Transparency: A Defining Advantage in Responsible Hospitality
By Leora Lanz, ISHC, Associate Professor of the Practice, Boston University School of Hospitality Administration
Have you recently started supporting a brand because it clearly communicated its values and
commitment to responsible sourcing, sustainability, or ethical labor policies? Or perhaps you
stopped buying from one that seemed vague, or worse, misleading, about its practices?
In an era when transparency is essential, consumers are increasingly aligning their purchasing decisions with their personal values. They want brands that are open, honest, and committed to ethical practices, and they’re willing to walk away from those that aren’t. A 2022 Harris Poll commissioned by Google Cloud found that 82% of U.S. shoppers prefer brands whose values align with their own, and 75% stopped buying from a brand over a conflict in values. Additionally, 66% of shoppers seek eco-friendly brands, with 55% saying they would pay more for more sustainable products. A 2023 joint study by McKinsey and Nielsen IQ revealed that products making ESG-related claims averaged 28% cumulative growth over the past five years, compared to 20% for products without such claims.
Transparency has emerged as a crucial differentiator in building trust, earning customer loyalty, and driving long-term profitability.
Transparency has emerged as a crucial differentiator in building trust, earning customer loyalty, and driving long-term profitability. This is particularly apparent in the hospitality industry, where guest demands are continually growing, and competition is intense.
Transparency can bridge the disconnect between perception and reality.
Transparency Builds Trust and Loyalty
A 2024 PwC study summarized by the Institute for Public Relations, found that 91% of business leaders believe their ability to build and maintain trust affects business performance. Yet while 84% of executives think customers highly trust their company, only 27% of customers actually do. This gap reveals a real opportunity: transparency can bridge the disconnect between perception and reality.
Data from multiple sources supports this. Label Insight and Sprout Social report that 56% of consumers would remain loyal for life to a company that is fully transparent. And 85% say they are more likely to support a business during a brand crisis if the company has a history of transparency. These figures show the powerful link between openness, loyalty, and resilience.
Transparency doesn’t just impact customer trust -- it resonates deeply with employees. In today’s competitive talent market, job seekers are increasingly drawn to companies that are open about their values, workplace culture, and business practices. Employees who feel aligned with a company’s mission are more likely to become loyal advocates, amplifying the brand through word of mouth and social sharing. Internally, openness about company policies, goals, and performance can help hospitality companies position themselves not as patronizing, but as desirable places to work.
Globally, 43% of consumers will
pay more for transparent and sustainable products.
Transparency Can Drive Revenue
Transparency enhances brand perception, also driving sales. Research from Lightspeed HQ UK (November 2023) and Grocery Drive (December 2023) shows that 99% of consumers are more loyal to transparent brands. Globally, 43% of consumers will pay more for transparent and sustainable products, with 70% willing to do so (in the UK). And consumers are prepared to spend up to 10% more on sustainable goods.
In the hospitality sector, this trend is especially pronounced. According to Lightspeed Commerce Inc, 26% of diners would stop visiting a restaurant if it wasn’t run sustainably. Guests are watching everything from sourcing practices to waste reduction. By clearly communicating sustainability efforts, restaurants and hospitality businesses can retain customers and justify premium pricing.
Responsible Hospitality Means Transparent Hospitality
Responsible hospitality goes hand in hand with transparency. This means clearly stating where ingredients come from, how employees are treated, what environmental practices are in place, and how the brand engages with its communities. It also means honest communication in marketing, on social media, and during guest interactions.
When brands showcase their commitment to sustainability and ethical operations, they contribute to a larger culture of accountability and social responsibility. Transparency is not about perfection; it’s about progress, openness, and a willingness to share achievements and areas for improvement. Consumers appreciate when brands are candid about their journey and even more appreciative when invited to be part of the solution.
Transparency: Three Key Areas of Focus
How can we, as hospitality professionals, actively foster transparency?
1. Products & Sourcing
Clearly communicate where ingredients and materials come from.
Use tools like certifications, supplier stories, and sourcing maps to give customers insight.
Provide detailed labeling or menu information, including ingredients, allergens, nutritional content, and sourcing details.
Consider QR codes or digital platforms to share deeper insights.
2. Operations, Wellness & Employee Practices
Share efforts around sustainability, including energy use, water conservation, recycling, and waste reduction.
Set measurable goals and report progress regularly to demonstrate accountability.
Prioritize the guest wellness, ensuring a healthy and comfortable environment, and communicate these initiatives clearly.
Promote internal transparency: share company goals, sustainability efforts, and ethical policies with staff to build engagement and pride. Encourage employee feedback and dialogue to deepen trust and co-create a culture of openness.
Be open about employee policies such as wages, training, and culture—use employee stories and testimonials to bring this to life.
3. Branding & Integrity
Use digital channels to tell behind-the-scenes stories, celebrate milestones, and be honest about challenges.
Foster trust through consistent, authentic messaging across all touchpoints.
If issues arise, take responsibility promptly and transparently. Brands that communicate openly in tough times are more likely to retain customer loyalty.
A lack of transparency can seriously damage a brand. Ambiguity or deception creates suspicion,
erodes trust, and drives consumers toward more open competitors. Today’s consumers are
more informed and empowered than ever, and demand authenticity.
As consumer expectations in the hospitality industry evolve, brands that embrace transparency
will set the standard for success. From sourcing and sustainability to employee relations and
crisis management, openness is essential. The evidence is clear: transparency builds trust, trust
builds loyalty, and loyalty drives revenue.
By prioritizing transparency, hospitality companies
uphold ethical standards while strengthening their business strategies. In an industry where
trust and accountability shape guest loyalty and brand resilience, transparency has become a
defining competitive advantage - and a cornerstone of responsible hospitality.