“The era of global boiling has arrived”, declared the UN secretary general, António Guterres, recently after scientists confirmed July was the world’s hottest ever month as temperatures hit record highs.
Almost daily, we are seeing reports of how climate change is affecting everyone, from extreme weather events and significant stress on eco-systems to droughts, fires, forced displacement and increased human hardship.
Are we climate accountable?
For those in the travel industry, more needs to be done to assist with travel de-carbonisation. The problem is that, despite big proclamations by providers, the travel industry could be accused of being in denial about the need for urgency. For example, IATA, the airlines’ trade association, has declared that Sustainable Aviation Fuel (SAF) will contribute 65% of the industry's de-carbonisation pathway. SAF will certainly help but, according to Bain & Company, SAF can only account for 20% of aviation fuel demand by 2050 as there simply will not be enough produced. Meantime, commercial passenger traffic is expected to grow 3+ times 2019 levels by 2050 (as per ICAO, Airbus and Boeing long range forecasts). Consequently, aviation, which currently accounts for 3.4% of GHG emissions, is forecast by the World Economic Forum to account for 22% of emissions by 2050 based on resumed capacity growth and lack of meaningful action compared to other industries, and it will become the largest single contributor to emissions.
If we are accountable, why aren't we doing more?
Insufficient action on the travel provider front is matched by traveller reluctance to pay for the additional cost of carbon neutral travel. A 2022 McKinsey survey indicated that 40% of travellers globally say they are willing to pay at least 2% more for carbon-neutral flight tickets. However, recent surveys e.g., by Skift have exposed a “say-do” gap; only 14% of travellers according to Skift state that they actually paid more for sustainable options when they travel. This say-do gap is likely to persist as long as travellers get a free ride, and sustainable travel costs are not made mandatory.
The current travel industry paradox
Many in the travel industry are keen to play a more pro-active role but most participants are reluctant to bite the hand that feeds them. The likelihood is high therefore that governments will intervene to force meaningful action. Given that government intervention may not deliver the most efficient market outcomes, the case for self-regulation and bolder action by travel industry participants could not be stronger. As an example, we at Key Travel have taken a decision to maximise our engagement with customers in de-carbonising their travel programmes. We have launched a multi-pronged programme to help customers eliminate non-essential travel and mitigate travel which is essential. This includes tools at the point of sale to help bookers make informed choices, carbon budget setting and reporting, as well as benchmarking versus peers and sharing of travel-decarbonisation best practices. Based on enlightened self-interest, the time for action is now for all organisations who are involved in the travel industry.