Choice Hotels to Offer Access to Tesla Electric Vehicle Charging Stations at Participating Hotels Across the United States
- Choice Hotels International partners with Tesla to offer Tesla Universal Wall Connectors to participating hotels
- Guests who drove to Choice hotels accounted for 82% of all room nights in 2022
- 41% of Choice's Cambria hotels currently offer EV charging, and all are expected to be outfitted with at least one charging station by the end of 2024
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Insights
Choice Hotels International's strategic partnership with Tesla to provide electric vehicle (EV) charging stations at its properties is a forward-looking move that aligns with consumer trends. The decision to integrate EV charging facilities caters to the growing demographic of EV drivers and is likely to influence customer choice and loyalty, particularly as environmental concerns become more pronounced. This initiative may serve as a differentiator in the competitive hospitality industry, potentially increasing market share and customer retention for Choice Hotels.
From a market research perspective, the fact that 82% of Choice room nights in 2022 were accounted for by guests who drove to its hotels suggests that the company is leveraging its existing customer behavior data to inform its amenities offerings. By targeting the 90% of their U.S. properties that are conveniently located near highways, Choice Hotels is positioning itself to capture a significant portion of the traveling EV market. The potential for incremental revenue growth through increased bookings and the added value of accelerated loyalty points for EV charging could further incentivize guests to choose Choice properties over competitors.
Introducing Tesla Universal Wall Connectors at Choice Hotels' properties represents a capital investment that could have financial implications for the company and its franchisees. The initial outlay for the installation of charging stations must be weighed against the anticipated increase in revenue from attracting EV drivers. Given that all Cambria hotels are expected to have at least one charging station by the end of 2024, the capital expenditure will likely be substantial; however, the long-term benefits could outweigh the costs if the service attracts a significant number of EV travelers.
Furthermore, the integration of EV charging into the Choice Privileges loyalty program, with tiered rewards for credit cardholders, is an innovative approach to encourage repeat business. This could potentially lead to an increase in the average lifetime value of a customer. The financial impact will be clearer as the company tracks the usage of these stations and the corresponding effect on room bookings and overall guest spend.
The agreement between Choice Hotels and Tesla reflects a growing corporate emphasis on sustainability and environmental responsibility, which resonates with a segment of consumers who prioritize these values when making travel decisions. By catering to the sustainability priorities of its guests, Choice Hotels is not only enhancing guest experience but also contributing to a larger trend of sustainable practices within the hospitality industry.
Moreover, the presence of EV charging stations at hotel locations can be seen as an extension of corporate social responsibility (CSR) initiatives. It signals to stakeholders that Choice Hotels is committed to reducing carbon footprints and supporting the transition to cleaner transportation options. This move may also have a positive impact on the company's brand image and could attract ESG-focused investors who are increasingly looking for companies with strong sustainability credentials.
Collaboration Provides Guests with Charging Availability and Prepares Hotel Owners to Meet Growing Demand
NORTH BETHESDA, Md., Feb. 6, 2024 /PRNewswire/ -- Choice Hotels International (NYSE: CHH), one of the world's largest hotel franchisors, announced today an agreement with Tesla to offer Tesla Universal Wall Connectors to participating Radisson, Cambria, Comfort, Country Inn & Suites, Quality Inn and other Choice-branded hotels across the
"This agreement with Tesla allows our brands to further stand out by increasing access to EV charging for guests and potentially drive incremental topline revenue for hotel owners," said Dominic Dragisich, Executive Vice President of Operations and Chief Global Brand Officer for Choice Hotels International. "At Choice, we are focused on ensuring owners and operators of our hotel brands are set up to benefit from strategic agreements that drive booking consideration and value."
Offering over 7,500 hotels with more than 630,000 rooms across 46 countries and territories, Choice is uniquely positioned to address the growing consumer demand for EV charging. Guests who drove to its hotels accounted for
Currently,
On ChoiceHotels.com and the Choice Hotels app, which were recently given top ratings in a
About Choice Hotels®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world. The challenger in upscale and a leader in midscale and extended stay, Choice® has over 7,500 hotels, representing more than 630,000 rooms, in 46 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks. For more information, visit www.choicehotels.com.
© 2024 Choice Hotels International, Inc. All Rights Reserved
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SOURCE Choice Hotels International, Inc.
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