Whilst most hospitality companies focus on doing what’s legally required, an unstoppable consumer behavioural shift is creating the defining business opportunity of the next decade. Our comprehensive global research—spanning over 5,700 consumers and 1,200 industry stakeholders across multiple regions—reveals that brands authentically embedding sustainability into their core value proposition can capture massive untapped demand from consumers whose values are driving behaviour faster than most companies are adapting.
This isn’t about compliance. It’s about recognising that Environmental, Social and Governance considerations have fundamentally transformed from peripheral concerns into the central force reshaping competitive advantage in hospitality. For forward-thinking hoteliers, the question isn’t whether to embrace sustainability—it’s how quickly they can position themselves ahead of the tidal wave.
The Forces Driving Unstoppable Change
Three interconnected forces are making this transformation inevitable, creating aligned incentives that turn sustainability from a cost centre into a profit engine.
European regulatory frameworks now demand that companies approach sustainability metrics with the same rigorous methodology applied to financial reporting. The Corporate Sustainability Due Diligence Directive (CSDDD), effective July 2024, and the Corporate Sustainability Reporting Directive (CSRD), requiring initial 2024 reports throughout 2025, establish compliance imperatives extending beyond geographical boundaries.
Major corporations like Siemens now require detailed property-level sustainability data before considering hotels for preferred partnership status. This transforms ESG from differentiating factors into fundamental qualifying criteria. Modern businesses must demonstrate sustainability throughout their supply chain partnerships, creating cascading effects as companies recognise their credentials depend upon their chosen partners’ practices.
Consumer behaviour provides the accelerating force. The emergence of vocal consumer preferences has catalysed new hotel brands designed to meet evolving expectations. Consumer choice evolution will accelerate behavioural changes as competitive pressures intensify and stakeholders become increasingly sophisticated in their sustainability expectations.
The Global Map of ESG Priorities
Our research reveals that sustainability considerations vary dramatically across continents, shaped by cultural, economic, and regulatory contexts. Understanding these regional differences is crucial for sophisticated market positioning.
European markets demonstrate the strongest environmental focus, with Italy showing 50% of consumers as sustainability “Advocates” and France at 38%. Energy efficiency, waste reduction, water conservation, and plastic elimination dominate concerns. This reflects Europe’s advanced environmental regulatory framework driving both consumer awareness and corporate action.
The USA and Canada emphasise employee wellbeing and social concerns more prominently than other regions, likely reflecting advanced HR legal frameworks that have elevated social issues. Whilst environmental concerns remain important, the volume is louder on inequality and social responsibility, creating opportunities for brands that understand this distinction.
China presents the most remarkable sustainability engagement globally, with an unprecedented 74% of consumers qualifying as Advocates—far above global norms of 25-50%. However, their focus centres particularly on waste management and operational efficiency, with different emphases than Western markets on inequality and some environmental issues. This geographic variation means successful sustainability strategies must be regionally calibrated, not globally uniform.
The Intention-Action Gap: The Key to Competitive Advantage
Perhaps the most critical strategic insight from our research is the persistent global “intention-action gap”—the disconnect between what consumers say they value and how they actually behave. Over one-third of consumers globally claim willingness to pay premiums for environmentally responsible accommodation, yet significantly fewer translate these preferences into actual booking decisions.
This gap creates both the greatest challenge and the greatest opportunity in sustainable hospitality. Brands that solve for this gap—making sustainable choices seamless rather than effortful—can capture disproportionate market share.
Our research identifies three distinct consumer segments. Advocates (25-50% globally) make sustainability a primary booking criterion and need clear, visible sustainability credentials. Agnostics (31-38%) agree sustainability matters but rarely act without facilitation—they need sustainable choices made easy through default options and strategic booking prompts. Antagonists (19-41%) remain disengaged but often respond to sustainability when framed as operational efficiency rather than environmental messaging.
Generational Insights: Challenging Conventional Wisdom
Our research reveals surprising complexity in generational sustainability engagement that challenges common assumptions.
