Energy consumption plays a significant role in both cost control and the sustainability of your hospitality business. Hotels, restaurants, cafeterias, and snack bars consume a lot of energy due to the need for heating, cooling, lighting, and kitchen equipment to optimally serve guests. With rising energy prices and stricter regulations, managing energy efficiently is more important than ever.
In this article, we discuss four practical strategies to reduce energy consumption, increase operational efficiency, and promote sustainability. Whether you run a hotel, restaurant, cafeteria, or snack bar, a well-thought-out energy strategy is essential for a future-proof business.
A well-considered energy strategy not only helps hospitality businesses lower operational costs but also strengthens their sustainability goals and ensures compliance with laws and regulations such as the energy-savings obligation. Moreover, it offers a significant competitive advantage by operating more efficiently and implementing cost savings where possible.
Rising energy costs and limited growth
The energy crisis has had a major impact on the profitability of Dutch hospitality businesses. The Netherlands is heavily dependent on gas, and gas prices here are higher than the EU average. This is partly due to limitations in gas supply from Russia and geopolitical developments. Although steps are being taken to become less dependent on Russian gas, the energy market remains unpredictable and volatile.
Additionally, hospitality businesses deal with an overloaded power grid, which increases the likelihood of power interruptions. This can disrupt service and negatively affect quality and customer satisfaction. The overload of the network will also impact energy costs.
Despite signs of revenue recovery, growth remains modest. The high energy costs continue to weigh heavily on profit margins, contributing to a negative business sentiment in the Dutch hospitality sector.

In the second quarter of 2024, revenue in the Dutch accommodation and food services sector increased by 2.7 percent compared to the same period in 2023, according to the Central Bureau of Statistics (CBS). Accommodation services saw modest growth of 0.8 percent, while revenue in food and beverage services increased by 3.6 percent.
The CBS also monitors business confidence in this sector. At the start of the third quarter of 2024, business confidence was slightly more negative than at the start of the second quarter, with a score of -4.7 compared to -4.6. Although businesses were slightly more positive about the past three months, they were more concerned about economic prospects for the coming three months. Confidence in most sectors in the Netherlands improved at the beginning of Q2, but remained negative in many cases.
Almost half of the entrepreneurs in the accommodation and food services sector ended the first half of 2024 with a profit. In comparison, 65 percent of Dutch businesses across all economic sectors closed the first half of the year with a profit. Only the culture, sports, and recreation sectors and retail performed worse than the accommodation and food services sector.

Pressure to meet sustainability requirements and regulations
The Dutch hospitality sector is increasingly under pressure to adopt sustainable measures. This is driven not only by consumers who demand environmentally friendly choices but also by stricter laws and regulations and the need to maintain a positive brand reputation. Many hospitality businesses, however, face organizational challenges. Changes in operational processes and staff training are often necessary, complicating the implementation of sustainable solutions.
Moreover, issues such as network congestion and rising transportation costs make the transition to renewable energy sources and sustainable logistics challenging. The high investment costs of sustainable technologies pose a barrier especially for businesses with low profit margins. Effectively managing complex strategies, such as flexible energy demand, is also a challenge for many entrepreneurs. The diversity within the hospitality sector makes it difficult to find one universal solution that works for everyone.
Although the sector saw a revenue growth of 2.7% in Q2 2024, less than half of the businesses are profitable and business confidence is negative. This causes many hospitality businesses to struggle to prioritize sustainability initiatives over their immediate financial concerns.
Impact on hospitality:
The energy challenges facing hospitality businesses have direct consequences on multiple fronts:
- Operational disruptions: Energy outages or inefficient systems can lead to downtime or delays, not only slowing down service but also negatively affecting guest experience. This can result in reputational damage.
- Financial pressure: Inefficient energy use leads to higher costs, further straining already tight profit margins in competitive markets. Managing these costs is crucial to remain profitable.
- Compliance risks: Failing to comply with energy and environmental regulations can result in fines and legal claims. Additionally, this can hinder obtaining certifications for energy efficiency, which are increasingly valued by customers.
A restaurant that regularly experiences power outages risks food spoilage and malfunctions in kitchen equipment. This not only leads to operational delays but also potential damage to equipment, resulting in higher maintenance or replacement costs.
The role of Energy Portfolio Management in addressing these challenges:
Energy portfolio management offers a strategic and integrated approach to optimizing energy consumption and contracts. Key components include:
- Energy procurement: By strategically purchasing energy from reliable suppliers, costs can be optimized and the reliability of supply ensured.
- Demand management: Understanding energy needs and consumption patterns helps optimize energy use during peak hours within the limits of contracted power.
