Tesla and Hilton Agreement Brings Charging Stations to 2,000 Hotels in North America
Tesla and Hilton announced on Thursday their plans to collaborate on a project that involves the installation of 20,000 electric vehicle charging stations at 2,000 Hilton properties across the United States, Mexico, and Canada, with the initiative set to kick off next year.
For Tesla, this strategic move is aimed at expanding the availability of convenient charging locations, thus promoting wider adoption of electric vehicles.
Notably, Tesla’s Universal Wall Connector can charge any North American vehicle model, not limited to Tesla vehicles alone. On the other hand, for Hilton, this partnership addresses the growing demand from both leisure and business travelers for electric vehicle charging services.
According to Matt Schuyler, Hilton’s Chief Brand Officer, there has been a noticeable surge in requests for EV charging facilities, and this agreement with Tesla is their response to meet the evolving needs of their guests.
Role of EV Charging in Hotel Bookings
The announcement comes at the onset of the business travel season, with more executives expected to attend conferences like the APEC Summit, Communacopia, and Dreamforce. This presents a prime opportunity for hotel operators to boost their revenue.
During the summer, hotel rates in the United States declined as more Americans opted for overseas travel to explore Europe. As autumn arrives, Wall Street analysts will closely monitor whether hotel brands can successfully restore business travel bookings in the U.S. to pre-pandemic levels.
According to Schuyler, the presence of EV charging stations is now a key driver of hotel bookings. He stated, “The top priority for our hotels in online searches is shuttle access to airports, ranking at number one. Coming in at second place is the availability of EV charging, a significant shift that wasn’t even a consideration just a few years ago.”
Hilton intends to collaborate closely with property owners to pinpoint suitable locations, including those along highways and in strategically significant urban areas, where it would be most logical for Tesla to deploy its charging stations. As a result of these additions, Hilton’s charging infrastructure is set to become the most extensive among all hospitality providers, as affirmed by the company.
Gene Munster, the Managing Partner of Deepwater Asset Management, forecasts a gradual rise in electric vehicle adoption in the United States in the upcoming years. Munster anticipates that electric car adoption will surge from 2% in 2020 to a substantial 22% by the year 2025.
Conclusion
The Tesla-Hilton collaboration to install 20,000 EV charging stations signifies a strategic move to enhance accessibility and promote wider electric vehicle adoption. The timing, amid the business travel season, offers hotels a lucrative opportunity.
EV charging stations are increasingly pivotal in hotel bookings, with Hilton poised to lead the hospitality industry. Gene Munster’s forecast also suggests a promising future for electric vehicle adoption in the U.S. potentially reaching 22% by 2025.