A new report from SMS plc explores hotel EV charging and what needs to be done to improve the guest experience for EV drivers.
London, UK – 13th September 2023: UK hotels that fail to offer onsite electric vehicle (EV) charging risk driving away guests and missing out on invaluable Total Revenue Per Available Room (TRevPAR), a new report from SMS plc has revealed.
Past encounters and the availability of EV charging are causing frustration among hotel guests who’ve embraced the EV revolution. As a result, over two-thirds (67 percent) of respondents state that it is now influencing their choice of hotel, with almost a half (48 percent) of UK EV drivers simply choosing not to stay at a hotel without onsite EV chargepoints.
The study of over 1,000 UK EV drivers by SMS explores the current experience of those who use, and rely on, public EV chargepoints. Despite an almost ubiquitous love of their EV (94 percent), 68 percent of EV drivers say it is stressful to always have to think about public charging availability when they take a long journey, and 88 percent believe public EV charging needs to improve if UK drivers are to be encouraged to transition to electric.
The hotel industry has its part to play in ensuring that public EV charging is fit for purpose. Almost a third (29 percent) of UK EV drivers had used hotel EV chargepoints during an overnight stay for leisure and the same figure (29 percent) for business travellers.
The number of fully electric or hybrid cars on UK roads recently hit over 1.3 million yet less than 7 percent (or 3,100) of the UK’s chargepoints are located at hotels. As a result of historically long wait times and lack of availability, 83 percent of respondents are prepared to wait to access an EV chargepoint at a hotel. Over a third (38 percent) would consider a wait of up to an hour, and a quarter (26 percent) up to two hours. However, over three-quarters (77 percent) are willing to pay for an EV concierge service at a hotel in order to limit the inconvenience caused by waiting.
Mark Winn, Head of EV Strategy at SMS plc explained: “Onsite EV chargepoints should no longer be seen as a competitive advantage for UK hotels; it’s the guest experience surrounding them that delivers the point of differentiation. By offering convenient and seamless EV charging options, both independent hotels and the larger hotel groups can encourage guests to return and increase brand loyalty. In addition, reducing the need for guests to look elsewhere for suitable EV charging can help to maximise potential TRevPAR.
“However, understanding how to implement the most effective EV charging infrastructure can be a minefield. Not all EV chargepoints are created equal; the type required varies depending on where it’s being installed and who is using it. Hotels must avoid the trap of focusing solely on the revenues offered by chargepoint operators (CPOs) which invariably includes installing a smaller number of rapid chargepoints without the ability to book or reserve.
This delivers a poor experience, thanks to limited availability leading to longer wait times, and ultimately means EV driving guests will look elsewhere for their charging needs. Instead, hotels should consider the wider revenue opportunity – such as food and beverage sales, presented by EV drivers. The rule of thumb is to plan the implementation with three R’s in mind – right time, right location and right speed. This will deliver the right balance, and number, of EV chargepoints with speeds that match the time guests are spending onsite. For example, fast chargers for guests staying for leisure or business, and rapid or ultra-rapid chargers for day visitors.”
The research also revealed important insight into the payment expectations of hotel guests:
For 43 percent of UK EV drivers, the preferred option for paying for EV charging at a hotel is at the end of their stay, or as an additional charge and part of their final bill.
A quarter (24 percent) would choose to pay immediately via a hotel website or app, but only 8 percent preferred the option of a third party website or app.
However, a third (31 percent) would expect EV charging to be free or included in the room rate.
An additional 24 percent of drivers would look to redeem points from hotel rewards programmes to settle their charging bill.
Mark Winn added: “A central part of ensuring a premium experience for hotel guests, once onsite EV chargepoints are installed, is to make access and payment as simple and transparent as possible”
In response, and to ensure hotels are fully prepared for the UK’s transition to EVs, SMS has published ‘It’s time hotels ‘plug in and power up’: Maximising TRevPAR with onsite EV Charging’. It aims to offer hoteliers a clear insight into the steps they need to take to ensure their EV charging offer meets the needs of their customers and is fit for the UK’s electric revolution. The report also gives practical advice on how to roll out effective onsite EV chargepoint infrastructure that drives additional revenue streams and offers return on investment (ROI), as well as enhancing EV drivers’ guest experience.
A free copy of the report, and blueprint, can be downloaded here.
SMS plc installs, manages, and intelligently operates carbon reduction (CaRe) assets – including smart meters, battery energy storage systems (BESS), and EV chargepoints – that together enable a smarter, greener, and more affordable energy system. Established in 1995, SMS additionally provides energy efficiency, energy data management, and net zero strategy services to large private and public sector organisations. With its mission to lead the low-carbon, smart energy revolution in the UK, SMS is committed to reducing its own carbon emissions to net zero by 2030. The company is headquartered in Glasgow with 12 locations across the UK and Ireland and employs more than 1,400 people.