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Nikki White Head of Sustainability - ABTA

Nikki White Head of Sustainability - ABTA. Commercial Sustainability Ensuring success in a changing world. Commercial Sustainability – Ensuring Success in a changing world Nikki White, Head of Destinations and Sustainability, ABTA. The travel industry’s journey. Where we started.

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Nikki White Head of Sustainability - ABTA

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  1. Nikki WhiteHead of Sustainability - ABTA Commercial Sustainability Ensuring success in a changing world

  2. Commercial Sustainability – Ensuring Success in a changing worldNikki White, Head of Destinations and Sustainability,ABTA

  3. The travel industry’s journey Where we started RIGHT THING TO DO BUSINESS CRITICAL Where we are today

  4. Business Case • In 2012, talking about the business case appears to be a backwards step • Can still be a useful engagement tool • Bottom line / project approaches as a catalyst towards fully embedded sustainability • Modern developments which strengthen the business case – from triple to quadruple back to singular

  5. An integrated model

  6. Impacting the Bottom Line • Key figures now exist: • TUI Travel Plc – 40 FTEs working on sustainability • Energy saving measures = £8 million in the last 2 years • Scandic Hotels in Scandanavia: • Savings of £9 million on energy • £2.2 million on water • £4 million on waste • Over a ten year period across the group • Windsor Atlantica Brazil • 33% reduction in waste production and disposal costs • Established educational institution providing free education in hospitality skill and delivering local employment and high quality employees • Over 90% retention of staff

  7. Sustainability in Action • Destination Partnerships – rounding off the sustainability journey • Egypt, Turkey, Thailand & Dominican Republic: Government level commitment and resourcing of sustainable development plans • Marrying destination stakeholders – removing “acting in isolation” • Support implementation process at policy level e.g. renewable energy innovation • Incentives for acting sustainably supported with appropriate infrastructure • Embedding Sustainability into development plans

  8. Retail Engagement • Pulling sustainability and commercial awareness together • Managing internal impacts (energy, carbon, solid waste) • Generating customer demand (using sustainability as a USP) • Businesses in the local and global community (philanthropy)

  9. What came first – the chicken or the egg? • A common response from industry: “Customers aren’t asking for sustainability, so it’s not currently a priority”. • This thinking highlights challenges with long-term thinking • A missed opportunity – can we stimulate demand? • Look at innovation from outside the tourism sector – it was often industries that drove demand not consumers

  10. The need for forward thinking DESTINATION EXAMPLES: • Turkey: by 2030, Turkey using all of its available ground water each year • Egypt: solar energy engagement across less than 5% of supply chain. At the same time, there are rising energy costs and infrequent demand • WIDER EXAMPLES: • Increasing population • Ageing population • Increasing urbanisation • Supply vs. demand challenges Source: BITC

  11. The mass market customer journey High Current position AWARENESS Start point Low High INFLUENCE ON PURCHASING

  12. What matters to customers? • ABTA Consumer Research 2012 • Safe and secure accommodation • Financial protection • ATOL Protection • Value • Lowest Price • ABTA / Responsible Skiing Winter Research • Snow record • Closeness to ski runs • Beauty and scenery of resort • Artificial snow coverage • A range of village restaurants with local specialities Customers in general are looking for better experiences and a greater sense of value from their holidays

  13. Putting the sustainability value into holidays • Key priority areas: • Customer Experiences • Sustainability as a way to differentiate the both customer experience but also the buying experience. • 2. Customer service Levels • Direct correlation between Travelife hotels and better customer satisfaction results.

  14. Catching up the consumer • Industry is well placed to play to strong consumer wants and promote the sustainability message. • Challenge current thinking on sales dialogue using research motivators and de-motivators as a starting point • Sustainability – has a wider meaning than when we started. Now link to business sense- encompasses experiences, safety, value and satisfaction.

  15. QUESTIONS Commercial Sustainability Ensuring success in a changing world

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