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Green hotels help corporates save costs

08 Jan 2025 - by Christiaan Schultz
Lee-Anne Singer, FEDHASA Cape Chairperson. 
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Driven by global regulations and increasing consumer demand, South African hotels are stepping up efforts to meet new environmental standards while simultaneously passing cost savings on to corporate travellers.

This dual benefit has garnered attention as businesses aim to reduce their carbon footprint while sticking to travel budgets.

Lee-Anne Singer, FEDHASA Cape Chairperson, told Travel News that South Africa’s hospitality sector was evolving in response to international environmental regulations such as the Paris Climate Agreement and the EU Green Deal.

"The pressure is coming from both B2B partnerships and direct consumer demand for genuine sustainability efforts," Singer said.

She added that the shift to green accommodations was not only regulatory but also driven by growing demand from travel agents, DMCs, and tour operators.

Growing within corporate travel

Companies switching to green accommodation for corporate travel have started to see significant savings alongside reductions in their carbon footprint. A recent HRS corporate travel report revealed that businesses using sustainable hotels had reduced their carbon footprint by 27% and cut accommodation costs by 17%.

“What’s encouraging is that sustainability and cost savings are perfectly aligned,” said Rategang Moroke, Operations Manager of Corporate Traveller. "Companies are seeking both environmental responsibility and competitive pricing from their accommodation partners, and the market is responding brilliantly."

In response, hotels are adopting innovative technologies to improve their sustainability credentials.

Corporate Traveller says AI-powered energy management systems help to optimise heating, ventilation and air-conditioning, while smart water management systems monitor usage and detect leaks. IoT (Internet of Things) devices adjust lighting and temperature based on occupancy, reducing unnecessary energy consumption​.

Some hotels are also eliminating plastic waste through digital check-in options and replacing printed materials with smart mirrors that display sustainability information.​

Green certifications

For South African hotels, achieving sustainability certification had become crucial for maintaining global competitiveness, said Singer.

She said certifications like Fair Trade Tourism, Travelife and Green Key were recognised internationally and aligned with European standards, offering credibility in the global market.

“Hotels must ensure their certifications are EU-recognised to avoid greenwashing accusations. The industry is increasingly aware of the reputational and legal risks associated with greenwashing, and it’s driving businesses to adopt more transparent, verifiable sustainability practices,” she noted.

Challenges and predictions

Transitioning to sustainable practices is not without challenges. Hotels faced the complex task of navigating numerous certification schemes, high upfront costs for retrofitting properties and the lack of a unified global standard, Singer added.

Despite these hurdles, innovations in sustainable hospitality are on the horizon. Singer predicts that future trends will include decentralised renewable energy solutions like solar power, smart water management technologies and circular economy practices that aim for zero waste​.

"The next phase is helping companies move from measuring to meaningful action. When organisations can easily access sustainable options at competitive rates, making environmentally responsible choices becomes natural. It's about empowering them to make better decisions for both their bottom line and the planet," Moroke concluded.

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