag and drop feature without having to code. The software comes with ready-to-use photos, graphics, and 3D models. The hospitality industry’s AR advertising engages potential customers from across the globe without having to worry about language barriers.

5. Internet Marketing

Social media is crucial for marketing in the hospitality sector. To attract visitors, employ eye-catching graphics, informative content, and good testimonials. If you back these up with a positive customer experience, you’ll see that your fan base is continually expanding.

Ezus builds a Travel Software

Ezus is a French startup that builds travel software to simplify tour planning for travel companies. The software allows travel agencies to manage their website and construct their itineraries. The tool comes with an integrated CRM system, invoicing system, map itinerary, and project pipeline. Travel agencies are able to customize their own budget builders and manage suppliers through a single tool. The startup allows travel planners to attract more customers and efficiently sell custom trips.

HotelPort Monitors Content Accuracy

HotelPORT is a US-based startup that offers content accuracy monitoring through its propertyVIEW solution. PorpertyVIEW combines human intelligence along with AI and machine learning technologies to audit the content on hotel and third-party websites. The solution checks the accuracy of all descriptions, pictures, and amenities and generates an accuracy score for hotels and restaurants to make improvements. The solution attracts potential guests via quality content and increases revenue.

6. Sustainability

There are numerous advantages to using sustainability in the hospitality industry. In addition to bringing in more clients and appropriately addressing what many see as a moral duty in light of the current climate catastrophe, sustainable initiatives provide incentives for hospitality firms.

Wayaj gives Hotel Sustainability Ratings

Wayaj is a US-based startup that offers sustainability solutions for the hospitality sector to know and reduce their carbon footprint. The startup develops a B2C booking platform, Alight that lists sustainable accommodations. The platform allows responsible travelers to make reservations at sustainable hotels and resorts and gain carbon offsets during their checkout. It also develops a hotel sustainability rating (HSR) that gives eco scores to a hotel based on 7 sustainable practices. Further, the startup’s proprietary software, IMPPACT consists of a carbon footprint calculating engine (CFC Engine) and possible sustainable actions for neutralizing the carbon footprint.

Sunsai Nature provides Eco-friendly Products

Sunsai Nature is a German startup that offers eco-friendly products to restaurants and hotels as an alternative to replacing single-use plastic products. Its product range includes paper straws made of recycled paper, compostable takeaway boxes, as well as biodegradable spoons, knives, and folks. Other than cutlery items, the startup also sells bamboo toothbrushes, bamboo combs, reusable laundry bags, and biodegradable vanity sets. The startup’s products allow hotels and restaurants to reduce their plastic waste production significantly.

7. Touchless Technology

A touchless check-in and check-out process is one of the top concerns for guests trying to avoid the busy front desks. Hotels must make investments in more flexible booking strategies through specialized booking engines or online distribution channels as more customers make their bookings online. With a remote digital concierge system that is intended to smoothly handle end-to-end operations contact-free, Hotelogix led this fundamental transition on a global scale. We have prioritized safety for both guests and workers with contactless choices for check-in/out and touchless services for reservations without affecting the integrity of the system, which is connected centrally through the cloud.

Loxe converts Smartphone to Hotel key

Loxe is a US-based startup that develops end-to-end solutions for mobile keys. With the startup’s mobile application guests unlock their doors through their phones, eliminating the need for a physical key or a keycard. In addition, the startup’s mobile app also allows guests to access other room services with just a few clicks. Further, the startup upgrades the existing locks of the hotels to mobile-ready door locks, by connecting a Bluetooth module to keycard door locks. The solution offers guests greater convenience while opening new revenue streams for hotels.

TablePort builds Contactless Order & Payment Solution

TablePort is an Israeli startup that develops a solution for contactless ordering and payments at restaurants and hotels. Once the customers scan a hotel’s QR code through their mobile device, they are able to place their order from an intuitive and personalized menu. As soon as the order is placed and completed payment is made automatically. The digital solution reduces the wait time for customers and makes ordering as well as bill settlements fast and efficient.

8. Robotics

Modern robots can be either autonomous or semi-autonomous and may make use of artificial intelligence (AI) and speech recognition technology. With that being said, most robots are programmed to perform specific tasks with great precision, with an example being the industrial robots seen in factories or production lines. The use of artificial intelligence within the field of robotics is one of the most exciting and promising applications for individuals and businesses operating within hospitality management.

MiRobots develops Customizable Robots

MiRobots is an Indian startup that provides robots for the hospitality industry. The startup programs the robots with artificial intelligence algorithms and customizes them according to the specific task. For instance, humanoid robots work as check-in robots at hotels to automate the task and disinfection robots for cleaning and sanitizing spaces so that humans are not exposed to germs. Similarly, the delivery robots ensure contactless food deliveries in restaurants. The startup allows the hospitality industry to automate a lot of operational tasks with the help of robots.

Bear Robotics builds Restaurant Service Robots

Bear Robotics is a US-based startup that builds serving robots for hospitality management. Autonomous mobile robots (AMRs) are useful for taking orders to the tables or clearing empty dishes from the tables. The robots are a combination of agile movement with a versatile design and come in two models; Servi and Servi Mini . The robots are capable of serving heavy drink orders, multiple food trays, and bussing tables with a bussing tub. This allows the staff to focus on customer experience and satisfaction.

9. Personalization

The purpose of personalization is to improve the customers’ experiences and answer their needs more effectively and in a shorter time. This way interactions between the company and the buyers are easier and the satisfaction of the latter is increased. It is tailoring our offer to our individual customers.

Flavor enables Personalized Food Ordering

Flavor is a US-based startup that develops a food ordering application with a personalized layout for each user. The application, with the help of user history and predictive analytics, personalizes the menu of each food outlet by hiding the dishes that the user does not like. Further, the application also notifies the user if a dish they like from a menu has a new ingredient that they don’t like. The food app helps restaurants grow their sales by making food ordering easier and adding a 5-second video of each dish.

Upswing provides a Guest Intelligence Platform

Upswing is an Indian startup that offers data-driven cognitive solutions for the hospitality industry. The startup’s guest intelligence dashboard solution, AURA , is powered by guest data, artificial intelligence, and machine learning. The platform is partially hosted on a private or consortium blockchain. AURA uses data from multiple sources to give a full insight into the guest’s likes, dislikes, preferences, and purchase patterns. The solution allows hotels to create a personalized experience for each guest and serve them in the best possible way.

10. Connectivity

The Internet of Things, room automation, artificial intelligence, and virtual assistants such as Amazon’s Alexa are making headway in the hotels and hospitality sector, but none of this is possible without the right foundation of secure connectivity. No matter how luxurious your hotel, how sumptuous the food, or how relaxing the spa is, if you don’t offer secure connectivity and mobile guest services, you are unlikely to fill your rooms.

LEVL offers Device Intelligence

LEVL is a US-based startup that offers a full-stack device intelligence solution for hotels. LEVL’s patented solution assigns a unique identifier ( LEVL-ID ) to every individual device on the network. It identifies and verifies all devices accessing the network with a passive out-of-band approach. In addition, it helps recognize what type of devices are using the network along with their activity analysis. It is a simple plug-in solution that allows hotels to enhance their wifi network services without compromising users’ data privacy.

F3TCH converts Smartphones into Hotel Telephone

F3TCH is a US-based startup that develops a patented mobile application for hotel guests. The application allows guests to connect their hotel telephones to their smartphones and advances communication and service delivery. F3TCH converts smartphones into a hotel intercom and allows guests to order services via voice calls, or text messages. The startup enables hotels to update their communication style and improve the guest experience.

Discover all Hospitality Trends, Technologies & Startups

The top 10 trends of the hospitality industry bring about innovative changes in the hotels and restaurants that attract more customers as well as enhance customer satisfaction. Soon, the hospitality industry will be free of manual servers as robotics will find more applications. Further, the metaverse and immersive technologies make the entire travel experience more interactive and enthusiastic for guests. Finally, renewable energy, recyclable materials, vegan food, and waste management solutions will continue to make the hospitality sector more and more sustainable by reducing emissions.

The Hospitality Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation and startup scouting process. Among others, elevated customer experiences, process automation, and smart sensor technology look set to transform the sector as we know it today. Identifying new opportunities and emerging technologies to implement into your business goes a long way in gaining a competitive advantage. Get in touch to easily and exhaustively scout startups, technologies & trends that matter to you!

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16 Chapter 16 Hospitality & Tourism

Richard Parsons; Stephen Skripak; Anastasia Cortes; Anita Walz; and Gary Walton

Learning Objectives

• Understand what tourism is: definition, components, and importance.
• Understand the economic, social and environmental benefits and costs of tourism.
• Define hospitality and the pineapple tradition.
• Identify the types of hotel categories and how they are determined.
• Examine the different categories of food service operations.
• Understand the different types of events, meetings and conventions.

The tourism industry is often cited as the largest industry in the world, contributing 10% of the world’s GDP. In 2016 there were over 1.2 billion international tourists: that’s a substantial economic impact and movement of goods and services! 1 Tourism is also considered an export and is unique in that the consumers come to the product where it is consumed on-site. Before we dig any deeper, let’s explore what the term “tourism” means.

Definition of Tourism

There are a number of ways tourism can be defined. The United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

A social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure. 2

In other words, tourism is the movement of people for a number of purposes (whether business or pleasure). It is important to understand the various groups and constituencies involved in this movement. Of course it includes the tourist, but also the vast array of businesses providing goods and services for the tourist, the government and political structure of a destination, and the local residents of the destination community itself. Each of these components are necessary parts of a successful tourism destination and operate within private and public sectors, the built environment, and the natural environment. All these come together to create the processes, activities, and outcomes of tourism.

If it all seems a little overwhelming, it might be helpful to break tourism down into broad industry groups, each of which will be covered in this chapter:

Accommodation and Lodging

• Food and Beverage Services (F & B)

Recreation and Entertainment

• Convention & Event Management

Travel Services

• Private Clubs

Benefits and Costs of Tourism

Tourism impacts can be grouped into three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations. Some impacts gain more attention than others. It is also important to recognize that different groups and constituencies are impacted differently.

Economic Impacts of Tourism

The tourism industry has a huge economic impact that continues to expand to new markets and destinations. According to the UNWTO, in 2016 “The total export value from international tourism amounted to US$ 1.5 trillion.” 3  Regions with the highest growth in terms of tourism dollars earned (2016 vs 2015) are Africa, Asia and the Pacific, the Americas Europe. Only the Middle East posted negative growth at the time of the report. As well, the UNWTO’s Tourism 20 3 0 Vision report predicts that international arrivals will reach nearly 1.8 billion by 2030. 4 Figure 16.2 provides additional information about the impact of tourism worldwide.

Positive impacts from this economic boom include robust foreign exchange, increases in income, and GDP growth. Tourism can also offer diverse employment opportunities, can be developed with local products, and is often compatible with other economic activities within a destination. Tourism often injects money into the community that leads to secondary economic development as well. For example, successful resorts may create the need for a commercial laundry facility or a pet boarding business.

However, there are also negative impacts. Property values may increase to the point of unaffordability for local residents, and the seasonality of the tourism industry may create a feast-or-famine economy. As with any economy, if too many resources are focused on just one industry, communities may be vulnerable to any unexpected economic, social, or environmental changes. One example is the New Jersey shore after the devastation of Hurricane Sandy in 2012. The tourism industry was severely impacted, leaving no economic fallback for local residents.

Social Impacts of Tourism

In addition to the economic benefits of tourism development, positive social impacts include an increase in amenities (e.g., parks, recreation facilities), investment in arts, culture, heritage and tradition, celebration of indigenous communities, and community pride. Tourism also has the potential to break down language, socio-cultural, religious, and political barriers. When developed conscientiously, tourism can, and does, contribute to a positive quality of life for residents and promotes a positive image of the destination.

