Hotel Guest Internet Use Skyrockets
PRESS RELEASE -- Hotels, 1/28/2010 10:22:58 AM
Despite challenging business conditions, Internet use by business and leisure guests at leading hotels, as measured by number of data packets per guest session traveling on iBahn's proprietary network, increased more than 50% in 2009.
iBahn, the worldwide leader in digital entertainment and Internet solutions for the hospitality and meeting industries, has released proprietary data showing two trends in hotel Internet usage: first, not only did the amount of data increase by 50% per guest session, but guests are spending 60% more time on the Internet, based on carefully tracked packet and session length information. These data confirm the predictions from an iBahn-commissioned, 2009 study of frequent business travelers conducted by Ypartnership, author of the closely-watched National Travel Monitor.
YPartnership discovered that more than two-thirds of frequent business travelers have downloaded music onto their computers (67%) while nearly 60% have downloaded video. Additionally, more than one-half have downloaded news (54%) or entertainment (52%) onto their computers. Downloads of video and music consume considerably higher bandwidth and data than the average email or browsing session.
The implication of this trend for hoteliers is profound as it clearly points to the conclusion that the "free to guest" model of providing free access in all locations of the hotel at all times to all guests is economically unrealistic given guests' differing bandwidth needs. Because costs for bandwidth continue to increase exponentially, hoteliers will continue to see higher overall expenses related to their broadband offering, without commensurate benefits in either daily rates or occupancy. If the additional investment is not made, guest satisfaction with the internet service will decrease. Earlier studies have shown that guests will not return to hotels where they have an unsatisfactory Internet experience.
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Can you imagine a hotel saying black-and-white telvision is at no charge but color television in guest rooms comes with an extra charge??? There was a time when color tv was new and exquisite. Currently, it's taken for granted: everbody has it at home, everybody expects it in hotel rooms. Nobody would consider paying an extra penny for the privilige od watching broadcast in color.
Guess what: interenet access is on its way to be in the same category. Slow, dial-up access? Forget it. Guests want it fast speed, broad bend and yes, at no extra charge. Include it in the room rate, get used to it because if you don't, guests will take their business elswhere.
Gabor
Gabor Forgacs - 2010-1-2 07:44:40 PST -
I am surprised that the volume has not increased even more than reported. With the emergence/convergence of internet entertainment options, bandwith management is now the primary challenge. I believe a comparison overlay charting internet usage vs traditional pay-per-view revenues would display an ominous trend for companies like Lodgenet.
Clark Brayton - 2010-29-1 13:14:35 PST
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