How hotels can maximise their EV Charger revenue
In an increasingly EV-driven world, hotels have a unique opportunity to not only provide excellent service to their guests but also to encourage the adoption of environmentally-friendly transportation. The global EV market is forecast to reach 32 million by 2030, with a projected CAGR of 21.1% from 2021 to 2030 (according to a report by Allied Market Research). As EVs continue to permeate the global automotive market, hotels should consider implementing innovative pricing strategies for their EV charger offerings to maximize both guest satisfaction and revenue generation.
One of the most effective methods to achieve this is by offering a combination of free, bundled, and visitor parking options for EV charging. This strategy enables hotels to cater to various customer needs and preferences, while simultaneously generating additional revenue streams. Here's how hotels can strike the right balance:
Overnight charging bundled into room rate
By offering free overnight charging as part of the room rate, hotels can incentivize guests with EVs to choose their property over competitors. This strategy, which targets longer-term guests, makes the charging experience seamless and adds value to their stay. According to a 2020 survey by EVBox, 68% of EV drivers prefer to charge their vehicles at hotels, indicating that this amenity has the potential to attract a significant portion of the EV driving population. Additionally, by including the charging cost in the room rate, hotels can avoid the need for a complex billing system for electricity consumption, simplifying the process for both the hotel and its guests.
Valet parking with charging service
For guests requiring short-term parking, hotels can offer an EV charging service as an extension of their valet parking. By charging an additional fee for this service, hotels can generate supplementary revenue and justify the investment in charging infrastructure. Research by McKinsey & Company suggests that by 2030, up to 40% of parking revenue could come from EV charging services, highlighting the potential profitability of this offering. In this model, hotel staff would manage the charging process, allowing guests to enjoy their stay without worrying about locating and plugging in their vehicle.
Fast Charging for quick top ups
One potential option for some hotels is to offer fast charging also known as Level 3 or DC fast charging. Level 3 charging has the benefit of quick charging, allowing for more EVs to use it, and where drivers are willing to pay a premium for the speed and convenience. This option would be ideal for hotels located conveniently off a highway or freeway and where the majority of visitors arrive by car. Bear in mind the capital expenditure to install DC fast charging is significantly more than the usual AC Level 2 charging but If your hotel has the requisite space and electricity capacity it may be an option worth considering.
Maximise underutilised chargers through visitor parking or P2P platforms
To further capitalise on their charging infrastructure, hotels can extend their EV charging services to non-guests when available. This strategy not only helps to generate additional revenue from the parking lot but also attracts potential new customers to the hotel's amenities such as restaurants, bars, or spas. Data from Chargeway, an EV charging software company, reveals that 55% of EV drivers are willing to pay for charging access if it's convenient and reasonably priced. Hotels can leverage this willingness by offering hourly rates for visitor parking, making the most of unused chargers and contributing to the development of a comprehensive public charging network.
By adopting a multifaceted approach to pricing their EV charger offerings, hotels can cater to a wide range of customer needs, maximise the value of their charging infrastructure, and contribute to the growth of the EV market. With the global EV market set to soar in the coming decade, hotels that implement innovative charging solutions today are positioning themselves for success in a rapidly evolving industry.