However, as identified by the United Nations Environment Programme, negative social impacts of tourism can include: change or loss of indigenous identity and values; culture clashes; changes in family structure; conflict within the community for the tourism dollar; and ethical issues, including an increase in sex tourism, crime, gambling, and/or the exploitation of child workers. 5

Environmental Impacts of Tourism

Tourism relies on, and greatly impacts, the natural environment in which it operates. In some destinations, there is a great appreciation of the environmental resources as the source of the tourism industry, and as such there are environmental protection policies and plans in place. Tourism has helped to save many delicate ecosystems and their flora and fauna. Preservation of these important resources benefits not only the tourist but also the local residents as well.

Even though many areas of the world are conserved in the form of parks and protected areas, tourism development can still have severe negative economic impacts. According to The United Nations Environment Programme, these can include the depletion of natural resources (water, forests, etc.), pollution (air pollution, noise, sewage, waste and littering), and physical impacts (construction activities, marina development, trampling, loss of biodiversity, and spread of disease). 6

The environmental impacts of tourism can reach beyond local areas and have an effect on the global ecosystem. One example is increased air travel, which is often identified as a major contributor to climate change.

Whether positive or negative, tourism is a force for change around the world, and the industry is transforming at a staggering rate.

The original version of this chapter contained H5P content. This content is not supported in cloned books. You may want to remove or replace this section.

The Hospitality Industry

When looking at tourism it is important to consider the term hospitality. Some define hospitality as “the business of helping people to feel welcome and relaxed and to enjoy themselves.” 7 Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry.

The pineapple has long been the symbol of hospitality. The Caribs, indigenous people of the Lower Antilles in the Caribbean, first used it as such a symbol. The Spaniards knew they were welcome if a pineapple was placed at the entrance to the village. This symbolism spread across Europe and North America where it became the custom to carve the shape of a pineapple into the columns at the entrance of the plantation. 8 Charles Carter added a three and a half foot wooden pineapple to the peak of the roof at Shirley Plantation, the first plantation in Virginia. 9 It is now common to see the image of the pineapple as a sign of welcome, warmth and hospitality.

The types of employees and resources required to run an accommodation business — whether it be a hotel, motel, or even a campground — are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation and lodging . Figure 16.4 summarizes the various groupings within the industry.

Hotel Types

Hotels are typically referred to by hotel type or other classifications. Hotel type is determined primarily by how it will function and what amenities will be included within the property. Size, location, service levels and type of business or targeted market segments are additional classifications. Industry also classifies hotels by chain scale…separating hotels into categories determined by their average daily rates. Various ownership structures and brand affiliations also differentiate hotels.

Classifications

Hotels may be classified on a number of different variables. Type of Hotel : There are numerous classifications by hotel type including all-inclusive hotels, all-suite properties, B&B/Inns, boutique, convention/conference centers, condo hotels, resort, extended stay, full service, casino, limited service and timeshare properties. Size and Complexity: A hotel can be classified by the number of guest rooms it has; hotel sizes can range from a small boutique hotel with fewer than 50 rooms to a large resort hotel with more than 1,000 rooms. The complexity of the hotel is determined by the volume and number of additional revenue generating functions such as the square feet of available conference space, number of F&B operations and additional services and amenities like pools, fitness centers, spas, golf, etc. Location: The location of a hotel can also determine the type of guest served. An airport hotel may be very different from a city-center property in an urban environment, or a remote island resort or a small quaint bed and breakfast located on top of a mountain. Hotels that specialize in conferences, may locate near entertainment destinations like Las Vegas or Disney theme parks to provide pre-post conference activities for attendees. Service Level: The level of service provided is also a key variable, ranging from an inexpensive budget or economy hotel, (Limited or Focused Service Hotels) which may have limited services and amenities, to upscale and luxury hotels (Full Service Hotels) with many services and a wide range of amenities. Market Segmentation: Figure 16.5 on the next page outlines the characteristics of specific hotel types that have evolved to match the needs of a particular traveler segment. As illustrated, hotels adapt and diversify depending on the markets they desire and need to drive occupancy levels and generate revenues. Some hotels will specialize in a specific market segment, but in today’s competitive environment, most hotels will target a combination of these segments.

There are several other industry related organizations, such as Forbes and AAA which provide Consumer Ratings for individual hotels….another form of classifying a property. Forbes has traditionally awarded 1 to 5 “Stars” and AAA, 1 to 5 “Diamond” ratings. Additionally, many social media applications like Trip Advisor offer hotel property ratings to consumers.

Chain Scale: Smith Travel Research (STR) is an organization that provides the lodging industry with global data benchmarking, analytics and marketplace insights. STR classifies the lodging industry into six chain scale segments according to their respective brand Average Daily Rate (ADR). The six segments are defined as Luxury ; Upper Upscale ; Upscale ; Mid-Scale with F&B ( Upper Mid-Scale ); Mid-Scale without F&B ( Mid-Scale ) and Economy . Through STR’s 30 –plus years of service to the hospitality industry, they have developed vital benchmarking performance solutions, established market trend transparency and provided data used by the investment community to support hotel development projects. Their core product, the STAR report, provides hotel owners and operators with comparative performance data between their property and a defined set of market competitors and allows you to follow trends in hotel occupancy, average daily rate (ADR) and revenue per available room (RevPar). Developers, investors, industry analysts, hotel brands and management companies all utilize STR data when determine what type of hotel to build and what location would provide maximum opportunity for success.

The type of ownership, brand affiliation and management are also very important variables in the classification of hotels. Owners may manage their own hotels independently but in today’s competitive environment, they would likely sign a Franchise Agreement with a nationally recognized brand as well as a Management Contract with a hotel management company to manage the property. A hotel chain such as Marriott, Hilton, Hyatt or IHG (Intercontinental Hotel Group) is comprised of multiple brands: Marriott, following their recent merger with Starwood currently has 30 different hotel brands, with each name representing a different level of price, service or targeted market segments.

Branding Decision

Selecting a brand affiliation is one of the most significant decisions hotel owners must make. 10 The brand affiliation selected will largely determine the cost of hotel development or conversion of an existing property to meet the standards of the new brand. The affiliation will also determine a number of things about the ongoing operation including the level of services and amenities offered, cost of operation, marketing opportunities or restrictions, and the competitive position in the marketplace. For these reasons, owners typically consider several branding options before choosing to operate independently or to adopt a brand affiliation.

Franchise Agreements

Another managerial and ownership structure is franchising. A hotel franchise enables individuals or investment companies (the franchisee) to build or purchase a hotel and then buy or lease a brand name to become part of a chain of hotels using the franchisor’s hotel brand, image, loyalty program, goodwill, procedures, cost controls, marketing, and reservations systems. 11

A franchisee becomes part of a network of properties that use a central reservations system with access to electronic distribution channels, regional and national marketing programs, central purchasing, revenue management support, and brand operating standards. A franchisee also receives training, support, and advice from the franchisor and must adhere to regular inspections, audits, and reporting requirements.

Selecting a franchise structure may reduce investment risk by enabling the franchisee to associate with an established hotel company. Franchise fees can be substantial, and a franchisee must be willing to adhere to the contractual obligations with the franchisor. 12 Franchise fees typically include an initial fee paid with the franchise application and continuing fees paid during the term of the agreement. These fees are usually a percentage of revenue but can be set at a fixed fee. The total percentage of sales ranges significantly for hotels from 3.3% – 14.7% with a median of 11.8%. 13

Management Contracts

It is common for ownership to utilize a management contract , which is a service offered by a management company to manage a hotel or resort for its owners. Owners have two main options for the structure of a management contract. One is to enter into a management agreement with an independent third-party hotel management company to manage the hotel. There are hundreds of these companies, but some of the large organizations include Aimbridge, Benchmark Hospitality, Crescent Hotels, Interstate Hotels, and White Lodging. A slightly different option is for owners to select a single company to provide both the brand and the expertise to manage the property. Marriott, Hilton, and Hyatt, are companies that provide this second option to owners.

Food and Beverage Services

The food and beverage sector is commonly known to industry professionals by its initials F&B. The F&B sector grew from simple origins to meet the basic needs for food and beverage services to increasing demand for unique experiences and broader options. As the interests of the public became more diverse, so too did the offerings of the F&B sector. The increasing awareness and demand for organic, sustainable, local or craft options as well as special dietary needs in food and beverage continue to challenge this industry. In addition, in order to better attract and serve a diverse array of diners, the F&B industry now consists of a variety of segments. The following is a discussion of each.

Quick Service Restaurants

Formerly known as fast-food restaurants, examples of  quick-service restaurants , or QSRs, include Chick-fil-A, Subway, and Pizza Hut. This prominent portion of the food sector generally caters to both residents and visitors, and it is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR landscape. While the sector has made steps to move away from the traditional “fast-food” image and style of service, it is still dominated by both fast food and food fast; in other words, food that is purchased and prepared quickly, and generally consumed quickly as well.

Fast Casual Restaurants

Fast Casual restaurants focus on higher quality ingredients than QSR’s and provide made-to-order food in an environment that does not include table service. Customers usually queue and order at a counter. The seating area is more upscale and comfortable. Examples would include Chipotle Mexican Grill, Panera and Jason’s Deli.

Full-Service Restaurants

Full-service restaurants  are perhaps the most fluid of the F&B operation types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs. 14 The menus offered are varied, but in general reflect the image of the restaurant or consumer’s desired experience. Major segments include fine dining, family/casual, ethnic, and upscale casual. Fine dining  restaurants are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the table by experienced servers with sound food and beverage knowledge in an upscale atmosphere with table linens, fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with fresh flowers and candles. In these businesses, the average check, which is the total sales divided by number of guests served, is quite high (often reviewed with the cost symbols of three or four dollar signs: $$ \$\$\$ or \$\$\$\$ $$.) Examples include the Inn at Little Washington, Ruth’s Chris Steakhouse and Capitol Grille.

Casual restaurants serve moderately-priced to upscale food in a more casual atmosphere. Casual dining comprises a market segment between fast casual establishments and fine dining restaurants. Casual dining restaurants often have a full bar with separate bar staff, a larger beer menu and a limited wine menu. This segment is full of chains such as Chili’s, Outback, Red Robin and Cracker Barrel as well as many independent restaurants in regional or local markets.

Family restaurants  offer affordable menu items that span a variety of customer tastes. They also have the operational flexibility in menu and restaurant layout to welcome large groups of diners. An analysis of menus in family/casual restaurants reveals a high degree of operational techniques such as menu item cross-utilization, where a few key ingredients are repurposed in several ways. Both chain and independent restaurant operators flourish in this sector. Examples of chains in this category would be Golden Corral, Cici’s Pizza and Ponderosa Steakhouse.

Ethnic restaurants  typically reflect the owner’s cultural identity, Vietnamese, Cuban, Thai, etc. The growth and changing nature of this sector reflects the acceptance of various ethnic foods within our communities. Ethnic restaurants generally evolve along two routes: toward remaining authentic to the cuisine of the country of origin or toward larger market acceptance through modifying menu items. 15 Examples would be P.F. Chang’s, Tara Thai or Pei Wei.

Bars, Wineries, and Craft Distilling

The beverage industry continues to evolve as well with a strong focus on local craft beers, wines, cider and distilling. Wineries exist in almost every state, with over 250 in Virginia as of 2015. 16 Wine, bourbon, cider trails and brew pub crawls, etc. are used to generate awareness and create experiences for customers. Wineries often use event space or festivals to take advantage of the beauty of the winery and supplement their revenues.

Institutional Food Service

Institutional f ood s ervice is large scale and often connected to governmental (National Parks) or corporate level organizations. Often run under a predetermined contract, the institutional F&B sector includes:

• Educational institutions
• Prisons and other detention facilities
• Corporate staff cafeterias
• National Park restaurants and concessions
• Cruise ships
• Airports and other transportation terminals and operations

Examples of companies who focus on Institutional Food Service are Compass, Sodexho, Aramark.

