Sustainability Management for Tour Operators A twoday course

Sustainability Management for Tour Operators A two-day course Day Two CSR TOUR Corporate Social Responsibility Training and Certification in the Travel Sector Project Nr: 2012 -1 -HR 1 -LEO 05 -01703

Programme Day Two Session 3. Integrate sustainability in your company: 6 steps 3. 1 Implementing a sustainability management system: Engage your business, Baseline assessment, Sustainability policy Coffee break 3. 2 Writing a policy 3. 3 Implementing a sustainability management system: Action plan, Monitoring, Reporting. Lunch

Programme Day Two 3. 4 Writing your action plan Session 4. Communicating and marketing sustainability 4. 1 Marketing sustainability – Communication Ø Indicators of Greenwashing Ø What to tell your customers 4. 2 Write your company sustainability USP’s 4. 3 Marketing sustainability – Distribution Session 5. Next steps and follow-up

Day One Summary What is sustainable tourism Sustainable Tourism Impacts The role of the Tour Operator Marketing Sustainability Internal Management Sustainable Supply Chain Management Sustainable Accommodation Sustainable Excursions Sustainable Transport Sustainable Destinations Customer Communication 4

Day Two Aims To introduce sustainability management. To focus on first steps. To provide examples of how you can market sustainability messages. 5

Day Two Objectives At the end of day two you will be able to: Write a mission statement and a basic policy. Create and implement a sustainability action plan Introduce sustainability messages into your marketing and identify additional marketing channels Identify and write sustainability USP’s 6

How to integrate sustainability in your company 3. 1 Implementing a sustainability management system. § Engage your business § Baseline assessment § Sustainability policy 7

Travelife 6 -step approach Engage your business Travelife Training Report & communicate Travelife Reporting Monitor and evaluate Baseline review Travelife Baseline Policy Action plan & implementation Travelife Action Planning 8

Step 1 - Engage your Business • • • Engagement management team Appoint a sustainability manager Job specifications and role profiles Improving knowledge and expertise Travelife Training Sustainability Mission Statement Outcome: Sustainability co-ordinator Commitment mission statement 9

At the very least, the mission statement should try to answer three key questions: 1. What “needs” is the company going to address i. e. what is the company’s purpose? 2. What is the company doing to address those needs? i. e. What is the nature of its business 3. What principles or beliefs guide the company’s work. i. e. What are the company’s values? 10

Example sustainability mission statements Our company’s foundation is built on our values, which distinguish us and guide our actions. We conduct our business in a socially responsible and ethical manner. We respect the law, support universal human rights, protect the environment and benefit the communities where we work. (Chevron) Apple Computer is committed to protecting the environment, health, and safety of our employees, customers and the global communities where we operate. We recognize that by integrating sound environmental, health, and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes, and services. (Apple) 11

Mission statement § Produce one for your company. § A general one, so not only to include sustainability elements § Quality prodcuts § 12

Step 2 – Baseline review Identify current activities, partners and impacts: • Office and retail operations • Supply chain components • Costumers & Destinations company’s total impact Use Travelife checklist Biggest impacts: where? prioritise! Outcome: Overview company supliers, impacts, baseline scenario 13

Step 3 – Policy • Prioritise impacts • Set sustainability objectives, targets • 3 – 5 years • 5 – 20 pages • Policy is clear, credible and achievable • Disseminate policy Outcome: Written plan to reduce negative and maximise positive impacts 14

Examples of policy formulations - We will reduce our office energy use by 35% in 2014 - We will to Travelife policy requirements (put this into the exersice…) Internal management - Energy - Waste - Sustainable procurement - Accommodations - Excursions 15

Developing a policy - Points to consider during the policy development: Don’t implement any sustainability activities without having a written policy. Without knowing your aims in advance, you run the risk of developing a system that cannot achieve its objectives. Employees will be demotivated if they do not see a clear direction and final aim. Objectives and targets should be shaped by the findings of the earlier baseline assessment and the mission statement. Objectives specify sustainability goals, while targets indicate the level of improvement to be attained. All managers must support the sustainability policy, and will need to be engaged in its implementation and monitoring. Don’t make the policy too rigid. After you have begun to implement your sustainability policy and gathered some experience you may wish to modify or extend the policy. 16

