THE BIG SWITCH - LUXURY HOTEL GUESTS DEMAND FREE WI-FI ACCESS
The Big Switch - Luxury hotel guests demand free Wi-Fi access - Luxury Travel Magazine
| By Vanessa Zhang |
| Date: 1 September 2011 |
| A recent survey* of over 53,000 travellers found that free Wi-Fi was the most desired amenity for hotel guests, yet not every hotel offers it. In fact, another survey found that the most expensive hotels were the least likely to offer free WiFi. Many luxury hotels still charge up to $25 a day for Wi-Fi access, while many budget hotels offer it for free as part of their hotel services. So why is that? The answer might be that luxury hotels charge for Wi-Fi access just because they can. Travellers staying in high-end hotels are less sensitive to the price of things than a traveller more focussed on saving money than spending it… and hence in the market for a budget hotel. If a guest is willing to pay over $200 per night to stay at a luxury hotel, they won’t be as resistant to a request to pay an extra $20 per day for Wi-Fi access as a budget hotel guest would be. And since it is another revenue stream for the hotel, the hotel will charge for it. Likewise, guests in the market for a low-price hotel are by definition more price sensitive than those in the market for a luxury hotel and so there is a stronger expectation on the part of the budget hotel’s marketer that the offer of free Wi-Fi will be an effective way to attract more guests to his/her hotel. That’s why they offer it for free. It is an effective marketing tool for them. As more travellers need access to the internet on their own laptops, mobile phones and portable tablets, the revenue stream for luxury hotels that comes from charging for access to Wi-Fi keeps growing making it very hard for a general manager to make the decision to drop it. Some luxury hotels have even started charging separate internet access fees for each separate device. But now that fast-food joints and cafés give free Wi-Fi access to patrons who can enjoy it for the price of a coffee, it puts pressure on luxury hotels to do the same and more guests are demanding it. “Guests are starting to expect wireless internet access in their hotel rooms,” said Mark Schwartz, the Director of Global Hospitability and Travel Practices at J.D. Power and Associates, the company that conducted the survey. “Being able to use mobile devices or computers without interruption is considered a comfort of home that should extend to the hotel experience.” Meanwhile a survey conducted by Hotel Internet Services of over 1,400 people found that 71 per cent of hotel guests say having Wi-Fi in their rooms influences where they stay. Free Wi-Fi access has become one of the most sought after amenities in luxury hotels, and it might be time luxury hotels started adding free Wi-Fi to their list of complimentary services next to the overnight shoe shine and turn down chocolates. *The survey was conducted by by J.D. Power & Associates, a global marketing information services company. |