PUBLISHER: GlobalData | PRODUCT CODE: 1074609
PUBLISHER: GlobalData | PRODUCT CODE: 1074609
Companies with transparent ESG strategies which can demonstrate positive work to address environmental and social issues are more likely to win the loyalty of travelers that may be undecided on which company to use for a specific aspect of their trip. Transparency on ESG matters will not only appease consumers; it is now required by several other stakeholders, and potential future ones. Investors will often assess a company's ESG performance when conducting due diligence. Therefore, many company directors are allocating increased amounts of capital and resource in to addressing ESG aspects to increase attractiveness. According to a GlobalData poll, (xx) of respondents stated that their company now monitors ESG performance directly alongside financial performance.
This thematic research report takes an in-depth look at ESG in travel and tourism. Firstly, the players section identifies some of the leading and challenging companies in this theme and categorizes their position in the value chain. A theme briefing follows the players section, which dissects GlobalData's ESG framework, and offers industry examples of how travel and tourism companies from a range of different sectors are addressing specific ESG factors. A trends section is then provided, describing technology, macroeconomic, regulatory, and industry trends connected to the ESG in travel and tourism theme. An industry analysis follows, providing insight into consumer sentiment around aspects of ESG, and a deep dive into company filing and hiring trends. Mergers and acquisitions, and a timeline are then provided, which showcases the emerging importance of ESG in travel and tourism. Penultimately, the ESG in travel and tourism value chain is reviewed, with each segment of the chain being given an in-depth description. Finally, the leading and challenging companies in the theme are outlined, along with their competitive position in the industry, and scorecards are provided to show how each major company in their respective sector is scored for this theme.
"Due to the amount of information consumers now have at their fingertips, and past greenwashing scandals that have gained worldwide media attention, travelers are much more aware of potential greenwashing attempts, and accuse companies of lying if they are suspicious. If a travel and tourism company is found guilty of greenwashing, it could create irreparable damage for its image.
Many travel and tourism companies are introducing their own eco labels and badges to boost ESG performance, and to give the option to travelers of picking a service or product that is more environmentally friendly. This trend has taken off in online travel. In 2021 alone, Google Flights allowed users to see carbon emission estimates for nearly all flights in its search results. The estimate is visible next to the price and duration of the flight. Shortly after, Booking.com announced the launch of its Travel Sustainable badge, a globally sustainability measure that aims to provide information to travelers looking to make more sustainable travel choices.