Generation Y demonstrates the strongest attitudinal commitment to sustainability and are most likely to express values-driven preferences. However, they struggle to convert attitudes into consistent purchasing behaviours. This reflects discretionary spending constraints and practical affordability considerations. Marketing to Millennials requires storytelling and visible impact initiatives, but conversion strategies must address the intention-action gap.
Despite expressing less emphatic sustainability preferences, Baby Boomers consistently demonstrate practical sustainable behaviours such as recycling and waste reduction. They can afford to be discerning and follow through on their stated preferences. This generation responds to practical, easy-to-use sustainability features that deliver tangible value.
Contrary to popular belief, Generation Z proves less engaged in sustainability initiatives than anticipated. Their influence will grow, but they are not currently leading the sustainability push in hospitality.
Technology as the Accelerator
Technological advancement through internet accessibility and AI-driven selection tools enables guests to filter accommodation options with unprecedented precision. Location, pricing, and quality parameters now primarily define market consideration scope, whilst style and sustainability characteristics increasingly determine final property selection.
This shift means ESG principles must become integrated into core value propositions rather than treated as supplementary features. Smart brands are leveraging technology to bridge the intention-action gap by making sustainable choices the default option and providing transparent sustainability data at point of booking.
Strategic Market Opportunities
Our research identifies clear regional strategies for maximising sustainability competitive advantage. China and Italy represent lead markets for sustainability positioning, given China’s exceptional attitudinal concern (74% Advocates) and Italy’s strong practical engagement around plastic, food waste, and energy consumption (50% Advocates).
The USA and Canada show strong corporate procurement trends incorporating ESG criteria, with corporate buying behaviour providing immediate market pressure as buyers seek measurable ESG credentials from hotel partners. This makes B2B sustainability credentials crucial for capturing high-value, stable corporate accounts.
Australia, showing the highest share of sustainability Antagonists (41%) and lower attitudinal concern than the global average despite relatively high participation in practical behaviours like recycling, requires education approaches that frame sustainability as operational efficiency rather than environmental messaging.
France demonstrates high concern for ESG, particularly around water, waste, and plastics, with one-third willing to pay more (38% Advocates, 34% Agnostics, 27% Antagonists). The UK shows key concerns around energy, plastic, water, and waste, though consumers recycle more than the global average but lag in conscious purchasing (27% Advocates, 38% Agnostics, 36% Antagonists).
The Nordics present an interesting paradox, showing below-average concern levels compared to the global average but demonstrating strong actions around recycling and food waste reduction, suggesting opportunities for brands that emphasise tangible, measurable sustainability actions over values-based messaging.
The Race for Early Mover Advantage
The convergence of guest expectations, corporate procurement power, and regulatory frameworks creates aligned incentives that transform sustainability from compliance requirement into profit engine. Early movers are already capturing disproportionate market share in the most lucrative segments, whilst laggards risk being filtered out of booking platforms and procurement processes entirely.
Hotels that master this transition discover something remarkable: guests who book for sustainability stay longer, spend more, and return more frequently. Corporate clients who demand ESG credentials also tend to be the most stable, highest-value accounts. Properties with strong sustainability metrics increasingly command premium valuations and attract lower-cost capital.
From Insight to Action
To capitalise on these opportunities, hotels must integrate ESG into fundamental value propositions as proof points of quality and operational efficiency. Success requires facilitating action for the 31-38% of Agnostic consumers who represent the greatest growth opportunity by making sustainable options seamless through visible eco-labels and default sustainable choices.
Most importantly, implementation must address regional ESG priorities rather than applying one-size-fits-all approaches—emphasising environmental credentials in Europe, social responsibility in North America, and operational efficiency in markets with higher Antagonist populations.
Conclusion: The Defining Opportunity
The hospitality industry stands at a pivotal inflection point where an unstoppable consumer behavioural shift creates massive competitive advantage for early movers. Whilst most brands focus on regulatory compliance, forward-thinking companies that authentically embed sustainability into their core value proposition can capture enormous untapped demand from consumers whose values are driving behaviour faster than most companies are adapting.
The race is on. Those who weave ESG principles seamlessly into their operational DNA won’t just survive the transition—they’ll emerge as the industry’s most resilient and profitable performers, proving that in today’s market, sustainability isn’t just the right thing to do—it’s the smartest business move they can make.
