The ROI of Sustainable Events: How CTW Events Turns CSR into Measurable Impact

ROI of Sustainable Hotel Programs: Will Guests Pay More for Eco-Friendly Stays?

Help us get viral by sharing this post

Introduction

Implementing sustainability initiatives in hotels – such as Clean the World’s recycling program – is not just about doing the right thing for the planet. Hoteliers understandably want to know: what is the return on investment (ROI)? The fundamental question is whether adopting sustainable practices will pay off in tangible business terms.

In this blog, we dive into recent research (post-2020) to uncover how guests value eco-friendly stays, what premium they are willing to pay for green accommodations versus regular ones, and how that translates into ROI across different regions.

The ROI Question: Is Sustainability Worth It for Hotels?

Hospitality companies have increasingly embraced sustainability to reduce waste, save resources, and enhance their brand image. But many hotel owners and managers still ask, “Will sustainability efforts boost our bottom line?” In other words, does participating in programs like Clean the World (which recycles used guest soap and manages plastic bottled amenities) provide a measurable financial return in addition to the environmental and social benefits?

The encouraging news: travelers are not only demanding greener travel options, they’re often willing to pay for them. Multiple surveys and studies since 2020 show a clear trend – a large share of guests prefer hotels with sustainable practices, and many will pay a premium for eco-friendly features or certifications. This means that sustainability can drive higher revenue per booking (through higher rates or occupancy), offering a direct ROI for hotels that invest in sustainability.

Of course, cost is a factor. Some travelers worry sustainable options might be expensive, creating a “say–do gap” between good intentions and actual bookings[1][2]. In fact, nearly half of global travelers in 2023 felt that eco-friendly travel choices tend to cost more[2]. However, a virtually equal share are happy to pay extra for accommodations they know are sustainable[2]. The key for hotels is to bridge that gap by communicating the value of their sustainability initiatives (like Clean the World) so that guests feel the added price is worthwhile for a better planet. Let’s look at what the numbers say about guest preferences and willingness to pay.

Guests Value Responsible Stays – and Will Pay a Premium

Travelers today overwhelmingly voice support for sustainable travel. In a global Booking.com survey, 76% of respondents said they want to travel more sustainably in the next year[3]. Importantly for hotels, many guests factor sustainability into their booking decisions: about 70% of travelers said they would be more likely to choose a hotel if they know it’s sustainable[4]. This means eco-conscious practices can help your property stand out and capture demand.

Crucially, a significant number of guests are willing to pay more for these sustainable stays. Booking.com’s 2023 Sustainable Travel Report found that 43% of travelers are willing to pay extra for travel options with a sustainable certification, even as 49% voice concerns about cost[2]. In other words, nearly half of global travelers would open their wallets wider to stay in a hotel that proves its sustainability. This is a strong vote of confidence that going green can translate into revenue.

Other studies echo this finding. A comprehensive 2023 literature review in Sustainability concluded that consumers, on average, accept around a 5% premium on room rates for a green hotel[5]. Many guests are comfortable paying a few dollars more per night if they know the hotel is eco-friendly. In some cases, the willingness to pay is even higher – depending on the traveler segment and the extent of sustainability efforts:

High-end travelers: A survey by the World Travel & Tourism Council of upscale travelers revealed roughly 75% are willing to pay extra to make their trips more sustainable[6]. The luxury market in particular sees green practices as part of a premium experience.
Majority willing to pay more: Expedia’s 2022 Sustainable Travel Study found that on average, consumers said they would pay ~38% more for travel options to be sustainable[7]. (This indicates a strong overall enthusiasm, though such a high premium may not be realized uniformly across all bookings.)
Substantial premiums in practice: In certain destinations, hotels have successfully charged 20–30% higher rates for eco-focused offerings. For example, luxury eco-resorts in Bali, Thailand, and the Maldives command up to 30% more in nightly rates by providing full-circle sustainability experiences (reef restoration, zero waste dining, etc.), and guests willingly pay these higher prices[8]. This shows that when sustainability is woven into a hotel’s identity and guest experience, travelers perceive added value worth paying for.