Developing a policy (cont. ) The policy should be written in such a way so as to respond to developments both within and outside the organisation. Allow room for continuation and evolution of the policy. Ideally, your policy should state that you aim to evaluate and further develop your sustainability policy. While putting it into practice you will need to revise the policy regularly to establish whether it is still appropriate. Don’t be too ambitious with your objectives. Objectives that are formulated too ambitiously have little or no chance to be achieved. Engage with your suppliers, the community and other stakeholders in the destination in formulating and developing your policy. You may find it useful to discuss your ideas with a few of your company’s suppliers, and use their feedback to help you develop a robust policy. 17

Policy Content The content of the policy should reflect the core company processes including the life cycle of the holiday package, from the planning stage to the development and delivery of the product: 18 Internal management Product development Supply chain management Cooperation with destination Customer relations

General considerations Even though there are no established requirements about what should be included in a sustainability policy, in general it should: Reflect your sustainability mission statement and/or the objectives of your corporate policy. Be established for and by your organization and not be copied from another company. Address the key aspects of the aforementioned five business action areas. Address key issues, including the impacts identified in the baseline assessment; Correspond with the nature, scale and impacts of the company’s activities and services. Set open, honest and realistic goals. Comply with laws, regulations and codes of conduct. Convey the message that you strive for on-going improvement. Cover both products and services. Encompass all employees, and be understandable to everyone within your organisation. Aim to ensure that suppliers contribute to the company’s sustainability aspirations. Ascertain a commitment to raise awareness about sustainability issues among stakeholders, especially suppliers and consumers. Be accessible to people outside your organisation. Be accompanied by a signature of the Executive Board under the declaration stating that the policy is supported by the organisation’s management.

Audley Travel (UK) : written responsible practices policy (online)

How to integrate sustainability in your company 3. 2 21 Writing a policy

Communicating your policy to your suppliers Clearly explain your sustainability policy and your expectations to your suppliers. Keep messages simple and focused - time, recognition, sources of technical support. It can be communicated through Printed materials such as leaflets, posters and manuals Informal meetings and discussions. Workshops. Internet pages. Checklists and questionnaires designed to highlight key aspects of your programme. 22

communicating your policy To company staff Focus attention to your Sustainability Policy declaration during company meetings. Include ´Sustainability´ on the agenda of the regular staff-meetings. Incorporate your Sustainability Policy declaration in the induction pack for new employees and include appropriate sustainability elements in their key performance indicators. To clients and other stakeholders Place your Sustainability Policy declaration into your company prospectus, your travel brochures and web sites. 23

How to integrate sustainability in your company 3. 3 Implementing a sustainability management system. Prepare an action plan Monitoring Reporting 24

Travelife 6 -step approach Engage your business Travelife Training Report & communicate Travelife Reporting Monitor and evaluate Baseline review Travelife Baseline Policy Action plan & implementation Travelife Action Planning 25

Step 4 – Action plan and implementation • • • Set priorities and make action plan Develop sequence schedule of tasks to meet objectives Determine criteria for success Allocate staff, equipment and budget Time schedule and divide tasks Keep records of tasks undertaken Outcome: Records of tasks, time-schedule, responsibilities, new measurements of performance & indicators 26

Step 5 – Monitoring and evaluation • Ensure that both management and performance are monitored • Conduct new measurement to assess improvements • Send progress report to senior management • Adjust your action planning Outcome: Progress report, reviewed action planning First Choice (UK), Studiosus (Germany): EMS Exodus: weekly updates, input meetings diverse departments 27

Step 6 – Report and communicate • Gather information • Decide on reporting • Publish and disseminate results • Internal and external Outcome Report of achievements, external communication 28

Travelife 6 -step approach Engage your business Travelife Training Report & communicate Travelife Reporting Monitor and evaluate Baseline review Travelife Baseline Policy Action plan & implementation Travelife Action Planning 29

How to integrate sustainability in your company 3. 4 30 Writing your action plan

Writing your action plan • Use the Travelife checklist • Set realistic goals • Can do / can not do • ? ? ? ? 31

