Are greener hotels more expensive? It’s no longer the case

A first-of-its-kind report published by corporate lodging and payment technology platform HRS has shown that up to 30% of carbon emissions from an average business trip come from hotels – a notable increase from the 21% in pre-pandemic measurements.

HRS noted that the integration of advanced procurement and booking technologies, which include detailed sustainability metrics from hotels, has enabled corporations working with HRS to collectively reduce hotel-related carbon emissions by 27% in the first half of 2024.

While travel options offer limited opportunity for travellers to reduce emissions, the range of accommodation offerings can allow companies to encourage their staff to choose more sustainable hotel options.

Greener doesn’t mean costlier

Contrary to popular belief, more sustainable hotels don’t necessarily mean more expensive stays. HRS’ State of Sustainability report showed that the most energy-efficient hotels offered average daily rates that were 17% lower than their least energy-efficient counterparts.

This trend of greener, more affordable stays aligns with the increasing pressure on companies to lower emissions, especially as government regulations such as the EU’s Corporate Sustainability and Reporting Directive (CSRD)—set to impact over 50,000 companies by 2026—come into force. Companies must now balance the need for cost-effective lodging with the imperative to meet sustainability goals in their hotel procurement strategies.

Business travellers are booking sustainable hotels

The report also highlights that business travellers are increasingly opting for sustainable accommodations. Frequent travellers reduced emissions tied to their hotel choices by 14%, infrequent travellers by 32%, and one-off guests by 26%. This shift is expected to drive an additional 2.5 million room nights booked at sustainable hotels compared to their less efficient counterparts.