Electric cars and the tourism industry

Electric cars are increasing in popularity, but is charging infrastructure network sufficient? How can destinations and businesses better meet the needs of this market? In this opinion piece, we provide an overview of the topic, examples of initiatives taken by governments, DMOs and businesses, as well as outline a series of recommendations of how to best cater to the needs of this group of consumers.

Growing importance of EV drivers

Approximately a quarter of new cars sold in Europe are Electric Vehicles (EVs), with many governments announcing the phase out of more polluting diesel and petrol fuelled cars. However, while EV prices have become more affordable, concerns regarding the charging infrastructure are the largest deterrent to switching from a combustion vehicle. 1/3 of consumers believe there is a lack of charging points in their location (34%), with another 33% anxious about the vehicle range of EVs, according to a study by EY.  


Rural areas in particular are where the biggest infrastructural roll-outs will be required. With an increased desire to drive to uncrowded and scenic natural locations on holiday, charging infrastructure is an area that DMOs should put increased attention towards.  


Crafting a space in an emerging market


When considering how to improve a destination or businesses ability to serve their customers needs through the provision of adequate infrastructure, government grants are key for obtaining funding for the transition towards facilitating EVs within the tourism sector:

  • Ireland's Electric Vehicles Charging Infrastructure Strategy 2022 – 2025 aims to create a network of charging points every 60km along the motorway and also at tourism locations, alongside supporting residential charging points.
  • In the UK, the Workplace Charging Scheme supports small accommodation providers by covering 75% of the installation costs of new charging points.
  • In the US, $5 billion has been allocated to the National Electric Vehicle Infrastructure (NEVI) Formula Program. In this regard, the US Travel Association has encouraged state governments to work with DMOs for data-informed decision-making about the most popular tourism routes and where the infrastructural upgrades are most needed.
  • Greece has initiated a 'Green Taxi' programme using EU funding to finance the purchase of new EVs when taking older combustion engine vehicles out of service and for upgrading charging points at taxi stands.


Other initiatives taken by governments and DMOs to encourage the uptake of EVs focus on developing strong partnerships and working more directly with the tourism sector:

  • The Queensland State Government in Australia installed 12 charging stations at 6 leading tourist attractions, to develop a 500km Electric Vehicle Tourist Drive. The government collaborated with the attractions as part of a pilot programme to decarbonise the tourism sector, with the infrastructure providing an incentive for tourists to explore new locations.
  • Cumbria Tourism collaborated with Electricity North West to provide EV chargers to 100 small travel businesses. Cumbria Tourism’s ‘Electric Vehicle Tour’ took place throughout September 2022 in which senior management and key industry representatives visited the local organisations supported by the grant using an electric car from a local car dealership; a partnership that has since been extended after the social media success.

Innovative ways to package green and EV incentives


Engaging with the private sector is also key to innovative actions towards sustainable transport and supporting the promotion of destinations:

  • Uber and Hertz have partnered to improve the availability of EVs for the rideshare market. In North America, 24 million journeys have been made by almost 50,000 drivers through this cooperation. The success of this agreement is demonstrated by the addition of another 25,000 EVs for the European market.
  • Renault has launched the Plug Inn app to act as an intermediary between drivers and residential charging points. App users can book a time slot to use a nearby private charger, and use the charging time to explore the destination. Meanwhile, the app incentivises the 475,000 residences with charging points by showcasing the possible earnings that could be made by renting out their device - a great selling point in a time of inflation and economic uncertainty!

  • The SleeperCharger booking portal solves the challenge of accessing adequate charging points on driving holidays. All of the 60,000 properties listed have charging points within 250m. The booking portal automatically reserves a charger for the traveller and obtains confirmation from the hotel - resulting in hassle free travel! The company aims to install new charging points at smaller accommodations to support local operators and provide more variety in its offerings.
  • Nissan's Electric Travel Guide generates an itinerary for travelling through Europe, with suggestions of the main points of interest, hotels and restaurants to visit and importantly the charging points available. These routes have all been tested by EVs on city trips in Bratislava, Budapest, Prague, Stockholm and Vienna, as well longer Central European trips.


  • GoCar Tours will launch self-driving electric vehicle tours in Las Vegas. These GPS-guided tours can augment tourists' sightseeing experiences with audio commentary and provide personalisation and flexibility during excursions. The mobile tour guide app helps with gamification and immersion into the experience.
  • Formula E - an all-electric motorsports competition - has races in 11 cities across the world. This event not only attracts visitors and provides entertainment and new tourism attractions for car and racing fanatics, but also highlights how electric cars are reliable and relatively efficient; boosting interest and demand for these vehicles as they become less costly.