Accommodation Food Service

This sector includes hotel restaurants and bars, room service, and self-serve dining operations (such as a breakfast room).  Hotel restaurants are usually open to the public and reliant on this public patronage in addition to business from hotel guests. Collaborations between hotel and restaurant chains have seen reliable pairings such as the combination of Shula’s Steakhouse and Marriott Hotels.

Restaurant Industry Profitability and Cost Control

According to the National Restaurant Association, QSRs have the highest pre-tax profit margin at 6.3%, while full-service restaurants have a margin of 4.7%. There will be significant variances from these percentages at individual locations, even within the same brand. 17

A number of costs influence the profitability of an F&B operation. Some of the key operating expenses (as a percentage of revenue) are detailed in Figure 16.16, above, where food cost and salaries & wages are the two major expenses, each accounting for approximately a third of the total. Other expenses include rental and leasing of venue, utilities, advertising, and depreciation of assets. These percentages represent averages, and will vary greatly by sector and location.

Cost control and containment is essential for all F&B businesses. Demanding particular attention are the labor, food, and beverage costs, also known as the operator’s primary costs. In addition to these big ticket items, there is the cost of reusable operating supplies such as cutlery, glassware, china, and linen in full-service restaurants.

Recreation can be defined as the pursuit of leisure activities during one’s spare time 19 and can include vastly different activities such as golfing, sport fishing, and rock climbing. Defining recreation as it pertains to tourism, however, is more challenging.

Let’s start by exploring some recreation-based terms that are common in the tourism industry. Outdoor recreation can be defined as “outdoor activities that take place in a natural setting, as opposed to a highly cultivated or managed landscape such as a playing field or golf course.” 20   This term is typically applied to outdoor activities in which individuals engage close to their community. When these activities are further away, and people must travel some distance to participate in them, they are often described as “adventure tourism”. According to the United Nations World Tourism Organization (UNWTO), adventure tourism is “a trip that includes at least two of the following three elements: physical activity, natural environment, and cultural immersion.” 21

Ultimately, categorization is based on a combination of several factors, including manner of engagement in the activity (risk exposure, experience requirement, group or solo activity), the distance travelled to access the activity, and the type of environment (proximity to nature, level of challenge involved) in which the activity occurs.

A 2013 adventure tourism market study discovered that people who travel for adventure experiences tend to be well-educated, with 48% holding a four-year degree or higher credential. They value natural beauty and rank this factor highest when choosing a destination. The most cited reasons for their travel are “relaxation, exploring new places, time with family, and learning about different cultures.” 22

Globally, it is estimated that the continents of Europe, North America, and South America account for 70% of adventure tourism, or US$263 billion in adventure travel spending. 23

Entertainment

Entertainment is a very broad category which overlaps with many of the areas discussed elsewhere in this chapter, like hotels and accommodation. Two major types of entertainment that we’ll discuss here are gaming and theme parks.

Gaming has grown significantly in the U.S. and globally. The number of casinos in the U.S. has been growing since 2010, and in 2013, there were over 500 commercial casinos, as shown in Figure 16.16. Casinos are found all over the U.S. in major cities, riverboats, and on Native American lands. However, U.S. casino revenue has been relatively flat, while global gaming revenues have been on the increase, largely due to Asian market growth. Most casinos involve other facets of the Hospitality industry such as lodging, F&B, golf, entertainment, spas, etc., but they also have the added challenges of casino operations.

Theme Parks

Theme parks have a long history dating back to the 1500’s in Europe, and have evolved ever since. Today, it is hard not to compare any amusement park destination to Disneyland and Disney World. Opened in 1955 in sunny California, Disneyland set the standard for theme parks. Theme parks outside of California and Florida are often highly seasonable operations challenged with significant staffing and training requirements each year.

Convention and Event Management

A convention is a large meeting of people with similar interests who meet for a period of at least a few days to discuss their field. An  event  is a gathering at a given place and time, usually of some importance, often celebrating or commemorating a special occasion.

Both conventions and events can be extremely complex projects, which is why, over time, the role of meeting planners has taken on greater importance. The development of education, training programs, and professional designations such as CMPs (Certified Meeting Planners), CSEP (Certified Special Events Professional), and CMM (Certificate in Meeting Management) has led to increased credibility in this business and demonstrates the importance of the sector to the economy.

Meeting planners may be independent contractors hired to facilitate the planning process, work directly for the company full time to coordinate their meeting, or work for hotels, conference centers and event venues directly.

• The various tasks involved in meeting and event planning include:
• Conceptualizing/theming
• Site inspection & selection
• Logistics and planning
• Human resource management
• Marketing and public relations
• Budgeting and financial management
• Sponsorship procurement
• Management and evaluation

Event Categories

Mega events.

A m ega-event is a large scale, highly prestigious event such as the Olympic Games, the FIFA World Cup, or a global economic summit. These events typically gain tremendous media coverage and have major economic impacts on the host location, both positive and negative. High levels of tourism (1 million+ visitors) associated with a mega-event brings revenue, but the revenue may be outweighed by substantial capital and social costs incurred by the host. The events are often awarded to host destinations through a bidding process and gain tremendous media coverage.

Special Events

A special event is a one-time or infrequent specific ritual, presentation, performance, or celebration. Special events are planned and created to mark a special occasion, such as a presidential inauguration or the Queen of England’s 90 th birthday. Like mega-events, there may be significant media coverage and economic impact for the host city or destination.

Hallmark Event

A hallmark event is a unique event that is often identified with the location where it is held, like Carnival in Rio de Janeiro or Oktoberfest in Munich. Hallmark events contribute significant economic benefits and even can create a competitive advantage for the host city or destination that attracts tourists.

A festival is a themed public celebration that conveys, through a kaleidoscope of activities, certain meaning to participants and spectators. Festivals are often celebrations of community or culture and feature music, dance, or dramatic performances. Examples include Lollapalooza, the Cannes Film Festival, and Junkanoo in the Bahamas.

Local Community Events

A local community event is generated by and for locals; although it may attract tourists, its main audience is the local community. The community may experience measurable economic impacts, as might happen at The Steppin’ Out Street Fair in Blacksburg (think hotel stays and eating out). Fundraisers and community picnics are also examples in this category.

Meetings and Conventions

The tourism industry also has a long history of creating, hosting, and promoting meetings and conventions that draw business travelers. In fact, Convention and Visitor Bureau’s (CVB’s) work hard to attract these meetings and conventions to their city to drive economic benefit for hotels, restaurants, entertainment venues, etc.

There are several types of such events.

Conventions  generally have very large attendance, and are held on a regular schedule but in different locations. They also often require a bidding process.  Political conventions are one such example.

Association M eetings or C onferences are held regionally and nationally for hundreds of associations or events focused on specific themes. Examples would be the National Restaurant Association Annual Convention, ComicCon, or the National Auto Show.

Corporate M eetings will vary significantly in size and purpose and include regional or national sales meetings, shareholder meetings, training sessions, or celebrations. The location will vary depending on the nature of the meeting. They may be held at an airport property, a traditional corporate meeting facility or even an upscale resort.

Trade S hows and T rade F airs  can be stand-alone events, or adjoin a convention or conference.

S eminars , W orkshops , and R etreats are examples of smaller-scale events.

As meeting planners have become more creative, meeting and convention delegates have been more demanding about meeting sites. No longer are hotel meeting rooms and convention centers the only type of location used; non-traditional venues have adapted and become competitive in offering services for meeting planners. These include architectural spaces such as airplane hangars, warehouses, or rooftops and experiential venues such as aquariums, museums, and galleries. 24

Transportation and travel services are another large element of the tourism industry. This area includes cruise ships, airlines, rail, car rentals, and even ride sharing such as Uber and Lyft. Each of these segments is impacted significantly by fuel costs, safety issues, load factors and government regulation.

If you’ve ever been on a cruise, you are in good company. According to CLIA (Cruise Lines International Association), 23 million passengers were expected to go on a cruise worldwide on 62 member lines in 2015. 25 The industry employs over 900,000 people. 26

Over 55% of the world’s cruise passengers are from North America, and the leading destinations (based on ship deployments), according to CLIA are: 27

• The Caribbean (36%)
• The Mediterranean (20%)
• Northern Europe (11%)
• Australia/New Zealand (6%)
• Alaska (6%)
• South America (3%)

The t ravel services sector is made up of a complex web of relationships between a variety of suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others. Under the North American Industry Classification System (NAICS), the travel services industry group includes “establishments primarily engaged in travel arrangement and reservation services. Examples … are tourist and travel agencies; travel tour operators and wholesale operators; convention and visitors’ bureaus; airline, bus, railroad and steamship ticket offices; sports and theatrical ticket offices; and airline, hotel and restaurant reservation offices.” 28 Tourism services support industry development and the delivery of guest experiences.

Travel Agencies

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveler (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travelers. The agency can further function as a broker between the traveler and hotels, car rentals, and tour companies. 29 Travel agencies can be small and privately owned or part of a larger entity.

Online travel agencies (OTAs)

Online travel agents (OTAs) are companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives. Examples of OTAs include Booking.com, Expedia.com, Hotwire.com, and Kayak.com. OTAs are gaining popularity with the travelling public; in 2012, they reported online sales of almost $100 billion 30 and almost triple that figure, upward of $278 billion, in 2013. 31 Over 40% of U.S. travelers booked flights online in 2014. 32

Tour operators

A tour operator packages all or most of the components of an offered trip and then sells them to the traveler. These packages can also be sold through retail outlets or travel agencies. 33 Tour operators work closely with hotels, transportation providers, and attractions in order to purchase large volumes of each component and package these at a better rate than the traveler could by purchasing individually.

Destination marketing organizations (DMOs)

Destination marketing organizations (DMOs) include national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world. DMOs promote “the long-term development and marketing of a destination, focusing on convention sales, tourism marketing and service” 34 .

Country Clubs

Country c lubs are another part of the Hospitality industry with a very different service strategy focusing on serving members who will develop relationships with the staff compared to a more transactional service interaction in lodging, restaurants or airlines.

Country clubs do not focus as strongly on profit as they do on maximizing member satisfaction, retention and growth while maintaining an attractive fee structure. Country (or city) clubs, will typically have restaurant and bar operations, catered events and other amenities such as golf, tennis, pool, fitness facilities, etc. Depending on the type of club, family and youth events are important to maintain and grow membership.

Strong customer service, culinary, event management and general management skills are necessary to be successful in clubs.

Chapter Video

As in any other fast-moving industry, the landscape in Hospitality and Tourism is always changing. This video explores 10 of the more important current trends impacting the industry.

(Copyrighted material)

Key Takeaways

• The Tourism industry is the largest industry in the world with significant benefit and costs to a region. The global competition for the tourism dollar is significant within the US and between countries.
• Hotels vary significantly in size, quality, purpose, chain affiliation, and ownership. The complexity of the operation and leadership vary as well.
• Food and Beverage is made up of a wide variety of restaurant types from QSR, Fast Casual, Fine Dining and Ethnic. Institutional food service in business , hospitals, education, parks and concessions are a significant part of the Food and Beverage industry.
• The evolution of tastes and consumer expectations in food and beverage continue to provide opportunity and challenges in the industry for ethnic sustainable, organic, local, craft, and other unique experiences.

Chapter 16 References and Image Credits

Portions of this chapter were adapted from Westcott, Morgan (Ed)  Introduction to Tourism and Hospitality in BC.  CC BY 4.0  https://opentextbc.ca/introtourism  Available for free at:  http://open.bccampus.ca

Image Credits: Chapter 16

Figure 16.1: JackMac34 (2015). “Untitled.” Public domain. Retrieved from: https://pixabay.com/en/italy-burano-postcards-971575/

Figure 16.2: “The Impact of Global Tourism.” (2016) Data retrieved from: http://www2.unwto.org/content/why-tourism

Figure 16.3: Yellowute (2007). “Shirley Plantation.” Public domain. Retrieved from: https://commons.wikimedia.org/wiki/File:Shirley_Plantation_2006.jpg

Figure 16.6 “Example of a Hotel Market segmentation by STR’s chain scale” Author’s own work. Licensed CC BY 4.0 .