However, not all guests will pay any price for sustainability – there is a limit. Surveys also highlight that about 49% of travelers feel sustainable options are too expensive or expect discounts/incentives to choose green options[2][9]. And while many will pay a bit more, far fewer will pay a lot more. A recent international poll found that roughly a quarter of consumers are willing to pay a 10% premium for an eco-friendly hotel, and only about 18–28% (depending on region) would go beyond a 10% price increase[10][11]. In essence, most guests are fine with a modest nightly surcharge for sustainability (on the order of 5–10%), but very large markups could deter them.

The takeaway is clear: there is pricing power in being a sustainable hotel. Even a small premium – which many guests won’t mind – can directly boost revenue per room night. Next, we’ll explore how this willingness to pay varies across regions, as cultural differences and market conditions make a big impact on ROI calculations.

Regional Variations in Willingness to Pay

Attitudes toward paying extra for sustainability differ by region. Understanding your hotel’s customer base and location is crucial when estimating the ROI of programs like Clean the World. Here’s a breakdown of recent findings on guest willingness to pay a premium for eco-friendly accommodations in various regions:

Asia-Pacific: Travelers in APAC are the most enthusiastic about green stays. Over half of consumers in APAC (55%) say they are willing to pay more for an environmentally sustainable hotel[12]. Some countries in Asia lead the world – for instance, nearly 61% of surveyed consumers in Hong Kong would pay more, reflecting a strong eco-conscious mindset[13]. In South Asia, sentiment is even higher: 69% of Indian travelers would pay extra[13]. This region’s travelers show a high readiness to support sustainable hospitality with their wallets.
Middle East & Emerging Markets: Emerging markets and oil-rich Middle Eastern markets top the charts in willingness to pay. The UAE stands out: about 73% of UAE consumers are willing to spend more for a sustainable hotel stay[13] – almost three in every four guests. Other emerging markets like Mexico (60%) and Indonesia (61%) also have a majority willing to pay a premium[13]. Culturally, these travelers may view sustainability as a modern luxury or a responsibility, making them receptive to programs that hotels implement.
Europe: European travelers are generally very sustainability-minded, but their willingness to pay more hovers around the global average. Roughly 41% of EMEA (Europe, Middle East, Africa) travelers say they’d pay extra for eco-friendly accommodations[12]. Within Europe, there are differences: Southern and Western Europeans show higher willingness than some others. For example, 45% of Italian travelers would pay more for a sustainable stay (the highest in Europe)[14]. In countries like Spain, Denmark, and Poland, around 38–42% of travelers are willing to pay a premium[15]. Northern Europe has long embraced green travel, and in Scandinavia sustainability is almost expected; many Scandinavians will choose a green-certified hotel as a default[16]. Overall, about 55% of European travelers say they’re willing to pay more for sustainable travel choices[17] – indicating a majority are open to a modest premium if it means a greener stay.
United States & Americas: Travelers from the Americas tend to be more price-sensitive about sustainability. Only about 38% of consumers in the Americas (North and South America combined) are willing to pay more for eco-friendly hotels[12] – the lowest of any region surveyed. In the U.S. specifically, willingness to pay is on the lower end: just 28% of American travelers said they’d pay a premium for green hotel features[15]. This aligns with other research showing Americans prioritize sustainability but often balk at paying extra, possibly due to concerns about “greenwashing” or tighter travel budgets[18]. The good news is that this figure is growing over time as sustainability becomes a bigger societal focus. Younger U.S. travelers show more interest – for instance, nearly half of Gen Z guests research a hotel’s environmental practices before booking[19]. So, while the immediate premium might be smaller in America, the trend is moving in the right direction. Additionally, many U.S. guests respond to sustainability in other ways (e.g., loyalty or positive reviews) even if they won’t pay significantly more upfront.