Summary

These initiatives show strong governmental support for the transition towards EVs and facilitating cleaner and greener travel methods. DMOs have collaborated with local operators and non-tourism providers to improve their offerings for EV owners and present positive images of their destination. This was achieved not only by the development of tourism routes, but also through social media and informational campaigns.


Meanwhile, the private sector has been active in launching new products and events that specifically meet the needs of EV drivers and car afficionados. By reassuring travellers of the infrastructural capabilities in destinations, tourists are more relaxed and willing to travel in a more sustainable manner.


Key Takeaways for DMOs

  • Champion the green transition! Consumers value sustainability and need to be supported through the provision of adequate infrastructure and the dissemination of  relevant information.
  • Develop new products - such as Electric Highway initiatives - or attract electric car events.
  • Connect products to branding and content initiatives to drive marketing. Prioritise EVs in road trip marketing materials. Tourists need to be reassured that there is adequate charging infrastructure at the destination, which encourages visitors to explore the destination and attractions in more depth.
  • Lobby for your sector, consult with industry and the EV community to shape and address their needs - often consultations with EV owners omits tourism, where behaviours can be different (e.g. the rural or off-the-beaten-track travel type).
  • Bring everyone together - National Parks, Hotels, Attractions - and find common alignments for promoting sustainable modes of travel.


Key Takeaways for Businesses


  • Recommend the shift to EVs - demand is only going to increase.
  • Win by being early, not just ticking the box. Make sure to install chargers with sufficient capacity to fully charge vehicles while people are visiting (i.e. don't install a 3kw or 7kw charger at an attraction where people spend 2-3 hours and no real charge will be achieved).
  • Think creatively about the EV experience - can you create a unique appeal for tourists?
  • Connect carbon-free travel, with carbon-free dining and experiences.
  • Reward EV drivers - they typically have high budgets, so they likely have more to spend on experiences.


Key Takeaways for DMOs & Businesses

  • Government funding and grants should be capitalised on when installing new infrastructure and investing in decarbonisation in the tourism sector.
  • Destinations and businesses should partner with leading electric car brands to get promoted on travel routes.

Growing importance of EV drivers

Approximately a quarter of new cars sold in Europe are Electric Vehicles (EVs), with many governments announcing the phase out of more polluting diesel and petrol fuelled cars. However, while EV prices have become more affordable, concerns regarding the charging infrastructure are the largest deterrent to switching from a combustion vehicle. 1/3 of consumers believe there is a lack of charging points in their location (34%), with another 33% anxious about the vehicle range of EVs, according to a study by EY.  


Rural areas in particular are where the biggest infrastructural roll-outs will be required. With an increased desire to drive to uncrowded and scenic natural locations on holiday, charging infrastructure is an area that DMOs should put increased attention towards.  


Crafting a space in an emerging market


When considering how to improve a destination or businesses ability to serve their customers needs through the provision of adequate infrastructure, government grants are key for obtaining funding for the transition towards facilitating EVs within the tourism sector:

  • Ireland's Electric Vehicles Charging Infrastructure Strategy 2022 – 2025 aims to create a network of charging points every 60km along the motorway and also at tourism locations, alongside supporting residential charging points.
  • In the UK, the Workplace Charging Scheme supports small accommodation providers by covering 75% of the installation costs of new charging points.
  • In the US, $5 billion has been allocated to the National Electric Vehicle Infrastructure (NEVI) Formula Program. In this regard, the US Travel Association has encouraged state governments to work with DMOs for data-informed decision-making about the most popular tourism routes and where the infrastructural upgrades are most needed.
  • Greece has initiated a 'Green Taxi' programme using EU funding to finance the purchase of new EVs when taking older combustion engine vehicles out of service and for upgrading charging points at taxi stands.


Other initiatives taken by governments and DMOs to encourage the uptake of EVs focus on developing strong partnerships and working more directly with the tourism sector:

  • The Queensland State Government in Australia installed 12 charging stations at 6 leading tourist attractions, to develop a 500km Electric Vehicle Tourist Drive. The government collaborated with the attractions as part of a pilot programme to decarbonise the tourism sector, with the infrastructure providing an incentive for tourists to explore new locations.
  • Cumbria Tourism collaborated with Electricity North West to provide EV chargers to 100 small travel businesses. Cumbria Tourism’s ‘Electric Vehicle Tour’ took place throughout September 2022 in which senior management and key industry representatives visited the local organisations supported by the grant using an electric car from a local car dealership; a partnership that has since been extended after the social media success.