Figure 16.7: Christina Hsu (2009). “San Diego City and Bay at Night.” CC BY-NC-SA 2.0 . Retrieved from: https://flic.kr/p/6KZ5Cv

Figure 16.8: Anastasia Cortes (2016). “The Inn at Virginia Tech.” Public domain. Provided by author.

Figure 16.9: Dale Cruse (2014). “New Zealand langoustines at Troquet.” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/dalecruse/8551895022/

Figure 16.10: Imzadi1979 (2012). “An example of a typical American logo sign.” Public domain photograph. Retrieved from: https://en.wikipedia.org/wiki/Logo_sign#/media/File:Logo_Sign.svg

Figure 16.11: J. Winters (2008) “A Red Robin Restaurant in Tukwila, Washington.” Public domain photograph. Retrieved from: https://commons.wikimedia.org/wiki/File:Red_Robin_in_Tukwila,_Washington.jpg

Figure 16.12: “Le Procope.” © Michael Rys. CC BY-NC-SA 2.0 . Retrieved from: https://en.m.wikipedia.org/wiki/Restaurant#/media/File%3AInside_Le_Procope.jpg

Figure 16.13 “The restaurant industry career path” Author’s own work. Licensed CC BY 4.0 .

Figure 16 .15 : JohnSM (2013). “Rafting in Turkey.” Public domain. Retrieved from: https://pixabay.com/en/rafting-turkey-travel-1125213/

Figure 16 .16 : Graph data sources: Statista (2016). “ Number of commercial casinos in the United States from 2005 to 2013.” Retrieved from: http://www.statista.com/statistics/187972/number-of-us-commercial-casinos-since-2005/ and “ Global casino gaming revenue from 2006 to 2015 (in billion U.S. dollars).” Retrieved from: http://www.statista.com/statistics/271577/global-casino-gaming-market-revenue/ and “ U.S. casino gaming market revenue from 2004 to 2015 (in billion U.S. dollars) .” Retrieved from: http://www.statista.com/statistics/271583/casino-gaming-market-in-the-us/

Figure 16 .17 : Josh Hallett (2009). “ The ‘Big Bang’ at Wishes – Magic Kingdom – Walt Disney World .” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/hyku/3830182777

Figure 16.18: Peter23 (2011). “Beijing National Stadium.” CC BY- SA 3.0 . Retrieved from: https://en.wikipedia.org/wiki/Beijing_National_Stadium#/media/File:Beijing_national_stadium.jpg

Figure 16.19 : Skeeze (2014). “Mardi Gras in New Orleans.” Public domain. Retrieved from: https://pixabay.com/en/mardi-gras-new-orleans-festival-1176483/

Figure 16 . 20 : Roger W. (2012). “ Charlotte Amalie – Panorama (Postcard) ” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/24736216@N07/7170231567

Figure 16 . 21 : Dan Perry (2006). “Riviera Country Club in Pacific Palisades, California.” CC BY-NC-SA 2.0 . Retrieved from: https://en.wikipedia.org/wiki/Country_club#/media/File:Riviera_Country_Club,_Golf_Course_in_Pacific_Palisades,_California_(168828797).jpg

Video Credits: Chapter 16

Sisyanti, Ling Ling, Wasim Amsal,Ella Qiu, and Rebecca Catherine Stephany. “10 trends in Hospitality and Tourism Industry.” February 6, 2015. Retrieved from:  https://www.youtube.com/watch?v=SJ8Momwv7Qk 

References: Chapter 16

Chapter 16 Hospitality & Tourism Copyright © 2018 by Richard Parsons; Stephen Skripak; Anastasia Cortes; Anita Walz; and Gary Walton is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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• Business Management

12 most innovative sustainable travel and hospitality start-ups

May 20, 2021 •

5 min reading

In response to consumer concerns over sustainability and to give industry players an edge in an increasingly competitive market, hotels, airlines, booking agents and tour operators —among others— have been developing a host of innovative sustainable travel start-ups.

In fact, sustainable innovation has become so sought-after that in July, in the midst of the pandemic, the World Tourism Organization (UNWTO)— the UN agency responsible for promoting sustainable, accessible and inclusive tourism—launched a startup competition to identify particularly promising new businesses. The competition attracted more than 10,000 participants from 138 countries; winners were announced in February . As UNWTO Secretary-General Zurab Pololikashvili said, “The winners show the power of new ideas for transforming our sector.” Winning startups will receive support to develop their ideas further through guided mentorship programs with Amadeus, Google, IE University and FarCo.

EHL's Innovation Village

EHL has been at the forefront of innovation in the hospitality sector for years and in 2009, launched an incubator for the development of new concepts. The initiative was so successful, that nine years later, EHL’s own Innovation Village was launched with the goal of supporting entrepreneurship and disrupting the hospitality industry, with a particular emphasis on sustainability. Over the years, the Village has evolved into a dynamic learning and experimentation center for students and a source of research and talent for companies.

Showcasing the sustainable travel and hospitality start-ups launched at EHL 

One-StepUp , an initiative founded by Jeanne Guerlais to encourage businesses to rethink packaging and reduce the use of plastic that is polluting oceans, soils and compromising the health of future generations. The firm works only with European companies to find alternative packaging solutions including, for example, bags made from compostable cellulose and homecompostable certified hot beverage cups. R-PET is the direction that the food industry is taking to go further. Today the start-up with a team of 3 is providing big company names in Switzerland such as Manor.

I am not saying that this is the end of plastic, but our wish is to find a strategy for a sustainable management of plastics in the sense of a circular economy. - Jeanne Guerlais, One-StepUp

• With a team of 12, Swiss start-up KITRO uses AI provide food waste data collection and analysis to companies. By providing an automated overview of their waste stream, KITRO enables businesses us to make targeted changes to increase efficiency and reduce waste and cost.
• Initially supported by EHL during a pilot program that started in 2012, Beelong was founded in 2014 to bring greater transparency, traceability and sustainability to the food industry. Today, the firm works with food companies and caterers concerned about the future of our planet and who want to gain greater insight into the environmental impact of the foods they’re sourcing.

Providing simple environmental information is key to helping our society move towards a greener future, and the current lack of transparency on food products is what drives me to raise awareness on the major environmental issues of our actual diets. The EHL incubator provides us the perfect environment to carry out our mission. - Charlotte de La Baume, Beelong

Sustainable travel and hospitality start-ups

Meeting a growing demand for authentic travel experiences.

Sustainable innovation reaches far beyond the boundaries of EHL, with exciting new start-ups launching all the time. Among the hottest areas in sustainable innovation is experiential tourism. While the pandemic has created pent-up demand to travel, the social isolation that people have endured during the past year means they’re looking forward to not just touring cities and relaxing on beaches but connecting with people. And a growing number of startups are responding to that desire for authentic connection. Here are a few examples; there are dozens more.

• French start-up Partasam recently launched  com , a collaborative platform that allows travelers to get in touch with locals for tips and advice. Within six months, the multilingual platform already registered members from more than 25 countries.
• Tastemakers Africa brings together artists, chefs, musicians and creative entrepreneurs to host tours and activities that go beyond stereotypical safaris and allow visitors to discover music, arts and cuisine.
• The B-Certified, Barcelona-based online startup Authenticitys designs local experiences that drive social change.
• I Like Local runs tours in 19 countries across Asia and Africa with the goal of creating a source of sustainable income for guides and hosts while providing travelers with off-the-beaten track experiences including family homestays with indigenous communities, cycling, crafts and cooking.
• And Fair Voyage is on a mission to make sustainable travel easyby connecting travellers with verified local companies

While the pandemic has given operators plenty of time to rethink their business objectives and reinvent themselves, a number of them are responding to travelers’ desire to stay close to home and avoid air travel. For example, a new British operator founded  Byway specializing custom journeys by train, boat and bike to off-the-beaten corners of Europe.

And banking on people’s desire to share their experiences with their social networks, the Portuguese company Live Electric Tours provides self-drive experiences in electric vehicles equipped with internet and camera, which allows travelers to keep friends and family up to date if not bring them along on a virtual tour.

Start-ups helping airlines to reduce and offset carbon emissions

In response to the increased pressure on airlines to reduce and offset their carbon emissions, most airlines have adopted zero-net emissions targets and are working to develop alternative biofuels. A number of start-ups are facilitating that transition.

• Since 2006, Toulouse-based OpenAirlines has been supporting reduced fuel consumption for airlines by using big data from flight recorders to optimize flight paths.
• Bulgarian startup  CO2 Cards offers a carbon-offsetting solution enabling online travel agencies, car and delivery services, for example, to calculate the carbon footprint of their clients’ orders and integrate offsetting options into their ticketing systems.

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Chapter 8. Services Marketing

8.5 Reaching the Consumer

Marketers have more choices than ever when it comes to broadcasting their message to consumers. Potential travellers and guests will respond, in varying degrees, to traditional channels and emerging online communications tools. There are many choices in marketing and communication channels, each with strengths and weaknesses. Determining the right mix, frequency, and message depends heavily on establishing objectives, completing research, performing a situational analysis, and creating a positioning approach (Morrison, 2010). Let’s take a closer look at communications channels that may form part of the marketing mix.

Traditional Channels

Mass media is best described as the use of channels that reach very large markets. Examples include national newspapers and radio or television advertising. The immediate advantage of using mass media is the ability to reach multiple target markets in significant numbers. Disadvantages include the high expense and difficulty in effective target marketing and measuring return.

Out-Of-Home (OOH)

Out-of-home (OOH ) channels refer to four major categories: billboards, transit, alternative outdoor, and street furniture. OOH advertising plays an important role in the tourism and hospitality industry as it provides an opportunity to inform travellers in unfamiliar territory. Transit advertising includes airports, rail, and taxi displays. Alternative outdoor refers to arenas, stadiums, and digital media. Street furniture includes bus shelters, kiosks, and shopping malls.

Print Media

Print media includes newspapers, magazines, journals, and directories. There is an increased trend away from traditional purchased print advertising toward editorial features, as these are more trusted by consumers. A print ad and an editorial feature created together is known as an  advertorial .

Spotlight On: Beattie Tartan

In 2017, Britain’s Beattie Communications Group merged with Canada’s No. 1 travel public relations firm, the Tartan Group, to become one of the world’s most successful integrated communications consultancies, serving tourism and hospitality clients including Clayoquot Wilderness Resort, Harmony Hotel, Inn at Laurel Point, and Hotel Zed. The staff have extensive experience working in the industry, and the organization has relationships with multiple tourism associations and press groups. For more information, visit the Beattie Tartan Website .

Online Channels

As discussed in Chapter 7 , the internet is nearly twice as important as travel agents as an information source for travel (Deloitte, 2015). There are an estimated 4.5 billion people around the globe with internet access, and social media has become truly integrated into the travel and hospitality industry. TripAdvisor and similar sites have become the customer’s first point of connection with tourism and hospitality products and experiences. This can be both an opportunity and a threat: an opportunity to open the channels of communication, but a threat if negative information about the travel or hospitality organization is widely spread. As online distribution expands, empowered and savvy travellers are unbundling the booking component and self-booking directly (Deloitte, 2015).

Internet and mobile technology are referred to as interactive media . For tourism and hospitality businesses, an online presence is crucial: it’s cost effective, it provides global reach, it allows a business to be available 24/7, and it provides a reciprocal communication platform for customers. An online presence can also produce instant access to critical consumer data such as click through rates on websites, views of social media posts and pages, paths-to-purchase, and much more.

Social Media and Reputation Management

There are also challenges with online marketing, including being noticed within the volume of information customers are exposed to, and loss of control in delivering a message. Despite these challenges, as more consumers seek real-time information online, tourism marketers are responding with increasingly sophisticated online marketing strategies, such as search engine optimization, personalized content, and social media monitoring and analytics.

