A Case Study in Implementing Short Stay Utility Metering at Red Coach Resort
Executive Summary
This case study explores how a Red Coach Resort leveraged smart metering technology to implement a short stay utility metering charge-back strategy, transforming an often-overlooked cost into a significant revenue stream. By integrating smart metering into their rate management system, the campground optimized their billing processes, recaptured utility costs from transient guests, and established a new profit center to offset the administrative and infrastructure burdens associated with energy usage.
Client Background
Red Coach Resort a popular RV and campground destination in Alabama offering full hookup and primitive sites, horse stalls, a 1.5 mile River Walk Loop Trail and playground on a 20 acre natural reserve. The resort attracts a mix of long-term guests and short-term, transient visitors, creating varying utility demands throughout the year.
Challenges
Before implementing Wild Energy meters, campground operators faced several challenges related to energy management and cost recovery:
- Un-captured Utility Costs: Transient guests often used significant amounts of electricity without corresponding charges, leading to higher operational costs for the resort.
- Complex Utility Billing: The local utility company charged the resort not only by $/kWh but also through additional commercial rates such as Demand, Base, and KW Overage fees. These complex charges were not adequately accounted for in guest billing.
-
Operational Inefficiencies: Manual meter readings were time-consuming, prone to errors, and did not provide real-time usage data, complicating the management of utility costs.
When asked about other potential challenges around electric expenses, Red Coach Resort owner and operator J. Lee Brady described his outlook on accommodating EV charging:
"In this new age of electric vehicles, short term guests can easily plug in their electric vehicles (or golf cart) overnight and in a sense "fill up their electric tank" full of fuel which could run up to $40 in a single night, negating any net revenue from that guest. In my opinion, this one fact will most likely be the primary reason a park owner might choose to charge electricity for their short term guests."
Red Coach decided to implement Wild Energy’s smart metering system in two strategic phases to address these challenges:
Phase 1: Short Stay Utility Metering Implementation
Objective: To recapture utility costs from short stay guests by integrating smart utility metering into the resort’s rate management system.
Strategy:
- Automated Billing Integration: Wild Energy meters were integrated with the resort’s rate management system to automate the calculation of utility charges based on real-time usage data, reducing administrative burden on staff
- Daily or On-the-Fly Calculations: Utility charges were calculated daily or at checkout, ensuring accurate and timely billing for all short stays.
- Guest Transparency: Guests were provided access to their energy usage data through checkthemeter.com, allowing them to monitor and manage their consumption, which increased satisfaction and reduced billing disputes.
Phase 2: Establishing a Compliant Revenue Center
Objective: To convert the recaptured utility costs into a sustainable profit center that offsets the campground’s administrative and infrastructure expenses associated with energy management.
Strategy:
- Enhanced Rate Structure: included additional charges such as Demand, Base, and kW Overage fees passed on to guests. This strategy ensured that the resort’s costs from the utility company were fully covered.
- Pass-Through of Metering Costs: Any recurring charges from utility or third-party metering service are also passed through to guests, further ensuring that all costs associated with utility management were recouped.
Quantifiable Results
- Increased Revenue: By incorporating the additional rates into the guest billing, the campground achieved a revenue increase proportional to the utility usage of short stay guests, contributing to the resort’s overall profitability.
- Cost Recovery: The inclusion of Demand, Base, and kW Overage fees ensured that all utility-related costs were recaptured, protecting the resort’s bottom line.
- Enhanced Guest Experience: Providing guests with real-time access to their energy usage data fostered transparency and accountability, enhancing the overall guest experience and trust in the resort’s billing practices.
- Improve Park Value – boost Net Operating Income (NOI) through significant improvements to electrical infrastructure and enhanced revenue collection from precise utility billing.
- Operational Efficiency: By passing on infrastructure costs and automating billing, the resort significantly reduced the time and resources needed for utility management.
The implementation of Wild Energy smart meters at this customer’s campground successfully transformed their approach to utility management. By strategically charging back short stay utility costs and establishing a compliant revenue center, the resort not only recaptured previously lost revenue but also optimized their operations and improved guest satisfaction. This case study highlights the untapped potential of smart metering with a short stay metering strategy in the RV and campground industry and serves as a model for other properties looking to enhance their financial performance and operational efficiency through smart utility metering technology.
