Sustainable travel represents both an environmental necessity and an economic opportunity. Awareness of sustainable tourism surged in 2024 with over 80 percent of global travelers considering sustainable travel important.¹ Meanwhile, concerns are growing over the industry’s climate impact, as tourism accounts for approximately 8 percent of the world’s carbon emissions.²

Industry players are rising to the challenge. Underscoring their commitment to meeting rigorous emission standards, 53 percent of travel and tourism businesses analyzed by the World Travel and Tourism Council (WTTC) have now set climate targets – a notable jump from 42 percent in 2021.³ At the same time, companies adopting the Science Based Targets initiative (SBTi) to achieve net-zero emissions by 2050 now represent over one-third of global market capitalization.⁴

While awareness and commitment to green initiatives are growing, the journey from ambition to impact is anything but straightforward. Travel and Leisure (T&L) companies on the path to sustainability must address a complex mix of operational and behavioral hurdles to stay ahead. This article explores how industry players can accelerate adoption of transformative technologies to meet the rising expectations of Millennials and Gen Z, and remain competitive.

The Digital Shift Re-shaping the T&L Sector

From real-time carbon tracking to transparent blockchain verification and Internet of Things (IoT)-driven optimization, advanced digital solutions are driving smarter, cleaner choices – cutting carbon footprints while boosting traveler engagement and operational efficiency.

Carbon Tracking and Reporting

Road vehicles account for 74.5 percent of carbon dioxide emissions from transport, with aviation and shipping following in second and third place.⁵ Carbon tracking is becoming integral to travel, with Application Programming Interfaces (APIs) and platforms embedding ISO 14083-aligned emissions data directly into booking systems.

By showing per-trip carbon footprints alongside cost and time, travelers and corporates can make greener choices, monitor cumulative impacts and simplify Environmental, Social and Governance (ESG) reporting. One such app stated its users cut emissions by up to 21 percent,⁶ while another platform claims to keep offsets to about 1 percent of total travel cost.⁷

AI-powered Multimodal Routing

AI-enhanced solutions are driving multimodal routing, identifying optimal travel paths by combining options like train, bus, electric vehicle, bike and walking. By analyzing emissions, cost and duration across modes – including rail, rideshare and aviation – they recommend the most efficient and sustainable routes, achieving an average 15 percent reduction in carbon emissions compared with traditional travel plans.⁸

Electric and Smart Mobility

The Electric Vehicle (EV) market is set to surge to ~USD 2.49 Trillion by 2031.⁹ In parallel, Mobility-as-a-Service (MaaS) platforms – projected to cross USD 1.73 Trillion by 2032 – are re-shaping urban transport.¹⁰ These platforms provide rail, bus, bike and EV details on a unified interface, providing real-time options, emissions data and seamless payment across all modes. City MaaS platforms – which integrate rail, micromobility and EV-sharing with carbon-first sorting – could reduce carbon emissions by up to 25 percent by 2030.¹¹

Blockchain-driven SAF Integrity

Sustainable Aviation Fuel (SAF), made from renewable sources like used cooking oil, agricultural waste and carbon capture, can reduce lifecycle emissions by up to 80 percent compared to fossil jet fuel.¹² Yet, scare supply and weak traceability limit adoption.

Blockchain brings transparency through streamlined book-and-claim transactions, preventing double counting and fraud while lowering costs. Current SAF production shows a 15 percent gap in feedstock traceability, but blockchain implementation can improve traceability by up to 30 percent while reducing operational costs by 20 percent.¹³

The Sustainable Aviation Buyers Alliance (SABA) – backed by companies like Boeing, Microsoft and Bank of America – is further accelerating investment and adoption to drive aviation toward net-zero.¹⁴

IoT-powered Optimization

IoT use involves smart sensors and connected devices that automatically gather environmental data. In tourism, these systems monitor energy use, visitor numbers and environmental conditions to optimize sustainability. For instance, by integrating occupancy with lighting, weather and indoor climate control systems, hospitality firms are cutting energy use by up to 28 percent.¹⁵ Smart IoT deployments optimize resource management and support eco-friendly operations.

AR and VR

Augmented Reality (AR) and Virtual Reality (VR) solutions provide low-impact alternatives to physical travel, helping reduce carbon emissions while advancing global sustainability goals. VR alone offers the potential to contribute to 12 of the UN’s 17 Sustainable Development Goals, directly supporting 25 percent of the 2030 Agenda targets.¹⁶ In ecotourism, AR enhances conservation education by delivering interactive and informative overlays that shape greener tourism choices.

T&L at Crossroads: Fueling Growth while Advancing Sustainability

Travel and leisure leaders today stand at a pivotal moment. On one hand, the sector is rebounding and poised for strong growth; on the other, the pressure to align with climate goals and rising customer expectations for greener choices is intensifying. For decision-makers, the challenge is not choosing between growth and sustainability, but finding practical ways to achieve both.

