How the Hospitality sector can work effectively with EV Charge Point Operators

The EV transition is speeding up. At the end of July 2023, statistics from SMMT showed there were 840,000 electric vehicles (EVs) on our roads in the UK. There are also 520,000 plug-in hybrid electric vehicles (PHEVs). These figures amount to 1,360,000 plug-in cars, with car manufacturers bringing out newer models all the time.

To put this into perspective, 1 in 5 vehicles registered in the UK today is either part or fully electric. The hospitality sector can capitalise on this growing market by taking advantage of this trend. However, doing it alone could prove costly and working with EV charging point operators (CPOs) ensures your EV charging business succeeds.

The rise of Electric Vehicles and EV Charging Infrastructure

EV Charge point Operators are creating infrastructure to help support the phenomenal rise of EVs. Research from Field Dynamics found 75.4% of people have driveways and can charge at home. However, 24.6% of households don’t have access to off street parking and are searching for alternative ways to fuel their EVs. Our own research also shows that only 5% of UK EV drivers rely solely on home charging to power their vehicle. Publicly available charging infrastructure is the solution to help solve this.

Regarding the hospitality sector, it’s crucial to note vehicles spend 90% of their lives stationary. This period is the optimum time for EV drivers to think about charging. EV drivers must also consider where to park and stop for a long time. These periods are when the majority of EV charging can take place.

Every day, EVs are getting bigger, better, and faster. Consequently, the ranges on batteries are getting longer. The batteries are also becoming denser and smaller. These positive changes are similar to what we have seen with other technologies. For example, mobile phones are now also smaller and more powerful.

The Hospitality Sector’s embrace of EV Charging

In the last decade, there has been a massive shift in the optimisation of EVs. This shift has been more impactful than anything seen with petrol/diesel in the last 100 years. The hospitality sector can use this momentum to its advantage, helping people to transition to EVs by offering a place to charge. Our research discovered that 29% of leisure travellers and 29% of business travellers already use EV charging at hotels.

Robust charging infrastructure is a necessity for EV drivers. You can use cheaper charging as an EV driver if you charge at home. If you don’t have this option, you must access cheap charging elsewhere. For people in this situation, destination charging is ideal.

In the hospitality industry, particularly the hotel sector, people who arrive and are staying overnight will be there for 12-15 hours. A significant amount of time is therefore available to charge an EV. This opportunity is proving to be lucrative for many businesses in the hospitality industry. However, knowing the right chargers to use in the right locations is critical.

Collaboration with CPOs creates the best EV Charging experience

Businesses offering an EV charging solution must concentrate on the customer experience. It's paramount that companies don’t create a solution that adds unnecessary obstacles. It’s thinking about what needs to happen to make EV charging as frictionless as possible.

Charge Point Operators (CPOs) and the hospitality sector can work together collaboratively to get this right. This professional approach ensures EV drivers have the best charging experience and charging can match their needs seamlessly.

Taking time to understand your customer base

A lack of understanding of EV charging can cost your business financially. For example, installing rapid chargers that take less than 30 minutes to fully charge, when customers average dwell time is 2-3 hours (someone visiting facilities such as a restaurant or hotel spa), can be off-putting and lead to chargers sitting empty. That’s because most EV drivers know they’ll have to move their vehicle after 30 minutes to vacate the bay, which will disrupt the purpose and enjoyment of their visit. 

In this scenario you are promoting a “pitstop behaviour”, where those using the chargers may not even leave their vehicle, occupying charging bays that were intended with paying customers in mind.

Questions you need to ask before installing EV Chargepoints

• Who are our customers?
• Where do they come from?
• How long are they staying here?
• What do they do when they are here?
• What do they do when they leave?

Understanding the real role of EV Charging Point Operators

• Fast charging is overall better for battery health
• These types of charging stations are cheaper to build and operate
• Fast charging is cheaper for EV drivers to access

A specialist CPO can also help you “get into the minds” of EV drivers and understand why they stop and want to charge in certain places. Additionally, as ranges increase in the future for EVs, the charging needs will change. CPOs can advise on the best set-up for your customers and your business to stay current.

We understand what is essential for businesses to offer at their EV charging sites. The customer journey must be as simple as possible, easy to pay, and easy to use. The charging on offer must also match a mix of customers who will be on-site for short and longer periods.

For example, our research found that payment options for EV charging really makes a difference 43% of UK EV drivers preferred to pay at the end of their hotel stay. Whereas 24% wanted to pay upfront via an app or on the hotel website. However, this figure may continue to rise as EV adoption continues to grow.

The flexibility of customisation

Retail, leisure, and hospitality businesses must work collaboratively with EV charging point operators. At SMS, we have an end-to-end service creating customised EV charging solutions across many sectors. 

EV Charging Point Operators offering end-to-end Support

• A strong balance sheet to fully fund EV Charging
• A track record in designing and delivering power connections (60,000)
• Significant experience in operating EV chargepoints (a network of nearly 3,000)
• Trade a large amount of energy (£350m pa) to keep charging costs lower.

Safety comes first

Safety and compliance should be a priority for charging locations. The UK is currently the only country globally to have set minimum requirements for the safety of a site. ChargeSafe is an organisation that provides guidance and assessment of  sites to ensure that locations are built to the highest safety standards for users.

The opportunities for the Hospitality Sector

Numerous opportunities arise from EV charging infrastructure. By hosting EV chargers on your premises, you can generate direct revenue. After a site assessment, a CPO can explain the revenue opportunities available for your business.

Creating additional annual revenue

EV charging that complements the core activities of a site can be a fantastic money generator. Onsite EV charging can bring in additional revenue opportunities from guests who then make food and beverage purchases. Depending on the size of a hotel's portfolio this could be in the region of tens or hundreds of thousands of pounds per year, for larger hotel chains that figure could feasibly be in the millions. This goes to show how lucrative EV charging can be. 

Attract the most customers possible to our EV Charging site

Deciding to have commercial EV charging stations can provide many different benefits. It can show your commitment to environmental concerns. Additionally, more and more people are making purchase decisions based on the sustainability of an organisation. 

As the UK continues to reduce its carbon footprint, installing an EV charging station is a positive move for the environment. However, the hospitality sector must attract more than eco-conscious customers. It is essential to attract everybody and stay within your broader customer base. 

Solutions will need to consider mass market adoption, despite the fact that we are still in the early adoption world of EVs and charging. Fundamentally, EV drivers are seeking convenience, so charging needs to be made easy enabling the transition without being disruptive.

EV Charging opportunities for the Hospitality Sector

Let’s not forget there is the 2035 deadline for the ban on sale of new petrol and diesel vehicles in the UK, which is pushing the EV industry forward. This presents a huge opportunity for forward-thinking businesses to get ahead of the market, and the competition, to cater for millions of new EV driving customers over the next decade.

Contact our expert EV charging consultants to find out how we make EV charging a reality for your retail, leisure, or hospitality business!