- Risk management: Analyzing the risk profile of the business and its energy policy provides affordable and feasible energy solutions.
- Sustainability: Integrating renewable energy sources and energy-efficient technologies into the energy mix helps businesses become more sustainable.
What does Energy Portfolio Management mean for the hospitality sector?
- Cost control: By optimizing energy purchasing and consumption, hospitality businesses can significantly reduce their energy costs.
- Risk mitigation: A well-managed energy portfolio protects businesses against price volatility and ensures a reliable energy supply.
- Compliance with energy law and regulations: Proactive energy management helps businesses adapt to changing laws and regulations, keeping them ahead in the market. Most Dutch hospitality businesses must comply with the energy-savings obligation. They are legally required to implement energy-saving measures that can be recouped within five years if their annual consumption exceeds 50,000 kWh or 25,000 m³ of gas. In addition to lowering future energy costs, this will also prevent future fines or sanctions.
- Brand influence: A strong focus on sustainability attracts environmentally conscious customers and partners, benefiting the business’s reputation.
Practical applications
Here is a step-by-step guide to effectively implementing energy portfolio management in a hospitality venue:
- Conduct an energy audit: Analyze current energy consumption to identify areas for improvement and address inefficiencies.
- Set clear goals: Formulate specific and measurable goals for energy savings and cost reduction.
- Diversify energy sources: Combine electricity from the grid with local renewable energy sources and storage options for more flexibility and lower costs.
- Implement an energy management system: Use smart technologies to monitor and control energy consumption in real-time.
- Train staff: Ensure that employees are aware of energy-saving practices and their role in achieving energy goals.
- Regular evaluation and optimization: Continuously monitor energy performance and optimize where necessary to achieve maximum results.
Short-term benefits
- Immediate cost savings: Energy costs are one of the largest operational expenses in the hospitality industry. By quickly addressing inefficiencies, immediate savings can be realized.
- Improved operational efficiency: By optimizing energy, inefficiencies are reduced, leading to a smoother and more cost-effective operation.
- Enhanced guest comfort: Efficient energy management not only improves the cost structure but also contributes to a more pleasant experience for guests by ensuring a stable and comfortable environment.
Long-term benefits
- Increased sustainability: Sustainability is increasingly important to consumers. By switching to renewable energy sources, a hospitality venue positions itself as environmentally conscious and progressive.
- Compliance with energy laws and regulations: A Dutch hospitality venue is legally required to implement energy-saving measures that can be recouped within five years if their annual consumption exceeds 50,000 kWh or 25,000 m³ of gas. In addition to lowering energy costs, this prevent future fines or sanctions.
- Improved market positioning: Sustainability is a key competitive advantage. Customers are willing to pay more for businesses that take responsibility for the environment and sustainability.
- Increased resilience: Hospitality businesses that are resilient against price fluctuations in the energy market and network disruptions can ensure long-term stability. This is crucial for businesses that rely on continuous service.
Competitive advantage
- Competitive prices: By lowering operational costs, hospitality businesses can offer lower prices without compromising on service. This makes them more attractive to price-conscious customers.
- Attracting environmentally conscious customers: Increasingly, consumers choose businesses that prioritize sustainability. Hospitality businesses that lead in this area automatically attract more environmentally conscious guests and business customers.
- Leadership in sustainability: Positioning businesses as leaders in sustainability improves brand reputation. This is crucial in a sector where reviews and brand perception drive consumer behavior.
Implement strategies
Strategy 1 Hotels
- Comprehensive energy management systems: Hotels can benefit from smart building technology that optimizes energy consumption. This includes automated lighting, climate control systems, and renewable energy sources such as solar panels or wind turbines.
- Strategic Importance: Smart systems help maintain guest comfort while optimizing energy use. Integration with renewable energy sources can significantly reduce operational costs and ecological footprint, enhancing the hotel’s image.
- Energy- savings obligation: A Dutch hotel is legally required to implement energy-saving measures that can be recouped within five years if the annual consumption exceeds 50,000 kWh or 25,000 m³ of gas. In addition to lowering future energy costs, this will also prevent future fines or sanctions.
- Practical Applications:
- Automated climate control: Implement smart thermostats that adjust heating and cooling based on occupancy and weather conditions.
- Load shifting: Use energy storage systems to shift energy consumption to off-peak hours, reducing purchasing costs.
- Installation of solar panels: Use available roof space or parking lots to install solar panels, reducing dependence on grid power.
- Heat recovery: Implement systems to capture residual heat from laundry facilities or kitchens and reuse it for water heating or space heating.
