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The Net Trend Is Toward Free
September 19, 2007

The big brands don’t want to hear this—particularly those at the high end of the market—but sooner or later, fee-based Internet access in hotels will be very much the exception rather than the rule. The latest high-profile hotel group to offer complimentary Internet is Jurys Doyle, which is eliminating connection fees at its 4- and 5-star properties in the United Kingdom and United States. 

Although the majority of hotels in most parts of the world continue to charge for online access, free Internet is not so hard to find among brands in the 2- and 3-star sector. “The nicer the hotel, the more likely they will make you pay for wireless connectivity,” says Daryl Schoolar, a senior network analyst with technology research firm In-Stat. “At the high end, you’ve got the business traveler with higher expense accounts—you can nickel and dime them a little more—whereas at the budget end, it is more of an amenity.” During a brief chat with Bill Marriott a few months ago, he basically told me the same thing. The higher the room rate, ironically, the more likely the guest will be willing to pay for additional services, like Internet.

And that is precisely why the Jurys Doyle announcement is so significant. It signifies that even wealthy travelers are beginning to reject the concept of costly connectivity. Says Jurys Doyle CEO Bill Walshe: “To the majority of our guests, and particularly for business travelers, access to a high-speed Internet connection is absolutely crucial, and is viewed by them as a basic in room necessity, not a luxury extra they should have to pay for.”

The question now is not whether free Internet will become the industry norm, but rather how long it will take. The guess here is three to five years. Hoteliers now must weigh whether to squeeze those last few dollars from this dying business model, or to change course before their competition, gaining media attention and enhancing guest loyalty while they still can.

Links
Resentment Flares Over Fees For Internet Access At Hotels (NY Times)
UK Hotel WiFi Rates Slammed (CNet)
Best WiFi Hotels 2007 (HotelChatter)

Posted by Adam Kirby on September 19, 2007 | Comments (0)