In celebration of Earth Day, Travelport has released a new trend report about the state of sustainability in the travel industry. Together with two of its partners, Virgin Atlantic and Trainline, the global technology company shines a light on the sector’s current initiatives with a focus on creating a greener industry for tomorrow.
Among the key insights presented from the report include:
• Eco-Tourism: Environmentally friendly destinations are gaining popularity with tourists, with the ecotourism industry expected to grow by 15%, surpassing a valuation of $17 billion
• Greener Skies: Airlines are constantly seeking new ways to be greener, and with a 15-year history in the space, Virgin Atlantic is committed to achieving net zero by 2050, eliminating the airlines’ carbon emissions altogether
• The Rise of Rail: Train travel has become the hero of a global trend focused on the entirety of a journey. On average, Trainline customers save over 1.5 megatons of CO2 emissions each year by travelling via rail instead of road
“Being an environmentalist should not be a competitive advantage, but rather something that the entire travel industry embraces and believes in,” said Jason Clarke, Chief Commercial Officer – Travel Partners at Travelport. “In order for the sector to become truly sustainable, we must first inform customers about the sustainable choices that they have and make those easy to understand.
“Next, end-to-end green options must be integrated together in a seamless manner. Finally, we must provide the consumer with the ability to offset every mile they travel. It is crucial that the industry works together in order to ensure a greener path forward in the future.”
Eco-Friendly Destinations
While the travel industry and the world at large continues to recover from the COVID-19 pandemic, destinations that are viewed as environmentally friendly are gaining popularity with tourists. According to a report by ESOMAR-certified market research, the ecotourism industry is expected to grow by 15% compound annual growth rate (CAGR), surpassing a valuation of US$17 billion.
Trend data released from Travelport highlights how the following destinations have become more popular with travellers when compared to their 2019 rankings by booking volume:
• Norway: #24 (vs. #35 in 2019) Moving up 11 places in the ranking, Norway’s official slogan is “powered by nature”. Eight tourist destinations have been certified as sustainable by the International Sustainable Tourism Initiative, and the country has an audacious goal of becoming carbon neutral by 2030. Currently, they are one of Europe’s largest providers of hydropower, and they fuel 95% of Norway’s power from that source as well.
• Denmark: #40 (vs. #44 in 2019) Moving up 4 spots, Denmark ranks #1 on the Environmental Performance Index. The country’s capital, Copenhagen, is on track to be carbon neutral by 2025, which is impressive even in a city where 9 out of 10 people own a bike and use it to travel close to two kilometres per day.
• Ecuador: #44 (vs. #56 in 2019) The World Travel Awards named Ecuador the world’s leading green destination, and when compared to its popularity in 2019, the country has climbed 12 spots. As one of the most biodiverse destinations on the planet, Ecuador offers visitors access to some of the best eco-lodges in South America.
• Iceland: #69 (vs. #79 in 2019) Jumping 10 places in the rankings, Iceland is almost entirely powered by geo-thermal energy, which makes it one of the greenest countries in the world. Their renewable energy program alone is said to produce the largest amount of green energy per capita. Visitors often come for incredible views of the Northern Lights or to soak in the natural heated pools of Myvatn Nature Baths.
• Costa Rica: #46 (vs. #73 in 2019) With one of the biggest jumps on the list, Costa Rica’s popularity has increased 27 spots. As one of the most eco-friendly countries in the world, 93% of its electricity comes from renewable sources. This tropical and volcanic landscape is also fiercely protected to preserve the country’s diverse wildlife and ecology, which is said to hold around 5% of the planet’s total biodiversity. Tourists enjoy coast to coast cycling trips, exploring miles of rainforest, hiking volcanic craters, and relaxing on sandy beaches.
Greener Skies
Aviation is recognized as one of seven hard-to-abate sectors and accounts for 2-3% of global emissions worldwide (as of 2019). Most global airlines are working to become more sustainable and reduce carbon footprints. For example, Virgin Atlantic has recently announced its carbon targets to achieve net zero by 2050:
• By 2026: 15% gross reduction in CO2/RTK achieved through continued fleet transformation and operational efficiency
• By 2030: 15% net reduction in total CO2 emissions, including 10% of fuel sourced from sustainable aviation fuel
• By 2040: 40% net reduction in total CO2 emissions
Virgin Atlantic has already reduced its CO2/RTK by 17% (2019 vs 2007) as result of fleet modernization and operational efficiencies and beyond fleet transformation, is committed to working with new technology innovators to seed, support and adopt the breakthrough technologies capable of delivering change, such as Sustainable Aviation Fuel (SAF).
“We know that, as an airline, we have a pivotal role to play in protecting the planet, while connecting people across the globe and strengthening crucial trade connections,” said Luke Ervine, Head of Sustainability at Virgin Atlantic. “As we emerge from the COVID-19 pandemic, our focus on our carbon targets, paired with global collaboration across the sector and beyond, will help us reach net zero emissions by 2050. There is a long road ahead, but we’re committed to pioneering change and being transparent on our progress.”
The Rise of Rail
With a focus on shrinking the region’s carbon output, certain countries within the European Union are considering and/or implementing short-haul flight bans. Last year, France became the first to enact a national ban on short-haul domestic flights where a train journey of two and a half hours (or less) was an option. It speaks to a broader global trend which focuses on the entirety of a journey as opposed to packed, destination-centric itineraries.
• According to Trainline, the transport sector is the largest contributor to UK domestic greenhouse gas emissions, contributing 28% of UK domestic emissions in 2018. The main source of these emissions is the use of petrol and diesel in road transport. Similarly, in Europe, transport accounts for more than a fifth of greenhouse gas emissions, almost 72% of which come from road transport. Rail offers travelers a greener alternative, generating less than 1/20 of the CO2 emissions of air travel and approximately 1/7 of the CO2 emissions compared with car travel, per passenger.
“Awareness of the carbon footprint of travel is at an all-time high, and as business travel starts to resume in high numbers again, we have the ideal opportunity to encourage a significant change in travel habits,” said Liz Emmott, Global Distribution Director for Trainline Partner Solutions. “The decision is no longer about price alone, but also how travel is contributing to companies’ net-zero commitments.”