Jul 7, 2024
partnership, ESG, product
Embracing Sustainable Travel: Minimizing Carbon Emissions and Maximizing Resource Utilization

By Liz Cheruto and Sharmaine Tan
Sustainable Travel is increasing in demand as Savvy Travellers are making conscious choices around their style of travel against the fight for climate change. They're flying shorter distances, supporting homesteads and more, according to a recent Statista study in 2023. Brands that prioritize environmental and social responsibility benefit from good juju from progressive thinkers and humanitarians.
Background
When Volvo cars and other companies like Ikea and Unilever signed a letter calling governments to adopt a global plan to phase out fossil fuels during the 2023 United Nations climate conference, it sounded a little unorthodox but felt like a long time coming.
Their reasons make sense because the 2015 Paris Accord, which saw over 200 nations commit to bring down global warming to around 1.5 degrees Celsius, had become higher than the preindustrial era, and was an accumulated result of the long term, adverse effects of fossil fuels.

Credit: Griffith Sciences Impact
Motorized transport, whether it was land, sea, or air have always been and are still largely dependent on internal combustion engines that run on fossil fuels. That, plus the huge demand for FMCG lead to a transportation sector that needs to meet the demand of consumers, that in turn only injects more CO2 and other greenhouse gases into the atmosphere. Transport emissions grew at an average yearly rate of 1.7% from 1990 to 2022. This was faster than any other end-use sector.
When fossil fuels are burned for manufacturing one-time use plastics etc., they dispense large amounts of carbon dioxide into the air. This blanket of gas traps heat in our atmosphere, thus contributing to global warming. Warming above 1.5 degrees Celsius will lead to further sea level rise, extreme weather, loss of biodiversity, and even food scarcity.
2022 saw Australia’s forests rise in flames for weeks, a huge calamity alongside Trump’s election that aggravated our feelings of doom and the apocalypse. Many people lost their homes, and lives trying to put out that fire. It was devastating.

Credit: Phys.org
Oil on its own, along with methane, releases approximately a third of the world’s total carbon emissions. A few of the ways climate researchers surfaced which were explored to prevent further warming, includes introduction of carbon taxes and credits, exploring cleaner fuels and carbon storage.
Carbon Taxes and Carbon Projects
Carbon taxes put a price on carbon emissions from the production of goods and services that surpass the company’s total emissions, which is benchmarked based on emission factors calculated based on the country’s norms for the measured activity, the entire supply chain for creating the final product, down to the minutiae of the types of electronic parts used, the duration they are run, painstakingly collected and measured data points globally. Everything that is required to run the company’s operations, thus the birth of Carbon accounting.
In the event, that the company is unable to meet their targets, they purchase Carbon credits to offset their emissions. This supports Carbon projects like Reforestation Projects in Brazil or constructing new Clean Energy infrastructure like Windmills, by going onto the Carbon Exchange Market, doing due diligence on available projects, and purchasing carbon credits which would in turn offset extra emissions.
This discourages consumers, businesses, and governments from using fossil fuel intensive methods of operating or manufacturing. Alternatively, they opt for cleaner energy sources like solar, wind power, hydropower, and bioenergy. Which creates demand and after, cheaper supply from manufacturing hubs like China and Southeast Asia.
Remember, carbon taxes and adopting cleaner energy sources will only limit and not eliminate the use of fossil fuels. As we slowly inch towards a fossil-fuel-free future, the transportation sector is continuously running to fulfil demand-driven orders by consumers. The road to Net Zero is fraught with obstacles. However, we shouldn't take for granted what we have just because the climate is slow to change.
How Hackglobe Supports the Fight Against Climate Change
Hackglobe hopes to build on top of currently running transport services in the travel industry, to achieve maximum utilization to optimize for scheduled route’s emissions, for vessels or vehicles that would have run otherwise, even if does not achieve peak utility.
Some examples of this might be operating delivery vans that would be operating in an area that’s planned a week in advance, that might cross roads with a tour bus the same week. Or a planned cruise, two years ahead of time, that could be running shuttle excursions through a port to the city.

