The International Air Transport Association (IATA) and the World Sustainable Hospitality Alliance (WSHA) have agreed to enhance sustainability cooperation between the aviation and hospitality sectors with an initial focus on hotel accommodation procurement by airlines. The partnership will develop guidance to support airlines in assessing hotel suppliers against environmental, social. Governance (ESG) criteria and promote more responsible practices across the travel sector.
The MoU was signed at the World Sustainability Symposium in recognition of the importance of sustainability issues for both sectors, and the benefits to be gained by closer interaction between them. The collaboration will enable sustainability performance to be enhanced through improved supplier assessments in the travel value chain.
Aligning Sustainability Practices of Airlines and Hotels
Airlines and hotels each have similar sustainability issues to address, ranging from responsible procurement, environmental practices, and social dimensions. There can be challenges to compare hotels on common criteria as there are different ways to measure and report performance, but the collaboration will connect aviation buying priorities with the expertise of the hospitality sector to address these common challenges.
IATA and WSHA will work together initially on guidance for sustainable procurement of hotel services by airlines. Combining the strengths of IATA’s Integrated Sustainability Program (ISP) and WSHA’s Universal Sustainability KPIs Programme will develop more structured guidance for the airline industry on assessing hotel suppliers against ESG criteria. The partnership will support airlines in taking a more systematic approach to procurement, while encouraging hotels to show progress in their sustainability performance.
Sustainability Guidance for Hotels Tenders and Industry Examples
As part of the MoU, IATA and WSHA will collaborate to develop guidance for hotel tenders, including key ESG considerations for incorporating into supplier contracts, and case studies to illustrate examples of good practice. This practical guidance will help airlines to include sustainability criteria as an important factor in addition to cost, location, and quality of service when selecting hotel suppliers. It will also help to promote the value of partnerships that demonstrate environmental and social responsibility to meet corporate sustainability goals.
IATA’s Senior Vice President of Sustainability and Chief Economist, Marie Owens Thomsen, said that the collaboration would strengthen IATA’s sustainability programme by engaging the expertise of the hospitality sector to promote more responsible procurement by airlines. She noted that the sustainability performance of an airline extended to the partners that supported its operations and that closer supplier interactions and more informed procurement decisions had the potential to encourage greater environmental and social responsibility.
Collaboration to Deliver Wider Environmental and Social Benefits
There are a number of potential areas for collaboration in the longer term, including sustainability indicators and reporting, plastic and waste reduction, community engagement, human rights, climate adaptation, and efficient use of resources. These areas reflect the environmental and social challenges faced by travel businesses operating in the wider ecosystem. Enhanced cooperation could enable airlines and hotels to agree on common priorities and approaches to measure and report progress.
WSHA President and CEO Glenn Mandziuk said that sustainability across the travel ecosystem required close interaction between different sectors to identify opportunities to move from more disparate sustainability reporting to the creation of practical standards, which would help achieve environmental and social benefits. The partnership will assess the potential for closer airline hotel collaboration to contribute to sustainability at destinations and across corporate and leisure travel markets.
Enhancing Sustainable Travel Practices for Destinations
The collaboration reflects the growing recognition of the need to embed sustainability throughout business operations and across the tourism and wider economy for destinations that rely on airline passengers. This includes corporate and leisure travelers, as well as groups and families, who all require accommodation at hotels. Closer cooperation between aviation and hospitality sectors can contribute to more consistent sustainability standards in the selection of hotel suppliers by airlines. This could support destinations to benefit from enhanced environmental management and more sustainable practices in their wider communities and operations.