Communicating and Marketing sustainability 4. 2 Marketing sustainability – Communication Indicators of Greenwashing What to tell your customers 32

The majority of companies that have a sustainability process don’t know how to market it! “Sustainability is not about doing business differently, but doing business even better” Some do’s and don'ts Don’t Greenwash. “Greenwashing” is an environmental claim which is unsubstantiated or irrelevant – people see through this and react negatively to it. 33

Don’t 10 Indicators of Greenwashing Fluffy Language – Words or phrases with no clear meaning Green products v dirty company – sustainable product which is accessed by polluting transport e. g. Eco Friendly Suggestive Pictures – Green images that indicate a green impact e. g. flowers blooming from exhaust pipes 34 Irrelevant Claims – Emphasising one small green activity when the rest is ungreen

35 Best in class? – Declaring that you are slightly greener than the rest, even if the rest are terrible Just not credible!! Eco friendly cigarettes – “Greening” a dangerous product doesn’t make it safe Gobbledygook – Scientific Words Jargon and information that only an environmentalist will check or understand Imaginary Friends or Associations – A “label” that looks like an endorsement except its made up.

No Proof – You could be right, but where is the evidence? ? Out – right lying A total lie with claims or data! Beware People look at these acts as a smoke screen – its not real – just a way of making money 36

Don’t Greenwash! Travel with green. Jet the low Carbon airline. We’re planting Trees so you can fly as often As you please. It’s not just travelling we think about. All our meals Are organic and locally Sourced, and we serve only fairtrade coffee

P O T E TH R E V O images Don’t Greenwash! OBVIOU S LIES ! Fluffy Language to g n i Noth h the it w o d ! t c u prod Travel with green. Jet the low Carbon airline. We’re planting Trees so you can fly as often As you please. It’s not just travelling we think about. All our meals Are organic and locally Sourced, and we serve only fairtrade coffee No data, specifics or certifie d labels

Don’t Greenwash! Our beautiful shoes are made From reclaimed leather and 100% Recycled materials so there’s no Hidden impact behind the hide. We do not use PVC and our products Are entirely free of toxic contaminants Like cadmium and lead residues Now you can feel as good about Your shoes as you look in them.

Do - tell everybody that sustainability is quality! -And how they can have a better experience for it. There a lot of conflicting messages in the world about this but most customers do care or don’t want to cause harm! Price, location and aspirations come first but after these sustainability values and actions can and do sell a product over another. Consumers in Europe will buy products that are environmentally and socially responsible, but this doesn’t mean they searched for it in the first place! The leisure market doesn’t have to see the words “sustainability” or “green” the same way that you don't have to use quality or luxury all the time. Try to be more subtle about it as too many messages are vague or as a apology. To say nothing or to throw up words that are trendy will give the impression of being an after thought – GREENWASHING – cashing in !! 40

Tips: • Make your sustainability actions more interesting to customers. • Use all the typical marketing tools you would use and think about how your green / sustainability actions can be part of what you normally say. • Communicate with your customers by making them participate and make it fun…think about how you can involve them even in hotels – activities that involve a green element. 41

Tailor your marketing to your audience • “Ethical” consumers actively seek green holidays because of their lifestyle, but they represent a very low % of the market. (5 -10 %) • “Feel Good” consumers are the majority. They don’t seek “green” but they buy your messages if they feel that they can do their bit and / or get a better product or service if it happens to be sustainable. They may like you because you are different and any “labels” serve to reinforce this and may influence their booking decision. (60 %) • “Just want to switch off” consumers are unlikely to value what you do and so anything you do needs to be behind the scenes and should focus on how it improves their experience with you. (20 -30 %) 42

Why am I telling customers about sustainability ? To make them feel good ? (Be realistic about your sustainability in your communications. ) • You have taken care of the sustainability issues so they enjoy the benefits. • Even if they are not eco warriors doesn't mean they don’t appreciate it. You are just helping them to do their bit. • People feel good facing easy choices – tell them in brief about your charitable programs (if you have any? ) Your recycling policy if appropriate and the use of public transport if you are in a city. 43