This takes the concept of a multimodal transport system that involves the use of two or more forms of transportation, to new heights. Imagine a trust-first mobile application that provides the digital infrastructure that independently and securely verifies participating vendors and goods, no matter the country.
We could link up a bike, truck, train, and ship, even private planes, in a serendipitous manner to transport lower volume goods, because it was on the way, and make a little more cash along the travelled path, using resources you already have.
Serendipity in a System
The flexibility of multimodal logistics allows businesses and consumers to customize their bag relocation needs based on time or cost efficiency. For instance, forwarding can achieve faster travel with an air-road combination, while a more cost-effective solution could come from a road-rail combination. It simply depends.
Going back to reducing global carbon emission levels, it is important to adopt strategies that maximize resource utilization. Adopting multimodal transport would be one of the ways to optimize transport networks. For this approach to work, there would be a need to find and address any inefficiency within the network. Besides providing insights into key expenditure on areas such as fuel efficiency, a thorough network analysis shall lift the lid on how various factors affect emission output, customer service and the end users’ experience.
One of the factors that have always affected customer service and end users’ experience is pricing. Already, airlines, hotels, and rental car companies use dynamic pricing models to incentivize travel. For instance, airlines often increase prices during peak travel seasons or during holidays when demand is high. Similarly, hotels generally reduce prices during off-peak seasons to lure more tourists. Dynamic pricing has revolutionized the travel industry. It has enabled travel companies to offer personalized pricing, and competitive pricing, which optimize prices based on market demand.
Pricing optimization can only be achieved through the use of advanced technologies. To be specific, data-driven demand forecasting shall help one understand the market demand. Analysis of data sources including flight booking data, hotel occupancy rates, and social media trends has helped players in the travel industry make data-driven pricing decisions. The adoption of other technologies including Artificial Intelligence (AI), cloud computing, and the Internet of Things (IoT) will not only drive costs down but also improve the management of governance and compliance.
The Network Effect of Successful Partnerships
Partnerships and resource sharing among providers are also recommended. Successful collaboration means joining hands with other companies to share transportation resources. This leads to more revenue for everyone and decreased expenses. In the long run, cost savings become the primary benefit of partnerships thanks to efficient operations. Digital platforms like what Hackglobe intends to, can facilitate sector-wide collaboration - tremendously. For example, cross-selling opportunities could arise from introductions made during trade events. Social media platforms could be used to share stories of a solid partnership which builds partner relationships, and allows for future co-specialization opportunities and campaigns for mutual benefit.
The network effect of good reviews and referrals, brought from online communities, are great for branding and a cross-pollination of ideas that could spur further growth.

In the spirit of maximizing resource utilization, companies with unused rooms or additional storage space can also opt to convert these spaces into spots that could be rented out to Travellers through the Hackglobe web app. In addition to renting out space, by indicating that you’re a Collection Point, you have the option of turning your office into a PoS (Point of Sales) location where special deals for Travellers could be shared. Or even opt to service last mile delivery, which would add onto your balance sheets.
Now, let’s take a look at some of the companies that worked together with much success. A globally located company, NannyBag partnered up with many small shop owners which allow Travellers the ability to store their luggage ad-hoc when they wished to explore the city hands-free.
In Europe, ITA Airways, Italy’s flagship carrier, allows you to check in your flight and drop off your bag at a designated city-center train station, Termini Station, on your departure day. They lug it all the way to the airport for you as you enjoy your last moments in the city, probably doing some last minute shopping and thereby, increasing the probability of an additional baggage check-in fee, as a result. Smart. This partnership was with the City’s Tourism Board, and utilized their resources. This illustrates the nature of what Hackglobe wants to achieve. A collaboration which offers enhanced convenience and efficiency to users, thus promoting satisfaction and loyalty.

Wrap-up
All in all, companies need to maximize resource utilization during peak and low seasons, as well as adopt greener solutions. This balance perfectly aligns with achieving better Environmental, Social, and Governance (ESG) metrics, and the helps everyone gain an awareness about Sustainability Development Goals (SDGs). After all, investors and stakeholders increasingly take into consideration non-financial factors when making investment decisions. ESG and SDGs help you assess the overall sustainability and ethical performance of your business, which can have an impact on your long-term success and reputation.
Hackglobe connects distributed tour routes (DTRs) to travelers providing flexibility, reliability, and resilience to the tourism industry globally. We create new revenue streams for Tour operators on Land, Sea, and Air with regular departures, such as well-run tour buses, cruise liners, riverboats, and small planes to reduce carbon emissions from bag-ahead requests from relocation orders originating from Hackglobe’s Slow Travel audience.
Achieve peak asset utilization and sign up to become a key partner operator with Hackglobe, whether it be empty seats during low season or unused storage space on your office premises! And do it in a way that minimally affects Mother Earth.
Become a Partner!
Become a Partner, join the Hackglobe Network
Achieve peak asset utilisation and sign up to become a key partner operator with Hackglobe, whether it be empty seats during low season or unused storage space on your office premises!
Travel free of encumbrances.
© 2024 Hackglobe. A TravelTech venture by Unsanctioned Acts in Singapore