EV Charging: A Lifeline for Hospitality Businesses (2/2)
In our previous article, we discussed the growing popularity of electric vehicles and the financial incentives to installing EV chargers. This time, we explain why EV Charging is the perfect investment for hospitality businesses in 2021.
Earlier this week, we published an article explaining how electric vehicle charging works, how much it costs and the types of financial support available to businesses installing in charging stations. With the government’s incentives and electric vehicles rapidly growing popularity, you might be convinced that now is a good time to invest in electric vehicle charging. But why is it an especially good idea for hospitality? And how can your business benefit?
The inclining popularity of electric vehicles means that we are currently experiencing high demand upon the UK’s (currently) limited charging infrastructure. In fact, according to an article by Mckinsey and Company, “without upgrading buildings’ electrical infrastructure, there simply will not be enough accessible EV chargers to satisfy demand.” As such, people are looking for EV charging opportunities everywhere but, in particular, any place where they will already be visiting for longer than a couple of hours.
The lowest cost option for EV charging is slow charging, followed by fast charging. Whilst the longer waiting times for these systems can be an inconvenience to drivers, the charge time is actually extremely beneficial for hospitality businesses. Instead of having to wait for hours at a public charging point -an especially unappealing option during a short holiday- guests would be able to complete the charge during their stay. For holidaymakers seeking a short break within a rural area with limited charging options, this could indeed be a huge selling point for your business.
For restaurants, bars and cafes, electric vehicle charging could also increase revenue dramatically. The slow to fast charging time period (between 3 and 12 hours) is long enough to require that people buy multiple drinks, meals or indulge in other services, for example, a wine tasting/cooking course or, in the case of hotels, a spa treatment. In other words, EV customers are likely to be high value ones.
Furthermore, EV charging itself offers a source of income. In the last decade, several companies focused on helping retail and hospitality businesses to gain revenue from charging have launched. For example, EVBox, Zap Map and Chargebase, the latter of which allows for an annual profit of £3,500 from just charging commission alone. With charging fees alongside income from bar and restaurant purchases, you are even more likely to benefit from a high ROI after installing EV charging.
EV chargers also provide vital publicity due to the apps used by EV drivers to find charging stations. One Guardian article on the Australian EV charging market describes how one business owner was able to put his “winery at Mansfield on maps and apps such as Plugshare, used by EV drivers to navigate their way around the country”, with many others installing chargers and immediately getting “calls from drivers straight away wanting to check in” due to these apps.
EV charging draws in new customers but because EVs require charging regularly, these customers also have a high chance of returning. Due to their (current) high cost in comparison to diesel and petrol vehicles, electric cars are also likely to be owned by those with more disposable income. Some malls in Australia have attempted to take advantage of this fact, implementing commission-free EV charging as they are “not necessarily looking to make money [but to] attract wealthier customers.” In the cases of hotels, restaurants, cafes and retail outlets, EV charging helps to build a high quality brand and customer base.
Finally, EV charging is crucial to building a sustainable branding strategy, allowing your business to benefit from the growing trend of ecotourism. Mounting environmental concerns within the mainstream and ambitious emission reduction targets mean that more and more people are interested in sustainable tourism options. Delatite Wines in Victoria, Australia, has installed EV charging alongside their own solar panels, attracting customers with the assurance that “they will be charging their car on free, clean energy for the return journey.”
Overall, there are several marketing, financial and ethical incentives for hospitality businesses to provide EV charging. You will gain an extra revenue stream; boost your main revenue streams; acquire and retain new customers, and future-proof your business in an age of sustainable innovation. Perhaps most crucially, you will be helping to steer the UK towards a low carbon economy and market your brand as such.
If you are interested in cutting your carbon emissions more generally and saving money in the process, GridDuck can help. We offer hospitality businesses with a way of monitoring, automating and controlling their energy usage. To find out more, schedule a quick and informal chat with Miles today.