Sustainability in the Travel Industry: Optimism, Barriers, and Ways Forward

The call for corporations to integrate sustainability into their operations has grown increasingly louder in recent years, including in the travel industry. As an essential part of the global economy, the travel industry’s transformation is crucial to limit global heating and create progress for a sustainable tourism sector. In this light, the IT consulting and services company Amadeus shares insights on travel industry leaders’ ambitions, priorities, and challenges on ESG implementations in their businesses.

Travel Industry and Tourism Sector

The travel industry is one of the main drivers in the tourism sector. Yet, it is also one of the main contributors to the sector’s carbon emissions. In 2021, the World Travel & Tourism Council estimated that travel and tourism contributed 8-10% of global greenhouse gas emissions.

Globally, consumers have demanded that corporations include Environmental, Social, and Governance (ESG) transformation in their operations. Initiatives, frameworks, and pledges have been carried out within the sector, including the Glasgow Declaration signed during the COP25 in 2021. One of the declaration’s goals is to halve emissions by 2030 and reach net zero before 2050.

Optimism & Barriers

In a new research, Amadeus conducted research to gain insights on ESG ambitions, priorities, and challenges of key actors across the travel and tourism sector, including airlines, corporations, hotels, and travel sellers. The research surveyed 896 senior sustainability decision-makers from Australia, France, Germany, India, Mexico, Singapore, Spain, the UK, and the US.

In essence, the study reveals that there is optimism for a change. A good 89% of the ESG decision-makers believe that the travel industry can reach the net-zero target by 2050. Furthermore, 90% of the respondents have implemented strategies to achieve environmental sustainability objectives.

Despite the optimism, the study identified cost, lack of technology and knowledge, and C-suite support as barriers to delivering environmental, social, and governance initiatives. Additionally, the study shares that the ESG decision-makers recognized the importance of technology in achieving their sustainability objectives. In particular, Artificial Intelligence (AI) and Virtual Reality (VR) are cited as important due to their potential for efficiency, accessibility, and other operational improvements.

Towards Sustainable Tourism Sector

Businesses are one of the key actors in driving progress in sustainability. Therefore, ESG decision-makers must understand the importance of the transformation and work towards realizing goals and tackling challenges. The research concludes with the call for more access to technological solutions and industry collaborations to support the net zero goals and achieve a sustainable tourism sector.

“As the travel industry continues to navigate the complexity of delivering on ESG targets, I’m encouraged by the optimism and the commitments being put in place – from investments to strategic planning to technological solutions,” says Jackson Pek, SVP and Group General Counsel, Amadeus.

Kresentia Madina

Reporter at Green Network Asia | Website | + posts

Madina is the Assistant Manager of Stakeholder Engagement at Green Network Asia. She holds a bachelor’s degree in English Studies from Universitas Indonesia. As part of the GNA In-House Team, she supports the organization's multi-stakeholder engagement across international organizations, governments, businesses, civil society, and grassroots communities through digital publications, events, capacity building, and research.