High electricity cost during Winter - what to do?

High electricity cost during Winter - what to do?

Hi!

We are having our first request - yay!

But there is a problem - it's during winter and the electricity cost is variable.
Our electricity price in Finland fluctuates extremely (between 4c/kwh and 100 c/kwh or more).
And if the outside temperature drops, it also affects the need for electricity exponentially. In december it can be  between 5+ to -10, one can never be sure.

If the quest is not careful with closing doors fast or adding heat with the radiators, the price can go up with +100€ in just one day. (I've done that myself ONCE personally, so I know the pain and how easy it is to do 😉 ).
 
How do you other hosts solve this?
 
Br, Andrea
25 Replies 25
Shelley159
Top Contributor
Stellenbosch, South Africa

Hi @Andrea8160 

It sounds like you need a real-time electricity meter that shows you exactly how much the guest uses. If you can measure it accurately and in real time, you can make it clear in your house rules that you will charge extra if guests use more than X kwh per day. You will also be able to warn them in advance before charging them extra (for example, you will see the extra electricity on your app if a window was left open).

 

In my country we have the option to install a pre-paid electricity meter (where we can load only a certain amount of electricity and it runs out if you don't buy more). This would really help with your problem, but I'm not sure if this is an option that you have in Finland?

 

If you do decide to limit the amount of electricity they can use for free, I would suggest being rather generous (instead of making them pay extra after using only a bit). The moment you charge extra for something, you risk tainting the guest experience. However, if you include a generous amount for free AND communicate clearly that there's and extra charge if they use more AND warn them before they get close to the limit, I'm sure guests won't mind paying extra when required.

 

Bhumika
Community Manager
Community Manager
Toronto, Canada

@Shelley159 ,thanks for sharing these wonderful insights for @Andrea8160 ! 🌻

 

How do you usually manage the electricity meters during an ongoing stay? Have you installed a pre-paid meter at your listing?

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Hi @Shelley159 and thank you for your ideas! We have a meter which give us daily consumption, so that's good. It might be possible, using your method.


One issue is the fluctuating price. One cold day in winter of 100 kWh / day can vary between 4 € to 100 € for one day. Our listing is for ~120 € / day.

Using 100 kWh for a cold winter day is still keeping the inside of the house rather cold.

 

Comfortable would be 200 kWh.

 

That means that the same kWh spend has a huge impact, even possibly having us make a loss.

 

Maybe we could have a max € electricity cost cieling? And charge above that?

Hiya 

I am Nitin, Hosting on Airbnb and other platforms from last 13 years and have hosted more than 8000 guests so far. 
I am from one of the hottest place in world (Jaipur, Rajasthan, India). Where temperatures in summers goes around 50 degrees. And everyone uses Aircon for almost 12-15 hours a day. Which increase the expenses on electricity like anything. 
So we have connected the sub electricity meters on each room which records the reading of electricity consumed for each room, And before booking we convey the guest that in Hot season we charge electricity extra, which we calculate on per unit basis and guests pays the same when they check out.

 

 

Lemme know if I can assist you with anything.

 

Happy Hosting

Nitin 

(Jaipur, Rajasthan, India)

Thanks for sharing these insights @Deepti-And-Nitin0 ! Your approach makes sense and it's almost similar to what @Shelley159 and @John2406 mention.

 

How do your guests usually react to the electricity charge?

 

Is it challenging to calculate the individual charge per unit basis? How do you manage it?

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Hi @Deepti-And-Nitin0, thank you for your thoughts!

 

We have a meter for the house to see the spend of kWh 🙂

Does your electricity price fluctuate? Or is it very stable? We vary between 0,04 € / kWh and 1 € / kWh.

One winter day can be between 100-200 kWh need, meaning it can in a bad case be between 8-200 €.

(We don't know in asvance more than some 24h what the price is)

 

We plan to charge ~120 € / day for the listing.

John2406
Level 10
Swansea, United Kingdom

 

Welcome @Andrea8160 to the community, and also thank you for such a well-worded question, especially as I'm sure many other Hosts have wrestled with knowing what to do in their Countries (and thank you as well, @Shelley159 and @Deepti-And-Nitin0 for both of your excellent replies)

 

The subject of excesses, whether hot or cold, or anything else that will more than likely have Guests desperate for more heat in colder climes, or Guests equally desperate for ice-cold air-conditioning in hotter regions have been with us all for many years already, but in years to come, it's highly likely that changes to the world's climate may well mean that everyone will be asking exactly the same questions, or saying what they presently do, in order to mitigate the problems, so not only we as Hosts, but Airbnb as the Company, have to take on board that somehow no host is going to be able to survive (and therefore still be a cash-cow for Airbnb's continuing success) unless Airbnb allow all of its Hosts to charge extra, for extra heating and/or cooling.

 

Years ago in the UK (although I don't know what other Countries allow or not) the majority of holiday properties had coin-operated meters for Guests to use, although if I remember correctly, Guests' had to be prepared to bring the required coins with them so that when the money ran out, or was very low, more coins could be put into the meter.

