Reducing the Energy Costs in Hotels: An Attempt to Take Care of the Environment

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Table of Contents

Introduction and Description
Critical Analysis of the Events
The Event Results Analysis: The Common Denominator
The Challenges, the Limitations ad the Solutions for the Problems
Conclusion
References

Introduction and Description

Conducting an efficient energy costs policy and maintaining careful balance between the sufficient services for the customers and the reasonable use of the electricity sources is one of the strongholds of the efficient hotel businesses, which is a commonly known fact. With the help of the reasonable use of electricity and the avoidance of wasting the natural resources, any hotel is bound to thrive and at the same time adhere to the environmentally friendly style of regulating business affairs, as Chon & Maier (2009, p. 136) say.

Unfortunately, in the sphere of the modern hotel business, the inexcusable waste of electricity can be observed. As Reinders (2011) reports, the waste of the environmental resources is on the agenda of the modern hotel industry:

According to a recent EnergyStar report, hotels in the U.S. spend close to $4 billion on energy each year. Given that energy costs will only continue to increase, reducing energy expenditures has become a viable way to reduce overall expenses. (Reinders, 2011).

Hence, there can be no possible doubt that something is to be done to solve the given complexity. According to the results of the event, certain measures are to and can be undertaken. Since the given issue is a peculiar study of hotel management and can be considered a perfect example of the way the environmental issues interfere the field of business, I picked the concern for the environment in the sphere of hotel industry.

Critical Analysis of the Events

According to the results of the event, two possible ways of solving the rising problem have been offered. As Reinders explained, these are

engaging in demand response measures to reduce the cost of electricity;
increasing energy efficiency to reduce energy usage” (Reinders 2011).

On the one hand, the given methods seem rather efficient and might prove working.

On the other hand, the given means can also have deplorable results on the hotel business and on the customers’ interest in the companies’ offers, not to mention the state of the natural energy.

Thus, according to what National Grid (2004) says, such measures as limiting the temperature of laundry hot water to 120° Fahrenheit and covering hot tubs and pools after hours (p. 1) might have their effect on the state of the hotels’ affairs, yet saving on the services is not the way out; it is obvious that hotel managers need certain strategy for the hotels not to waste the natural energy.

Some sources, however, claim that the energy overuse should be tackled in a different way, since the interests of hotels are to be taken into account as well: drawing a careful plan of the alleged usage of energy and the check of the corresponding organization is a must, according to Flex Your Power (2006). As the research asserts, the given measure will serve perfectly well both for hotels and for the environment.

In addition, according to certain sources, other solutions for the given situations have been made successfully. As Energy Star (2007) claims, with the help of installation of fluorescent light bulbs, hotel Marriott “was able to save almost $6 million and reduce its greenhouse gas emissions by 70,000 tons” (p. 1), which is rather impressive and surprisingly less demanding than reducing the quality of the facilities, as Reinders (2011) suggests.

Therefore, it cannot be doubted that the means to solve the given problem stretch far beyond the boundaries set by the decision of Reinders (2011). Hence, the hospitality industry is not supposed to suffer considerable losses which the transfer to the energy-saving strategy is bound to trigger, and can develop a specific tactics that will even contribute to the development of the hotel industry, at the same time improving the existing environmental state.

However, if picking the solution offered so far, the industry is most likely to experience a rapid downfall. Therefore, the solution offered by Reinders is to be reconsidered.

The Event Results Analysis: The Common Denominator

According to the results of the event, the final decision described above, which approved of reducing the usage of electricity and suggested that the energy-saving program should be established has been approved. As the members of the event admitted, the given decision is likely to change the hospitality industry structure considerably without taking enormous amount of funds and at the same time sparing the environment and offering certain protection from the harmful effect of human activity. As Reinders commented,

Both “using less” and “paying less” have positive financial and environmental effects. Demand response programs allow participants to reap the benefits of decreased energy costs while also eliminating the need for the construction of new power plants, while increased energy efficiency reduces a property’s carbon footprint–and utility bill. (Reinders 2011)

Nevertheless, the given solution does not seem adequate enough. Even though the efforts that are supposed to be undertaken will have their effect on the safety of the environment, the functioning of the hotels is bound to digress, which will lead to the crisis in the hospitality industry.

