ESG Metric: GHG Scope 3 emissions
Ease of implementation: Medium
Suitable for: Business travelling workforce
Suggested functional lead: HR, Finance department
Summary
To decrease the Scope 3 hotel emissions, we suggest booking Airbnbs instead of hotels. Airbnbs use significantly less energy and waste less water as well having significant GHG emission reductions. We suggest switching from hotels to Airbnb or Ecobnb (the difference between the two is outlined below). Collaborate with the finance and logistics departments to update business travel arrangements, as well as creating a new policy. Ensure that employees booking travel are up to date on the new policy and have been given sufficient training for the most successful transition.
Background Information
On average, a night in a hotel emits 13.8kg CO2 which can be reduced through booking through Airbnb instead. Compared to hotels, Airbnb saves 61% and 89% in GHG emissions in North America and Europe respectively. In terms of energy usage, an Airbnb consumes between 63% and 78% less energy than hotels, mainly because Airbnbs use limited hallway lighting, elevators and HVAC systems. Additionally, it saves between 12-48% in water usage, which makes sense when considering daily washing of towels and linens in hotels.
To go above and beyond, we recommend booking through Ecobnb; a sustainable accommodation search engine aiming to respect nature, local economies, and communities when travelling. This option may not be suitable for all businesses as there is a smaller range of accommodation options (e.g. Only 2 apartments available in London). Nevertheless, one night saves an average of 8kg CO2, reducing emissions per night to 5.8kg CO2. This equates to an emission reduction of over 70% compared to hotels, which is higher than the average emissions saved by Airbnb in Europe.
Implementation Steps
Establish and identify hotel budget
Collaboration is required between the members of staff organising travel and the finance department to identify the current budget set aside for hotels. Review the budget and assess whether any agreements have been made between your business and specific hotels. Identify how individual Airbnb bookings would impact the budget and if changes need to be made. Generally, booking Airbnbs and Ecobnbs is cheaper than the average hotel in certain countries.
Terminate any agreements with hotels
If an agreement was signed between your business and a specific hotel or chain, ensure you terminate the agreement before transitioning to other accommodation options.
Set up new Corporate Travel Policy
Create a new corporate travel policy outlining the new booking process for booking business Airbnbs or Ecobnbs. See template here.
Collate new travel planning information
Collate information and design training material on the new method of booking accommodation. Emphasise the positive environmental impact of reducing or eliminating hotel nights and the need for the transition. Put together an information and guidance pack on how to book on Airbnb or Ecobnb.
Give training for logistics departments/assistants who arrange travel plans
Give training outlining the positive environmental impact sustainable hotels have. It can include the current hotel emissions, projected decrease, the two suggested apartment options and how to use their websites to make a booking. Send out the information packs for employees to refer back to later.
Monitor the travel arrangement to ensure Airbnbs or Ecobnbs are prioritised
Assign responsibility to a member of staff to monitor and track the number of Airbnb or Ecobnb nights versus hotel nights. If EcoBnBs are being booked, calculate the emission reduction by changing the emissions factor to 5.8kg CO2. Share the positive environmental initiative with the team.
Estimated Costs
Busbud, a travel company, analysed 220,000 Airbnbs worldwide and compared them to average hotel rates to assess which would be costlier. In Northern America, Airbnbs were more competitive in 7 of the 12 cities examined. In Toronto, one night in a hotel was 50% more expensive than an average Airbnb night, whilst in Austin, Airbnbs were 57% more expensive. In Europe, they found that Airbnb was cheaper in 8 out of the 9 major cities examined. The study concluded that costs are saved when booking Airbnbs rather than hotels, but the degree to which this is the case varies from city to city.