The Best Cost-Saving Guide for Hotels

Cost-saving Guide for Hotels

It’s crucial that hotel managers optimise their hotels’ energy consumption to prepare for future demand and to maintain a healthy return on investment. Various factors have led to an increase in energy consumption and costs for hotels in the past few years. Extreme weather conditions, rising energy prices and the increase in tourism are only three agents. While an increase in the hotel occupancy rate means more revenue, energy inefficiencies, outdated systems and old contracts can diminish the actual profit through wasted energy. Our guide will show you how to optimise your energy consumption and future-proof your hotel by saving on utility costs.

Energy consumption in the hotel industry

The Carbon Trust estimates that energy consumption in hotels has increased from 25% to 30% in the past decade, predicting a 10% to 25% rise in the next few years. It also found that annual energy costs for the hospitality sector overall are in excess of £1.3 billion and the sector’s activity results in more than 8 million tonnes of carbon emissions per year in the UK alone.

With so many elements that form a hotel’s energy consumption system, there is great potential for savings in different operational areas. If you’re looking to increase your hotel’s profit margins through incremental changes, our guide presents money-saving solutions that will help you reduce costs in the short and the long term.

Benefits of hotels saving on utility bills

Reducing utility costs brings obvious financial benefits for hotels, but there are other aspects worth taking into consideration. While the financial gains take priority, the secondary benefits will also contribute to the successful running of the hotel’s activity.

Decreasing energy consumption will reduce the negative impact hotels have on the environment. By limiting their harmful effects on the environment, hotels can preserve human livelihood and habitation conditions, which means they will be able to carry on conducting their activities normally.

Moreover, consumers are increasingly environmentally-savvy and this shows in their shopping habits. Protecting the environment is something that appeals to a growing market segment which hotels can target and capitalise on.

We’ve included an in-depth analysis of all the benefits in our guide. Make sure to download it for more details.

How hotels can save on their utility bills

There are numerous ways in which hotels can save electricity, gas and water. Low cost, easy-to-implement solutions can quickly improve efficiency and reduce costs by up to 10%. More labour-intensive and capital-demanding solutions can deliver greater cost savings of up to 20-25% (Carbon Trust).

Quick wins can be as easy as lowering your thermostat temperature by one degree to decrease your annual heating bill or installing movement sensors to reduce your lighting costs. Regular maintenance and replacing old equipment can achieve lower costs without sacrificing necessary services.