The hospitality industry, particularly at the luxury end, has long been associated with indulgence and opulence. Think fluffy towels, extravagant buffets, and… well, a fair bit of waste. But the world is changing, and so are the expectations of travellers. Sustainability is no longer a niche concept; it's rapidly becoming a core value, even in the realm of luxury.

Consumers are increasingly prioritizing eco-friendly practices, with studies showing that a significant percentage are willing to pay a premium for sustainable options. Euromonitor’s 2023 travel survey show that 38% of luxury seekers are willing to pay between 30% and 50% more for sustainable travel features. Known for its deep-rooted cultural appreciation of nature and meticulous hospitality (Omotenashi), Japan’s luxury hotels are adapting to this global trend while adding unique local touches—because nothing says “five-star service” like a guilt-free stay.

As the hospitality industry navigates this new paradigm, several key themes emerge. First, the very definition of luxury is evolving, with sustainability now a central pillar rather than an afterthought. Second, eco-conscious initiatives are not just a moral imperative but a competitive advantage, attracting a growing demographic of responsible travellers. Japan’s luxury hotels, rooted in cultural traditions of mindfulness and environmental harmony, are responding in innovative ways, from responsible sourcing to energy efficiency. Of course, while these efforts bring tremendous opportunities, they also come with challenges, including financial investment and guest expectations. This article explores how the industry—particularly in Japan—is addressing these shifts and what it means for the future of luxury hospitality.

The Evolution of Luxury Hospitality

Historically, luxury in hospitality was synonymous with excess—lavish décor, abundant amenities, and high resource consumption. Over the past century, grand hotels and resorts competed by offering extravagant buffets, oversized suites, and opulent chandeliers that could probably be seen from space. However, as environmental awareness has grown—especially in the past two decades—so too has the realization that indulgence need not come at the planet’s expense. The modern traveller now values responsibility alongside comfort, leading to a redefinition of luxury. Today, environmental stewardship, community engagement, and sustainability initiatives are markers of a high-end experience. Essentially, opulence is now measured not just by thread count but by carbon footprint reduction. A penthouse with reclaimed wood furniture and solar panels? Now that’s luxury with a conscience.

Global hotel giants are taking note. Hyatt's "World of Care" focuses on environmental sustainability and community engagement. Marriott's "Serve 360" initiative addresses social impact alongside environmental stewardship. Hilton's "Travel with Purpose" program emphasizes responsible travel and community support. IHG's "Journey to Tomorrow" responsible business plan outlines a clear commitment to environmental sustainability and social impact across its global operations. These initiatives, while varying in scope and focus, demonstrate a clear industry-wide shift.

Sustainability as a Competitive Advantage

Sustainability is no longer just a feel-good initiative; it's a smart business strategy. It enhances brand reputation, attracts eco-conscious consumers, and can even drive cost savings through reduced resource consumption. A study by Euromonitor reported that nearly 80% of travellers surveyed would pay at least 10% more when booking sustainable travel.

Sustainable luxury hotels have capitalized on this trend through innovative marketing strategies. 

• Six Senses Hotels Resorts Spas leverages its “Earth Lab” concept to educate guests on sustainability. The program includes interactive workshops on waste reduction, organic gardening, and renewable energy usage. Many Six Senses properties have significantly reduced water and energy consumption, with Six Senses Zighy Bay achieving over 60% in plastic reduction, making eco-conscious relaxation their signature experience.

• 1 Hotel Central Park in New York City has made sustainability a core part of its brand identity, featuring reclaimed materials in its design and offering farm-to-table dining options.

These properties often command premium prices while offering unique, nature-immersive experiences that resonate with environmentally conscious travellers. Their marketing strategies highlight their commitment to sustainability, attracting a loyal customer base.

Luxury hotels, and hotels in general, are experiencing higher staff retention and attracting more capable employees by embracing sustainability as well. A 2024 UK study found that over 76% of hospitality staff, and 88% of those in management positions, reported they are more likely to stay in a job longer if their employer makes a positive environmental impact.

The growing demand for sustainable travel is further seen by recent travel providers’ developments. Booking.com has introduced a new sustainability label to highlight properties with third-party environmental certifications, making it easier for eco-conscious travellers to choose greener accommodations. This move is more than just a nod to sustainability—it’s a competitive edge. Their 2023 Sustainability Report indicates that 59% of users intend to utilize this filter in future bookings. Meanwhile, Virtuoso’s Sustainable Travel 2024 report reveals that 88% of luxury travel advisors see sustainable travel as a business opportunity, with 66% of their clients willing to spend more when they are informed about a destination’s environmental initiatives.

The Japanese Hospitality and Travel Industry’s Response

Many tourist destinations are also taking this more seriously with Destination Stewardship recognised as key for the travel industry. Kyoto has been a leader in this area, especially with the adoption of the Kyoto protocol in 1997. According to Japan travel specialist Alison Roberts-Brown of Tourism Garden, Kyoto is more reliant on tourism economically than other destinations in Japan. SDGs are the bible, with Kyoto being the first city in Japan to centralise it’s sustainability efforts. It’s looked at a huge range of touchpoints and systems - from reuse and repurposing of buildings (ACE former 1920s Kyoto Telephone Company & Gate former Rissei Elementary School building) to promoting responsible tourism and encouraging tourists to respect local culture and customs.

