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The Best Cost-Saving Guide for Hotels

Save money on your hotel’s electric, gas and water bills with our comprehensive guide. Find out from our research how much the hotel industry spends on different utilities and the best ways to reduce energy consumption without compromising on your service quality.

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 While an increase in the hotel occupancy rate means more revenue, energy inefficiencies, outdated systems and old contracts can diminish the actual profit through wasted energy.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.

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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.

According to energy is the second-largest cost for a hotel after employment, accounting for 3% to 6% of operating costs and for approximately 60% of its CO2 emissions. On the bright side, the high cost of a hotel’s energy bills means that any money saved will have a direct positive impact on the bottom line.

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.

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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.

Long-term cost reducing solutions can deliver savings of up to 20 to 25 percent for hotels
Light retroits can reduce lighting electricity use by 50 percent
Learn all the methods you can use to save on your hotel’s bills by downloading our guide. You’ll find useful tips on a variety of cost categories such as lightning, heating, hot water, catering, staff training and many more.

Next step

Download the smart guide to how hotels can save on utility costs

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Smarter Business guide to saving on hotel utility costs

Case studies

Our team has extensive experience in helping hotels reduce their utility costs. The case studies below show how we helped the Supercity Hotel Chain and CBGA Robson save money and manage their utilities better.

Supercity Hotels with Smarter Business
CBGA Robson with Smarter Business

Get expert help and start saving on your bills today

Are you looking to start saving, but not sure where to begin? Or are you confused about what you should do next? Our team can help you with expert advice, so get in touch today.


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