Utilizing “Big Data” to Improve the Hotel Sector’s Energy Efficiency: Lessons from Recent Economics Research

Hotel chains have access to a treasure trove of “big data” on individual hotels’ monthly electricity and water consumption. Benchmarked comparisons of hotels within a specific chain create the opportunity to cost-effectively improve the environmental performance of specific hotels. This paper describes a simple approach for using such data to achieve the joint goals of reducing operating expenditure and achieving broad sustainability goals. In recent years, energy economists have used such “big data” to generate insights about the energy consumption of the residential, commercial, and industrial sectors. Lessons from these studies are directly applicable for the hotel sector. A hotel’s administrative data provide a “laboratory” for conducting random control trials to establish what works in enhancing hotel energy efficiency.

Hotel Sustainability Benchmarking Index 2016: Energy, Water, and Carbon

Several studies have been undertaken or attempted by industry and academe to address the need for lodging industry carbon benchmarking. However, these studies have focused on normalizing resource use with the goal of rating or comparing all properties based on multivariate regression according to an industry-wide set of variables, with the result that data sets for analysis were limited. This approach is backward, because practical hotel industry benchmarking must first be undertaken within a specific location and segment.1 Therefore, the CHSB study’s goal is to build a representative database providing raw benchmarks as a base for industry comparisons.2 These results are presented in the CHSB2016 Index, through which a user can obtain the range of benchmarks for energy consumption, water consumption, and greenhouse gas emissions for hotels within specific segments and geographic locations.