Exploring the viability of a new ‘pay-as-you-use’ energy management model in budget hotels.

Abstract

Hotels consume significant amounts of energy, especially in guest rooms. Financial incentives can be given to hotel guests for conserving energy during their stay while financial penalties can be applied for excessive energy use. This can be achieved by deploying the smart energy meters (SEMs) in guest rooms that enable accurate energy monitoring and billing. This study explored the viability of a new business model for energy management in hotels underpinned by SEMs. Semi-structured interviews with managers of UK budget hotels revealed the determinants of industrial adoption of this new model. Despite positive appeal, the chances for the model's immediate commercialisation were found slim due to its novelty and the market disruption potential held. To enhance the business viability of the proposed model, close integration of energy conservation targets into the corporate agenda of budget hotels is necessary coupled with dedicated policy support.