This requires overcoming structural hurdles – from inconsistent emissions data and higher costs for eco-friendly options to consumer inertia and disruption risks – that slow down progress. Addressing these headwinds with innovation, digital tools and smarter engagement strategies can unlock new pathways for sustainable growth.

5 Strategies for a Greener Playbook

For industry leaders putting sustainability at the core of their operations, digital transformation is key to maximizing ROI. However, it can be a challenge to pinpoint where to start. The following strategies offer a roadmap toward a more resilient travel future.

1. Integrate API-level Emissions Data into all Searches and Invoices

Embedding real-time emissions data directly into booking engines and invoices empowers travelers and corporate clients to make informed, low-carbon choices. Application Programming Interfaces (API) can pull standardized carbon metrics from credible databases, ensuring accuracy across platforms. This transparency not only supports ESG reporting but also nudges demand toward greener routes, accommodations and experiences.

2. Deploy AI-driven Demand Forecasting and Real-time Recommendations

Generative AI (Gen AI) and predictive analytics are transforming travel by integrating sustainability metrics into real-time, hyperpersonalized recommendations that modern travelers demand. By optimizing seat inventory, room availability and fleet deployment, these solutions reduce wasteful overcapacity while keeping pricing competitive. AI and Natural Language Processing (NLP)-powered tools enable context-aware interactions, while gamified incentives – points, badges or challenges – nudge travelers toward greener transport, accommodations and activities. During disruptions, intelligent recommendation engines can instantly suggest lower-emission alternatives, such as rail instead of short-haul flights, supporting both profitability and sustainability.

3. Prioritize High-ROI IoT Retrofits and Publicly Report Impact

IoT-enabled energy and resource monitoring – such as smart indoor climate control, water meters and lighting – can deliver significant efficiency gains. Prioritizing retrofits with rapid ROI and publicly reporting the resulting savings can build traveler trust and strengthen brand positioning for T&L companies, establishing them as sustainability leaders.

4. Accelerate SAF Adoption Through Blockchain-verified Offtake Agreements

Long-term offtake contracts help scale SAF production by providing suppliers with revenue certainty. Integrating these agreements with blockchain registries ensures transparency, prevents double-counting of emissions savings and verifies the environmental benefit for corporate buyers and travelers.

5. Leverage VR and AR for Pre-trip Inspiration and On-site Education

Immersive VR experiences let travelers virtually explore ecosystems, fostering emotional connections. On-site AR overlays provide interactive learning about local wildlife and habitats, encouraging sustainable behaviors. By integrating these technologies into marketing and visitor experiences, future-focused organizations can raise awareness and inspire meaningful action.

Charting the Course to net-zero

The sustainable tourism market is projected to reach USD 6.49 Trillion by 2029.¹⁸ Capturing this expanding market requires bridging the technology gap and accelerating adoption through modular AI and analytics solutions that minimize business disruption. Partnering with digital-led domain experts has been a proven method of accelerating the implementation and adoption of such solutions – from increasing revenue by 28 percent to boosting customer satisfaction score by 700 basis points and recovering USD 12 Million annually with automated fare audit.

Now is the time for T&L leaders to act. Connect with our experts to explore how future-ready, AI-powered solutions can help your organization achieve sustainable growth while moving decisively toward net-zero.

References

1. Sustainable tourism worldwide - statistics & facts | Statista

2. Carbon Footprint of Tourism - Sustainable Travel International

3. Significant Surge in Travel & Tourism Businesses' Commitment to Net Zero

4. A year of exponential growth - Science Based Targets Initiative

5. Cars, planes, trains: where do CO₂ emissions from transport come from? - Our World in Data

6. Joro Is one of the 2022 TIME100 Most Influential Companies | TIME

7. Reduce your Business Travel Carbon Footprint | TravelPerk

8. Optimizing Travel Itineraries with AI Algorithms in a Microservices Architecture: Balancing Cost, Time, Preferences, and Sustainability - ADS

9. Electric Vehicle Market Size to Surpass USD 2492.5 Billion by 2031, Experiences Growth Due to Low Ownership Cost Compared to ICE Vehicles | The Insight Partners

10. Mobility as a Service [MaaS] Market Size, Share | Growth, 2032

11. MaaS: The Future of Transport

12. How does SAF reduce emissions? Exploring its benefits

13. BLOCKCHAIN DRIVEN SUPPLY CHAIN TRANSPARENCY IN SAF PRODUCTION: ENHANCING TRACEABILITY AND REGULATORY COMPLIANCE | International Journal of Advanced Research in Computer Science

14. SAFc Registry

15. Hotels Use 28% Less Energy With Connected Lighting Systems - The Althea Foundation

16. Virtual reality as a driver of sustainable tourism

17. ISO - Towards a net-zero logistics sector

18. Sustainable Tourism Market Report 2025 - Research and Markets