Complementary or Congruent? The Effect of Hosting Tesla Charging Stations on Hotels’ Revenue

Abstract

Electric vehicles (EVs) are a promising sustainable technology for transitioning to a low carbon economy. However, there is a lack of research on how tourist destinations such as hotels and attractions could benefit from EVs. Using evidence from monthly revenue data of 2,774 hotels in Texas of United States (US) between 2015 and 2018, this paper quantifies the economic benefits of hotels hosting Tesla’s charging facilities and finds that nearby attractions amplify the benefits. Further, the study investigates the heterogeneity of the benefits across different hotel segments and their dynamics. The findings reveal that upscale hotels benefit more than luxury as well as mid-price and cheaper hotels from hosting Tesla charging facilities. After Tesla introduced the Model 3, these benefits increased for upscale hotels but decreased for luxury hotels. These findings have important implications for the hospitality and tourism industries to better adapt to the emerging EV transition.