Keeping hotel guests happy is an energy-intensive business. Hoteliers rely on energy to simply keep lights on and power everyday operations. Add to this, energy’s role in supporting the level of service that guests expect, and you get a key focus area for many hotels.
From ventilation and heating to refrigeration and of course, cooling the mini bars that keep guests happy, energy powers the backbone of many hotels. That’s why it’s important that hoteliers take full advantage of opportunities in the energy market.
Unlike most businesses, hotels have unique round-the-clock energy requirements. This means they’re perfectly positioned to buy from the wholesale market. Here’s how:
The right fit with wholesale
Just like all hotel supplies, energy can be bought from a wholesale market. It’s a dynamic market, where energy prices are linked to supply and demand and change throughout the day.
Despite this constant movement, most retailers charge fixed rates. These retail offers will take this variability and smooth it out. Usually, this will push up the price‘s businesses pay.
Sidestepping standard retail offers and choosing a wholesale energy strategy can open hoteliers up to a new world of low-cost energy.
This is because the wholesale market connects businesses with the actual cost of power. It means hoteliers can take a closer look at how and when their business uses energy and find chances to save.
Moving with the market
While many hotels have round-the-clock energy requirements, their operations are flexible. This makes hotels perfectly positioned to take advantage of demand management.
Demand management simply refers to how businesses can tailor operations, either daily or once-off, to bring down energy costs. It can be a simple as moving energy-intensive operations to off-peak periods or powering down when prices are high.
Reshaping energy costs through these strategies can yield big savings. Let’s take a look at what that meant for one hotel.
A better way
Coming off low fixed rates in 2017 and facing much higher energy costs pushed one hotel to explore its alternatives. The hotel’s general manager knew that his hotel wasn’t getting the best deal available in the market.
Just like room rates, he knew energy prices could vary based on many factors.
He was willing to explore alternatives. The hotel sourced most of its supplies wholesale, energy didn’t need to be different.
That’s why he turned to Power Up, an energy plan that would connect his hotel directly with the low prices in the wholesale market – a wise move.
By the end of 2018, the hotel had saved 20% on its energy costs by simply switching to wholesale. This was achieved without any change to operations but if they had, this would have delivered even greater chances to save.