According to the results provided by STR (2008), the ratio to sales of the hotel rooms reduced in 2006-2008 from 32,40% to 23,30%, the energy waste making between 3% and 6% of total running cost (Hose, n.d.), which is a direct proof of the fact that the offered system proves not as efficient as it should have been.

As Bardi (2010) explains, a number of factors apart from the revenues of the company are to be taken into account before resorting to the change in the company policy, which the Hubbart formula predetermines: “The Hubbart formula considers such factors as operating expenses, desired return on investment, and income from various departments in the hotel to establish room rates” (209).

Hence, it must be acknowledged that the versatility of the factors that have their impact in the given situation hinders the solution of the complexities. Relating the given situation to the WHO event (WHO, 2011), one should mark that the organization approves of the measures that are aimed at preserving the environment and preventing natural sources form exhausting, which is why the course of actions undertaken by Reinders does not seem adequate.

The Challenges, the Limitations ad the Solutions for the Problems

Because of the variety of factors that the given problem is dependent on, there can be several solutions for the situation, namely, the one that concerns the safety of the environment and the well-being of the hotel owners, as well as the hospitality industry in general. Hence, the problem can be considered from several viewpoints, as it has been depicted above, yet obviously has several limitations that do not allow to undertake the full course of actions to eliminate the conflicting issues.

As Gössling (2011) explains, the solutions for the problem of energy wasting can be solved with the suggested means of high technology developments easily only in the countries where science is progressing, whereas in developing countries the implementation of these ideas seems problematic:

For example, Deng and Burnett (2000) found that electricity accounted fro 73 per cent of the overall energy use in hotels in Hong Kong. Similar values were found in New Zealand, where the main energy source for accommodation establishments is electricity (75 per cent of total energy use), while coal is 12 per cent. (p. 76)

Hence, it cannot be denied that the development limitations prevent the energy-saving operations. Therefore, specific measures must be offered for the developing countries.

However, as Howlett (2009) claims, the electricity consumption formula, TE = FE + VE*X (TE = total electricity, FE = fixed electricity, VE = variable electricity, X = total number of rooms) (344) still restricts the possibilities that energy-saving methods open. Nevertheless, the opportunities mentioned above are rather impressive, starting from solar power to the so-called spin systems (Flex Your Power, 2006).

Conclusion

In conclusion, one must mark that the problem currently faced by the hostility business is quite essential and hard to solve. However, taking the efficient approach and following the recommendations of the scientists, the owners of the hotel facilities are likely to keep their revenues high and at the same time contribute to the salvation of the environment. Thus, to solve the given issue, the decisive measures are to be undertaken, which will lead to the safety of the environment and the success of the hostility business.

Speaking of the way the given issue affects my own future in the industry, I would like to note that the given issue is interesting for me, since the change of the source of power supply, which the given issue presupposes, is bound to reinvent people’s perception of what the world of technology is. Moreover, there is no doubt that with the help of the alternative power source, the costs for supplies are going to change, which means that management is going to take quite a different shape.

References

Bardi, J. A., 2010. Hotel front office management. New York, NY: John Wiley & Sons.

Chon, K.-S., & Maier, T. A., 2009. Welcome to hospitality: an introduction. Stanford, CN: Cengage Learning.

Cutting costs with energy efficiency and conservation: A Guide for hotels, 2006. Flex Your Power. Web.

Energy Star, 2007. Hotels: An overview of energy use and energy efficiency opportunities. Energy Star. Web.

Gössling, S., 2011. Carbon management in tourism: mitigating the impacts on climate change. New York, NY: Taylor & Francis.

Hose. Notes about energy consumption in hotels. INESCC. Web.

Howlett, R. J., 2009. Sustainability in energy and buildings: proceedings of the International Conference on Sustainability in Energy and Buildings (SEB’09). Berlin, DE: Spinger.

National Grid, 2004. Managing energy costs in full-service hotels. Customer Direct. Web.

Reinders, G., 2011. Two effective strategies to reduce hotel energy costs. Lodging Hospitality. Web.

STR, 2008. Hotel operating statistics study. Valuation Resources. Web.

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