Promoting sustainability to our customers

"Of course I would like to think that my holiday was environmentally friendly and that I was helping the locals where I travel to, but I don’t want to pay more for my holiday." Customer, 2010ⁱⁱⁱ

This is a fairly typical quote from an extensive piece of consumer research we commissioned this year in partnership with the Global Nature Fund. Nearly 4,000 people were interviewed online in eight of our key source markets, including the United Kingdom, Germany, France, Belgium, the Netherlands, Sweden, Russia and the United States.

“Customers want to do the right thing but not if it costs them, or is inconvenient for them,” says Stephan Krings, Head of Strategic Marketing and Corporate Branding at TUI Travel.

This finding echoes previous research that found sustainability is not a primary driver in the booking decision. When ranked against price, value for money, destination, service, brand, facilities, the impacts on environment and community were very much secondary. Yet the issue is not unimportant.

"I care about the environment and recycle waste and act responsibly. However, when I go on holiday I like to relax and not worry constantly about such things.’’ Customer, 2010ⁱⁱⁱ

Consumers suggested that they expect sustainability issues to be addressed by the company they buy from, just as long as they don’t have to bother with it. Nevertheless there were also signs that more sustainable holidays are both desirable and aspirational:

• One in two would be willing to book a more sustainable holiday if available

• Two in three would change their behaviour on holiday to help the environment

• Two in three want their holiday company to be clear about what they do to make their holidays more sustainable.

So there seems to be an appetite for sustainability. However, Stephan Krings warns that: “Unfortunately we have to take this finding with a pinch of salt. There is what is known as a “behaviour/action gap” commonly found in research into ethical or sustainable shopping: consumers say they want to, but they don’t.”

The question is, why is there that gap? Certainly issues of price and convenience play a part. As a company committed to creating and satisfying consumer demand for sustainable holidays, we want to bridge that gap as much as we can. Not intent to follow the market and wait for the consumer signals to get stronger; we want to lead the market – which of course involves both risks and potential rewards. And that is why the research is so important to us: we need to understand people’s interests and concerns so we can engage them in the right ways.

How is TUI Travel engaging consumers?

"I go on holiday once a year and expect my holiday company to think about the environment I am travelling to, working with care and consideration, not just for the environment but also about the welfare of the people in the countries I choose to travel to’’. Customer, 2010ⁱⁱⁱ

Music to our ears. In the 2009/10 financial year, 95% of our businesses were communicating with customers on sustainable development issuesⁱ (85% in 2008/09). TUI UK & Ireland unveiled a new sustainability programme to increase customer engagement in sustainability for both Thomson and First Choice brands. Holidays Forever outlines the company’s commitment to sustainability, bringing together numerous initiatives under one name and presenting the sustainable development strategy through 20 commitments.

Thomson and First Choice launched dedicated microsites to raise awareness of sustainable tourism with customers, helping them understand the issues, how the company is addressing them, and how customers can make a difference. See www.holidaysforever.co.uk/thomson and www.holidaysforever.co.uk/firstchoice for more information.

"I would like to have more information about how my holiday impacts both good and bad, on local communities’’ Customer 2010ⁱⁱⁱ

We actively promote more sustainable products and are making it easier for holidaymakers to choose a greener holiday. Three-quarters of TUI Travel businesses are now highlighting greener, fairer holidays to customersⁱ. Many of our businesses are using the Travelife Sustainability System and feature Travelife-awarded properties in brochures and online. For example, TUI Nederland now offers more than 300 greener hotels in their programme (hotels which have achieved sustainability certifications such as Travelife awards, ISO 14001 and the EU Flower eco label).

We have also launched dedicated brochures. In 2009, First Choice published Greener Holidays, the first brochure in the UK market to promote more sustainable mainstream holidays. It features only those hotels that have earned a Travelife award for their commitment to the environment, their employees and the local community; and provides an easy way for customers to make a more sustainable choice (www.firstchoice.co.uk/greener-holidays). In 2010, Thomson launched its own Greener Holidays brochure. Travelbound also launched a Geography, Environment and Sustainability brochure in 2010. www.travelbound.co.uk

"I think we should all do everything possible to look after our environment.’’ Customer, 2010ⁱⁱⁱ

Engaging customers throughout the customer journey is a key element of our strategy. At the point of booking TUI UK & Ireland and UK Specialist Holidays Group customers are asked to donate to our World Care Fund customer contribution scheme. Funds are matched by the company and put towards projects that help mitigate the impact holidaymakers have on the environment, and look after communities around the world. This is facilitated by our two partners, the Travel Foundation and ClimateCare.

To date more than £7 million has been raised and average customer uptake at TUI UK & Ireland and the UK Specialist Holidays Group is 30%.

In 2009/10, 83% of our businesses offered customers the opportunity to offset their travel carbon emissionsⁱ (74% in 2008/09). In 2011, TUI Deutschland started including the CO2 information from the flight element of their holiday in brochures, and TUI UK & Ireland aim to start doing this online in 2011.

Working collaboratively

While there are commercial imperatives to engage consumers in sustainability issues, we do also work together with our industry partners because we can raise customer awareness even further. We support ‘Make holidays greener week’, launched by the Travel Foundation. The campaign aims to engage consumers with the idea of ‘greener’ holidays, which help to protect the environment and benefit local people in tourism destinations. www.makeholidaysgreener.org.uk

This whole area is both a challenge and an opportunity for TUI Travel. If we can get the offer right we can secure a higher value market and gain market share as customer expectations harden over time. We will also be able to play a significant role in helping to mainstream sustainable tourism.

For references, see references PDF.