The Hottest Amenity in the Hotel Industry - Electric Car Charging.
Amenities like hot breakfast, Wi-Fi, business centers, complimentary cocktails, and other perks attract business and help you remain competitive. EV charging is no different.
With soaring gas prices, electric car sales outpaced that of gas cars in 2022 and are on track to do the same in 2023, leading more and more travelers to book their next hotel stay based on where they can “fuel up.”
2022 was big for electric cars.
In 2023, there are EV options available from every automaker – including Tesla, Ford, Chevrolet, BMW, Mercedes-Benz, GMC, Nissan, Rivian, Polestar and more. In fact, throughout the last year, dealers couldn't keep EVs in stock. New gas vehicle sales fell 8% YOY in 2022 while battery-electric vehicles sales soared. Kelley Blue Book estimates an EV sales increase of 65% over 2021 and EV share of the total market increased 5.8%, up from 3.2% in 2021.
The future is electric.
With electric cars increasingly more available, affordable and spacious, they are in high demand and becoming an excellent option for families and drivers seeking fuel efficiency and cost savings. So much so that automakers are working toward an electrified future with many ceasing R&D on internal combustion engine vehicles. Electric driving is here to stay!
So what does this mean for your business? Here are the answers to many of the questions being asked about EV charging in the Hospitality Industry.
I am Hotel Operator, why do I want to take on more?
Point taken. The lodging business is a full-time job catering to the needs of guests - arranging transportation, catering, meeting spaces, and so much more.
Adding EV charging is actually a super easy way to build on all that fantastic service by giving your guests not only a place to “charge up” themselves as well as their vehicles.
What's in it for me and my hotel?
Don't give your guests an excuse to leave your property. Fueling as we know it is changing and no longer restricted to gas stations. And that's good news for you! Now you have another opportunity to keep your guests happy and on property - and spending money! Not having to leave to fuel up translates into more revenue via your convenience centers, restaurants, etc.
Can I make money from offering EV charging at my resort?
You can approach EV charging in two ways – it can be a free amenity or a pay-per-use service. This decision is ultimately yours; although, most are opting to offer it as a free amenity, reserved specifically for their guests.
Electricity rates are fairly cheap across the country ($0.08 to $0.20 per kilowatt depending on where you are), so offering free charging is no different than providing free breakfast.
Another free amenity? What about my margins?
Offering free EV charging does not have to be a loss leader. Currently, many of you pay 15-20% commissions to Expedia, Travelocity, and OTA’s just to put "heads in beds."
While an increasing number of the online reservation services promote EV charging, EV drivers tend to call hotels directly to confirm charging is available - often resulting in more lucrative direct bookings.
You can also cover your costs with special EV rates and training your staff to pitch the guests on the value your hotel places on EV drivers: “Our hotel offers a special rate for EV drivers which includes free breakfast, free Wi-Fi, and free EV charging.”
It's an opportunity to win drivers' business as well as build their loyalty. Plus, your special rate can be $10 above your rack rate so it covers the electricity costs. This will boost your ADR and help you to turn a small profit.
How do I prevent non-paying hotel guests from charging their vehicle?
We sell car charging stations specifically designed for commercial properties which can include RFID technology, similar to guestroom access technology.
Along with an EV special rate, you can provide paying EV guests with special RFID card. By limiting the access, you'll keep others from charging up on your dime.
Going a step further, many EV charging stations use management software. While there is typically a subscription fee associated with charging software, it can be tremendously helpful in managing who uses your stations and can even allow you to establish different rates for guests and non-guests. It also allows you to be more "hands off."
I’m building a new hotel property, any advice?
Whether or not you are ready to install EV charging, we encourage you to make an investment now to reduce future costs.
If you are building from the ground up, make sure you lay metal conduit or PVC piping (depending on local building codes) from your parking lot into the hotel’s nearest circuit panel box and do so before you pour any concrete sidewalks, curbs, or asphalt.
This will save you thousands later and streamline the installation process when you are ready. By pre-wiring, all you will need to do is run the charging unit’s wires through the conduit and connect everything. It is that simple and often as much as 8x less expensive than retrofitting.
How much do Charging Stations Cost?
We offer a wide range of charging hardware from as little as $2,000 per level-2 plug and increasing from there depending on the options you select.
Economy hotels may opt for more basic charging stations, while new construction Marriott, Hilton, and IHG properties may chose a more advanced models with LCD screens, automatic cord suspension technology and management software. DC fast charging may also be the preferred option.
No matter what your objectives are, we have the right solution and numerous highly vetted brands and models to chose from.
Are there tax incentives?
Glad you asked! There are many federal, state and local incentive programs available. At Ak we are fully versed in all of the different programs available and are here to help you find the ones that work best for your company.
What is NEVI?
National Electric Vehicle Infrastructure (NEVI) Program was created last year as part of the inflation Reduction Act. Managed by the U.S. Department of Transportation’s (DOT) Federal Highway Administration (FHWA), NEVI provides states with funding to install charging stations.
Funding is available for up to 80% of eligible project costs, including:
The acquisition, installation, and network connection of EV charging stations to facilitate data collection, access, and reliability;
Proper operation and maintenance of EV charging stations; and,
Long-term EV charging station data sharing.
To take advantage of this funding, your property must be located near specific highways across the country. Call us to see if your property qualifies.
Written by Bhavik Dani, (866) 996-6387, bdani@nationalcarcharging.com
About Bhavik Dani
After a long and successful career in the hospitality space, Bhavik expanded his skill set and expertise to include electric vehicles. An early adopter and EV driver himself, he felt it was critical to be part of this electrifying moment and joined National Car Charging, a sister company to Aloha Charge, in 2018, further supporting the business’ mission to facilitate and grow the nation's EVSE infrastructure. Bhavik attended school in both Chicago and Charlotte, and proudly completed his JD. In his spare time, he enjoys baseball (go Cubs!) and the strategy and challenge of chess. Today, he lives in Chicago with his family.
About Aloha Charge
Aloha Charge is the only and leading reseller and installer of EV charging equipment in the state — providing hardware, software, and planning expertise across a wide variety of business channels, including hospitality, municipal facilities, and multi-family dwellings. Headquartered in Honolulu, the Aloha Charge team is actively involved in many of Hawai’i’s sustainability initiatives — both locally and at state-level. Aloha Charge is a wholly-owned subsidiary of National Car Charging (NCC). Being part of the NCC family allows the Aloha Charge team to uniquely serve Hawai’i. With local offices and a Hawaiian-born team, Aloha Charge provides dedicated, on-island resources, giving state the focus it deserves while also benefiting from the buying power and experience of NCC.