HLP cost will be the 3rd largest cost in your hotel after the payroll cost and food cost.
If not managed, it can lead to sever operational loss. Hence it is of utmost importance that you undertake actions that can help you with saving HLP cost in your hotel.
In the video below we go into details of how to do it.
Prefer to read the transcript:
Hello Jay, did you know that after salaries and wages, utility cost are the highest expense in the hotel. It is our responsibility to try and save money on this expense so that our HLP cost are reduced.
So how can you reduce the utility cost in the hotel.
I will tell you all about it in this video. Hello guys, I am kumar, the chief engineer at this hotel and in case you have not seen this channel before, we are clarifiedbetter. This channel is dedicated to training people working in hotel and those interested in working in hotel in future.
We have training videos for all departments so do check out our channel. And in case you have not yet subscribed to the channel, do that by clicking the red button below and click the bell icon to receive notification from us.
So you asked how can we save utility cost in the hotel.
Well there are 2 ways to do. One is by investing in latest and cost efficient technologies and the other is by operating efficiencies.
In this video we will focus on what we can do in the hotel operations to save utility cost.
First of all, we must make our team aware of what is the cost of running an equipment. In front of every big equipment, if we keep the cost of running it per hour, people will become more aware of what it the true cost. That way when the equiment is not required, they can call us in engineering and ask to switch off the equipment.
In a hotel, the major cost on utilities is air conditioning load. People dont want to feel hot. So we need to maintain the temperature. Have a monthly or quarterly chart showing what temperature must be maintained. Year round standard of 23 degree celcius is fine, but sometime you can even get away by maintaining 24 degree. Even that 1 degree difference can help you save money.
Maintain all equipment in proper condition. A faulty equipment which is not funtioning properly is sure to cost you more in the long run. Preventive maintanence is the back bone of cost saving even though it looks like you are spending money.
Put timers on lighting and treated fresh air unit to ensure that these are switched on and off at pre determined timings.
Replace all lights to L E D in case you have not done that already. That will also help you to save money
If possible, put sub meters to understand where the excessive power usage is happening in your hotel. That will help you to take action on that particular area.
Form an energy conservation team with the objective of being the eyes around the hotel to identify waste. This team can also provide suggestions on what can be done to reduce cost in the hotel. Most of the solutions come from the team and there will be greater buy in to the energy conservation process.
So these ideas are just a starting point in energy conservation. Invest in an energy audit for your hotel and implement the suggestions given by them.