How a multi-EV charger strategy will maximise revenue opportunity for hotels
One sector that stands to benefit significantly from the rise of EVs is the hotel industry, as the installation of EV chargers can help attract and retain guests while also generating additional revenue. This article will explore how EV chargers can benefit hotels and provide a comprehensive overview of the latest industry statistics.
According to recent research by the International Energy Agency (IEA), the number of EVs on the road worldwide surpassed 10 million in 2020, representing a 43% increase from the previous year. In Australia, the uptake of EVs has been slower than in many other countries, but this trend is expected to change in the coming years as prices continue to fall and charging infrastructure improves. According to the Electric Vehicle Council, there were over 67,000 EVs on Australian roads as of June 2022, with this number expected to rise to 1 million by 2030.
For hotels, the rise of EVs represents both a challenge and an opportunity. On the one hand, guests with EVs may be deterred from staying at hotels that do not offer charging facilities, as they may be concerned about running out of power during their stay. On the other hand, hotels that do install EV chargers can attract and retain guests who own EVs, as well as generate additional revenue from charging fees.
According to a recent survey by J.D. Power, 70% of EV owners said that the availability of charging infrastructure was a key factor in their decision to purchase an EV. This suggests that hotels that do not offer EV charging facilities may be missing out on potential guests who value sustainability and environmental responsibility. By contrast, hotels that do offer EV chargers can differentiate themselves from their competitors and attract environmentally conscious guests who are willing to pay a premium for sustainable options.
Moreover, offering EV charging facilities can be a significant source of additional revenue for hotels. According to a study by the International Council on Clean Transportation, hotels in the United States that offer EV charging typically charge an average of $0.33 per kilowatt hour (kWh), which is significantly higher than the average retail electricity rate of around $0.13 per kWh. Assuming an average charge time of 4 hours and an average charging session of 25 kWh, a hotel with two EV chargers could generate around $50 per day in charging fees. Over the course of a year, this could add up to over $18,000 in additional revenue.
In addition to generating revenue and attracting guests, installing EV chargers can also help hotels to achieve sustainability targets and reduce their carbon footprint. Many hotels have set ambitious sustainability goals, such as reducing energy consumption and greenhouse gas emissions, and offering EV charging facilities can be an important part of these efforts. According to a study by the Electric Power Research Institute, the installation of EV chargers at hotels can reduce carbon emissions by up to 60% compared to gasoline-powered vehicles. This can be an important selling point for environmentally conscious guests who are looking for sustainable accommodation options.
In Australia, a number of hotels have already recognized the benefits of offering EV charging facilities. For example, the Crown Resorts group, which operates hotels in Melbourne and Perth, recently installed a total of 36 EV chargers across its properties. Similarly, the Rydges Hotels and Resorts group, which operates hotels in Sydney and Melbourne, has installed EV chargers at a number of its properties, including the Rydges Sydney Airport hotel. Other hotels, such as the Pullman Sydney Airport, have partnered with EV charging providers to offer charging facilities to their guests.
To maximize the benefits of EV charging infrastructure, hotels need to carefully consider their charging strategy. According to a report by McKinsey & Company, hotels should focus on providing convenient and reliable charging services to meet the needs of EV drivers. This includes offering multiple charging stations with varying charging speeds and ensuring that they are easily accessible and visible to customers. Hotels should also consider offering additional services such as valet parking, free quick top-ups, and mobile charging units to enhance the customer experience.
In conclusion, the market for EVs is rapidly growing in Australia, and hotels that invest in EV charging infrastructure can benefit greatly from this trend. By offering EV charging stations, hotels can attract environmentally-conscious customers, generate additional revenue, and differentiate themselves from competitors. Although the initial cost of investing in EV charging infrastructure can be high, the benefits can outweigh the costs, as it can help hotels increase their bottom line and enhance their brand.