By Avendra and Zenith Energy. Published on 5/9/2018 in Green Lodging News.
Energy markets aren’t simple; with market conditions, regulations, and prices that change quickly, it can be overwhelming for anyone trying to manage spend, forecasts, several contracts, and risk across different regions. There are hundreds of local delivery companies (LDCs or energy utilities) in North America, and each has its own set of tariffs and pricing mechanisms that can affect negotiable energy supply. In addition to saving money, proper procurement of energy will enable hotel properties to better access renewable or cleaner fossil-fuel-generated sources of electricity. The money saved through effective energy management can be redirected toward other operations, to sustainability strategies, or to the bottom line.
Here are a few best practices for energy control and management as reported in the “The Paradigm Shift in Energy Procurement: A Strategic Sourcing How-To Guide,” prepared by Avendra and Zenith Energy:
- Aggregation: The energy spend of a single hotel may not command the attention of suppliers. However, a group of hotels can aggregate to create buying power in the market, leveraging to total spend to achieve lower costs and greater access to the best products and contracts. The aggregation of individual buyers is attractive to suppliers, and hotels should seek collaborative arrangements from within its brand or operated by the same management company to obtain these benefits.
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