 

Personally I believe that what @Shelley159 mentioned about having a certain amount of money already preloaded into such a meter, is an excellent idea, as it should allow Guests to comfortably enjoy their stay, but they also know that once the amount gets low, they'll have to insert more money into the meter. I also agree that the amount put onto the meter before the Guests' arrive should be "sufficient" - maybe be based on how much a "standard" Guest would normally use. That only the Guest should be advised in advance as to the value inserted might also allow for Guests to be more appreciative.

 

Unfortunately the main problem with people in general, is that no two individuals are identical in the temperatures each needs to feel hot or cold, and that also is the same within families, so a "standard" heat/cold  might have to be based on ones average Guest (and when assessing how much extra or less °C Guests' used /didn't use, it'll probably average out.

 

One thing though, and that's please don't offer to refund Guests for what they didn't use, as the amount will be based on a specific amount, which will have been part of your overall charge. Remember, you do have an option - that you didn't use - and that's that it could have been that your Guests' had to pay for all energy used, so you have already saved them a substantial amount by including a high percentage of energy within your price for their stay!

 

Of course, all I have mentioned does depend upon whether one's Country allows pre-payment meters, upon Airbnb's own policy regarding payments/extra payments for energy, and also Guests' attitudes to having to pay extra for the excess heating/cooling used by them.

 

One comment I would add to the above is that a pre-payment meter does - at least - ensure that payment is made for the extra energy used before, Guests' depart, and it also allows for Guests' to leave earlier.

 

I do appreciate that different Hosts operate within a range of property types, so maybe a pre-payment meter wouldn't operate in a yurt or tent or similar, whereas one would in a bricks and mortar style property.

 

Whatever you decide would work best for you, just be aware that thanks to your very sensible  and extremely apt question there will be many asking the same or similar questions in the coming months and years, and be grateful you asked, and for the suggestions made.

 

In the meantime, here's wishing you a very successful future, all the best for resolving what you asked about, and I hope that amongst what each of us who've responded to your plea, have said, there definitely will be the answer you wanted.

 

Cheers!

Bhumika
Community Manager
Community Manager
Toronto, Canada

I was reading this thread @John2406 , and I find your response so insightful. Thanks so much for sharing this experience with @Andrea8160 . I am sure it will help navigate Andrea to create an efficient plan for her listing as well.

 

I like how you're considering the fact that no two individuals are identical in the temperatures each needs to feel hot or cold, and that also is the same within families.

 

What's your go-to strategy to create cost-effective guest stays and managing temperature during heat/cold seasons?

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Hi @John2406 and thank you for your thoughts!

I think a daily € allowance for electricity would be the path we have to take, and base it on our private consumption knowledge from the past.

 

It does make the guest have to be aware of the kWh price per hour (there are great apps for that, we can help them) and what different appliences start to cost (maybe with a small info text near or on the applience).


But that is the only way to ensure we don't make a loss when we host during winter.

In the beginning I would sweat this, worry about cost, try to keep the thermostat set so the heat wouldn't turn on as much, and then would have to redirect various guest inquiries of temperature. 

 

Now, after years of hosting, I know that the overall income of my guests, and the favorable ratings that keep occupancy high, means earning thousands of dollars a year. This beats the maybe few hundred of dollars saved by minimizing heat, and possibly providing a bad experience for my guests. 

 

You can work you energy and attention on improved guest experience, leading to higher rating, higher booking count, and higher income. Let your guests have the ideal temperature and ideal experience - you're making the cost back on the back end, and handling less stress. Don't sweat the small stuff. 

Bhumika
Community Manager
Community Manager
Toronto, Canada

@Darrell29 , that's an interesting perspective. Thanks for sharing your thoughtful ideas with @Andrea8160 ! 

 

Many hosts in the community may find it true that focusing on guests overall experience can have a long term impact with favorable ratings.

 

Since you started hosting, how did you manage to find the right balance between controlling electricity costs and ensuring guests have their ideal stay?

 

What have been your learnings about handling cost related stress?

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@Darrell29 thank you for your thoughts. What worries us is not just losing a few hundreds of dollars of a booking, making it less profitable, but to actually losing money rather than gaining from being a host.


We are renting out our own house that we occupy ourselves most of the time. If we risk taking a economic hit from renting out 2 weeks during Christmas, it makes no sense to do it.

 

If it's cols, the kWh cost per day can be 200 €, but we charge 120 € / day to use our apartment.

(but if it's warm the cost is probably closer to 10 € / day).

 

We only know the kWh prices 24-48h in advance, so we can't parry for it with our listing price.

And if we list at say 300 € / night (where a loss is practically impossible), we are way over our market value.

I think there is a solution here somewhere.. But to just take the cost and make a loss is something we want to avoid.

@Rasmus60 I may suggest making use of the seasonal rates tool in Airbnb, to have your rates adjusted (higher) during the more expensive to operate months. The rate increase is predicated by your increased cost of heating, and reflects in the listing pricing with your own set of rules. 

You may not know the exact cost, but you can ballpark it, and set the numbers accordingly.

Thank you @Darrell29 that's probably what we'll have to do 🙂