Revving Up for the Future: EV Charging Drives New Opportunities for Hotels
In 1927, the extravagant Boston Plaza Hotel became the first hotel in the world to offer in-room radios to guests. Twenty years later, TVs were introduced for the first time at the Roosevelt Hotel. Fast-forward to the turn of the century, and more than 6,000 hotels globally made WiFi available to guests. These forward-thinking moves symbolize a trend that has defined the hospitality industry: adapt to evolving guest needs or risk fading into irrelevance.
So, what is the new essential amenity for hotel guests today?
Just as radios, televisions, and WiFi once transformed guest expectations, the explosive growth of electric vehicles (EVs) is reshaping their preferences, making EV charging a must-have amenity for modern hotels. Insights from 78 hotels on our network, coupled with compelling external studies, paint a clear picture: EV charging is not just about sustainability but about meeting and exceeding the expectations of today's travelers.
EV Charging Sparks Guests’ Interest
Last fall, a study by JD Power and Associates discovered that 19% of the nearly 4,000 guests surveyed expressed the need for hotel EV charging stations. Supporting this trend, data collected from Hilton Hotels showed a dramatic increase in Google searches for EV charging at their locations – it’s now the second-highest term in converting searches to stays. Clearly, the availability of EV charging is becoming a game-changer in guests’ booking decisions.
Luckily for EV owners, the road ahead looks bright, as the American Hotel and Lodging Association expects the pace of EV charger deployment in the hospitality sector to accelerate. This growth is particularly pronounced in full-service facilities, where more than half of properties have charging stations, and in luxury hotels, where the figure is approaching 90%. This positive outlook is reflected in major hotel chains announcing their plans to enhance EV charging availability. Marriott, for example, announced its plans to introduce chargers at thousands more locations in September 2023, adding to the extensive network it has already established. Hilton has also made parallel announcements, reflecting a growing industry focus on supporting sustainable transportation.
The Data Speaks: Insights From Hotels on the EV Connect Network
Many hotel brands and ownership groups consider EV charging an investment-worthy amenity. But what exactly can a hotel expect to gain from installing EV chargers on their premises?
EV Connect benchmarked 12 months of data at 78 hotel properties on the EV Connect Network and found that the average utilization of hotel EV chargers is about 28%. Utilization, a measure of charging asset productivity, is the percentage of time the charger is in use and potentially earning revenue for paid charging, as around 73.1% of the hotels we benchmarked are doing today.
A key metric to watch for hotels is the 'session growth rate.' Hotel sites often start small, with 1-2 charging sessions per charger daily. As properties, they market their chargers to guests and make them discoverable on public networks, causing utilization to soar quickly. The average session growth rate for hotels on our network is 3.3% monthly, indicating a rapidly increasing demand for EV charging facilities.
Hotel charging is also a great way to get new guests through the door. More than half of the hotel charging sessions analyzed in any given month were from new drivers, which indicates both rising EV adoption by hotel guests and hotels attracting guests to their properties due to the opportunity to charge their cars. Hotels, therefore, are no longer simply serving a niche market with EV charging, but they are using this amenity in response to a significant shift in guest preferences.
Moreover, hotels offering EV charging consistently report higher revenue per available room rates (revPAR), which links the availability of EV charging directly with improved financial performance. The average annual income from paid charging at hotel sites on the EV Connect Network is $3,274, and the top 10% of these sites earn nearly $11,000. However, the amount of charging revenue earned pales in comparison to the acquisition and retention of new guests. With 10% of vehicles projected to be electric by 2030, offering EV charging presents hotels with a prime opportunity to stand out and attract guests.
Flexible Solutions for Unique Challenges
While the benefits are clear, deploying EV charging infrastructure can present challenges, including extensive site design, retraining staff members, and integrating with hotel systems. Luckily, managed charging solutions can address these concerns, providing seamless deployment and operation at an accelerated pace to enhance the guest experience.
The first – and most crucial – step in the site design process is determining the optimal number and location of chargers. Though local mandates may call for more, the typical recommendation is to electrify five to ten percent of parking spots. An experienced contractor can help create the optimal design tailored to the hotel's individual location. Adopting a managed charging solution can also ease staff concerns. With features such as a 24/7 call center, remote monitoring, and comprehensive service plans, smooth operation is guaranteed without overburdening hotel staff.
Beyond functionality, managed charging solutions can seamlessly blend EV charging into hotel loyalty programs, becoming a true game-changer. Imagine guests earning points as they charge their EVs or using their loyalty points to cover the service. This innovative integration will enhance the guest experience and build stronger brand loyalty.
A Data-Driven Roadmap for Hotels
As EV adoption continues to soar, hotels without charging facilities risk missing out on a rapidly expanding customer base and losing appeal with current guests. Data from EV Connect’s charging network and industry studies clearly signal to the hospitality sector that EV charging is now a critical amenity for success. Installing charging infrastructure represents an investment in the future and a commitment to meeting evolving guest expectations. Hotels must embrace this amenity to remain relevant and maintain a competitive edge, retaining loyal customers and attracting a new segment of eco-conscious, tech-savvy travelers.