Social Media

Social media is a broad term that refers to web-based and mobile applications used for social interaction and the exchange of content (Zheng & Gerritsen, 2014). Social networking is the act of using social media to “communicate directly with people you’re already connected to or with whom you wish to be connected with” (Zheng & Gerritsen, 2014, p. 28). Unlike traditional media such as newspapers, magazines, and television, social media is largely powered by user-generated content. This refers to content created and shared by consumers rather than by marketers, journalists, experts, and other paid professionals, although they too contribute to social networks. Influencers also play a major role in generating content and hype about tourism products, services, and experiences, ultimately affecting consumer purchasing decisions. Tourism marketers are increasingly leveraging influencer authority, knowledge, and relationships to reach and capture new markets.

Word of Mouth in the Age of Social Media

Social networking has transformed how many people interact with businesses and share experiences with others, in a communication channel known as electronic word of mouth where customers share directly with each other in an online environment. Consumers now have a variety of channels (e.g., Twitter, Instagram, Facebook) and formats (e.g., videos, blogs, reviews) on which to leave ratings, express preferences, and share stories. Many of these platforms have large audiences, and much of this commentary is made in real time, on a smartphone, while the customer is still in the business.

Advertising and Trust

Social networks, and review sites in particular, are used more and more to seek information and advice on things to do and products and services to purchase. Travellers and locals alike check out these sites for ideas on where to stay, eat, relax, shop, and explore. These channels are highly trusted. A survey of over 28,000 consumers in 56 countries found that consumers trust the advice of people they know (92%) and consumer opinions posted online (70%) more than any other advertising source (Nielsen, 2012). A more recent survey of over 31,000 consumers in 36 countries confirmed that personal recommendations and internet sties are the most important planning sources for travellers (Skift, 2014).

Online Reviews = Business Success

Research shows a direct correlation between consumer reviews and purchase decisions. A 2019 survey by BrightLocal found that 92% of consumers made decisions based on online reviews and 76% trusted online reviews as much as personal recommendations (BrightLocal, 2019). A 2011 study conducted by Harvard Business School found that, for independent restaurants, a one-star increase in Yelp ratings led to a 5% to 9% increase in revenue (Luca, 2011). According to a study by the Cornell Center for Hospitality Research, if a hotel increases its review score on Travelocity by 1 point on a 5-point scale, it can raise its price by 11.2% without affecting demand (Anderson, 2012). Finally, a report published by TripAdvisor and Oxford Economics claims that TripAdvisor was responsible for $US 546 billion in traveller spending in 2017 alone (Tourism Economics, 2020).

Understanding Customer Needs

As we have discussed, service plays an important role in shaping customer impressions, where the ultimate goal of a tourism or hospitality business is to exceed expectations. Every customer has different wants and needs, but virtually all customers expect the following basic needs to be taken care of:

• Convenience
• Good service

To fully satisfy customers, businesses must deliver in all four areas. If they meet the basic needs listed above, they’ll create a  passive customer — one who is satisfied, but not likely to write a review or mention a business to others.

On the other hand, failure to deliver on the promise can result in a disappointed customer undoing all the efforts of the marketing plan. For this reason, the entire process must be well coordinated and well executed.

The use of channels that reach very large markets.

Channels in four major categories: billboards, transit, alternative outdoor, and street furniture.

Newspapers, magazines, journals, and directories.

Print content (sometimes appearing online) that is a combination of an editorial feature and paid advertising.

Online and mobile platforms.

Refers to web-based and mobile applications used for social interaction and the exchange of content.

Individuals with a strong online presence and following who can use their knowledge, authority, and relationships with followers to share brand-aligned content and inspire travellers to visit destinations or purchase products.

Information about a service experience passed along orally or through other social information sources from past customers to potential customers.

A guest who is satisfied (won't complain, but won't celebrate the business either).

Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Improving sustainability in tourism & hospitality

H ospitality has been among the sectors hit hardest by COVID-19 shutdowns. But with travel beginning to return in parts of the world, many hotels are springing back to life.

The agenda for recovery cannot simply be about getting ‘back to normal,’ though. The travel market has changed—permanently. Leisure and business travelers alike have new priorities and needs. In both segments, sustainability is a bigger priority than ever before—especially but not only when it comes to carbon emissions.

Hospitality has a unique opportunity to take the lead on sustainability across all dimensions of ESG—environmental, social and governance—and build it into the core of the way the sector works. The industry players that thrive will be those who meet their customers’ demands for more sustainable travel options . Those who fall short risk being left behind.

Changing priorities, new opportunities

For many business travelers —a critical segment for many hospitality brands—the pandemic put an abrupt stop to their travel. Having been forced into an extended experiment with remote working and online meetings, many corporates are reconsidering their travel policies.

What’s more, businesses are under growing pressure to cut their emissions:

• Their own customers expect it—as do politicians and regulators as the global momentum for a cleaner, greener economy grows.
• For many corporations, their Scope 3 emissions—which include travel emissions—are a clear target for reductions.
• Combined with the new emphasis on smart travel decisions and maximizing the benefits of every single trip, a rapid return to pre-pandemic levels of travel is unlikely.

When it comes to consumers, the key dynamic is a deep rethinking among consumers about what matters in life. Some 50% of consumers globally have reassessed what’s important to them as a result of the pandemic, according to Accenture’s Life Reimagined research among 25,000 people. Sustainability is high among their priorities. Consumers are increasingly ready to switch away from brands that don’t align with their values—but the research also suggests they’re increasingly prepared to pay a premium for those that do.

In the post-pandemic battle for market share, winning customer sentiment and loyalty increasingly means meeting the new expectations on sustainability.

Destination sustainability

Can the sector afford sustainability.

Despite the rising importance of sustainability to both leisure and business travelers, some in the travel sector still struggle to make the business case for it. “Resources are limited—especially right now,” says Daniel Kowalewski, Managing Director at Accenture. “Companies are in a tight spot. They’re trying to be as prudent as they can.”

That is a real predicament when cashflow has been so disrupted by the pandemic. But the question should be less whether the sector can afford greater sustainability—and more whether it can afford to fall behind its customers’ evolving expectations. Recent Accenture research has found that 83% of 25- to 34-year-olds are willing to pay more for sustainable travel options. 1 Any hospitality business that struggles to align with its customers will find itself vulnerable to greener competitors.

And the return on investment for hotel decarbonization could be substantial, relatively quickly—one study found that such investments could yield internal returns of 38% after five years. 2

Investing in decarbonization

Some pro-sustainability switches can be made with minimal expense. India-based Chalet Hotels has committed to using 100% renewable energy by 2031. 3 “In a lot of countries, you can move to renewable electricity and it’s actually no more expensive than non-renewable electricity,” says Jesko Neuenburg, Managing Director and Global Travel & Aviation Sustainability Lead at Accenture.

The Sustainable Hospitality Alliance has calculated that hospitality needs to reduce per-room carbon emissions by at least 66% by 2030, and 90% by 2050, based on 2010 levels. 4 That level of decarbonization will require some investment—but the cost:benefit ratio is changing rapidly. With rising interest in green standards for hotels, and Google and Booking.com adding eco-certifications to search results, more and more customers are likely to make lower-carbon choices.

Responsible hospitality gets started

Some hospitality companies already have bold ESG strategies for tackling a wide range of priorities besides carbon emissions.

Waste is a key priority and food waste is particularly important:

bottles expected to stop going to landfills every year. By replacing single-use toiletry bottles in rooms with larger pump-topped bottles, Marriott International has made waste a key priority. 5

of Accor's generated waste and largest contributor to its biodiversity and water footprint comes from food—so it’s made food a priority in its latest sustainability strategy. 6

tons of food waste were diverted from landfills by MGM Resorts, repurposed into animal feed and converted into biofuel. 7

RELATED: Explore travel’s changing realities in The Guide digital travel magazine

Social impact—local communities

For the hospitality sector, impact on local communities is another critical dimension—especially in fragile natural ecosystems and in developing economies, where tourism can play a major economic role. Everyone suffers when unique destinations are damaged.

Hospitality also needs to engage closely with the communities where it operates. Supply chains are key. Procuring goods and services such as food locally can have a positive social impact—as well as cutting carbon emissions. Ensuring high labor standards is another priority. And global travel firms have a key role as local employers too, creating jobs and providing development opportunities in areas where they may otherwise be limited.

Positive social impact begins inside the business

Truly sustainable businesses don’t only take action to reduce and mitigate their external environmental impacts. They also take responsibility for their role as employers in addressing major social questions.

If employers don't act on today’s prominent social issues—be it increasing the number of women in leadership roles, reflecting racial and ethnic diversity or implementing fair labor standards in their supply chain—customers will quickly lose trust.

Hilton Hotels plans to achieve gender parity in its leadership roles globally by 2027 and increase ethnic diversity among its US leadership roles to 25%. 8 Its approach has earned it the number one spot on DiversityInc’s 2021 Top 50 Companies for Diversity list. 9

Social impact also extends to the sector’s critical role in the fight against human trafficking. Progress has been made on this issue in recent years: It needs to remain a priority. Marriott International, for instance, launched an enhanced version of its human-trafficking awareness training in July 2021, to help its people recognize and respond to the warning signs. 10

Decarbonization target corridors

Pandemic recovery, future growth and sustainability go hand in hand. There are two critical spheres for organizations to act in to meet changing customer demands and capture the opportunities of growth and a sustainable future.

The first is picking up the pace on decarbonization. A recent report from the World Travel & Tourism Council (WTTC) in collaboration with the UN Environment Programme (UNEP) and Accenture— A Net Zero Roadmap for Travel and Tourism —proposes a new roadmap framework for net zero. It sets out three different decarbonization target corridors, recognizing that some sectors will be able to move faster than others.

The first step is setting the right baselines and emission targets now for 2030 and 2050 goals. That needs to be followed by monitoring and reporting on progress.

The report also proposes collaboration within and across industries—a rich opportunity for hospitality businesses as a part of the broader travel industry , and for collaboration with local partners wherever they operate.

A net zero roadmap for travel & tourism

Building sustainability into hospitality’s dna.

Hospitality companies need to be strategic about sustainability—and to do that they need to understand why it is so important. “What’s frequently missing is the why,” says Andrew Maliszewski, Business Strategy Senior Manager at Accenture.

To truly understand those business drivers and how they can be translated into an effective sustainability strategy, Accenture has developed a new framework for Sustainability DNA . It identifies Five Elements of Sustainable Leadership and 21 management practices, systems and processes spanning all dimensions of sustainability—from improving conditions and creating inclusion for employees, to building a learning culture and engaging in the development of local learning ecosystems.

As many hospitality brands operate a franchise-based business model, it’s vital that brands and owners work together closely as they adopt the Sustainability DNA framework.

The sustainability opportunity

The landscape for hospitality has changed permanently. The sector has a unique opportunity to lead the way on sustainability as it gets back to growth.

The benefits for hospitality are clear: aligning with consumers’ values and desire to be able to travel sustainably ; winning back business travelers as corporates bear down on their carbon emissions; capitalizing on the growing willingness of consumers to pay a little more for sustainability; and playing its part in the global effort to limit temperature rises and avoid catastrophic climate change.

Thriving in the new world means putting sustainability at the heart of your strategy for recovery.

For more on how hospitality can get back to growth more sustainably than ever—and our model for Sustainability DNA—read the full report: Mapping the Road Ahead: How can travel companies achieve a sustainable recovery?

SUSTAINABILITY IN AVIATION

1 Accenture Traveler Sustainability Preferences Survey, August 2021

2 Transforming Existing Hotels to Net Zero Carbon

3 Chalet Hotels becomes first hospitality company globally to join Climate Group's RE100, EP100 and EV100 initiatives

4 Global Hotel Decarbonisation Report

5 Marriott International To Eliminate Single-Use Shower Toiletry Bottles From Properties Worldwide, Expanding Successful 2018 Initiative

6 With Planet 21, Accor aims to provide a positive hospitality experience

7 Did The Pandemic Sabotage Hotel Sustainability Trends?

8 Hilton Sets Leadership Diversity Goals Ahead of Hotels Jobs Revival

9 Hilton Ranked #1 on DiversityInc’s Top 50 Companies for Diversity List

10 Marriott International Launches Enhanced Human Trafficking Awareness Training

Managing Director – Global Travel & Aviation Sustainability Lead

Jesko is leading Accenture’s global travel sustainability center of excellence.

