What impact do sustainable business practices by travel companies have on travellers’ choice of a travel service provider (hotel, resort, tour operator etc.)? A survey was commissioned by Market Vision in mid-2013, aimed to determine the extent to which demonstration and promotion of sustainability initiatives by travel companies can impact customer choice behaviour. The results suggest that, all else being equal, a certain proportion of travellers would be inclined to patronize a travel company whose sustainability credentials are easily visible while a larger proportion would be inclined to go with a travel company whose sustainability credentials are easily visible and are endorsed by a credible third party assessor. A smaller proportion of travellers would not care. What should eco-tourism businesses do to attract such customers and influence their choice?

1. Impact Of Sustainability
Initiatives On Customer Choice
Kumud Sengupta
Director – Market Vision
Managing Editor – SOST
ITB Asia, Singapore, October 24, 2013

2. Impact Of Sustainability
Initiatives On Customer Choice

3. How Do You Define
Sustainability
in the Context of Tourism?

4. Sustainable tourism:
Tourism that takes full account of its current and
future economic, social and environmental
impacts, addressing the needs of visitors, the
industry, the environment and host communities.
UNWTO definition

5. The Triple Bottom Line Approach
* Environmental impacts
* Socio-cultural impacts
* Economic impacts

6. Sustainable Tourism
Makes
Business $ense

7. 1. Worldwide tourism growth
2. Business benefits
3. Rising consumer demand

8. 1. Worldwide tourism growth
International tourist arrivals, millions
2000
1600
1200
800
400
0
1980
1990
1995
Source: UN World Tourism Organization
2000
2005
2010
2020
2030

9. 2. Business benefits
Cost savings
Improved profitability
Competitive advantage
Improved brand image
Customer loyalty
Employee loyalty
Product diversification

10. 3. Rising consumer demand

11. Governments and businesses are
also demanding a green travel
supply chain

12. What impact do sustainable
business practices have on
travellers’ choice of a travel
service provider?

13. A survey was commissioned by Market
Vision in mid-2013, aimed to determine
the extent to which demonstration and
promotion of sustainability initiatives by
travel companies can impact customer
choice behaviour.

14. This?

15. Or This?

16. This?

17. Or This?

18. Choice of travel company
18%
35%
Sustainability initiatives
visible
Sustainability initiatives
visible + endorsed
Makes no difference
47%

19. And that is despite lack of sufficient
awareness and recognition of individual
certification brands

20. So…
What should eco-tourism businesses
do to attract customers and
influence their choice?

21. 1. Tell your sustainability story
Upfront
Verbally.
Visually.

22. 2. Get it endorsed
Third party certification
Assurance of authenticity,
quality standards

23. Choose the most appropriate
certification program
It is a JUNGLE out there!

24. Bear in mind…
…Consumers purchase first based on
price, quality, and safety.
Hence, the certification label must
fulfill these needs, as well as ensure
environmental and social
responsibility.

25. 3. Be prepared to promote it
Use the marketable logo as a
differentiator
(many businesses don’t)
Be prepared to promote the
program that certifies you

26. Get started…
Link quality of product,
sustainability and consumer
experience
Integrate into conventional
marketing channels

27. Spotlight on
Sustainable Tourism
(SOST)
– e-journal promoting
best practices in
sustainable tourism
www.sostinternational.com

29. Thank you.
Kumud Sengupta
kumud@market-vision.com
Skype: kumud.s
Twitter: Kumudsengupta
www.sostinternational.com
Market Vision Research & Consulting Services
P.O. Box 32394, Dubai, UAE
Tel: +9714 3911241; Fax: +9714 3911245
Web: www.market-vision.com