Why should I commit my time and money to introducing sustainable initiatives to my short-term rental business?

Why should I commit my time and money to introducing sustainable initiatives to my short-term rental business?

This is a question that many of us have asked ourselves in recent years. Of course, given that tourism contributes approximately 8% of global greenhouse gas emissions, there’s a clear environmental imperative for accommodation operators to reduce our impact.

However, we sometimes make the mistake of thinking that this means throwing cash and energy at sustainable tourism projects which may benefit future generations, but which won’t directly benefit us. We’re here to dispel that myth.

Environmental initiatives bring a wealth of advantages to your vacation rental business. We’re going to show you that sustainable property rentals see:

• lower running costs
• more 5-star reviews and word-of-mouth recommendations
• committed and repeat guests
• access to a new market of green travellers
• publicity that packs a punch

And that’s just a start. If you’re a short-term rental operator wondering about the benefits of sustainability to your business, then keep reading.

What does it mean to run a sustainable short-term rental business?

Running a truly environmentally friendly business means opting for holistic eco solutions. Take a step back and consider your business as a whole. What impact does it have on the environment and on local communities?

Sounds like a big job, right? That’s because, in its entirety, it is. Adopting a comprehensive approach, rather than reaching for quick-fix solutions, is crucial if you want to see results of which you can be proud.

However, you don’t have to do everything at once. It’s easy to feel overwhelmed when you’re starting out – as so many of us are – and to become paralysed. Just remember, even the biggest projects can only move forward one step at a time.

That’s why we’ve created the EnviroRental Sustainability Roadmap. It walks you through a multitude of steps you can take to start your sustainable journey, complete with strategies and tips for achieving each one.

So, why not make your very first step and check out your Roadmap today?

The advantages of a sustainable vacation rental business

Read on to discover precisely how sustainability enhances your business’s profit margins.

1. Attract a growing market of eco-conscious travellers 

74% of travellers believe they must act now and make more sustainable choices to save the planet (up from 66% in 2022). That’s a significant, and steadily growing, portion of the market that wants more responsible stays and experiences. 

If you’re not catering to this desire, then you’re increasingly likely to lose those guests to rental properties that have sustainable initiatives in place. By the same logic, if you are catering to this desire, then you immediately gain a competitive edge over similar properties in your area.

As if that weren’t enough to get you thinking green, check out this next statistic: 78% of Americans would actually spend more money to access an eco-friendly property. Investing money in sustainable changes makes you a premium property, and your prices can reflect this shift.

2. Save money on your energy bills 

A more efficient property is a cheaper property. Using less energy and less water is great for the environment, and also great for your bills. This is a benefit we can all appreciate at a time when energy costs are soaring (a reality that looks likely to become the norm if we maintain our dependence on non-renewable energy sources).

There’s some simple technology that you can invest in to ensure that your property isn’t consuming any more resources than necessary, without compromising on the comfort of your guests’ stay:

• Smart thermostats allow you to control your heating from an app on your phone or tablet. This means you can easily control when, and for how long, each room is heated. Many smart thermostats even give you insights into how you can save more energy. For example, a Nest smart thermostat could save you up to 12% on your heating bills, and 15% on your cooling bills.

• Smart lighting allows you to remotely control the lights on your property. This means that if someone accidentally leaves a light on, they can switch it off from another room or even from outside the property. You can also schedule lights to turn on and off, which benefits both your energy efficiency and your security.

• Eco shower heads reduce water consumption without making your shower feel less powerful or luxurious.

Each of these solutions helps you to run a more environmentally friendly business, whilst simultaneously saving money on your bills. It’s a win-win!

3. Make the OTAs work for you

The OTAs themselves are catching onto travellers’ ever-growing desire to roam more responsibly. They’ve introduced a series of badges and filters that highlight green accommodation to eco-conscious guests.

Platforms like Booking.com enhance the visibility of certified properties by adding distinct labels and providing a filter option. This allows guests interested in sustainable stays to spot and choose certified accommodations easily.

In 2024, Booking.com is further strengthening its badge by making it exclusively available to properties with external accreditations, such as Sustonica. To ensure you’re prepared to meet OTA requirements, plan to get your sustainability efforts verified and certified by an independent, third-party body soon.

Airbnb now enables guests to filter their searches to find properties equipped with electric vehicle (EV) chargers. There are even OTAs whose primary focus is sustainability: EcoBnB specifically serves travellers who want to find green accommodation.

Taking advantage of these badges and filters means that your property can be found more easily by those guests for whom sustainability is a priority. Green features make it easier for your target guest to find you.

4. Develop your unique short-term rental brand

With more than 6 million listings on Airbnb alone, developing a robust short-term rental business is all about standing out from the crowd. By spotlighting your eco-initiatives on social media, on your website, and in your guest communications, you showcase a vacation rental brand that’s driven by clear values. 