In summary, Asia and emerging markets currently offer the strongest upside for sustainable hotel ROI in terms of rate premiums, whereas Europe is not far behind, and North America, while a bit more cautious, is steadily embracing the trend. Knowing these nuances can help hotel groups tailor their sustainability marketing and pricing strategy by region. For example, an APAC hotel might confidently advertise its Clean the World partnership as a differentiator and command a higher rate, while a U.S. hotel might focus on cost-neutral green initiatives or emphasize value-added benefits of sustainability to justify smaller surcharges.

How Much More Will Guests Pay? (Translating into Dollars)

We’ve seen that a sizable portion of guests will pay somewhat more for a sustainable stay – typically a single-digit percentage increase in room rate. But how does that translate into actual revenue for a hotel, and what kind of ROI can a program like Clean the World deliver?

Studies suggest that around 5% is a realistic room rate premium in many markets without hurting demand[5]. A 5% uptick in rate may sound small, but it can significantly boost profits given the high fixed costs in hospitality. Consider a simplified example:

A 100-room hotel with a base ADR (Average Daily Rate) of \$150 and 65% occupancy sells about 23,725 room-nights per year. That yields roughly \$3.56 million in annual room revenue.
If the hotel can charge just 5% more (an ADR of \$157.50) because guests perceive its sustainability efforts add value, the same occupancy would generate about \$3.74 million – an increase of \$180,000 in revenue per year.
The cost of participating in Clean the World (and similar sustainability programs) is relatively low – often just a few cents per occupied room to collect and recycle soap, plus any membership fee. For instance, even if the program cost \$0.05 per room-night[20], that’s only around \$1,186 per year for a 100-room hotel – negligible compared to the six-figure revenue upside from a modest rate premium. In this scenario, the ROI is tremendous, paying back the program cost dozens of times over via increased guest-paid revenue.

Even if a hotel doesn’t raise rates explicitly, sustainability can boost occupancy and market share. If 70% of travelers are more likely to choose a sustainable property[4], a hotel with green credentials may fill more rooms or attract higher-paying customers, lifting RevPAR (revenue per available room). For example, one study found that green-certified hotels in China enjoyed 7% higher room rates and also saw fewer guest complaints, indicating happy customers[21]. In the U.S., research on LEED-certified hotels noted they achieved higher ADRs as well (though sometimes accompanied by slightly lower occupancy)[22]. The lesson is that finding the sweet spot – leveraging sustainability to increase rates a bit without deterring occupancy – yields the best financial outcome. Hotels that communicate their eco-efforts effectively can justify a small premium that most guests tolerate, leading to higher overall revenue. As the Boston University Hospitality Review noted, revenue managers in green hotels might benefit by not overshooting on price – keeping rates only marginally higher to enjoy both increased ADR and steady occupancy[23].

Moreover, sustainable practices can reduce costs (energy, water, waste) and improve brand loyalty, adding further ROI. For instance, when Marriott phased out single-use toiletry bottles in favor of bulk dispensers, it not only eliminated 200 million tiny bottles annually but also saved over \$14 million per year in procurement costs[24]. That’s a direct boost to the bottom line, independent of guest payments. While our focus here is on the revenue side (what guests are willing to pay), it’s worth remembering these cost savings as an added bonus to sustainability investments.

Turning Sustainability into Marketing Advantage

To fully realize the ROI from sustainability, hotels should actively market their sustainable initiatives. Guests can only reward you for eco-friendly practices if they know about them. Programs like Clean the World offer a compelling story to share: “Stay with us and join a mission to recycle soap and divert plastic waste from landfill, while providing hygiene to those in need.” This kind of messaging can elevate a guest’s perception of your brand and justify a premium. In fact, 57% of travelers said they’d feel better about staying somewhere that has an official sustainable certification or label[25]. Displaying badges (e.g., the Booking.com “Travel Sustainable” badge or a Clean the World partnership logo) and mentioning your environmental and social initiatives can reassure guests that the higher value of your offering is real, not just greenwashing.

