By Dennis Carter, LG Business Solutions USA - 7.31.2024
As we experience a country-wide shift from traditional gas vehicles towards electric vehicles, an onslaught of both challenges and opportunities are expected to arise, specifically for the hospitality industry. Mass adoption of EV charging infrastructure is inevitable – so the businesses that invest and prepare early will be positioned competitively in the industry and can expect to attract more customers than those that have not embraced EV charging early on.
To address this, many major hotel chains are already investing in EV charging – in a rush of “range anxiety” experienced by the 4 million EV owners in the U.S. It’s expected that as EVs become increasingly more popular, hotels will struggle to provide a seamless and competitive experience to customers without the offering of EV infrastructure and chargers. That said, not all EV chargers are created equal, and selecting the right manufacturer partners and charger types requires careful consideration to properly meet a property’s specific needs.
Get to Know Your EV Needs
As EV charging infrastructure proliferates, different locations will offer different charging experiences and capabilities. The most popular commercial options to date are Level 2 and Level 3 chargers that deliver charging capacities of roughly 11kW all the way up to 360kW, providing optimized solutions for a range of needs and budgets.
Level 2 chargers offering up to 11kW are ideal for overnight charging, as they can add up to 39 miles of charge per hour, depending on the vehicle. They are also smaller and more affordable than Level 3 chargers, which are preferred for rapid refueling during long trips, but not for overnight needs. Installation costs can vary depending on local regulations and any required electrical infrastructure upgrades, with multi-charger installations helping to bring down the cost per installed unit and maximizing potential revenue.
It’s also crucial to consider the volume of guests who are EV drivers, and collecting vehicle data over time may help hotels stay ahead of the EV trend and ensure there are enough charging stations to keep every guest happy.
Create Reliable Revenue Streams
The most significant opportunity presented by the EV transition is for hotel properties to begin capturing fuel revenue that will increasingly shift away from traditional gas stations. While some operators may decide they don’t need to provide EV charging solutions, they will be missing out on an entire new revenue stream that will only grow over time.
Commercial EV chargers (such as LG’s Level 2 11kW model) make charging and payment simple, so drivers can plug in and conveniently charge their vehicle during their hotel stay. Each property should consider whether it wants payment to be made at the charging station or on a room bill, if non-guests can use the chargers, and how much to bill for the electricity. There may even be an opportunity for the booking process to offer a paid, guaranteed charging station for stays or specific time slots, depending on availability and infrastructure investment.
The latest charging stations also provide advertising (and revenue-sharing) opportunities through built-in digital displays that can host advertisements for local businesses, hotel services or on-property restaurants and amenities. At the same time, hotels that also invest in renewable energy generation such as rooftop solar may be able to compound the technologies’ benefits, lowering the input cost of electricity while the consumer sale price remains the same.
Seizing the Right Moment
There are currently a range of time-sensitive subsidies and other incentives from various government and utility provider sources that are designed to encourage EV charger installations by offsetting upfront costs. Each program has different requirements, standards, and value to beneficiaries, so it’s vital to maintain awareness of timelines, changes, new programs and of course any differences between hotel locations.
These investments can benefit organizations of all sizes, from independent or locally-owned properties to multinational hotel chains, and while these initiatives are likely to continue for several years, the future is never certain. So, it may be in the best interest of businesses to take decisive action that maximizes both affordability and profitability.
Initiating the EV Transformation
Installing EV chargers can be a fairly involved process for both logistics and budgets, so proper planning is key to successful implementation. There’s no shortage of EV charger companies on the market today, so conducting research, speaking with industry experts and learning details through direct manufacturer discussions are all critical to ensure you land on the best solution for your unique needs.
As EV charging needs and revenues continue to grow, it will become increasingly important to have a reliable and resilient hardware partner that can provide software updates, compatible upgrades and new models, and ensure ongoing maintenance capabilities for long-term use. The last thing anybody wants to deal with is a bunch of aging chargers that are no longer supported because the manufacturer went under or shifted priorities.
Hoteliers and other property owners that want to support every possible customer will have to consider EV charging at some point. Those who become early adopters will be able to leverage their investments with a new revenue source and future-thinking through marketing that positions them as a green technology leader in the travel industry.
Dennis Carter is a performance-driven sales and marketing industry veteran with 25+ years of experience within the automotive and EV charging industry. He leads the B2B EV Charger business development for LG Business Solutions USA, which is best known in the lodging industry as the leading provider of hospitality TV solutions.
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