Innovative ways to package green and EV incentives


Engaging with the private sector is also key to innovative actions towards sustainable transport and supporting the promotion of destinations:

  • Uber and Hertz have partnered to improve the availability of EVs for the rideshare market. In North America, 24 million journeys have been made by almost 50,000 drivers through this cooperation. The success of this agreement is demonstrated by the addition of another 25,000 EVs for the European market.
  • Renault has launched the Plug Inn app to act as an intermediary between drivers and residential charging points. App users can book a time slot to use a nearby private charger, and use the charging time to explore the destination. Meanwhile, the app incentivises the 475,000 residences with charging points by showcasing the possible earnings that could be made by renting out their device - a great selling point in a time of inflation and economic uncertainty!

  • The SleeperCharger booking portal solves the challenge of accessing adequate charging points on driving holidays. All of the 60,000 properties listed have charging points within 250m. The booking portal automatically reserves a charger for the traveller and obtains confirmation from the hotel - resulting in hassle free travel! The company aims to install new charging points at smaller accommodations to support local operators and provide more variety in its offerings.
  • Nissan's Electric Travel Guide generates an itinerary for travelling through Europe, with suggestions of the main points of interest, hotels and restaurants to visit and importantly the charging points available. These routes have all been tested by EVs on city trips in Bratislava, Budapest, Prague, Stockholm and Vienna, as well longer Central European trips.


  • GoCar Tours will launch self-driving electric vehicle tours in Las Vegas. These GPS-guided tours can augment tourists' sightseeing experiences with audio commentary and provide personalisation and flexibility during excursions. The mobile tour guide app helps with gamification and immersion into the experience.
  • Formula E - an all-electric motorsports competition - has races in 11 cities across the world. This event not only attracts visitors and provides entertainment and new tourism attractions for car and racing fanatics, but also highlights how electric cars are reliable and relatively efficient; boosting interest and demand for these vehicles as they become less costly.


Summary

These initiatives show strong governmental support for the transition towards EVs and facilitating cleaner and greener travel methods. DMOs have collaborated with local operators and non-tourism providers to improve their offerings for EV owners and present positive images of their destination. This was achieved not only by the development of tourism routes, but also through social media and informational campaigns.


Meanwhile, the private sector has been active in launching new products and events that specifically meet the needs of EV drivers and car afficionados. By reassuring travellers of the infrastructural capabilities in destinations, tourists are more relaxed and willing to travel in a more sustainable manner.


Key Takeaways for DMOs

  • Champion the green transition! Consumers value sustainability and need to be supported through the provision of adequate infrastructure and the dissemination of  relevant information.
  • Develop new products - such as Electric Highway initiatives - or attract electric car events.
  • Connect products to branding and content initiatives to drive marketing. Prioritise EVs in road trip marketing materials. Tourists need to be reassured that there is adequate charging infrastructure at the destination, which encourages visitors to explore the destination and attractions in more depth.
  • Lobby for your sector, consult with industry and the EV community to shape and address their needs - often consultations with EV owners omits tourism, where behaviours can be different (e.g. the rural or off-the-beaten-track travel type).
  • Bring everyone together - National Parks, Hotels, Attractions - and find common alignments for promoting sustainable modes of travel.


Key Takeaways for Businesses


  • Recommend the shift to EVs - demand is only going to increase.
  • Win by being early, not just ticking the box. Make sure to install chargers with sufficient capacity to fully charge vehicles while people are visiting (i.e. don't install a 3kw or 7kw charger at an attraction where people spend 2-3 hours and no real charge will be achieved).
  • Think creatively about the EV experience - can you create a unique appeal for tourists?
  • Connect carbon-free travel, with carbon-free dining and experiences.
  • Reward EV drivers - they typically have high budgets, so they likely have more to spend on experiences.


Key Takeaways for DMOs & Businesses

  • Government funding and grants should be capitalised on when installing new infrastructure and investing in decarbonisation in the tourism sector.
  • Destinations and businesses should partner with leading electric car brands to get promoted on travel routes.

Approximately a quarter of new cars sold in Europe are Electric Vehicles (EVs), with many governments announcing the phase out of more polluting diesel and petrol fuelled cars. However, while EV prices have become more affordable, concerns regarding the charging infrastructure are the largest deterrent to switching from a combustion vehicle. This article outlines some actions being taken to boost EV charging point infrastructure in destinations.

Approximately a quarter of new cars sold in Europe are Electric Vehicles (EVs), with many governments announcing the phase out of more polluting diesel and petrol fuelled cars. However, while EV prices have become more affordable, concerns regarding the charging infrastructure are the largest deterrent to switching from a combustion vehicle. This article outlines some actions being taken to boost EV charging point infrastructure in destinations.

Approximately a quarter of new cars sold in Europe are Electric Vehicles (EVs), with many governments announcing the phase out of more polluting diesel and petrol fuelled cars. However, while EV prices have become more affordable, concerns regarding the charging infrastructure are the largest deterrent to switching from a combustion vehicle. This article outlines some actions being taken to boost EV charging point infrastructure in destinations.

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