Why am I telling customers about sustainability ? To raise awareness and change behaviour? If you want change then be precise and give them something in exchange (knowledge) – recycling, local purchasing, respect local customs. • Be specific – vague messages are frustrating – tell them what to do and not just “be green” • Show the actions they take has a positive impact – instead of saying “save water” show what can be done with the saved water • Only mention the more sustainable options – focus on local daytrips rather than those that are hours away 44

What Do I Say? What message do you want to show to the world? (This is about your sustainability policy, any photos you use, text you write. ) Choose 1 -2 messages only, otherwise the message gets confusing. • Get your customers to participate – doing is much more fun than watching o Harvest their own food for lunch o Take part in community enterprises • Make them feel special - Better Service o Put the customer at the centre of the experience - what’s in it for them? o How do you want your customers to feel? • Show a personal connection o “We are people like you, with the same values, that’s why you’ll enjoy being here. ” 45

Where, when, how do I tell them? Press & Media More and more, the press and media are looking for a story that gives a true authentic argument to the sustainability issues in tourism. So think about what makes you different ? Why would people want to read about it. Coverage that you have achieved should not be forgotten! Use it on your website, make links to it from your website, use it in mailings to customers. Certification / Awards – a quote from a national or international publication or respected media is likely to give a better impression that a certification or award that has low awareness !! Visit England / ICRT research says that 21% of customers have taken a holiday or short break recommended in a newspaper, magazine or seen on a TV program. 46

Website Your website is your portal to the world – Use it wisely and correctly. Social Media Sites such as Facebook, Twitter and other specialised social networks or groups are vital to get your message across. Most of these can be used in their basic forms for free • It engages with your potential customers and uses the power of their social networking to get your messages out. • It helps considerably with the rankings on search engines and makes your messages easier to find. 3 rd party websites If you are featured in Lonely Planet, Good Hotel Guide, Bradt Guides or any of the other international directories (online or offline) feature this on your website – (Remember – credibility) Most companies should be marketing all the time in some way. How many periods in the life of a booking process can you get your message out – 2, 3, 6 ? ? On the average this will be in four periods……. 47

Prior to booking / purchase People need information to help them make decisions so explain why your product is better value, better quality or more appealing because of the sustainability aspect. Between booking and arrival Communicate with your customer before they arrive on how to prepare for their visit – what to bring, what they can do (options), if they are self catering recommend local goods that they can pre-purchase before arrival. You could also advise them on any local customs etc. On arrival at hotels or attractions, will you give the right message if you seen to be wasting light (and heat if the doors are left open in the winter)? Your information leaflet should include what you have done to be more sustainable and that this is an every day, on-going policy. Smaller businesses can share their values directly with each arrival whilst showing people to their accommodation. 48

During the stay / visit This is the best chance you have of showing what you do and to prove all your marketing efforts. You can either communicate some information directly to your customer or keep it in the background for your customers to hopefully see and enjoy. After the stay / visit Stay in contact with your customer, although they may not come back, they have their own personal networks and can refer you. Thank them for coming and remind them that their visit was done in a sustainable way. • • If they planted a tree as part of their stay – tell them how it is growing If they engaged with a school, or group tell them how these groups are now benefiting from their personal engagement. 49

Communicating and Marketing sustainability 4. 3 50 Write your company sustainability USP’s

108 Customer communication Growing awareness of sustainability, but… Communication strategies • Sustainable alternatives = quality products, new experiences • Secondary information: your choice contributes to…. • Style of communication • Short, positive, engaging 51 Use local restaurants

Sustainability USP’s (Unique Selling Points) Unique selling points are things which distinguish your business from the rest and add value to your product offer. “Sustainable USP’s” must show the sustainability feature will benefit the customer e. g. All our guides are recruited locally which means that they know the destination better than anyone. All restaurants in our accommodations purchase fresh produce grown or reared locally to bring you an authentic taste of the destination. 52

Sustainability USP’s (Unique Selling Points) Exercise Sustainable hotels have much to gain by exploiting new marketing opportunities. Compose a sustainability USP for a business you know that is already demonstrating those sustainability features. Try to be as creative as possible by choosing things which are unique to the business and not exhibited by most of their competitors. 53

Communicating and Marketing sustainability 4. 4 54 Marketing sustainability – Distribution channels

Marketing sustainability: distribution What do you market: • Your (sustainable) company • your (sustainable) products To whom do you market • B 2 B • B 2 C Need different strategies !

