The Price of Staying Connected
"WIRELESS Internet access is no longer a rarefied luxury. It’s free in cafes, parks, fast-food chains, campgrounds and gas stations — yes, gas stations. - Yet in some places travelers still must pay for Wi-Fi access, and perhaps nowhere is that more disturbing than in an upscale hotel room.
While many budget and midscale hotel chains have largely given up on charging guests for Wi-Fi, fees persist at more luxurious sister hotels — typically about $9.95 to $19.95 a day."
Interesting that the big luxury boys want to get more from their Ancillary revenue when their customers are already the ones paying the big dollars to stay in the hotel at all. Whats a little more of their discretionary income? They're rich anyhow right?
"Many guests agree. Free in-room Internet access ranked as the most desired guest-room amenity in a national survey of 800 affluent travelers conducted in August by Ypartnership.
That was above premium bedding and flat-screen TVs. A January survey of 6,300 people across 10 countries by the research firm Synovate found that 47 percent of respondents said a hotel must cater to their technology needs before they book it, with wireless access a top priority."
The new business traveler constantly needs to be connected, the iPhone or Blackberry in transit, the laptop in the hotel room. The business traveler of 2010 (What a year, still sounds futuristic) would rather sleep on a rock hard bed with their Wi-Fi than be condemned ball and chain to a cable from a wall (Heaven forbid).
"Thompson Hotels, a small group of boutique hotels that used to boast about free Wi-Fi, started charging $10 per 24-hour period earlier this year. “As rates of all of the hotels have decreased,” said Jennifer Walters, a publicist for the hotel group, “certain services that don’t affect all guests had to be altered — one such item being Wi-Fi. Not all guests use it, so to include it complimentary in the rate no longer makes sense with the consumer wanting the most attractive rates.”Apparently Thompson disagree's with the study above clearly stating that it is a number one priority of travelers. Thompson's Portfolio includes upscale luxury hotels primarily in New York and Los Angelas. This could help explain why they decided to go back to charging for Wi-Fi, considering most all Luxury brands are charging for Wi-Fi. Interestingly in a quick scan of their TripAdvisor reviews of a few of their hotels, there is a mere one mention of spending an exhorbant amount of money to stay in the room and then being charged an additional $10 to tap into the Wireless Internet.
Some major franchises and their differing brands which offer Free Wi-Fi versus Pay for use. Image Courtesy of HotelChatter.com
"Some major chains that charge for Internet service in guest rooms have been offering free Wi-Fi in lobbies, but travelers say it’s not the same.
“Everyone has to line up in the computer room, and the hotel lobby becomes an Internet cafe, which is rather unappealing,” Kevin Leibel, president of a brand strategy company in Chapel Hill, N.C., wrote in an e-mail message from the business center at the Westin Palace in Madrid while on vacation."
"Hotels say Internet charges are driven by what the market will bear. Because travelers have been willing to pay extra at high-end properties, those hotels continue to charge. But that doesn’t much change the experience for travelers who have paid for in-room Internet service at a Hilton, for example, but received it for free at a Hilton Garden Inn. "
Once again, just emphasizing the price sensitive consumer versus the value consumer. Travelers are more price-conscious than ever right now, "free" extras that add even a few dollars to the room rate can send your customer next door to your competitors. Capital is extremely tight for owners right now so hotels that don't have Wi-Fi in rooms now won't be getting it soon. Is the Trade-off losing a few customers who see Wi-Fi as more important than saving the $10-$20 on a room rate? Mid-Scale brands seem to say yes, offer our values within the room rate and get the guests in house.
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