Actions, not words, will make sustainability work for the short-term rental industry

Devastating floods in Valencia, Spain; wildfires and extreme heat in Greece; hurricanes destroying coastal towns in North America — climate change is causing horrific damage and loss of human life now, and it’s happening not just in remote areas but popular tourist destinations too.

While no event can be completely attributed to climate change, science shows us that rising global temperatures make these disasters more frequent and much more deadly. So why is the tourist industry so complacent about taking action to make tourism part of the climate solution, before it’s too late? 

At present, tourism accounts for approximately 9% of global greenhouse gas emissions, but, so far, it has been slow to take accountability for its part and enact the change we need. In the short-term rental sector, we’re quick to point at aviation or cruising as the culprits, without acknowledging that we have a big part to play too.

When I speak to people at conferences, on LinkedIn, or on webinars, everyone is enthusiastic about fighting climate change — as long as they don’t have to do it themselves. Compliments abound for those taking action on climate change, but they aren’t a substitute for active participation and leadership.

EnviroRental grew out of my asking property managers at a conference two years ago how strategically important sustainability is to our industry. The overwhelming majority, 95%, agreed. But rarely any had taken action and it remains tough today to encourage real sustainability action.

The conundrum is how to help more leaders move from intention to action or, to put it another way, close the gap between belief and behavior. The ability to believe in change while you’re at a conference, or even while watching the news out of COP29, but doing nothing to make a difference, is a kind of cognitive dissonance. In sustainability, this problem is almost universal. What the industry needs is leaders who are willing to take action now and show others the way forward. This is how I believe we can do that.

Putting sustainability at the center of strategy

Most short-term rental companies aren’t yet directly affected by climate change, so it isn’t a top priority — or at least so they think. But the effects are there already: the rising price of electricity and gas; extreme temperatures putting off guests; and even local regulations attempting to combat overtourism which unfairly target vacation rentals. 

Little by little, every area of every business will be impacted by the climate crisis, from increasing costs to staffing shortages and dropping revenues. We need more leaders to connect the dots and see that sustainability needs to be central to strategy for businesses to succeed, or even just survive. 

The business case for sustainability

Many leaders just see sustainability as a cost center, but even small changes can make a huge impact on their business. Aside from obvious benefits like appealing to sustainability-conscious guests, better reviews, and lower running costs, there’s plenty of evidence that becoming a more sustainable company is good for business. 

• Reach the growing market of eco-conscious travelers— According to Booking.com’s 2023 Sustainable Travel Report, 74% of travelers believe they must act now and make more sustainable choices to save the planet (up from 66% in 2022). That’s a significant, and steadily growing, portion of the market that wants more responsible stays and experiences. 
• Save energy — Smart thermostats can save as much as 12% on heating bills and 15% on cooling bills, while flow-reducing showerheads can reduce water consumption without making guests feel uncomfortable.
• Attract more repeat guests — Repeat guests are welcomed by property managers, as they can be directed to the manager’s own website, saving on marketing and OTA fees.
• Retain staff — Today’s employees are looking for more than just a paycheck; they want to work for companies that reflect their own values, especially when it comes to sustainability. A strong commitment to sustainability can transform a workplace and attract employees who are committed to making a difference. Keeping these employees engaged and loyal is easier when they feel aligned with your company’s values, as evidenced by a Consumer Intelligence Series survey on ESG (Environmental, Social & Governance). It found that 86% of employees prefer employers who care about the issues they care about.

Move with the changing landscape 

From specific accreditations to traveler awareness, change is happening and those who don’t join the wave will be left behind. 

I’m not arguing that change isn’t happening. Some key companies are doing really creative and important work on ESG — such as Host & Stay and Travel Chapter — but they are truly in the minority. Most organizations pay lip service to the topic or are not engaging at all. 

This is simply not good enough and they do a disservice to the future prosperity of our industry and our communities.

We don’t need just a few people tackling sustainability perfectly, we need everyone involved doing it imperfectly. In this way, we can create meaningful change and best move the needle to maximum effect.

What would make a difference?

• Each business allocates just 0.1% of their annual profits to sustainability: even a small amount of each company’s profits dedicated to sustainability projects and the green transition in their own business can make a huge difference.
• Each CEO dedicates just one working day of the year to building sustainability in our industry: true leaders lead by example. A day volunteering, learning or sharing experiences can be enough to inspire others to follow.
• Each company appoints a sustainability manager to drive change: a specialist can focus on sustainability, even part-time, within the business and influence their stakeholders to help too, from clients and suppliers to their own colleagues. Where this is already happening, we see really creative initiatives that are making amazing waves of change.

Embedding sustainability in the sector won’t work when left to a small minority of passionate people, however hard they work. It will take the whole community, and it will require funds and support from directors to help great ideas come to fruition.

Change can happen quickly, but usually it comes through smaller incremental steps. We need action across the industry — but first, we need leadership to show others what the forerunners are doing, so that they can follow suit.