According to GlobalData’s Q3 2021 Consumer Survey, 56% of global respondents stated they ‘somewhat’ or ‘completely’ agree that they are more loyal to brands that support green and environmental matters, and 54% echo this sentiment for brands that are loyal to human and social rights matters. These strong percentages suggest that companies with transparent ESG strategies, which can demonstrate positive work to address environmental and social issues, could win the loyalty of travellers that may be undecided on which company to use for a specific aspect of their trip. Transparency on ESG matters will not only appease consumers; it is now required by several other stakeholders and potential future ones. Investors will often assess a company’s ESG performance when conducting due diligence. Therefore, many company directors are allocating increasing amounts of capital and resources to address ESG aspects and increase attractiveness. According to a GlobalData poll (ended October 19, 2021, with 1,500 responses), 78.7% of respondents stated that their company now monitors ESG performance directly alongside financial performance. 

However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position.  

According to GlobalData’s thematic research report, ESG in Travel & Tourism, leading adopters include: EDreams, MakeMyTrip, TUI, G adventures, Intrepid and Expedia. 

Insights from top ranked companies  

Intrepid Group 

Intrepid Travel is a travel and tourism service provider. The company offers services such as travel packages, travel insurance, accommodation, transfers, cycling tours, family tours, adventure cruising tours, sailing, walking, trekking, sightseeing, wildlife tours, and flight services. The company states that it makes on average 4% profit on every trip it operates. When a customer purchases a trip from Intrepid, 96% of their payment goes to facilitating the experience, paying suppliers and staff, and the company then earns 4%. For example, if it sells a trip for $2,000, Intrepid says it makes around $80. Intrepid also states that it puts a significant portion of that 4% profit back into the community and environmental projects around the world that help improve livelihoods and work towards safeguarding the planet for future generations. 

G adventures 

G Adventures is an adventure tour operator. The company offers wellness and recreational tours, small-group tours, safaris, and expedition services. Its tour activities include cruising, snorkelling, sailing, hiking, trekking, mountaineering, rafting, skiing, rock climbing, and other expeditions. The company recognises the importance of animal welfare. It has worked with experts from World Animal Protection, The Jane Goodall Institute, and The World Cetacean Alliance to create policies that build on the ABTA Global Welfare Guidelines for Animals in Tourism and put the needs of animals first. Additionally, it was the first global travel company to achieve Friend’s International ChildSafe certification. This certification helps to ensure no child is harmed because of tourism. 

To further understand the key themes and technologies disrupting the travel & tourism industry, access GlobalData’s latest thematic research report on ESG in Travel & Tourism.   

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