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Sustainable Tourism in B2B Travel: A Great Pitch, But Who’s Paying the Premium?

  • SKIL Travel
  • 29 April 2025

Blog

Everyone’s talking about sustainability. Every boardroom presentation ends with a green slide. Every corporate travel policy has the word “eco-friendly” sprinkled generously across the page. But when it comes to actual decision-making, one thing becomes painfully clear: intent is sustainable, action isn’t.

Ramanpreet Singh, Chief Growth Officer, SKIL

As Ramanpreet Singh, Chief Growth Officer at SKIL, points out, the demand for sustainable tourism is indeed growing—over 70% of global travellers say they prefer eco-conscious choices. Yet, there’s a widening gap between what companies say they care about and what they’re willing to pay for.

 

Let’s be real: the moment a hotel quotes ₹500 more for being green-certified or an EV fleet comes at a marginal premium, the conversation shifts from sustainability to savings.

So, let’s dig into the facts, and the friction.

1. Green Hotels, EVs, and Airlines ‐ Great in Decks, Dropped in Decisions

Tourist activities do strain local ecosystems, and green hospitality is undeniably better for people and the planet. Green‐certified hotels and airlines have reported up to 16% higher revenues and reduced operating costs due to energy and waste efficiency.

But here’s the paradox: when it’s time to book travel for a leadership summit or an annual offsite, the “sustainability filter” is the first to be unchecked if the rates are higher.
EVs? “Great, but do they have boot space?”
Eco‐hotels? “Sounds nice, but the 5‐star chain down the road is ₹800 cheaper.”

Countries like Slovenia and Norway have shown how sustainability can be embedded systemically. But for India Inc., it’s often just a LinkedIn post.

2. Carbon Offsets ‐ Optional Checkbox or Real Commitment?

Yes, carbon offsetting is a powerful way to balance emissions, and many airlines offer built‐in offset options during ticket booking. Hotels are reducing emissions by sourcing local ingredients and going plastic‐free.

But how many companies are actually selecting those offset options? And how many procurement teams see carbon offset costs as “non‐essential”?
Sustainability is marketed as a core value, but treated like a fringe benefit when budgets are on the table.

3. Sustainable Destinations ‐ “Only if it Fits the Budget”

Data shows 70% of travellers prefer eco‐conscious destinations. Finland aims to slash fossil emissions by 50% in the next decade. Japan is targeting zero‐emission vehicles in the next 10 years. Norway’s recycling and public transport system is a model for the world.

Yet, when B2B clients ask for destination options, they often prioritise location popularity and cost over sustainability. The irony? The same teams that speak at climate conferences are okay flying their top performers to countries with low environmental standards because it saved a few thousand rupees.

4. Sustainability Reporting ‐ Optics or Operating Practice?

Yes, companies now request carbon reports on air travel, hotel stays, and ground transport. Yes, 70% of global organisations have included sustainability in travel policies. But how many are using those insights to actually change behaviours?

Most of these reports are created for presentations, not policies. They remain a good‐looking PDF until someone dares to say, “Let’s cancel the business class upgrade and go carbon‐neutral instead.”
That rarely happens.

5. Local Experiences for Incentive Travel ‐ Only if it Looks “Luxury Enough”

Experiences like farm‐to‐table dining, community‐run workshops, or ethical wildlife tours are finally entering incentive travel briefs. Destinations like Bali, South Africa, and Sweden are crafting incredible, authentic journeys.

But even here, there’s a catch: the experience must still “look premium” on Instagram. Many planners struggle to convince clients that luxury can be local and that impact matters more than aesthetic.

The moment something feels too earthy, too real, or too community‐led ‐ it risks being rejected as “not elite enough.”

The Way Forward: If We’re Going to Preach It, Let’s Practice It

Sustainable tourism isn’t just a feel‐good tagline. It’s a responsibility. A future investment. A strategic lever. But only if corporates are willing to pay the premium, prioritise impact, and redefine what comfort means.

At SKIL, we continue to offer sustainable alternatives ‐ EV fleets, eco‐certified stays, carbon reporting, and community‐based experiences. But it only works when companies stop treating sustainability as a CSR checkbox and start treating it as a business choice.

The future of travel is green.
The question is ‐ will corporate India walk the talk?
Or keep clicking “next” on every green option that isn’t the cheapest

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