Sustainability readiness and IoT readiness in hotels: strategic development paths

Abstract

Purpose Sustainability and the integration of Internet of Things (IoT) technologies are strategic imperatives in the tourism sector. Nonetheless, many hotels remain hesitant to pursue these opportunities due to concerns over guest satisfaction, revenue expectations, government support, among others. This study aims to investigate the factors influencing hotel management’s willingness to invest in sustainability and IoT initiatives. It introduces the sustainability-IoT readiness matrix, designed to assess hotels’ commitment to these domains. Design/methodology/approach A longitudinal, multi-case qualitative study was conducted through in-depth interviews with six managers from four- and five-star hotels in Spain – some affiliated with major chains – during 2019 and 2023. Findings First, managerial expectations regarding revenue potential, guest perceptions and support from headquarters or shareholders are key barriers to early adoption. Second, intrinsic hotel attributes – such as age, luxury positioning, business or leisure orientation and clientele – significantly shape readiness. Third, competitive pressure was largely dismissed, with respondents perceiving equilibrium among local competitors, suggesting limited influence of global trends at the local level. Fourth, IoT adoption follows a logarithmic trajectory, warranting a stage-based analytical approach. These findings offer actionable implications for policymakers – who can foster adoption through targeted education and incentives – and for external agents such as booking platforms and certification bodies, which can enhance visibility and drive uptake. Scholars are encouraged to refine adoption models and examine context-specific variables shaping strategic transitions in hospitality. Originality/value This paper offers new concepts within topics relevant for the contemporary climate debate, i.e. sustainability efforts and IoT in an industry with a significant environmental footprint. It also includes revealing cases and suggests new potential future research directions. Thus, the authors proposed a typology on readiness for sustainability efforts and IoT technology within hotels, called the sustainability-IoT readiness matrix. In addition, the study identifies eight drivers underlying hotel managers’ readiness and development path wishes. Finally, the study points to three development paths for a hotel striving for high sustainability readiness and/or high IoT readiness.