Let’s Be Honest - Gen Z Travelers Need Transparency on Sustainability
Generation Z (Gen Z) is driving the new age of hospitality, characterized by its environmental consciousness and technological adeptness. That’s why it’s important for the hospitality industry to adapt to their behaviors and value.
Born between 1997 and 2012, Gen Z represents 25% of the world’s population and $7 trillion or more in purchasing influence, and will comprise 27% of the workforce by 2025.
Gen Z’s environmental consciousness is deeply rooted in their upbringing during times of intensifying global environmental crises. The hotel industry must adapt to align with the values and demands of these environmentally aware individuals.
Researchers at Welcomgroup Graduate School of Hotel Administration collected data from 480 people aged between 21 and 25 years who live in India and South East Asia. What they found should influence future business models for the travel industry.
“Transparency in sustainability practices, including certifications and demonstrable actions, emerges as the most significant factor for Gen Z.”
This cohort’s preference for transparency in green initiatives underscores the importance of combating misinformation and greenwashing(Lavuri et al., 2021).
Among other statements scored highly are "Locally sourced food enhances my hotel experience" (mean = 4.4) and "I value hotels that have strong recycling programs" (mean = 4.3), indicating these are the two most significant aspects of sustainable waste management and sourcing.
Sustainable Sourcing
“Locally sourced food enhances my hotel experience.”
Gen Z’s environmental awareness influences their loyalty to brands that prioritize sustainable sourcing and green purchasing practices. The top choices for sustainable sourcing was for locally sourced food and eco-friendly toiletries.
Energy Efficiency
Green certifications such as ISO 14001 and LEED (Leadership in Energy and Environmental Design) have proven effective in enhancing guest satisfaction and loyalty, particularly among younger travelers.
Gen Z’s preference for energy-efficient practices has compelled hotels to implement these certifications, emphasizing energy-saving technologies and renewable energy solutions. But it’s not enough for hotels to implement these practices, but to be transparent about them and show guests how they are working, and to ensure they are not greenwashing with energy sourced from fossil fuels but disguised as clean energy.
"I prefer hotels using renewable energy sources" was the second most common statement by those surveyed.
Waste Management
Surprisingly, "Strong recycling programs" and "Composting food waste" were the most essential waste management practices, while "Single-use plastic elimination" was the least prioritized.
This is intriguing given the focus globally on the reduction in plastics and the amount of microplastics now polluting the environment. However, recycling and plastics are intertwined. Both recycling and composting are often easy areas where greenwashing can occur, as many items placed in the recycling or compost bin end up in landfills.
Food waste also remains a significant challenge in the hospitality industry, with Gen Z demonstrating a strong interest in not wasting food - I remember my German family pushing me to finish off the leftovers before leaving the table.
Studies indicate that Gen Z hospitality employees experience guilt over food wastage, reflecting their ethical commitment to sustainability. Gen Z consumers also tend to advocate for waste management processes aligned with the United Nations Sustainable Development Goals.
Community Engagement
Transparency and community engagement are critical components of Gen Z’s expectations from hospitality brands. Hotels that adopt sustainable business ethics and actively engage with local communities are more likely to gain the respect and loyalty of this generation.
Initiatives such as partnerships with local artisans and environmental projects demonstrate the industry’s commitment to sustainability.
As consumers, Gen Zers won’t hesitate to punish brands for performative activism, “goodwashing,” or false advertising. They prefer brands with an open, and even vulnerable, style. They want relatable brands that invite them into genuine conversations where they are heard. These community partnerships need to be genuine and not forced.
