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ABTA and the Business Case for Sustainability Nikki White Head of Destinations and Sustainability June 2011.

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Presentation on theme: "ABTA and the Business Case for Sustainability Nikki White Head of Destinations and Sustainability June 2011."— Presentation transcript:

1 ABTA and the Business Case for Sustainability Nikki White Head of Destinations and Sustainability June 2011

2 In this session: 1. About ABTA 2.The role of the trade association in Sustainability 3.The Business Case and Sustainability 4.What has the recession meant for sustainability 5.Case Studies – ABTA approach in action

3 The Travel Association – 60 years this year Represents over 5,000 travel agencies and more than 900 tour operators Main aims: - to maintain high standards of trading practice for the benefit of its Members, the travel industry at large, and the consumers that they serve - to create as favourable a business climate as possible for its Members ABTA – the Travel Association

4 Chief Executive Mark Tanzer Communications Destinations & Sustainability Public Affairs Member & Legal Services Finance Planning, Development & Resources


6 The role of the Trade Association

7 Awareness/ Information Basic foundations Joint Initiatives Policy/Lobbying Industry voice Implementation The sustainability journey

8 Awareness/ Information Policy/Lobbying Industry voice Implementation Basic foundations Joint Initiatives

9 An approach for all

10  Driven by reporting as it’s a tangible measurement  Retrofitting a sustainability approach into an organisation Reporting Business in general

11 Recognising that sustainability is critical for the continued success of the Tourism Industry - ABTA will provide leadership for our members to develop sustainable businesses.  To support our members in providing a long term sustainable tourism industry for the benefit of holiday makers and destination communities. Using our role to encourage our members to be socially and economically viable whilst encouraging respect for the limitations on the destinations we visit and the environments we work in The vision

12 Business Case: why do we care? - In 2011, talking about the business case may appear to be a backwards step - Can still be a useful engagement tool - Bottom line / project approach as a catalyst towards fully embedded sustainability

13 Economics: impacting on the bottom line: - Sustainability is not just the ethical thing to do – it makes excellent business sense: -TUI Travel Plc – 40 FTEs working on sustainability -Energy saving measures = £8 million in the last 2 years -Scandic Hotels in Scandanavia: savings of £9 million on energy, £2.2 million on water and £4 million on waste over a ten year period across the group

14 Climate Change Source: Climatic Research Unit, University of East Anglia

15 Recession and the growth in demand for Ethical Businesses A the start of the recession, doomsday style predictions were made for sustainability – these haven’t MATERIALISED Sustainability reporting has grown year-on-year despite the recession according to PWC Risk management and legislative compliance were & still are key engagement factors Current trends – it’s time to get creative with sustainable tourism Business case for sustainability engagement is stronger than ever before

16 Recession in recap 2010: A challenging year

17 A changed market place Website Selection Criteria:

18 A changed market place Reasons to book offline:

19 A changed market place Consumer trends: Board Basis

20 Current market outlook: Consumers – spending their holiday funds more conscientiously Market = price driven. Price a key motivator for on & offline bookings Growth of A.I board basis reflects the need for customers to control costs Disposable income – not set to increase until 2014 and therefore, trends look likely to continue for the next couple of years at least Exchange rates – playing a key factor in destination selection. Value for money is key. Egypt, Tunisia, Turkey, Morocco and other destinations outside the Euro-zone have seen large growth.

21 Recession as a sustainability catalyst?  Corporate Outlook:  Market declines mean bottom line core area of concern  Sound sustainability management = reduced operational costs. The business case is there  Risk aversion through sustainability & brand loyalty? (Top of the list for online booking selection. BP Gulf of Mexico Oil crisis saw shares drop 6.6% & 12% drop at lowest point)  Consumer Opinion:  Value for money and price are key  Sustainability can be used to ADD VALUE to the tourism product  Sustainability doesn’t have cost the consumer  Consumer – now expecting sustainable tourism (but the responsibility rests with you / 47% on ABTA Consumer trends)

22 Our future focus Rounding off the sustainability journey at the destination level Building on our partnership approach with the supply chain = The Travelife Sustainability System Online system to help accommodation businesses manage their sustainability impacts Demonstrating the tangible benefits of sustainability engagement & why this is all the more important during times of recession Developing ‘on-trend’ approaches to sustainability engagement with high customer engagement factors

23 Case Studies – Sustainability in action Destination Partnerships – rounding off the sustainability journey Egypt & Dominican Republic: Government level commitment and resourcing of sustainable development plans Marrying destination stakeholders – removing “acting in isolation” Scaling up impacts on a destination basis Support implementation process at policy level e.g. renewable energy innovation Incentives for acting sustainably supported with appropriate infrastructure Embedding Sustainability into destination development plans

24 Case Studies Retail Engagement – pulling sustainability and commercial awareness together 1.Managing internal impacts (energy, carbon, solid waste) 2.Generating customer demand (using sustainability as a USP) 3.Businesses in the local and global community (philanthropy)

25 Unique three-way partnership between accommodation providers, tour operators and Travelife to manage and promote sustainability in the supply chain. Key Features Travelife Environmental and Social audit Centralised shared database for Tour operators Collaboration between Tour Operators using one brand “Travelife” Bronze, Silver, Gold Awards (Award plaques) Continual Improvement Programme Marketing opportunities via Hotel and Tour Operators Brochures/Websites Travelife Collection Multi-stakeholder advisory and consultation process Case Studies – Sustainability in action

26 Fully Embedded – Day to Day Business Solo Activities / Project Approach Destination Partnerships Retail Strategy

27 Conclusions -Role of the trade association is essential for improving industry performance – it must move all along the sustainability journey -The recession has changed the sustainability market place – more of a focus now on economic costs at source of delaying action on key sustainability issues (climate change etc.) -Progress needs to be made at the destination as well as supply chain levels for sustainability to be really achieved -The industry has moved on from a project approach to one of fully embedded sustainability whilst improving effectiveness of outputs

28 Thank you

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