Geo-targeted marketing can also boost ROI. For example, given the strong willingness to pay in markets like the UAE and India, hotels targeting travelers from those regions should highlight sustainability prominently in their sales channels. On the other hand, for more price-sensitive markets like the US, framing sustainability as added value at little extra cost or bundling eco-perks into packages could attract guests who might not initially pay more just for being sustainable. The goal is to convert that large proportion of travelers who say sustainability is important (often 70–80% in surveys) into actual bookings by showing that choosing your hotel makes a positive impact without a hefty price trade-off. This can close the “intention–action” gap that research has observed (e.g. one report found 75% of travelers desired sustainable travel, but only 46% actually booked a sustainable stay in the prior year)[1][26]. Bridging this gap is a matter of smart communication and fair pricing.

Conclusion: Sustainability Initiatives Pay Off for Hotels

The evidence is overwhelming that sustainability isn’t just good for the planet – it’s good for business. Guests across the world are increasingly willing to reward hotels for going green, either through higher willingness to pay or stronger loyalty and preference. To recap:

A large majority of travelers (70–80%) prioritize sustainable travel, and about 43%–55% of global travelers will pay more for sustainable hotel options[2][12].
On average, consumers are comfortable with roughly a 5% premium for a green hotel stay[5], and many will pay 10% extra or more in markets with high eco-awareness (especially in Asia-Pacific)[11].
Regional differences are notable: guests from Asia and the Middle East show the highest willingness to pay extra (often well over half of travelers), Europe also shows strong support (around 40–45%), while the Americas lag slightly (around one-third or less)[12][15]. Tailoring your strategy to these demographics can maximize ROI.
Even a small increase in rate or occupancy due to sustainability can yield significant revenue gains that dwarf the costs of programs like Clean the World. In practice, hotels have seen real benefits – from higher ADRs to cost savings and enhanced brand reputation – after implementing green measures[21][24].

For hotels considering Clean the World’s program, the message is clear: doing good can directly improve your bottom line. By recycling soap and responsibly managing plastic waste, you’re not only fulfilling corporate social responsibility; you’re also meeting a customer demand that translates into dollars. Guests appreciate and seek out hotels that embrace sustainability and social impact, and many are ready to pay a bit more for that assurance. The ROI comes in the form of increased revenues, competitive differentiation, and future-proofing your business in a world where eco-conscious travel is here to stay.

In the end, the question isn’t “Can we afford to invest in sustainability?” but rather “Can we afford not to?”. The hospitality industry’s direction – bolstered by guest preferences – suggests that sustainable stays will be the norm in the coming years. Early adopters will reap the rewards of loyalty and pricing power. So if you’ve been on the fence about joining initiatives like Clean the World, remember that the return on investment is twofold: a cleaner world and a healthier bottom line.

In a world where work is no longer defined by a shared office, building culture, engagement and connection requires more than sending your people a gift box or scheduling a virtual chat. It requires purpose-driven, well-facilitated, customisable, global-ready, and locally accessible experiences. By choosing the right event partner and aligning your team building strategy with your company’s values, you’ll not only engage your remote workers — you’ll transform them into a connected, motivated, high-performing team.

To find out more about how CTW Events can support your company, find out more at ctwevents.org

Sources

com Sustainable Travel Report 2023 – cost vs conscience findings[2][9]
com Sustainable Travel Report 2022 – traveler attitudes on sustainable stays[4]
YouGov Global Survey 2024 – Willingness to pay more by region (APAC, EMEA, Americas)[12][11]
YouGov/WWF Eco Deals Poll 2024 – country-specific willingness (UAE, India, USA, etc.)[13][15]
Sustainability Journal (2023) – meta-study on hotel green premium (~5%)[5]
Phoenix Sustainable Travel Analysis (2024) – regional insights (Europe 55%, US ~22%–28% etc.)[17][18]
WTTC & Trip.com 2022 Report – high-end traveler preferences (75% willing to pay more)[6]
Expedia 2022 Sustainable Travel Study – average premium consumers would pay (~38%)[7]
Boston Hospitality Review (2019) – green hotel performance (ADR vs occupancy)[21][22]
HotelTechReport (2025) – industry stats (Marriott toiletry initiative saving \$14M)[24]