Your (sustainable) company • Sustainability provides competitive advantage • Sustainability certificate quality is assumed. • Sustainability is quality + • Sustainability increases your brand value Communicate your sustainability USP’s and achievements to business partners and clients

Sustainable products • Develop sustainable products • Look actively for local initiatives and suppliers • Co-operate with your international business partners.

The Travelife Market Suppliers with a sustainability certificate available for selection 58

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Distribution of sustainable products. Still small target groups! How to reach them: 1. “Green shops”, many new market based web sites focus on sustainable products 2. “Green corners” in all niche markets will emerge

“Green Shops” in tourism sector Examples • • • Responsibletravel. com Responsiblehotels. com Ethicaltravel. com Worldhotellink. com Urbanadventures. com Forumandersreisen. de

Green Corner • For many niche markets there are no Green Shops • You do not want to loose 80 % of your potential clients. • Use your normal distribution channels for your type of products. • The sustainability of your product is an add-on, creating additional value and attracting additional clients.

Green corner Common TO logo for sustainable hotels First Choice Winter 2008 Virgin Holidays Winter 2008

The Travelife Collection. A catalogue of accommodations certified with the Travelife label 68

5. Next step en follow-up 69

Follow-up support and next steps

Follow-up programme Online Training & formal exam Planning and Reporting International recognition and certification Market access support

Your road towards sustainability Registered Travelife Engaged Travelife Partner Travelife Certified

Stage 1. Travelife Engaged Online training and exam for your sustainability coordinator. Guidance on improving your sustainability performance. Action planning tool Reporting tool (towards Travelife Partner criteria) Access to B 2 B Travelife Partner and Certified companies.

Transport Title Action / Solutions R* O* Coach 4. 1 4. 2 Certified Transport Collaboration with coach transport companies with environmental √ certification √ Driving Skills Transport providers are incentivised to implement a sustainable driving style by means of communication of the ´eco-driving´ technique or international equivalents. - - Less polluting transport to destinations 4. 3 Transport to departure-point Sustainable (public) transport is offered to the point of departure for the international journey. √ - 4. 4 Transport to destination Sustainable transport to the destination is part of the holiday package or is offered actively as option. √ - CO 2 compensation is options are offered to the clients - - CO 2 compensation for the international transport is included in the package price. - - - 4. 5 4. 6 CO 2 compensation Transport in destination 4. 7 Sustainable transport 4. 8 Boating Suppliers and local agents are stimulated to offer sustainable transport for local transfers and excursions. Suppliers are stimulated to implement sustainable operations

Planning and Reporting tool . Company Action Plan Sustainability report

Stage 2. Travelife Partner After compliance with Travelife Partner standards Travelife Partner award and logo B 2 B featuring of your company and products to all other Travelife member companies. Improving and reporting towards Travelife Certified level (more criteria, more obligations)

Travelife Certified standard Based on: ISO 14001 - Environmental management GRI - Global Reporting Initiative, tourism supplement GSTC - Global Sustainable Tourism Criteria ISO 26000 - Corporate Social Responsibility Guidelines and principles

Stage 3. Travelife Certified On-site audit to confirm Certified level. Use of “Travelife Certified” logo in your promotional materials and website(s). International promotion of your company for its excellent sustainability achievements.

Mr. Taleb Rifai, General Secretary UNWTO, hands out “Travelife Certified” awards to TUI Netherlands, SNP Nature Travel and Kuoni Specialists.

Contribution (for Partner Recognition Company size Yearly contribution < 50 50 - 200 - 400 FTE’s € 150 € 200 You will receive an invitation with the details You are already registered for engaged level under travelife. info € 300

Next steps § § Defining the Travelife Partner standard. You will receive access to the formal training, exam and reporting tool. Guidance, coaching and follow-up workshops You are already registered for engaged level under travelife. info

Day 2 Summary Implementing a sustainability management system The 6 -step approach Developing a policy Communicating your policy Action planning and implementation Marketing sustainability Greenwash Sustainability USP’s Distribution channels Next steps & on-going support 90

Thank You & Good Luck ! In case you need further help info@travelife. info