Assessing the Role of Technological Innovations in Managing Energy Costs in Star-Rated Hotels in Nairobi City County, Kenya

Abstract

The hotel sector contributes to a country’s employment and economic revenue. Despite this, it is among the most energy-intensive sectors, which is increasing, and is met by a diversified energy sources. Energy wastage with fluctuating energy prices and inefficiency leads to high energy costs that continue to rise due to the demand for exceptional services by hotel guests. These costs are passed to products and services to cover the increased costs. Although energy costs are the most controllable among hotel costs, many hotels struggle to manage them due to a lack of knowledge of what drives energy costs high and a poor understanding of the breakdown of energy costs. Star-rated hotels need to understand energy consumption patterns for economic sustainability. The objective was to assess the role of energy monitoring technologies in managing energy costs in star-rated hotels in Nairobi City County, Kenya. Using an embedded design, an in-depth interview study with a purposive sample of 18 hotel general managers and 18 accounting staff with knowledge and expertise provided detailed insights into energy costs and energy monitoring technologies. Six main themes emerged. The findings provide support for hoteliers to adopt energy monitoring technologies across energy consumption areas so as to develop an understanding of energy cost structure to effectively manage energy costs. In addition, they help pinpoint high consumption points and inefficiencies, leading to the implementation of targeted energy savings measures and ultimately lower energy costs.