How to properly design sustainable tourism products?

Today, travelers say they are increasingly looking for sustainable products and services, but their buying behavior is not always consistent with their intentions. One World Economic Forum report provides a better understanding of this gap between intentions and action. Together, let's dissect the obstacles that aware consumers encounter and then explore solutions to create attractive offers.

According to Touriscope, tourism businesses that succeed in bringing sustainable offers to the market that meet consumers' needs in terms of price, availability and quality and whose purchasing process is facilitated will soon be the most competitive. Indeed, on a global scale, sustainable tourism products are far from being the norm, despite the growing interest of customers, especially from Quebec, Canada and Europe. In fact, consult the sources section at the end of the article to find out what they prioritize as sustainable tourism practices.

Obstacles in the planning and booking process

The World Economic Forum report used interviews with industry experts as well as studies on consumer behavior to classify the obstacles that explain the gap between intention and action into six categories. Initiatives that address more than one are the ones that should have the best results.

1- Limited availability : The lack of supply of sustainable products creates an issue of availability for aware individuals. To be competitive, sustainable alternatives must meet their specific needs and expectations.

2- The lack of knowledge: Despite the fact that sustainability is being talked about more than ever, people lack knowledge about the challenges of sustainable tourism, the good practices that they or businesses can adopt as well as about the existence of products and how they work (for example labels and certifications). They also sometimes have negative prejudices about their price, their level of quality, etc.

3- The lack of credibility: People want to be reassured about the credibility and verifiability of environmental claims. More transparency in communications, better certifications and label programs are needed to meet this demand.

4- Higher prices : Although this is not always the case, sustainable tourism is often perceived as being more expensive. Some people are willing to pay more, but that fluctuates. Price remains the first decision factor for many survey respondents.

5- The tedious shopping experience : People want buying processes that are simple and intuitive. They want to be able to easily identify sustainable offers and not have to make significant additional efforts to obtain information on the sustainability of the products and services they are interested in.

6- The lack of reward and recognition : Making visible the efforts of customers who make eco-friendly choices would encourage them to continue on this path. They want to feel rewarded physically and emotionally. This means facilitating sharing on social networks or providing a differentiated product (for example a green boarding pass).

The gap between what consumers say and what they actually do

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Strategies to close the gap and stimulate demand for sustainable products and services

The World Economic Forum recommends that businesses in the tourism and travel sector engage in a six-step process to overcome the obstacles outlined above.

1-Create sustainable offers. Investing in the development of new offers and refining existing ones to align with customer expectations. It is recommended to seek their opinion directly through surveys, satisfaction ratings, etc. Creating products can be done in partnership with suppliers, the distribution network, etc. Offers can be ancillary, package or integrated (see below).
Obstacle addressed: Limited availability

2-Facilitate the purchase through a frictionless experience: Providing information on the sustainability of an offer where customers already exist is the best way. Making it easier to compare alternatives is another tip.
Obstacles addressed: Tedious shopping experience, lack of knowledge

3-Improve the value proposition: Price remains a decisive criterion. A company can try to reduce the extra cost by reducing its margins, seeing it as an investment in its long-term success. It can also work with its suppliers and business partners to reduce the selling price. Another option; it can try to increase the value of its sustainable products in the eyes of customers by promoting their benefits for customers (e.g.: an electric snowmobile is quieter, which improves the customer experience in addition to being better for the environment).
Obstacle addressed: Higher price

4-Recognizing and rewarding customers: Through various forms of incentives, reward eco-responsible choices (discounts, loyalty cards, etc.). Inform about the positive impact of these choices for the environment and communities (avoided GHGs, $ in the local economy, etc.). Facilitate the promotion of these choices by customers on social networks. This can help to make the offer known to the public and improve the brand image.
Obstacles addressed: Lack of knowledge, higher price, lack of reward/recognition

5-Promote sustainable products and services: Inform customers about existing offers and the positive impact of choosing these alternatives, for example on the carbon footprint. This can be done in partnership with government authorities, associations and DMOs, etc. Also communicate about your successes with the industry to advance everyone.
Obstacles addressed: Lack of knowledge, limited availability

6-Improve transparency: The tourism industry needs to work in a coordinated manner to adopt the same indicators, methods and labels to facilitate the understanding and comparison of offers by customers. While some people prefer summary information, others look for more details to feel confident. It is therefore recommended to provide different levels of information on good practices, their results and how they are measured, etc.

The development cycle of sustainable products and services in tourism

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Sustainability: optional, lump-sum or integrated?

It is good to remember that sustainable offers can be of three types, depending on what best suits the business context and the maturity of the company in relation to sustainable development.

● Optional : Options or additions to the company's regular offering. These options are chosen voluntarily by customers at various stages of the customer journey (low carbon option on a menu, option to reduce room cleaning, carbon offsetting, etc.).

● Forfeited : An offer that includes by default sustainable services that could have been sold as an option. Customers have little flexibility to refuse sustainable service. For example, a tour operator may include carbon offsetting on all their trips, thus reducing the impression of paying extra.

● Integrated : An offer that has a central sustainable attribute and that cannot be detached from it. That's just how things are done in business: use of renewable energy, eco-efficient technologies, etc.

Pilot projects in design thinking mode!

The report concludes with a few calls to action, including the following: get started with pilot products and prototypes. At Touriscope, we strongly believe that innovation should be based on reliable information. With this report and the data collected by various surveys cited as sources below, our companies have everything in hand to go for it! Why not start with a pilot project, a short-term experience that will be improved through an approach based on design thinking and agility? To see if this approach is for you, check out our short article on the subject.

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