31 July 2008

Can you turn green (consciousness) into green (dollars)?

Surveys show that up to nine out of ten Americans are environmentally conscious. Eight out of ten Americans claim to be Ã¢â¬Åâœgreen.Ã¢â¬~ But are they willing to pay for it?

And does concern about the environment represent a market opportunity?

Ã¢â¬ÅâœThe answer is yes, although primarily with respect to market share, not incremental rates of yields,Ã¢â¬~ answers Peter Yesawich, CEO of the Ypartnership.

Specially, four out of ten leisure travelers "probably/definitely" would select an environmentally friendly travel supplier if they knew about the supplier's commitment to the environment -- not surprisingly, significantly more women than men agree with this statement, Mr Yesawich says of a recent survey.

And although nearly one-half state they're willing to pay higher fares/rates for the services provided by such suppliers, the majority (53%) state they are not. Among those willing to pay more, the overwhelming majority (six in ten) report they would pay only up to 9% more.

Ã¢â¬~The conclusion is therefore clear: a travel service supplier's commitment to and communication of environmental responsibility may be sufficient to shift market share,Ã¢â¬~ he said, adding:

Ã¢â¬ÅâœConsumers' reluctance to pay more to support Ã¢â¬Ëœgreen causesÃ¢â¬â¢ suggests that most, however, that they view the demonstration of this responsibility as an obligation of businesses that should, arguably, be good stewards of the environment anyway.Ã¢â¬~

Report by David Wilkening