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The Bottom Line on Going Green: Making Responsible Tourism Pay

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Sustainability isn’t just a buzzword—it’s a business strategy. And for short-term rental operators, it’s no longer an option. Travelers today are clear in what they want. They’re looking beyond price and location, toward  holidays that align with their values. 

They’re choosing properties that embrace eco-friendly practices, and they’re willing to pay for them.

But going green isn’t just about appeasing eco-conscious guests—it’s about protecting your bottom line by delivering smart sustainability upgrades that can boost revenue, increase occupancy, and cut costs.

Two UK companies have taken this to heart and are benefiting from their charge into more sustainable practices.  Just For You Holidays in the Isle of Wight, and New Forest Escapes in the county of Hampshire are demonstrating that responsible tourism is a real thing and it pays to go green.

What the Data Says: Guests Prefer Sustainable Stays

Recent industry studies show that a growing number of travelers prioritize sustainability when booking accommodations. According to a Booking.com survey, 76% of travelers say they want to stay in sustainable properties, and 73% are more likely to choose a property if it has sustainable practices in place. What’s more, 30% of travelers are willing to pay a premium for an eco-conscious stay.

But here’s the kicker: many short-term rental operators aren’t clearly communicating their sustainability efforts. Guests might want an eco-friendly stay, but if they don’t see your green initiatives, they won’t know to book with you.

Just For You Holidays makes it clear what their green initiatives are, and publicly shares their focus on sustainability.

Just For You Holidays - Isle of Wight

Premium Pricing: Guests Will Pay More for Green Stays

If you’ve invested in sustainability, don’t be afraid to charge more. A well-executed green initiative could command 5-15% higher nightly rates compared to non-sustainable properties. The key is to ensure your eco-upgrades are positioned as luxury perks, not cost-saving measures.

Which Green Features Justify Higher Prices?

  • Energy Efficiency: Smart thermostats, solar panels, and LED lighting not only reduce costs but also make guests feel good about their stay.
  • Water Conservation: Low-flow fixtures and rainwater harvesting systems are cost-effective upgrades that guests appreciate.
  • Waste Reduction: Providing refillable toiletries, composting bins, and recycling stations can set your property apart.
  • Eco-Friendly Amenities: Organic cotton linens, biodegradable toiletries, and locally sourced welcome baskets add perceived value.
  • Sustainable Design: Properties built or renovated with sustainable materials (like bamboo flooring or reclaimed wood furniture) have an upscale, environmentally friendly appeal.

How to Price Green Features in Short-Term Rentals

  1. Research Your Competitors

    • Are other eco-friendly properties in your area charging more? If so, how are they positioning their green features?
    • Look at properties like New Forest Escapes, which promotes their B Corp sustainability status and eco-retreats as premium getaways​

  2. Create a ‘Green Stay Package’ with Exclusive Perks

    • Offer priority early check-in or late check-out for guests who choose an eco-friendly stay.
    • Include locally sourced welcome hampers - Just For You Holiday Homes provides organic Isle of Wight produce to enhance the guest experience​
    • Partner with local sustainable businesses - give discounts on e-bike rentals, farm-to-table restaurants, or guided eco-tours.

  3. Charge a ‘Sustainable Upgrade Fee’ for Luxury Eco Amenities

    • Offer premium eco-friendly bedding (organic cotton sheets, natural latex mattresses) and charge a slight premium for these rooms.
    • If your property has solar-powered heating or an EV charging station, highlight the convenience and energy efficiency as a value-added feature that justifies a higher nightly rate.

  4. Price Based on Energy-Efficient Comfort & Convenience

    • Market eco-friendly insulation as a comfort feature: “Stay warm in winter and cool in summer with our energy-efficient, climate-controlled home.”
    • If your property uses filtered water stations instead of bottled water, highlight the convenience and health benefits rather than just the sustainability aspect.

By integrating sustainability as a luxury feature—rather than just an environmental choice - you can increase perceived value and justify premium pricing. 

Marketing Your Eco-Friendly Features Effectively

Having sustainable features won’t boost your revenue if guests don’t know about them. The way you market your green initiatives can make all the difference.

Tell a Story

 Casal dei Fichi - Le Marche, Italy

Guests connect with stories more than features. Instead of listing "LED lighting and water-saving showerheads," tell them how your property reduces its carbon footprint. Example: “We’ve swapped out 500 old light bulbs for energy-saving LEDs, reducing our energy use by 30% - enough to power an entire home for a year!”

Use Green Certifications & Badges

Certifications like LEED, Green Key, or Energy Star appliances add credibility. Even if you don’t have official certifications, create your own “Sustainability Promise” badge for your website and listing platforms.

Highlight Eco-Perks in Your Listings

  • Use keywords like eco-friendly, sustainable, green-certified, solar-powered in your descriptions.
  • Feature high-quality images of your eco-initiatives: solar panels, organic toiletries, refillable water stations, or bikes for guest use.
  • Add a “Green Stays” section to your website or listing, explaining your sustainability efforts.

Incentivize Eco-Friendly Behavior

Encourage guests to participate in your green efforts:

  • Offer a discount for guests who choose to skip daily linen changes.
  • Provide reusable shopping bags and offer local farm-to-table restaurant recommendations.
  • Give rewards for guests who recycle or use public transport.

The Cost vs. Benefit of Sustainability Upgrades

Many hosts hesitate to go green, fearing high upfront costs. But in reality, sustainability investments often pay for themselves within a few years - if done strategically.

Upgrade Initial Cost Annual Savings ROI Timeline
$5-$15 per bulb $150-$300 $10,000-$30,000 $50-$150 per unit
$100-$200 $200-$400 $1,000-$2,500 $50-$150
1-2 years 1-2 years 5-7 years 1-2 years

Some sustainable choices don’t cost much at all. Switching to eco-friendly cleaning products, offering filtered water instead of bottled, or using digital guest guides instead of printed materials are low-cost ways to go green instantly.

The Bottom Line: Sustainability Pays Off

Going green isn’t just about protecting the environment - it’s about future-proofing your rental business. Guests are willing to pay more for sustainable stays, and with the right pricing and marketing strategies, you can turn your eco-initiatives into a revenue boost.

For StayWise Rentals, the competition is already capitalizing on sustainability - so the question isn’t if they should go green, but how fast they can implement these changes.

So, what’s your next eco-upgrade? Whether it’s swapping out lightbulbs or making a bigger investment in solar, every step counts. And if you’re already embracing sustainability, shout it from the rooftops - because that’s what today’s guests are looking for.

Want to know more about turning sustainability into profit? Join us for our Sustainability Panel: Lean, Green, and Profitable on February 26th, featuring Bob Garner! StayWise Rentals is making the shift - are you? 

Heather Bayer

Co-Founder & Director of Education & Training

Vacation Rental Formula
Short-term rental investor, blogger, podcaster, and vacation rental guru! Heather has been immersed in the industry since 1998 as the owner of seven properties and CEO of one of Ontario's leading rental agencies managing 180 rental cottages. She's also the co-founder of the Vacation Rental Formula, the best educational resource for owners and managers, and the creator and lead presenter for this incredible program.

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