Strategy 2 Restaurants
- Upgrading to energy-efficient kitchen equipment and waste management systems
- Restaurants can reduce energy consumption by investing in energy-efficient kitchen equipment and adopting waste-to-energy programs to minimize their environmental impact.
- Upgrading to energy-efficient kitchen equipment and waste management systems
- Strategic Importance: Energy-efficient appliances and waste management not only reduce costs but also align with consumer expectations for sustainability, which increasingly influences dining choices.
- Energy- savings obligation: A Dutch restaurant is legally required to implement energy-saving measures that can be recouped within five years if the annual consumption exceeds 50,000 kWh or 25,000 m³ of gas. In addition to lowering future energy costs, this will also prevent future fines or sanctions.
- Practical applications:
- Equipment upgrades: Invest in energy-efficient appliances, such as refrigerators, ovens, and dishwashers with a high energy label.
- Smart ventilation: Implement demand-controlled ventilation systems that adjust based on cooking activity, reducing unnecessary energy consumption.
- Induction cooking: Switch to induction cooktops, which are more energy-efficient and generate less residual heat than traditional gas or electric stoves.
- Waste-to-energy programs: Implement systems to convert food waste into biogas, which can be used for heating or electricity.
Strategy 3: Cafeterias and snackbars (fastfood)
- Cafeterias and snack bars can benefit from strategies that focus on managing energy demand.
- Strategic Importance: For cafeterias and snack bars with limited budgets, simple changes such as optimizing HVAC use and maximizing natural light can significantly lower energy bills while also promoting a cozy, environmentally friendly atmosphere.
- Energy- savings obligation: A Dutch cafetaria or snack bar is legally required to implement energy-saving measures that can be recouped within five years if the annual consumption exceeds 50,000 kWh or 25,000 m³ of gas. In addition to lowering future energy costs, this will also prevent future fines or sanctions.
- Practical Applications:
- Implementation of smart meters: Use advanced metering infrastructure to monitor energy consumption in real-time and identify opportunities for reduction.
- Optimization of service equipment: Use energy-efficient service equipment with smart controls to reduce energy waste during quiet periods.
- Installation of energy storage: Use battery storage systems to store energy during off-peak hours and use it during peak hours.
- Participation in demand response opportunities: Sign up for flexible energy from the grid operator and receive compensation for reducing energy consumption during peak hours.
Strategy 4: Large Event venues
- Adoption of smart energy management systems and dynamic pricing models
- Event venues need robust energy solutions to efficiently manage fluctuating demand. Smart energy management systems can monitor and manage energy consumption in real-time, while dynamic pricing models can encourage the use of energy during off-peak hours.
- Strategic Importance: These systems help venues operate efficiently, reduce peak load costs, and ensure consistent energy supply during events, increasing customer satisfaction and reducing operational risks.
- Energy- savings obligation: A Dutch event venue is legally required to implement energy-saving measures that can be recouped within five years if the annual consumption exceeds 50,000 kWh or 25,000 m³ of gas. In addition to lowering future energy costs, this will also prevent future fines or sanctions.
- Practical Applications:
- Smart energy management systems: Implement systems that adjust lighting, heating, and cooling based on occupancy and event schedules. Use sensors to monitor energy consumption in different areas and identify where savings can be achieved.
- Dynamic pricing agreements: Work with energy suppliers to establish dynamic pricing, allowing the venue to benefit from lower rates during off-peak hours.
In summary, each of these strategies plays a crucial role in lowering costs, reducing CO2 emissions, limiting the impact of network congestion, and improving overall operational resilience. For example, a smart energy management system can save a hotel or restaurant thousands of euros annually by reducing unnecessary energy consumption during off-peak hours or by preventing peak load.
Conclusion
Key points:
- Energy portfolio management is no longer a luxury but a necessity for hospitality businesses that want to thrive in an increasingly complex energy landscape. By implementing tailor-made strategies for hotels, restaurants, and cafeterias, businesses can realize significant cost savings, enhance their sustainability profile, and gain a competitive advantage.
- Effective energy management strategies tailored to specific hospitality businesses can lead to significant cost savings, improved sustainability, and enhanced market positioning.
- Futureproof: As the hospitality sector continues to evolve, it will be crucial to stay ahead with innovative energy strategies for long-term and futureproof success.
- We encourage all hospitality businesses and managers to take the first step by conducting an energy audit of their operations. This will provide the baseline data needed to develop a comprehensive energy management strategy for monitoring, insight and optimalisation.
- Most Dutch hospitality businesses are legally required to implement certain energy-saving measures under the energy-savings obligation if the investement can be recouped within five years if their annual consumption exceeds 50,000 kWh or 25,000 m³ of gas. In addition to lowering future energy costs, this will also prevent future fines or sanctions.