Value chain implications of climate hazards Recommendations Avoid economic lossIncrease revenue, cost savings & sustainability Protect communities & ecosystems Enhance resilience Capitalize on opportunities Shape collaborative outcomes Increase resilience of fixed assets and infrastructure. Reinforce and upgrade travel-related fixed assets and infrastructure to better resist climate-related events. For example, adding heat-resistant materials to cope with extreme heat and moving passenger-facing operations to higher levels to cope with floodi ng. Introduce climate intelligence. Use science-backed climate intelligence to understand and forecast risks, so as to reduce disruption and minimize negative impacts on customer experience.Develop sustainable travel products. Attract eco-conscious consumers, for example through flights using sustainable aviation fuel, or zero-waste and renewably powered accommodation. Promote local resilience-building experiences. For example, visits to coastal communities restoring mangroves to protect against sea-level rise. Create flexible booking and cancellation policies. Accommodate customer concerns around climate-related disruptions. For example, rescheduling trips without penalties could attract new customers and increase loyalty.Collaborate with local communities. Co-develop tourism experiences that incorporate local adaptation strategies. Cultivate partnerships on the ground. Work with local environmental organizations and government bodies to fund and implement resilience projects that benefit both the community and the tourism sector. Develop integrated travel packages that combine flights with ground transportation, accommodation and activities to decrease the risk of disruption and delays, while promoting climate- resilient options.Fluvial flooding Extreme heat Wildfire Tropical cyclone Coastal flooding Water stress DroughtExtreme heat and floods reduce location attractiveness, changing travel behaviour and increasing marketing costs. Tropical cyclones, floods & wildfires lower travel demand, reducing revenue for tourism destinations. Extreme heat, floods & tropical cyclones reduce the availability of travel destinations.Tropical cyclones, floods & wildfires cause travel cancellations, reducing asset utilization and compromising customer experience. Climate hazards cause transportation delays and schedule disruptions, leading to increased demand for flexible trip options. Climate hazards drive demand for additional trip insurance, increasing the overall cost of travel and therefore decreasing the demand.Wildfires, floods & tropical cyclones cause physical damage to infrastructure and assets, leading to financial losses. Extreme heat, floods & tropical cyclones restrict certain tourism activities, lowering associated revenue streams. Tropical cyclones, floods & wildfires pose health risks to travellers, leading to medical emergencies and costly evacuations.Disruption caused by tropical cyclones, floods & wildfires leads to increased compensation payouts and insurance claims. Tropical cyclones, floods & wildfires damage travel infrastructure, leading to higher maintenance frequency and repair costs. Tropical cyclones cause delays in return trips, leading to additional accommodation expenses and a loss of future bookings.Research & inspiration Pre-trip experience At destination Post-trip experience Business on the Edge: Building Industry Resilience to Climate Hazards 60

Business on the Edge 2024