Sometimes, a promotion stunt can point to bigger trends that are worth noting. Graduate Hotels has a new offering. This story is about creative upselling and how it can make a brand appealing to niche traveler groups. It's also about how to profit from shifting customer behavior.
Here's the trick: Graduate, a group of 32 hotels themed on universities in the U.S., U.K., has started renting electric FUVs (or fun utility vehicles) at its Eugene, Oregon property.
Jason Williams, general manager at Graduate Eugene, stated that guests will be able reserve one of three FUVs using a tablet at their front desk. In a revenue-share deal, the manufacturer provides and maintains the vehicle. The rental rate is set by the property, which currently costs $100 per day or $16 per hour.
It can be used by guests to transport them to the University of Oregon campus, local restaurants, or for joyriding.
Mark Frohnmayer founder and CEO Arcimoto, stated that other hotels might want to offer sustainable transportation options for their customers.
Frohnmayer stated that the consumer behavior has changed in terms of how they arrive at hotels. A decade ago, nearly everyone who arrived at a resort in northern San Diego would rent an automobile at the airport and then drive to the property.
Frohnmayer stated that many people don't rent cars at airports anymore, thanks to ride-hailing services. Hotel companies in leisure destinations now have more opportunities to enter the car rental industry.
Arcimoto is the manufacturer of this fun utility vehicle, which is a motorcycle-class machine. It is based in Eugene. These vehicles come with removable doors and a panoramic roof, which give the rider the feeling of riding a Vespa, but the safety of a Smart ForTwo. FUVs can be sealed up and heated in bad weather.
Electric vehicles can be used in hotels to offer some perks. The staff can charge the vehicles lithium-ion battery using any standard wall outlet. These machines require very little maintenance, as they don't need to be refueled or changed with oil. The manufacturer also offers service.
Graduate is owned by Adventurous Journeys Capital Partners and follows a wider trend. Many hotel owners and operators are following the example of budget airlines by offering a la carte pricing for amenities and services, according to the Wall Street Journal and Skift in their 2019 Megatrends.
Electric vehicles are still a novelty. According to financial filings, Arcimoto estimates that it will only produce 425 FUVs in the year. The company plans to make mass production in a new facility before the end of next. The company aims to produce 50,000 vehicles per year.
Arcimoto is based in Eugene and cannot sell or rent vehicles to travel companies outside of California, Washington, Florida and Oregon. It has licensed and servicing facilities. It plans to increase sales and rental to Hawaii, Arizona and Nevada in the near future.
Williams stated that our property is a celebration of Eugene. We are also proud to partner with Arcimoto, a local brand.
Climate friendly marketing
Hotels and other travel agencies need to be aware of the electric-vehicle boom in order to replace their golf carts or other business-related vehicles on their properties.
Today's electric vehicles come in larger, more utility-oriented versions than ever before, including pick-up trucks and van models. Electric vehicles also have a lower lifetime cost of operation and higher servicing overhead than traditional cars.
However, electric vehicles also have the potential to be used for branding and marketing. Some travel buyers are attracted to electric cars and trucks.
Frohnmayer stated that a certain segment of customers will be more inclined to choose brands that make it look like they are addressing climate change issues. Some guests won't like it if a brand uses many gas-powered vehicles. A brand that adopts EVs [electric vehicles] will be differentiating.