Japan possesses a unique cultural perspective on sustainability, deeply rooted in concepts like mottainai (avoiding waste) and omotenashi (wholehearted hospitality). These values naturally align with the principles of sustainable tourism. Luxury hotels in Japan are increasingly incorporating these principles into their operations.

Many are emphasizing local sourcing of food and materials, reducing waste through innovative practices, and showcasing traditional craftsmanship.

• Hoshino Resorts, known for its luxurious ryokans, exemplifies this approach, often highlighting local culture and sustainable practices in its branding. HOSHINOYA Karuizawa for example, utilizes the "EIMY (Energy in My Yard)" system, which includes hydroelectric power generation from a nearby river, significantly reducing reliance on non-renewable energy sources. The property also designed a geothermal utilization system and sustainably produces 70% of its energy consumption.

• 1 Hotels markets itself explicitly as a sustainable luxury brand, incorporating biophilic design and upcycled materials. Its Tokyo location, set to open soon, will feature reclaimed materials, living plant walls, and advanced water recycling systems. The brand’s sustainability reporting has shown measurable reductions in energy use, demonstrating the financial and environmental benefits of such practices—because who doesn’t love a hotel that saves the planet while serving craft cocktails in a recycled-glass tumbler?

• Hyatt has adopted energy-efficient practices to reduce carbon emissions, such as using 100% renewable energy certificates to match their electricity consumption. Notably, Park Hyatt Tokyo was the first hotel in Japan to receive MSC and ASC CoC certifications for serving environmentally friendly seafood, empowering guests to make informed and sustainable meal choices.

• Six Senses Kyoto sets the gold standard in waste reduction by completely eliminating single-use plastics for their guests. The property opts for refillable glass bottles, compostable amenities, and eco-friendly packaging. Beyond waste management, Six Senses Kyoto embraces a closed-loop philosophy by repurposing kitchen waste to nourish its traditional gardens, growing fresh herbs and produce used in both its restaurant and spa treatments. The result? A seamlessly luxurious experience where sustainability is not just a feature but a philosophy.

Opportunities for Hoteliers

The opportunities for hoteliers to embrace sustainability are vast. Technological advancements offer innovative solutions, from energy-efficient HVAC systems and smart building technology to water conservation systems and renewable energy sources. These investments not only reduce environmental impact but also offer long-term cost savings. 

Eco-tourism presents another significant opportunity. Hotels can curate unique guest experiences that promote local culture and sustainable practices, such as farm-to-table dining experiences, guided nature walks, and cultural immersion programs. Some resorts partner with local farmers and artisans, allowing guests to participate in hands-on sustainability workshops—because nothing makes a vacation more memorable than planting your own rice.

Digital platforms play a crucial role in communicating these efforts to guests, showcasing a hotel's commitment to sustainability and attracting like-minded travellers. Websites, social media, and mobile apps now feature dedicated sustainability sections that provide real-time updates on energy consumption, water usage, and carbon footprint reductions. Brands like The Peninsula Hotels offer sustainability reports that highlight annual progress, ensuring transparency.

Challenges in Implementing Sustainable Practices

Transitioning to sustainable models in luxury hospitality comes with its own set of challenges. While sustainability is a compelling market differentiator, it often requires significant upfront investment. High costs for renewable energy systems, sustainable construction materials, and waste reduction programs can deter hoteliers from making the leap. Operational changes may require retraining staff and adapting existing processes. However, long-term benefits such as energy savings and enhanced brand loyalty can offset these costs—because, in the end, cutting carbon can also mean cutting costs.

There may also be some resistance from traditional luxury consumers who associate luxury with excess rather than environmental consciousness. Guests accustomed to opulence might not initially embrace eco-conscious alternatives, such as filtered water in reusable bottles instead of imported bottled water. Hotels must bridge this gap through education and strategic messaging, demonstrating that sustainability enhances, rather than diminishes, the luxury experience. The Peninsula Tokyo, for example, integrates sustainable practices subtly, ensuring that guests enjoy top-tier service while knowing their stay has a lower environmental impact.

Balancing luxury and sustainability requires careful consideration. It's not about sacrificing comfort or elegance; it's about finding new ways to enhance the luxury experience through sustainable means. From plush organic cotton linens to locally inspired eco-friendly spa treatments, hotels are proving that sustainability doesn’t mean sacrificing comfort. For example, replacing disposable toiletries with refillable containers made from recycled materials can be both environmentally friendly and aesthetically pleasing. Offering locally sourced, organic cuisine can be a luxurious and sustainable dining experience.

What’s next?

Sustainability is no longer an optional feature in luxury hospitality; it is becoming a standard. The industry is undergoing a paradigm shift where environmental responsibility enhances, rather than diminishes, the guest experience. Japan, with its unique cultural approach to hospitality, is well-positioned to lead this transformation. Hoteliers must recognize sustainability as not just a trend but a core value that defines the future of luxury. By embracing eco-conscious strategies, brands can ensure longevity, attract discerning travellers, and contribute positively to the global hospitality landscape—because saving the planet should always come with a five-star rating.