Reducing the utility expense line

It’s the time of the year again when the hospitality industry is set a buzz because of one word:  Numbers.  Budget season is in full swing for 2012, and in meetings across the country skilled professionals are seeking ways to increase profitability and reduce costs in the year ahead.  Choices are everywhere.  Can we reduce our labor costs?  Can we decrease our operating expenses?  The answer is a simple and resounding “yes” focus on hotel energy savings.

Energy reduction technologies and strategies will reduce labor, energy and utility expenses.  The cost reduction in these areas can positively affect P&L statements in 2012 and beyond.  A change in the way a hotel utilizes energy is one of many sustainability initiatives that can reduce wasteful spending and increase bottom line revenue.

Energy purchasing in de-regulated markets

In states where the monopoly system of electricity providers has been de-regulated, a retail scenario has emerged with numerous competing firms that provide renewable energy options from the supply side.  In these markets, competitive pricing among suppliers can provide an increased cost savings in addition to any incentives they may offer.  By focusing attention on renewable energy sources, the overall carbon footprint of a single hotel can be drastically reduced.  A renewable energy evaluation can provide solutions that will not only reduce your cost per kWh but also procure your energy with a provider producing energy through a renewable source.

In markets where de-regulated energy options are available, commercial consumers of these utilities benefit from increased competitiveness and transparency.  What’s the bottom line? Competition is good and the savings can be substantial.  Though not available in every marketplace, the options for renewable energy are increasing each year. 

Perhaps the most appealing facet of energy procurement is that it has ZERO out of pocket cost.  This is an easy, affordable transition that can translate into both utility cost reduction as well as your company’s own sustainability initiative.

Read more at: LodgingMagazine.com