Managing Director – Travel Industry, North America

Results-driven executive with over 20 years of experience focused on revenue management, pricing and strategy formulation.

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Frequently asked questions

What are the benefits of sustainable tourism and hospitality.

The landscape for hospitality has changed permanently. The sector has a unique opportunity to lead the way on sustainability as it gets back to growth. The benefits for tourism and hospitality are clear: aligning with consumers’ values and desire to be able to travel sustainably; winning back business travelers as corporates bear down on their carbon emissions; capitalizing on the growing willingness of consumers to pay a little more for sustainability; and playing its part in the global effort to limit temperature rises and avoid catastrophic climate change. Thriving in the new world means putting sustainability at the heart of your strategy for recovery.

How can hotels be more sustainable?

Hospitality has a unique opportunity to take the lead on sustainability across all dimensions of ESG—environmental, social and governance—and build it into the core of sector operations. The industry players that thrive will be those who meet their customers’ demands for more sustainable travel options. Those who fall short risk being left behind. Research by the Sustainable Hospitality Alliance has found that hotels need to reduce carbon emissions by at least 66% per room by 2030, and by 90% by 2050, compared with 2010 levels, to keep pace with the 2°C cap set out in the Paris Climate Agreement. Improving building efficiency will need upfront investment, but the cost: benefit calculation is changing. One study has found that decarbonizing hotels could yield internal returns of about 38% after five years. With rising interest in green standards for hotels and the addition of eco-certifications to search results, more and more customers are likely to make lower-carbon choices.

What are the main environmental impacts of the hospitality industry?

Of all the challenges facing the travel and tourism industry as it becomes more sustainable, decarbonization is the biggest. Greenhouse gases related to travel are one of the most significant contributors to our environmental footprint, along with the electricity we use in our locations. Additionally, the travel industry’s impact on its stakeholders across the societies where it operates is significant—especially in many developing nations, where tourism plays a major economic role. Tackling environmental initiatives is not simply limited to energy sources, but also its social impact on communities. This includes ensuring high labor standards that advance diversity in the workplace, create sustainable supply chains, cut carbon emissions, and drive economic development opportunities.

Why is sustainability important in the hospitality industry?

The UN Global Compact and Accenture report published in November 2021, Climate Leadership in the Eleventh Hour, found that 73% of global CEOs feel increasing pressure to act on climate change. Fifty-seven percent are prioritizing action as part of their pandemic recovery. This explains why more than 5,000 businesses have joined the UN-backed Race to Zero, committing to achieving net-zero carbon emissions by 2050 without using offsets. More than 200 companies have signed the Climate Pledge to achieve net zero by 2040. That pressure on CEOs will not just change their companies’ operations—it will filter through to their supply chains. Leadership teams need to convert their organizations’ sustainability goals and values into behavioral change at all levels, which means building sustainability into the DNA of the organization.

How do travel and tourism distribution channels work?

By Kevin Tjoe — 29 Nov 2021

tourism distribution channels

Updated January 2023 – A tourism distribution channel refers to the stakeholders and methods involved in taking a tourism product from the supplier to the consumer. Typically, the chain of distribution in tourism refers to the businesses and platforms involved in selling, distributing, and bundling tourism products. However, more components are involved across the entire distribution chain, including suppliers, wholesalers, resellers, and consumers.

By aligning your business with existing distribution channels, you connect with important stakeholders in the industry. This creates more efficiency in your marketing efforts and ultimately grows your tourism and activity business.

What is a distribution channel?

Tourism distribution channels are the avenues tourism products and services are made accessible to consumers. Typically, tourism products are sold directly by the primary provider or through a series of intermediaries. If brokers or travel wholesalers are involved, this is called indirect distribution. Consumers can access these products via various mediums, including traditional channels such as travel agents, government bodies such as information centers, and even other tour and activity operators .

How it works

While direct bookings may still account for a large part of business, branching out through additional distribution channels can help you to maximize your brand exposure, reduce risk and ultimately boost your bookings. Many distribution channels will have access to much larger marketing spend or broader customer bases. This can provide you with access to more exposure and quality bookings.

Typically speaking you’ll provide your availabilities to them, and they’ll, in turn, bring in bookings at a pre-agreed commission rate.

The chain of distribution

The chain of distribution in tourism refers to the businesses and platforms involved in selling, distributing, and bundling tourism products. This process begins with the primary tour and activity provider all the way to the end consumers experiencing it.

Generally, there are four steps to the distribution chain:

1. Suppliers/principals

2. Wholesales

3. Resellers

4. End consumers

The distribution chain for a particular product can go through all of the steps depending on its distribution channel. For example, direct distribution won’t require wholesalers or resellers, as suppliers sell their products directly to consumers, whereas indirect distribution requires intermediaries.

Suppliers or principals include the primary providers across accommodation, transportation and car hire companies, attractions, and experiences. Examples include hotels, Airbnb hosts, airlines, and the attractions such as the Empire State Building.  

Wholesalers

Wholesalers develop packages of travel products for retailers to sell on, though in some cases they may actually sell directly to the consumer. These packages or itineraries might include tours, activities, accommodation, transport, and/or travel insurance.

Wholesalers can include: 

• Destination Management Organisations (DMOs) or inbound tour operators, such as government tourism boards or tourism authorities
• Global Distribution Systems (GDSs), are used by retailers such as OTAs to easily see an inventory of availability from tourism operators.

Resellers purchase and bundle experiences to be sold directly to the consumer. A common example includes traditional travel agents, which create personalized travel packages. However, online travel agents (OTAs) such as Expedia and Tripadvisor are more commonly used these days. They provide accessibility to a range of tourism products such as airline tickets, hotel bookings, tours and activities, and more.

Consumers are the most critical component of the distribution chain. That is because they are the end user of the product. The choices and decisions consumers make have a huge impact on the rest of the distribution chain. Trends in consumer behavior, or individual decisions all influence how tourism products are marketed and sold.

Advantages of tourism distribution channels

Broadening your distribution channels involve heaps of advantages. Here are the top five:

Connectivity

By aligning your tour and activity business with the broader industry, you can connect with important stakeholders across every step of the tourism distribution chain. Forming strategic partnerships with resellers and tourism platforms enables you to access a broader customer base. This provides you with a greater opportunity to increase your sales. 

Generating 100% of your revenue via direct marketing requires a great deal of investment in time and money. Existing distribution channels generally have larger marketing budgets that they can spend to attract more customers.

Typically, as the supplier, you’d only pay a fee when a booking has been made via their channel – making your marketing and sales costs predictable. This means you gain additional resources to expend on other areas of your business, such as improving your customer experience.

Flexibility

Given the wide array of potential partners, you have the freedom and flexibility to test and experiment with different methods of promoting your business. Plus, it’s more convenient for your customers to book your services through an array of trusted partners. This helps to increase customer loyalty and satisfaction.

Transparency

Utilizing existing distribution channels can make the entire booking process more transparent for both you and the end consumer. On the tour operator side, it provides you with a clearer understanding of your customer behavior and adjusts your marketing strategies for better outcomes. And on the customer side, information such as reviews displayed on your profile allows them to create informed decisions before choosing to book your services.

Accessibility

Promoting your tourism products via numerous distribution channels means that your customers can book your services where they like; when they like. Furthermore, your products and services will be found across multiple avenues – enabling a wider array of customers to book with you. In fact, operators are using an average of 14 distribution channels according to Arival’s Operator Insights 2021-2022 report.

What are the main types of tourism distribution channels?

There are many ways to get in front of customers, even more so since the rise of digital channels. From travel agents to mobile apps, tourism suppliers have never had more choices regarding promoting their products and services. There are four main distribution channel types. These include:

Traditional channels

Traditional distribution channels often refer to real-world marketing channels separate from online and mobile experiences. Indirect traditional distribution channels can include travel distribution services such as travel agents, tourism information centers, flyers and print/ digital brochures , promotional marketing services, and tour operators . Depending on your products and services, wholesalers can also make up part of your business’ traditional distribution channel. 

Online channels

In recent years, online travel agencies (OTAs) have dominated the tourism industry. These online experiences allow users to plan, book, and pay for personalized travel plans through an easy-to-use centralized platform. Often flights, hotel bookings, car hire , and local experiences can be bundled and purchased through a single site, making the process convenient and intuitive. These platforms can also be cheaper due to the relatively low cost of maintaining a website over a brick-and-mortar travel agency. 

Mobile channels

Like online channels, mobile distribution channels rely on digital platforms, such as apps, to promote and sell tourism products. Many popular mobile apps which centralize the tourism buying experience have cropped up in recent years. In addition, airlines, hotels, and other major suppliers have begun developing apps to improve customer loyalty and engagement. Other forms of mobile marketing can include SMS marketing, mobile advertising, and cold calling.

Direct channels

Direct marketing and sales channels include anything your business has direct control over and does not involve an intermediary. This type of marketing can occur through traditional, online, and mobile mediums. For example, direct online channels can include your website, direct bookings via a booking system, online chat assistance, and your social media accounts.

While direct marketing efforts via mobile can consist of sending promotional text messages to previous customers, cold calling potential customers, and sending personalized email marketing messages . More traditional measures may include brochures and flyers, a storefront, and salespeople.

Choosing the right tourism distribution channels

As a tour company, it’s essential to understand which distribution channels will achieve the most significant results for your business. While trial and error can bring results over the long run, understanding what makes a channel right for your business can accelerate your path to success. 

Identify target market

To understand whether online or offline marketing, direct or indirect distribution, or mobile versus online platforms are best for your business, you need to understand your customers.

Demographics such as age, country of origin, the number of travelers in a party, and the number of children arriving can greatly impact how you communicate and effectively sell your services. For example, an older demographic may be more likely to use traditional channels such as a travel agent, while a young family might be found via online and social media . First, check over your previous customers and try to pull out any obvious trends amongst your clientele, then research which channels best suit your audience.

Research channels

It’s important to research which channels are available to promote your services. But also, it’s essential to understand the reputation of your potential strategic partners. When engaging in indirect marketing, you are aligning your brand with your distributors, so choosing platforms and businesses which align with your values is important. It’s also essential to understand the costs and benefits of each channel and make informed decisions based on what will work for your business. 

Evaluate costs and benefits

Each platform and distribution channel will have different pricing models. Some may charge a flat fee for promotional services, others may purchase and resell your services, while others may charge a fee when you receive a booking. It’s essential to understand what level of return you can expect. If you are starting out, finding performance-based pricing options will allow you to pay as you go. Alternatively, flat fee services can sometimes provide a higher return as your budget can go directly to marketing spend.

Track performance

Once you choose one or more channels to distribute your services, ensure you track the performance versus how much it costs to attain them. By understanding the performance of your partnership, it enables you to eliminate ineffective channels and double down on your marketing efforts, thus, cutting you costs.

How can you manage all distribution channels easily?

It can take a lot of time to form and manage strategic partnerships with multiple resellers. Luckily, technology is here to help. A channel manager such as Rezdy Channel Manager can be accessed regardless of your booking system or size of business, and makes it simple to negotiate agreements, manage inventory, rates and manage commissions with a vast range of resellers, from local visitor centers to the big-name OTAs. Live availability of your tours, activities or attractions are visible from one dashboard, dropping the risk of pesky double bookings as well.

You can access the broadest reach of resellers in the industry, connect with desired resellers and easily distribute rates and availability in real-time. Rezdy is integrated with a number of alternative reservation systems and is continuously adding more, providing suppliers access to channel management tools, directly from their existing system. Suppliers with a custom built booking system can connect with Rezdy Channel Manager as well. For Rezdy booking software customers, channel management is included. 

Find out more about how Rezdy’s channel management platform can support your business .

