Tourism Impact Report: Passenger Transport Edition, Q1 2025

Operational Sustainability and Supply Chain Navigation Transform Hospitality Practices

This comprehensive analysis examines how passenger transport companies face significant financial pressure from decarbonisation, with EU emissions trading reforms exposing 82% of airlines to €95/tonne carbon costs by 2030. This research reveals how these regulatory developments manifest as both immediate compliance challenges and strategic considerations, requiring robust materiality assessment processes that address both financial materiality, through cost implications, and impact materiality, through emissions reduction throughout passenger transport value chains.

The report additionally highlights how recent tariff volatility has disrupted sustainability initiatives for 56% of hospitality businesses particularly affecting investments in energy-efficient systems and sustainable food sourcing.

Call to Action: Accommodation and restaurant companies should develop regionally diversified supplier networks and implement flexible sustainability strategies that can adapt to trade policy fluctuations ensuring environmental commitments remain viable despite economic uncertainties.

The report highlights how cruise operators report 14% fuel expenditure increases for low-sulphur compliance, exemplifying the financial implications of environmental regulations across maritime passenger transport. These additional operational costs necessitate sophisticated approaches to fare strategy, cost management, and investor communication, reflecting the growing industry recognition of double materiality considerations in regulatory compliance across diverse passenger transport contexts.

This analysis reveals that CDP data shows 38% of maritime firms lack viable biofuel transition plans, potentially violating IMO 2030 sulphur cap requirements. This gap in strategic preparedness poses material risks as regulatory frameworks become increasingly stringent, necessitating comprehensive governance approaches and strategic foresight throughout maritime passenger operations. Companies implementing robust transition strategies are demonstrating a greater awareness of ESG considerations, which may potentially secure advantages in regulatory positioning and stakeholder relationships.

The report examines significant innovations in the implementation of sustainable aviation fuel (SAF), with industry leaders establishing clear adoption roadmaps to address aviation's challenging decarbonisation pathway. These initiatives not only mitigate regulatory risks but also enhance strategic positioning, as investors, customers, and policymakers increasingly scrutinise emissions performance throughout passenger air transport operations and supply chains in alignment with evolving CSRD reporting requirements.

Looking toward future transport landscapes, the report identifies how fleet renewal initiatives, operational efficiency programmes, and innovative fuel technologies are transforming industry approaches to sustainability and climate resilience. Companies implementing comprehensive decarbonisation strategies aligned with the SDGs for climate action and sustainable communities are demonstrating enhanced preparedness for both physical climate risks and transition challenges associated with evolving policy frameworks across increasingly conscious passenger markets.