Bridging the say-do gap: Making sustainability work for SMEs

Governments, businesses, and consumers all recognise the urgency of climate change. Yet, when it comes to spending money, most people prioritise affordability and quality over sustainability. This inconsistency, known as the "say-do gap," presents a challenge for businesses, especially those in the Travel & Tourism sector.

The World Travel & Tourism Council (WTTC), in collaboration with YouGov, conducted an in-depth study to understand consumer attitudes towards sustainability. The findings show that while many consumers express environmental concerns, only a small percentage are willing to pay extra for eco-friendly options.  

Understanding consumer segments

The report identifies six consumer groups, based on a UK study, on their approach to sustainability:

1. The Hopeful Worrier (20%): This group sees climate change as a serious issue and believes that individuals can make a difference. However, only 7% rank sustainability as the top factor when making a purchasing decision.  

2. The Outward-Pointing Worrier (17%): They care about sustainability but believe governments and corporations should take the lead. Only 3% rank sustainability as the top factor in purchasing decisions.

3. The Disempowered Environmentalist (16%): They support sustainability but feel powerless to effect change without government and corporate action.

4. The Accountable Optimist (16.5%): This group actively practices sustainability, such as recycling and donating second-hand items, but like others, they rank cost and quality higher than sustainability when purchasing.

5. The Action Avoider (19%): They show little interest in climate action and prioritise cost over environmental impact.

6. The Climate Change Agnostic (12.5%): This group is the least concerned with sustainability, with some even believing climate change is not real. Sustainability ranks last in their purchasing decisions.

Despite the differences in these consumer groups, the research highlights a common trend that economic concerns outweigh environmental ones. The cost of living crisis has made affordability the top priority, with over 50% of respondents ranking price as the main factor when making purchases. It also showed that sustainability ranked 6th or lower in importance for three out of six consumer groups.

How SMEs can encourage sustainable choices

For small and medium-sized enterprises (SMEs), balancing sustainability with affordability is crucial. Here’s how SMEs can bridge the say-do gap and encourage customers to make sustainable choices.

• Highlight cost savings: Since cost remains the top priority, SMEs should showcase how sustainability can be affordable and even save money. For example, a hotel could highlight that using a towel reuse programme helps keep room rates low. Similarly, a travel agency could promote public transport as both an eco-friendly and budget-friendly way to explore a city.

• Make sustainable choices the default option: Consumers tend to choose the easiest option. If sustainability is the default setting, more people will adopt it. Airlines could make carbon offset contributions an automatic feature in ticket pricing instead of an optional add-on. Hotels could set energy-efficient lighting as standard in rooms.

• Introduce tiered reward schemes: A tiered loyalty programme can encourage all types of travellers to participate in sustainability, regardless of their initial interest. For instance, entry-level customers can earn points for using refillable bottles, reusing towels, or recycling. Mid-tier customers can get discounts for choosing eco-friendly tours or hotels. For people who consistently choose sustainable options, they can get exclusive perks.  

• Showcase sustainability efforts: Customers are more likely to engage in sustainability if they see businesses leading by example. For example, a restaurant could display how it reduces food waste or sources ingredients locally.  

• Tailor marketing: Different consumers respond to different sustainability messages. For Hopeful Worriers and Accountable Optimists, SMEs can highlight the impact of individual action. For Outward-Pointing Worriers and Disempowered Environmentalists, businesses can focus on how businesses and governments are making a difference. For Action Avoiders and Climate Change Agnostics, they can emphasise cost savings and convenience rather than environmental benefits.

The business case for sustainability

While sustainability may not be a top purchasing priority for most consumers, businesses that integrate these initiatives can gain a competitive advantage. More than 40% of global travellers are willing to pay a small premium for sustainable travel, but only 1.7% will pay over 20% extra.¹ With a shift in government regulations over the past 5 years towards eco-conscious  policies, businesses that adopt sustainable practices now will be ahead of competitors in the future.

The say-do gap presents both a challenge and an opportunity for SMEs. While cost remains the biggest concern for most consumers, businesses can still promote sustainability by making it affordable, easy, and rewarding. With the right approach, it can be both a smart business move and a step towards a more sustainable future.

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