Ready to  join the thousands of Rezdy customers that managed to grow their bookings by over 25% in 2022? Book a free channel manager demo with a product specialist to see how our products can fit the needs of your tour business. If you are interested in Rezdy’s booking software that includes channel management, you can start a free 21-day trail trial.

If you enjoyed this article, be sure to sign up to receive the  Rezdy newsletter , a valuable resource for those who want to stay up-to-date on the latest industry happenings.

Want to know more about reseller commission rates? Read our guide to industry standard commission rates

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eBook: Guide to growing your tourism business through distribution & channel management tools

How to navigate API connections with resellers

Case Study: Wendella Tours & Cruises

Your Marketing Mix: the 7 Ps of Travel and Tourism Marketing

As a busy tour operator, developing a marketing strategy for your tour or activity business can feel like a daunting task. You already have your hands full ensuring your business is running smoothly, you can’t afford to waste time or money on the wrong things. Fortunately, you don’t have to go in without a plan. A good way to build out your knowledge of the fundamentals of marketing is to understand the marketing mix and how to use the 7 Ps of marketing in the travel and tourism industry.

A marketing mix is the set of actions that a business uses to promote its brand in the market and influence customers to purchase their product. An effective marketing mix focuses its efforts in multiple areas to build a robust marketing plan. These areas were initially known as the 4 Ps of marketing (product, price, place, and promotion) and were first proposed by marketing professor Jerome McCarthy in 1960. Since then, marketing tactics have evolved and in an attempt to better address businesses in the service industry, the 4 Ps were expanded to 7 and now include people, process, and physical evidence.

Why Do They Matter?

Today, we’ll be exploring all 7 Ps of the marketing mix and how they can help you build an effective marketing strategy for your tour or activity business. While each element of the marketing mix is important on its own, collectively they provide a framework for creating a plan that is unique to your business and your target audience. Following the 7 Ps will help you better understand your brand so that you can develop a marketing strategy that works for you on all fronts. 

The 7 Ps of Travel and Tourism Marketing

The first P of the marketing mix is product. That is, what is it that you’re selling to your customers? In most industries, the product is something that is tangible. The customer can walk into a store, purchase a product off the shelf, and take it home with them. However, in the tourism industry, the product provided is often an intangible service in the form of a tour, an experience, or even the destination itself. 

Tangible or intangible, to give your product the best chance of success, it’s important to ensure that there is a demand for what you’re selling. Make sure you have a thorough understanding of the service you’re offering, the needs you’re fulfilling for your customers, and why they aren’t able to get it anywhere else. What makes your tour or activity unique and better than that of your competitors?

Answering these questions will help you discover your unique selling proposition (USP) and determine your positioning in the market. Above all, ensure that the tour or activity you’re providing is the best that it can be.

Next up is the price of your tour. What are your customers willing to pay for what you’re offering? Determining how to price your tour or activity package requires the careful consideration of factors such as competitor pricing, the budget of your target audience, and your own overhead and operational costs. Ultimately, you want to price your tour or activity competitively so that it is both attractive to your customers and profitable for your business.

The third P of the travel and tourism marketing mix is place, or the distribution method of your product. This is where and how you make your tour or activity available to your customers for purchase. As mentioned earlier, because the service you’re providing is intangible, the places where your customers can book your tour will primarily be online, whether it be through your booking website, social media platforms, or online travel agencies (OTAs) like Expedia and Booking.com.

Your online booking website is one of the most important places your tours and activities can be found, so make sure it’s doing everything you need by booking a demo with Rezgo .

Physical locations like your tour or activity office as well as neighboring businesses that you’ve partnered with are also places where your customers might access your product.

The last of the original 4 Ps of marketing is promotion, or how your customers learn about your tour or activity. Tour promotion encompasses all the tactics that businesses typically use when they think about marketing. This includes both physical and digital advertisements, social media posts , press releases, events, special deals or limited-time offers, customer reviews, and partnerships with hotels or other local businesses at your destination. The possibilities are endless when it comes to tour promotion and are really only limited by your own creativity. 

The people who represent your business and the customer service they provide are especially important when it comes to the success of a tour or activity company. Unlike businesses where physical products can sometimes speak for themselves, the overall experience a customer receives on a tour is greatly influenced by the people they interact and engage with. This includes tour guides, customer service representatives, and even booking agents. To ensure a positive experience for your customers, it’s important that anyone who interacts with your customers on your business’ behalf (even indirectly) is highly professional and knowledgeable about your products and services.

the sixth of the 7 Ps of tourism marketing is the process. The process that a customer goes through from the moment they book your activity to when they finally complete the tour should be as pleasant, convenient, and seamless as possible. Customers should be able to access any information they need with ease including their itinerary, booking info, waivers, etc.

Just as important is how your business decides to deliver this information to your customers. Plan and design your process so that it is easily replicated for efficiency, reliability, and consistency. A good booking system can automate a lot of your process to make sure the customer experience is smooth and efficient from start to finish.

Physical Evidence

Lastly, we have physical evidence. Once again, because the experiences and services provided by a tour or activity company are usually intangible, it can be difficult for interested customers to try them out before committing to a purchase or booking.

There are, however, still ways for tour operators to use physical cues to help convert potential customers. Some of these include website design, physical tour office layout, employee uniforms, brochures, marketing material, and souvenirs or free swag. It’s also worth highlighting any tangible elements of your tour that customers can look forward to in your promotional material or tour descriptions . 

Measuring the Success of Your Travel and Tourism Marketing Mix

Using the 7 Ps of marketing to build out a strategy for your tour company is great, but how do you know if it’s working? Measuring the success of your tourism marketing mix can be accomplished in a few ways. The first is to calculate your return on investment (ROI) to determine whether the money you’ve spent on your marketing initiatives are actually bringing in enough sales for a profit.

Another way to check on the performance of your marketing strategy is by using analytics on engagement data. How many people actually saw or clicked on that ad, post, or email? How many of those clicks converted into a sale? 

Rezgo offers a powerful reporting system that allows tour operators to track the performance of their marketing campaigns and analyze the impact of each referrer or promo code. By studying this data you can adjust your marketing strategy so that you’re focusing your effort and allocating your money in the most effective places.

There’s a lot to consider when developing a marketing strategy for your tour or activity business, but now that we’ve broken down the 7 Ps of a tourism marketing mix, you know exactly which areas you should be focusing on.

Work on planning and building out each marketing element separately, but remember that they need to complement each other and work together harmoniously for the biggest impact. Adjusting your strategy in one area should affect the way you approach another. 

Rezgo helps tour and activity providers thrive by giving them the tools and guidance they need to work efficiently and expand their business.You’re passionate about providing amazing experiences. We’re passionate about building  flexible tools  to make your job easier and get you more bookings. Let’s work together to make your business thrive. Start using Rezgo today by signing up for free !

We can’t wait to see you launch your next marketing campaign. Good luck!

Written By | Edward Nieh

Edward Nieh is a freelance writer and copy editor working across multiple mediums for clients from various industries. He has a degree in creative writing with a focus on screenwriting for feature films.

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Tourism and Hospitality Consumer Behaviour

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This chapter explores the concept of consumer behaviour in the context of buying tourism products. The chapter starts with a discussion of the personal, psychological, cultural, and social factors that influence consumers, causing them to behave the way they do when choosing to buy tourism and hospitality products. Further, this chapter presents the various roles that consumers might play in the decision-making process. It introduces the consumer journey cycle to show how consumers pass through a series of stages when purchasing holidays and tourism and hospitality products. The chapter concludes with a discussion of the consumers who make their final purchasing decisions: the various consumer markets (from adventure tourism to volunteer tourism) and tourist typologies. Lastly, the in-depth case study applies the principles of consumer behaviour to Halal tourism in South East Asia.

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George, R. (2021). Tourism and Hospitality Consumer Behaviour. In: Marketing Tourism and Hospitality. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-64111-5_3

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Products and Services

“Don’t give up and always keep on believing in your product. Because if you don’t, how can you make others believe in it?” − Niels Van Deuren, Founder, housinganywhere.com.

The tourism industry as a whole survives because of various tourism products and services. Tourism industry is flexible. The products of tourism cannot be easily standardized as they are created for the customers of varied interests and demands. As the tourism products are mainly the tourists’ experience, they can be stored only in the tourists’ memories.

Let us understand more about tourism products and services −

Types of Tourism Products

The tourism products are grouped into the following types −

Tourism Oriented Products (TOP)

These are the products and services created primarily for the tourists and also for the locals. These products need a great share of investments in private sector. A few of them are −

• Accommodations; For example, Taj, ITC Hotels.
• Transportation; For example, Owning taxis, luxury buses, and boats.
• Retail Travel Agents
• Tour Operators
• Shopping Centers such as malls
• Cinema Theatres such as PVR
• Restaurants for Food and Beverages
• Tourism Information Centers
• Souvenirs Outlets
• Museums, Temples, Gardens, and Theme parks

Residents Oriented Products (ROP)

Here, the products and services are created mainly for the local residents staying at a particular tourist destination. This category requires investment in public sectors more. Some of them are −

• Public Parks
• Banks and ATMs
• Petrol Pumps
• Postal Service

Intangible Products of Tourism

They include −

Bookings of accommodations, theatres, and at various sites.

Tourists’ experience by visiting a destination, eating at a restaurant, or performing an activity.

Tourists’ memory which is created by storing the details of events and experience on the tour. The high degree of satisfaction or dissatisfaction is often stored as a long term memory.

Transportation of tourists and their luggage from one place to another.

Tour Operator’s Products and Services

To realize the facilities and experience a tourism product offers, service is required by skilled and qualified staff. The tour operator provides the following typical products and services −

Accommodations

The tourist destinations are equipped with different types of accommodations. They cater for tourists’ stay at the destination.

Serviced − This type of accommodation is supported by skilled staff such as housekeepers, drivers, guides, and cooks.

Self-catering − This accommodation offers staying facilities but dining is required to be self-catered. It is equipped with cooking, fuel and facility, some basic supplies such as tea/coffee/sugar sachets, and a drinking water source.

Hotels − Budget rooms to 7* hotels with classy amenities. The hotels contribute a major share of imparting the experience to the tourists by providing best services and amenities.

Guest Houses − Owned by business or government organizations, which can be used by its staff and staff relatives.

Camping Sites − They are open sites often located in areas of lush greenery. They are equipped with clean place to pitch the personal tent, a water supply, and electric supply. Camp sites have common rest rooms.

Reservations

The tour operator is responsible for making reservations for special events or activities the tourists are interested in. At some places, the reservations are required to be done well in advance to avoid last minute hassles. The events or activities such as a music concert or a theatre show, visiting a theme park or a zoo, require people to secure seats or avail entry with prior reservations.

Guided Tours

The tour operators can arrange guided tours. Some qualified staff who can get access to the place, explain the importance of the place, support, and guide the participants through the entire visit. The guide is arranged to accompany the tour participants as a part of tour.

Transport Facilities

These facilities are for travelling from one place to another.

Surface Transport − It includes support of transport by road or water.

Air Transport − This is the support of transport by air, generally given for long distance travel. Many times the tours include a halt of a couple of hours at transit destinations. Today the airports are built and maintained as engaging tourist terminals by providing amenities such as spas, lounges, food joints, bars, and book shops, retail shops for selling authentic local food, clothes, and souvenirs.

Today the Airlines are no more backstage when it comes to caring for their customers. They offer loyalty programs to their customers under Frequent Flyer Program to encourage the customers to travel more and accumulate points and redeem them against travel or rewards.

Dining Facilities

The tour operators can book accommodation that provides dining facilities or it can tie up with the local restaurants which are ready to entertain groups. If the tour package is all inclusive, the tour operator pays for breakfast, lunch, and dinner. If not, the tourists need to pay from their own pocket.

Sustainability Success

10 Sustainable Tourism Examples

Tourism is fun; you get to meet new people, learn about new cultures and build beautiful memories that will last forever. However, as a tourist, have you ever paused to think that the areas you visit are actually people’s homes? And, of course, you wouldn’t want to ruin the homes and environments of other people, right? 

