By Georgina Davies, Communications Manager, The Travel Foundation

It’s widely acknowledged that travellers say they care about sustainability, but few are willing to pay more for it. This well-known “say-do gap” in visitor behaviour might, at first glance, appear to undermine the business case for sustainability. If customers aren’t willing to choose sustainability over price, why invest? But this reasoning doesn’t hold up to scrutiny because it views sustainability solely through the narrow lens of consumer transactions. The reality is far more compelling.

The business case goes far beyond consumer demand

Consumer behaviour is important, but it’s just one piece of the puzzle. In fact, the strongest commercial rationale for sustainability lies in how it mitigates risk, builds resilience, and unlocks new opportunities. For tourism destinations, the question isn’t “will customers pay more for it?”, but “can we afford not to act?”  

In the coming years, a destination’s approach to environmental and social responsibility will shape its future, influencing its social licence to operate, investment opportunities, access to public funding, plus the ability to attract and retain talent and meet visitor expectations.  

Sustainability is becoming a hygiene factor

Whilst many travellers may not pay more for an environmentally friendly and socially responsible option, there’s increasing evidence that they are likely be put off if your product is clearly damaging, or if tokenistic ‘greenwashing’ is involved. Taking responsibility for environmental and social impacts is now a baseline expectation. When those expectations aren’t met, when tourism is visibly harmful, exploitative, or careless, it risks damaging reputations, eroding trust, and turning travellers away.

A 2024 study on greenwashing in the hotel industry found that when guests suspect or detect greenwashing, such as promoting towel reuse to conserve water, whilst ignoring other, larger impacts, it undermines their willingness to stay and pay more. This can, however, be counteracted by genuine environmentally friendly practices and ensuring clear communication.

When destinations and businesses get it right, there can be a powerful knock-on effect on brand affinity and loyalty. Integrating low-carbon and positive impact into product design may not clinch every sale, but it builds deeper, longer-term value and enhances guest experience. Good examples of this approach can be found in new MAKE TRAVEL MATTER Experiences™, introduced through a partnership between VisitScotland and the Travel Corporation, supported by the Travel Foundation, which focus on environmental protection, rewilding, and sustainable food. Three were co-created with providers like the Arbikie Distillery and Lunan Bay Communities Partnership, where visits help to fund conservation work.

When visitors or customers feel they’re part of something meaningful, and connect with the values of the place, they come back. This is true for staff too. A commitment to sustainability can support staff recruitment, morale, and productivity. This positive impact was highlighted by many of the businesses that the Travel Foundation and Green Traveller interviewed for VisitEngland’s ‘Better Business’ guide last year.  As Patrick Langmaid, owner of Mother Ivey’s Bay Holiday Park in Cornwall, UK put it: “People feel valued and they actually want to do as much as they can to help guests. And that feeds through to a better guest experience and … better repeat bookings and recommendations”.

Social licence to operate

Caring about and addressing impacts on a place is also a vital pillar for tourism’s social licence to operate. Tourism depends on the goodwill of host communities. Without it the visitor experience suffers, or tourists stay away. This year, there have again been many examples of destinations, as diverse as Mallorca and Mexico City, where residents have protested against overtourism, poor behaviour, impacts on quality of life, or perceived lack of benefit. Efforts that centre local communities in tourism planning can help create jobs, protect culture, improve quality of life, and build that all-important social licence.

Investor confidence and access to funding 

Environmental, social, and governance (ESG) performance is now a key metric for investors. Lenders and insurers are factoring in climate risk and reputational exposure. Falling short can lead to higher borrowing costs, limited access to capital, or reduced insurance cover.

Meanwhile, development banks, national governments and city councils are increasingly tying grants, subsidies, and procurement contracts to sustainability criteria. Those who demonstrate progress and alignment are better placed to secure funding and support. For example, the Sierra Nevada equitable access grant program funds climate-resilient and inclusive tourism infrastructure.

Alongside this funding incentive, governments are steadily tightening the net with business regulations, from emissions disclosure to biodiversity protection and supply chain due diligence. Staying ahead of these changes, through lower carbon products that benefit local communities, reduces compliance risk, avoids disruption, and late-stage adaptation costs.

Inaction is expensive

Ignoring sustainability carries tangible financial risk, including operational disruption due to extreme weather, fines and penalties, and loss of community support. Add to that loss of market access as major travel platforms, tour operators and corporate buyers increasingly integrate sustainability and climate risk into their procurement decisions. One recent example is Hotel chain Accor, which scrapped plans to open two hotels on the Greek island of Mykonos due to risks around water shortages and fire hazards. Increasingly, destinations and suppliers that don’t meet minimum standards risk being dropped from preferred lists, missing out on product placement and future commercial partnerships.

Meanwhile, every moment that tourism businesses delay in making energy, waste, and water savings is costing them. Another of VisitEngland’s Better Business case studies, Mill on the Brue, an activity centre in Somerset, England, highlighted the value of savings, often from easy to implement initiatives, to their profitability and more. Matt Rawlingson-Plant, Director said, “I think there’s more than just cost savings; if you are looking after the environment, you’re looking after your customers and you’re looking after the whole site, which is nurturing – then what a lovely place to work in, and what a lovely place to visit”.

Climate change threatens infrastructure, supply chains, and long-term viability, whilst reputational damage and lost market access impacts the bottom line. The longer tourism businesses and destinations delay action, the harder and more expensive it becomes to catch up and the more exposed they are to risk.

Sustainability as business strategy, not branding

A sustainable business model shouldn’t be viewed as a marketing add-on or compliance burden. The strongest performers in the sector, those most likely to be seen as credible and relevant, integrate sustainability into business strategy - across operations, products, staff, partnerships, and finance. It’s not about ticking boxes. It’s about future-proofing and recognising that “business as usual” is no longer a safe bet.

The business case for sustainability is accelerating and plain to see. But it requires a shift in thinking. Sustainability should be seen as a strategic imperative, with implications for risk management, reputation, resilience, and long-term growth. We’ve been talking about it for decades, and it’s time for everyone involved in destination stewardship to drive action and investment. Yes, the say–do gap exists. But don’t let it distract you. The real drivers are opportunity and risk.