The Business Case

How to Complete the Water Savings Calculator

1. Enter your current fixture data

• In the “Current Shower Flow / Basin Flow” column, type the flow rate of your existing showers or taps (litres per minute).

• In the “Typical time in shower / running water in basin (minutes)” column, enter the average duration that guests use them.

• The “Typical Total” column will calculate automatically.
  

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2. Enter your best practice data

• In the “Best practice / new shower flow” column, enter the flow rate of low-flow showers or taps you are considering.

• The “Best Practice Total” column will calculate automatically.

• The sheet will also show the “Litres Saved by Best Practice” automatically.
  

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3. Check or update the cost of water

• In the “Cost of Water per cubic metre” column, check your water bill and insert the cost per cubic metre.
  

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4. Enter your hotel’s guest-nights

• In the “Custom Guest-Nights / Occupied Room-Nights” column, type the total number of guest-nights - this can be an estimation if required
  

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5. Review the results

• The “Total cubic metres saved” column will show the total water saved for your hotel.

• The “Total € Saved” column will show the cost saving, based on your water tariff.

Using the following calculation (please download), a hotel with 50,000 guest nights per year that implements best practices could save up to 9,010€ per year.

How much money are leaking toilets costing your business?

Typically, hotels will always have a few leaking toilets at any one time. This is due to worn cistern seals degrading over time, causing water seepage. There are a couple of telltale signs that staff can look out for:

• A yellow stain inside the bowl from constant water leakage.

• A slight rippling on the bowl's water surface, which suggests a slow trickle from the cistern.

• The sound of running water, which often indicates a faulty flush mechanism.

A moderate leak in one toilet can waste up to 0.5L/min and 20m³ per month. So for example, if water costs 2.20€ per cubic metre, this means that 1 toilet left unrepaired could waste approximately 264€ per summer season (6 months) - enough to be able to invest in a water efficient toilet or in the installation of shower flow controllers in 40 guest rooms.

Business Case: Towel/Linen Reuse System

Towel and linen reuse programs offer significant business benefits for hotels, primarily in water and cost savings. A reduction of just one laundry item per guest night can lead to substantial financial advantages over the course of a season or year. Implementing such programs requires minimal investment, mainly for guest communication and staff training, which can be quickly offset by the substantial reductions in laundry costs. The calculations below are relevant to research undertaken in a number of four and five star hotels in Rhodes.

• Current Situation:
  Average of 3.5 laundry items per guest night
  Laundry cost: 0.50 € per item

• Improvement Strategy:
  Reduce to 2.5 laundry items per guest night by introducing a towel/linen reuse program.

• Cost Savings:

  • Reduction of 1 laundry item per guest night

  • Savings of 0.50 € per guest night

  • Total annual savings (based on 50,000 guest nights):
    0.50 € × 50,000 = 25,000 €

The table below shows different potential savings depending on the cost per item. We advise hotels to calculate their costs (where possible including the cost of energy, water, chemical products and wastewater fees (if applicable).  You can then use the simple table below to calculate potential savings associated with reduced laundry items.

• Associated Costs:
  Guest communication materials, labeled laundry baskets, and staff training – all minimal and quickly offset by savings.

Whilst not accounted for here, a reduction in laundry items also has a direct impact on reducing chemical and energy use, generating additional environmental and financial benefits.

The business case for a smart irrigation system

Gardens are beautiful extensions of the hotel facilities, but they also are a major water-consuming factor in many destinations with water demand being influenced by their size and design, as well as the chosen plant species. In an average resort hotel, irrigation will be responsible for 30–50% of overall direct water use (in a city hotel, this may be lower at 5–25%).

• Initial situation: 75 litres per guest night used for irrigation.

• Installing a smart-control system for sprinklers: Reduction of irrigation by a third (25 L / day)

• Total savings at 50,000 guest nights: 1,250 m³ per season = 2,750 €.

• One-off cost of smart control system: 2,000 €.

• Return on Investment: Less than one year.

The Seaside Palm Beach Hotel in Gran Canaria reduced annual water consumption by around 6000 m³ and are now saving approximately 7,000 € every year thanks to a smart irrigation system.  Download their case study here. 

The business case of water reduction is not limited simply to the reduction of the hotel’s water bill, there are a number of other metrics to consider, some of which are linked to reputation, compliance and staff & guest engagement.  The table below describes some additional metrics and how to measure them.