This is where green tourism comes in. Sustainable tourism factors in the economic , environmental , and social aspects of tourism, ensuring that it does not have any negative consequences on the environment. In addition to protecting the environment, sustainable tourism also protects the local communities and businesses.

In this article, I will go through 10 sustainable tourism examples around the world!

Here are 10 remarkable examples of sustainable tourism for environmentally conscious persons, including both luxury travel and budget options! Responsible tourism examples:

1. Feynan Ecolodge – Jordan

The first ecolodge of its kind in Jordan, Feynan Ecolodge was designed to reflect the architectural style of the ancient caravanserai and was built in 2005 by the Royal Society for the Conservation of Nature.

In 2009, EcoHotels took over the management and operation of the lodge, offering travelers an opportunity to experience the wild nature of Jordan, meet its natives and explore its ancient history. All of this with minimal impact on the environment!

Feynan Ecolodge is found deep in the Dana Biosphere Nature Reserve; a mountainous place located in Jordan.

It is one of the best examples of sustainable tourism globally, with the National Geographic Traveler Magazine ranking it among the top 25 ecolodges globally.

The lodge has partnered with the Royal Society for the Conservation of Nature to provide solar-powered accommodation. The use of solar as the main source of energy greatly reduces the carbon footprint released and led them to win the World Responsible Tourism Award in 2019. Therefore, guests who use these accommodation services play a role in protecting the environment.

Dana Biosphere Reserve is one of the largest nature reserves in Jordan. It was established in 1989 to protect the area’s diverse wildlife, geology, and landscape. The reserve encompasses four different bio-geographical zones: Mediterranean, Irano-Turanian, Saharo-Arabian, and Sudanian. It is home to 800 plant species and 449 animal species, including several globally threatened/endangered species.

The Bedouin people are the original inhabitants of Jordan and are considered the backbone of the country. The Bedouin culture has transformed over time, as many people have left the traditional lifestyle and migrated to cities. However, there is still a small community of Bedouins who continue to live in the Feynan area, and geotourism has been helpful in preserving this culture.

As you can see, the Feynan Ecolodge is acting on all three pillars of sustainability (or the 3 E’s of sustainability ) by supporting the local culture (promoting cultural sustainability ), preserving the environment, and improving the local economy.

The Feynan Ecolodge is without a doubt one of the great examples of sustainable tourism, as well as an example of environmental responsibility !

2. Mdumbi Backpackers Hostel – South Africa

The Mdumbi Backpackers Hostel is specifically designed for people who like sustainable tourism.

Mdumbi Backpackers is a community-driven backpacker hostel located in the Transkei with panoramic views of the coast. They promote community involvement and sustainable eco-tourism.

The nearby beach was voted the best beach in Southern Africa, with world-class surf and incredible hiking and exploration opportunities, Mdumbi is a hidden gem not to be missed.

It provides an ideal base for whale-watching, hiking, and doing other outdoor tourist activities. The hostel uses multiple eco-friendly tools and practices, all of which are aimed to encourage more sustainable green tourism.

For example, all the accommodations use solar power and include a waste management system that is sustainable.

Besides, the hostel has a special ownership model, so that even local employees can own shares in the hostel.

3. Six Senses Resort – Fiji

The Six Senses Resort in Fiji resort is located on Malolo island at a secluded bay. The 5-star luxury resort can be said to meet all the sustainable tourism guidelines and principles.

Six Senses Fiji is committed to sustainability , with 100% solar power, programs to conserve energy and rainwater, make high-quality drinking water, and locally grow organic produce.

For example, Six Senses Resort uses solar energy to power the entire resort . Also, it established rain capture and efficient water filtration systems that help to reduce the usage of plastic bottles.

The resort has one of the largest off-grid solar installations in the Southern Hemisphere, using batteries to power the resort and the desalination plant.

In addition, the resort encourages recycling and re-using of materials, minimizing overall wastage and the release of harmful gases due to wastage.

Furthermore, the Six Senses Resort greatly supports different causes and programs aimed to help the local communities lead a more sustainable life.

For example, the resort works with Rise Beyond the Reef , an NGO that teaches women in remote communities to create marketable goods using traditional skills.

The Six Senses Resort in Fiji is clearly an amazing luxury eco-tourism example and a great option for those who can afford it!

4. Bom Bom Water Project – Príncipe Island – Africa

This water project is controlled and managed by the Bom Bom Resort . This luxury resort can be found in Príncipe and Sao Tome, an island that is located off the western coast of Gabon, West Africa.

This resort has a recycling scheme that involves replacing used water bottles with a stainless steel bottle (known as the “Biosphere Bottle”) that can be refilled.

So far, this recycling scheme has led to the removal of over 300,000 plastic bottles; a result that has contributed to a cleaner and more sustainable island.

More so, the Bom Bom Resort supports the water purification fountains and recycling projects established by UNESCO and the Príncipe Island World Biosphere Reserve.

It has established 13 water stations in different parts of the island, where tourists can refill their Biosphere Bottles. Besides, the resort encourages tourists and guests to take part in the sustainable programs available.

If you are interested in visiting this luxury eco-tourism option, then you can check a detailed review by some of their guests!

5. Inkaterra Hotels – Peru

Inkaterra Hotels is a 100% carbon-neutral organization with 47 years of experience in practicing sustainable tourism with its eco-lodges. Not bad for those luxury ecolodge options!

These hotels can be found in different parts of Peru, such as Tambopata, Machu Picchu Pueblo, Cusco, and Sacred Valley.

They were crowned by Greeninitiative , an organization endorsed by the United Nations (UN), as the very first “Climate Positive” hotel brand in the world.

All the lodges in these hotels are built using locally-sourced products; eliminating any transportation which would’ve led to a high carbon footprint.

Besides, the lodges are built in such a way that they do not ruin the environment or cause permanent damage.

Also, the Inkaterra Hotels provide support to education, scientific research, and local efforts aimed to conserve the environment and boost the economic condition of the locals.

Inkaterra Hotels is a great example of ecotourism , because the organization is truly aiming at sustainable development, by acting on all the 3 Ps of sustainability : people, profit, planet!

6. Atlantis Submarines – Hawaii

Sustainable tourism is not just about ecolodges, but also about experiences. Atlantis submarines in Hawaii offers the possibility to explore the submarine world in a more eco-friendly way.

The Atlantis Submarines are located in three different regions in Hawaii. They provide the thrill of diving up to 30 meters underwater to tourists and adventurous people.

Having been operational since 1988, the submarines are powered by environmental-friendly batteries. Therefore, they do not emit any pollutants or release harmful greenhouse gases in the atmosphere. 

Furthermore, all the Atlantis Submarines move quietly via the water without causing any environmental disturbance.

The company has also installed environmental-friendly artificial reefs in two different locations; these reefs help to re-establish healthy habitats for Marine life and fish.

Indeed, the Atlantis Submarines provide an eco-friendly way of exploring the deep sea.

7. BEES Elephant Sanctuary – Thailand

The BEES Elephant Sanctuary is located in rural Thailand in the Maechaem district. Most animal sanctuaries are considered unsustainable since most of the activities only function to exploit the animals kept there. However, the BEES sanctuary is different from these other sanctuaries, since it takes a different approach that aims to improve sustainability.

BEES was founded in 2011 by Burm Pornchai Rinkaew and Emily Rose McWilliam.

Emily traveled to Thailand as a teen in early 2009 and was appalled by the living conditions and hardships elephants experienced working in tourist camps. She made a promise to the elephants to do something about their plight and, at just 18 years of age, co-founded BEES with her partner Burm.

BEES provides a safe, natural home for elephants to just BE elephants and also rescues and provides care for local cats and dogs.

This sanctuary has adopted a sustainable approach known as the “No Contact – Hands Off Approach.” The hands-off policy prevents humans from forcing elephants into contact.

Also, all the elephants in the sanctuary have either been rented from the owners, retired, or rescued in the wild, in turn giving them a break from all the tough work that they do.

More so, the BEES sanctuary has set up different programs that allow people to work for the sanctuary, providing them with the opportunity to give back to nature.

8. Summit Expeditions & Nomadic Experience (SENE) – Tanzania

SENE is a tour operator company based in Tanzania . It offers a wide range of tours, such as around Zanzibar island, climbing up to the top of Mt. Kilimanjaro, Mbahe farm cottages , and other wildlife safaris. Since the company was established in 1998, it has been offering sustainable tours to tourists and jobs to the locals.

The SENE tour company is a member of “Leave No Trace”; a set of ethics whose main goal is to promote a sustainable world that will support many generations to come.

Also, they use portable toilets whose disposal systems are biodegradable.

In addition, the company encourages tourists to take alternative routes to their destination, so that they give the busier routers a chance to recuperate.

All these sustainable activities help to promote a healthier local environment in Tanzania.

9. Wavelength tours – Australia

Wavelength is a family-operated firm with a team made of local marine biologists or people who have spent most of their lives on the barrier reef. It provides snorkeling tours on the great barrier reef of Australia. However, unlike other similar snorkeling tour firms, Wavelength offers more environmentally friendly tours.

For example, the company takes only a small group of people for snorkeling. They also have a “no-touch” policy that prevents unnecessary disturbance of nature.

Also, all tourists are recommended to use environmental-friendly sunscreen that won’t have any negative impact on the corals and marine life.

All these sustainable solutions help to protect the great barrier reef, ensuring that it is not put under much pressure, which would in turn have significant effects on the environment.

Of course there is still more that could be done, but this company is surely doing some steps in the right direction.

10. Trash Hero – Thailand/Global

Trash Hero is a volunteer-led movement whose mission is to drive positive change within communities all over the world. It does so by encouraging communities globally to pick up rubbish and prevent plastic waste being dispersed in the local environment.

While Trash Hero was first started in Thailand, they have been establishing in 12 more countries.

They combine the effort of local communities and eco-friendly tourists by encouraging both parties to clean rubbish wherever they see it and work together to create a healthy, trash-free world.

Trash Hero also produces steel bottles that are more sustainable; the movement sells these bottles and also works with other businesses to make them more sustainable and greener.

Why is Sustainable Tourism Important?

The main goal of sustainable tourism is to minimize the negative impact that tourism has on the environment and local communities. It ensures that all resources are used in an optimal way, preventing over-consumption and wastage. In turn, sustainable tourism helps to preserve the natural world, as well as local traditions, culture and heritage.

Besides, sustainability tourism provides social and economic benefits to the local communities. This contributes to a mutually beneficial relationship of “give and take” where both locals and tourists gain equal benefits.

What’s even better, the sustainable activities involved with this form of tourism ensure the long-term future of travel, such that the environmental, economic, and social benefits are enjoyed now and by many more generations to come.

Sustainable tourism is not only good for business; it is also good for the environment, ensuring sustainability now and in the future. Therefore, unless you want to promote an unsustainable world, you need to ditch mass tourism and apply to tours that support sustainable tourism.

However, did you know that soon we may be getting also new ways to travel sustainably and enjoy an eco-friendly luxury vacation on the water? This may soon become available thanks to the new solar catamarans that are starting to become more mainstream!

Here are the 10 sustainable tourism examples I went through in this article:

• Feynan Ecolodge – Jordan
• Mdumbi Backpackers Hostel – South Africa
• Six Senses Resort – Fiji
• Bom Bom Water Project – Príncipe Island – Africa
• Inkaterra Hotels – Peru
• Atlantis Submarines – Hawaii
• BEES Elephant Sanctuary – Thailand
• Summit Expeditions & Nomadic Experience (SENE) – Tanzania
• Wavelength tours – Australia
• Trash Hero – Thailand/Global

I hope you enjoyed learning about those responsible tourism examples, and if you are not sure where to start, simply pick one of the 10 sustainable tourism examples discussed above. These destinations will not only give you the best time of your life, but also give you the opportunity to make a positive contribution to the world while you’re having fun!

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