3 Reasons Why Hotels Should Do Demand Response
Nov 6, 2014

For decades, hotels from all over the world have been using demand response to generate additional revenue and lower their carbon emissions footprint; the add-on benefit? These actions also help to improve the reliability of their community’s electricity grid infrastructure, while stabilizing energy prices. If your hotel isn’t enrolled in a demand response program, here are 3 reasons why it should be.

3 Reasons Why Hotels Should Do Demand Response

#1 – Demand response generates additional revenue for your hotel.

Many prominent hotels have already discovered that participating in a demand response program is one of simplest ways of generating additional revenue. Energy efficiency projects are great for cost savings, but demand response actually generates revenue.

According to the American Hotel & Lodging Association, one hotel firm reported receiving $2 million in demand response fees which they then used to fund additional energy efficiency upgrades. While individual results may vary, the general rule is that the more a hotel can reduce its load, the greater the reward.

#2 – Demand response won’t drive your guests or building managers crazy.

A hotelier’s concern that load-shedding will negatively impact guest experiences and/or place an overwhelming burden on facility managers can now be put to rest. Thanks to today’s automated building energy management system (BEMS) technologies, demand response is smarter, more cost-effective, more efficient and easier than ever to implement.

Automation doesn’t mean loss of control. Even though today’s DR systems can be completely automated, hotels still have the ability to override them whenever necessary.

#3 – Demand response is an important part of a hotel’s sustainability initiatives.

The benefits of demand response extend well beyond a hotel’s walls. By participating in demand response, not only are you reducing your hotel’s carbon footprint, you’re also contributing to the stability of the electricity infrastructure in your community.

This provides the additional advantage of positive public relations and green marketing opportunities, as well. In addition, demand response can also earn hotels points towards LEED certification.

Demand response doesn’t take a lot of work on your end. And if no DR events are called, which happens often, you still receive revenues based on a yearly test, performed with advanced notice.

Getting enrolled in one or more demand response programs is easy, but don’t wait. Regional Transmission Organizations (RTOs) have a limit as to how much capacity from DR programs they can accept per year. Sign-up is on a first-come, first-serve basis.

What do you think? Is there any easier way of generating additional revenue, while also boosting your hotel’s sustainability portfolio? 

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