We all know about greenwashing – when businesses over-emphasise minor sustainable changes for marketing purposes – but we’re less familiar with “greenhushing”. This is when businesses don’t talk enough about the sincere sustainable changes they’re making.

It’s crucial that we continue to talk openly about the actions we’re taking. Being vocal about what you’re doing attracts new guests to your rental property. It also inspires other short-term rental operators to follow your lead.

This is a brand that guests feel good about staying with, and employees feel good about working with. And if you can make the people on whom your business depends feel good, you’re already well on your way to long-term success.

5. See more repeat guest

Adopting more sustainability measures at your property results in higher guest retention and lower acquisition expenses.

Take Casal dei Fichi, for example. A series of sustainable holiday rental apartments set in the rolling Italian countryside see a whopping 60 per cent return rate! In part, they put this down to the fact that their eco-philosophy makes guests feel good about staying with them.

By boosting your return rate, sustainable initiatives also support your direct booking strategy and reduce your dependence on online travel agencies (OTAs) such as Airbnb or Vrbo. Take a look at our case studies to discover the different ways sustainability has benefitted short-term rental pros.

6. Earn more 5-star reviews

The criteria for earning 5-star reviews from travellers have evolved. Today, alongside the traditional expectations of comfort, cleanliness, and convenience, sustainability efforts are increasingly valued. Nail the green guest experience, and you’ll see:

• word-of-mouth referrals
• stellar reviews
• repeat and returning guests

Guests appreciate hosts who align with their personal values. Imagine the smile on a guest who opposes animal cruelty when they find that all the bathroom toiletries are cruelty-free. This thoughtful touch enhances their experience and deepens their connection with the accommodation.

Leaving a 5-star review then becomes more than just a gesture of appreciation—it’s a powerful endorsement that helps your property distinguish itself in a fiercely competitive market.

7. Amplify your vacation rental brand with meaningful publicity

Embedding environmental sustainability into your short-term rental business is a great opportunity to attract publicity and get your brand out there. Sustainability efforts are a consistently hot topic, and many journalists are eager to report on the ways in which accommodation operators are responding to the climate crisis. It benefits you and the industry as a whole.

Once you’ve found your feet, there are a growing number of sustainable short-term rental awards that you can enter. Winning or even being shortlisted for any of these awards marks you out to potential guests as being seriously committed to your environmental responsibilities. You’ll receive a digital badge, which you can place on your website, in your listings, and in your email footer!

8. Attract and retain your staff

Today’s employees are looking for more than just a paycheck; they want to work for companies that reflect their own values, especially when it comes to sustainability. 

A strong commitment to sustainability can transform your workplace and attract employees who are committed to making a difference. Keeping these employees engaged and loyal is easier when they feel aligned with your company’s values, as evidenced by a Consumer Intelligence Series survey on ESG. It found that 86% of employees prefer employers who care about the issues they care about.

Altido by Joivy effectively engages its employees in significant and enjoyable sustainability initiatives. They have formed a group known as the “Envirovengers,”  which has become a source of great inspiration for many.

9. Stay ahead of short-term rental regulation

Local and national governments across the world are introducing regulations aimed at creating a more sustainable short-term rental industry.

Any new regulations could force you to make significant changes to your property within a limited time-frame. For example, if the regulator in your area introduces rules about the energy-efficiency of rental properties, you may have to make costly changes to a deadline.

However, starting to make sustainable changes now, on your own terms and your own timeline, future-proofs your business against requirements introduced in the years to come.

10. Preserve the planet for your business

Our businesses are vulnerable to the same environmental threats as any other. Extreme weather events, disruptions to supply chains, and rising costs of resources are only the tip of the iceberg. Yet, they’re enough to do serious physical and financial damage to your short-term rental.

If you want to be able to depend on a robust, enduring business, then we need to preserve the conditions which allow for this. Preventing environmental catastrophe is crucial for the stability of our economic and social systems. In order to achieve this, every individual, business, and country needs to halve their carbon emissions by 2030. That’s just seven years from now.

The simple fact is, if you plan to be still running your vacation rental business in ten, twenty, or thirty years’ time, now is the moment to act. Be a responsible business owner by starting your journey towards reduced emissions today.

Where to start on your sustainable journey

So, we’ve established that a sustainable ethos brings a multitude of benefits to your vacation rental business. But where to start?

The key thing to remember is that you don’t have to do this all at once. Small, consistent steps towards genuine environmentalism are much more valuable than one-off grand gestures.

So, here’s one thing you can do today to start your journey towards environmental sustainability.

Explore your EnviroRental Sustainability Roadmap

For a step-by-step guide to eco-friendly initiatives within your short-term rental business, check out your free Roadmap today. Short-term rental sustainability experts walk you through clear, actionable strategies for making your business greener and more responsible.

No vague, sweeping statements. No pressurising expectations. Just comprehensible, accessible steps to help you get started on your sustainability journey.