The Failures Facing the Hospitality Sector & How EV Charging Can Future-proof Your Business
‘Cost of living crisis’ is still the buzzword on the lips of the nation, as the price of mortgages, gas and electricity casts doubt and stress over homeowners everywhere.
With personal finances tight, it’s perhaps no surprise that other sectors are feeling the knock-on effect. As the pandemic disappeared into the distance of our rearview mirrors, independent businesses were the first to suffer, with many unable to recover after a prolonged loss of earnings over the lockdown period.
Now, entire industries are looking over their shoulder for the ominous crash of the cost of living catching them up. The hospitality sector is one such industry.
How is the hospitality sector at risk?
As reported by Hospitality Investor in November 2022, more than a third of hospitality-based businesses in the UK are at risk of failure due to the ‘cost of doing business crisis’.
Results from a Hospitality Members survey produced for UKHospitality, the British Beer and Pub Association (BBPA), the British Institute of Innkeeping (BII) and Hospitality Ulster revealed that:
- 96% of survey respondents experienced higher energy costs.
- 93% of business owners faced food price inflation.
- 77% saw a decrease in people eating and drinking out.
- 35% expected to be operating at a loss or be unviable by the close of the year.
- 85% expect things to get worse throughout 2023.
In total, a massive 89% of respondents divulged their lack of confidence and a real worry that government support from the Energy Price Guarantee would not be enough to protect and sustain hospitality businesses beyond the next six months.
We’ve now arrived at the end of those six months.
Hope for the hospitality industry.
So, is there some hope for hospitality as we move towards the end of 2023 and beyond? Experts from the trade associations of the survey mentioned above say:
“The sector’s vulnerability due to soaring energy costs, crippling rises in the price of goods, and dampening consumer confidence is on full display in this survey. If urgent action isn’t taken, it’s incredibly likely that we will lose a significant chunk of Britain’s iconic hospitality sector.”
They continued,
“Hospitality has huge potential to drive economic growth and job creation, delivering millions to the Exchequer and our local economies. Before the energy crisis, the sector showed signs of bouncing back strongly from the pandemic and looking to grow.”
How EV charging can contribute to the security of the hospitality sector’s future.
In such uncertain times, showing credibility to customers and future-proofing your business is essential for the survival of the hospitality sector.
It’s here that working alongside experienced specialist industry experts such as RAW Charging provides an invaluable lifeline to hospitality businesses. With RAW’s help and flexible Ownership Options, companies can provide Destination Charging on their premises, whether a hotel, golf club or leisure facility.
Once EV charging facilities are installed, benefits include:
- Attracting EV drivers – Hospitality establishments can attract EV-driving customers seeking convenient and efficient access to charging infrastructure. These facilities can offer a significant advantage over competitors, particularly in areas with limited EV charging stations.
- Additional revenue – With the arrival of more EV drivers comes increased revenue. By Qualifying for RAW’s Host Ownership, businesses will benefit from fully-funded hardware and installation, zero management fees and a revenue share.
- Increasing guest and customer retention – Guests who own EVs are more likely to choose hospitality options with charging facilities. By providing EV charging, businesses will dramatically increase the chances of repeat business while attracting new EV-driving customers through word-of-mouth and third-party platforms, such as ZapMap.
- Improve ESG credentials – In an era where many companies ‘greenwash’ with a marketing spin to make customers believe they are environmentally conscious, ESG (Environmental, Social and Governance) credentials count. EV charging contributes to this rating, giving hospitality businesses the edge by being transparent and signposting sustainability.
- Positive public image – EV charging supports a business’s sustainability goals; this is better for the planet and will showcase that your establishment is environmentally responsible. Helping to reduce carbon emissions can improve the public image of your hospitality destination and attract guests who prioritise sustainability.
Taking the next steps to support the hospitality sector with RAW Charging.
RAW Charging is a leading force in charging infrastructure, with a vast experience installing and managing destination charging for many high-profile hospitality-based clients.
RAW has future-proofed the premises of five sites for Exclusive Hotels, including the high-profile PennyHill Park – a 5* hotel and spa home of the England Rugby Team, which also houses a nine-hole golf course and a full-size rugby pitch. RAW is also completing ongoing work to install 2,700 charging facilities for Greene King pubs, the UK’s leading pub retailer and brewery.
If you want to revamp your hospitality site and transform your premises into a forward-thinking, sustainable destination, contact the team for a free site assessment and more information on RAW’s Ownership Options.