HOTELS

I agree wholeheartedly! During my stay at the Ausitn Hilton at this years HITEC I was charged $27.90 for slow, inadequate wired and wireless access. In most properties that I have travelled to, this service is provided free, with sufficient bandwidth to provide reasonable access. This will be the last visit that I make to this particular hotel!

If everyone gives it away for free, what is the compelling offer that drives incremental demand? Adding $10 to Rack rate is deceptively simple, how many people actually pay rack rate?--if the response is high, then the hotel is not charging enough!

Why should we charge ALL the guests for something that only 20% of them actually use. Should we give a away free beer and tack that on the rate too? In my mind, Americans would rather get what they pay for and pay for only what they get.

I agree with the response above. Are there any hotel chains that give you the option?

In any business, we recognize that profit is paramount to the success and we try to make as much from a customer if we can and still deliver value for money. As a customer, we want to avoid paying but also want to feel that we are not paying for something that we don't use. So, who wins? The answer to this is price it correctly; i.e. only charge for what is being used. In this case, WIFI internet is one good example. As some of the comments here, why package it to the room rate when not everyone needs the service? If you pay for it, you can demand the service that you expect! If you don't pay for it, is it good enough to accept sub-quality service or product? In economic terms, price determine demand and supply!

What? going to respond but think I'll wait for a review by the author.

If everybody gives it for free, there's no competitive benefit for the hotel any more. How about this? Free wifi but limited to 256kb bandwith. If you need more speed or volume, you pay a fair price. Wouldn't this seem more reasonable to today's traveller who expects to be connected to the net 24/7?

I agree that consumers certainly and recognizably get upset to pay fees for internet. As a hotelier however, we need to find a way to offset the revenue loses to cell phones and now the lack of internet charges. Room rates simply cannot be raised high enough to offset the profit erosion caused by these "consumer expected" comp services. Need to find a "win win" solution.

Why charge every guest for something not all of them use? Whay about recovery of installation costs for the system? I my mind it is unfair of guests to want WiFi for free. What's next?

Its madness to offer wi fi free and bundle into rates! Look at what the airlines have done - offer a value base product and then customers pay for what they need, and they are happy to do so. Also remeber that gen x and gen y are happy to pay for anything, so long as they perceive it to be VALUE. Why not try something different - offer a busniess grade connection, guarantee it, and customers will happily pay! Bundling all into a room rate is the fast way to eat into your margins - and unfortunately the US hotel industry has already gone too far by offering free everything, so there is no turning back now!

Although wired, my guests pay € 15.00 per 24 hrs for internet access. Never a complaint. Not charging means leaving money on the table, which makes no business sense. Look at your market, determine what your guests want (which is "having an option") and come up with a solution that fits your business. Be creative!

I agree with Laurens from Belgium, that free internet access can be limited to a speed that is slow. This way, it prevents leakage of phone revenue from guests using VOIP phones.

If Hampton Inn and similar budget chains can give WiFi away for free, so can full-rate Westins, Hyatts, Marriotts, Ritz-Carltons and the like. It is pure greed on these chain's parts to charge for this NECESSITY. They need to change quickly.