Skip to main content

The WiFi Wall is Coming Down




More and more hotel companies have realized that if I could get free WiFi in a $10 a night guesthouse in Cambodia in 2009, I must be able to get it for free in a hotel 10 or 20 times that price.  All of the major hotel companies have been saying that it has been in the works for quite some time; but “coincidentally” many have begun offering some sort of free WiFi in the past months.   We can’t get too excited yet, in some cases free wifi comes with some restrictions. 

According to HotelChatter’s 2014 WiFi report, Marriott, Starwood, Hilton, Hyatt, Intercontinental, and Wyndham did not offer free in-room internet as of the report’s April 2014 publication. 

WHERE ARE WE NOW?

IHG:  You didn’t see this one coming from Intercon, but they were the first to announce in March 2013 that they would begin offering free WiFi for all of their loyalty members in 2014.  This was based on an IHG commissioned study founding that, “43% of adults surveyed said that they would choose not to stay in a hotel that charged for internet”. http://www.ihgplc.com/index.asp?PageID=116&NewsID=2937

Marriott:  Stepping up with an October 2014 announcement, Marriott rolled out free-wifi, also only for its members, in January 15, 2015.  There is one condition, not only do you have to be a Marriott Rewards member, but you must book through Marriott.com or another direct channel.  Oh, and there’s another caveat, everyone gets standard WiFi, but only Gold and Platinum members get “enhanced” WiFi. 

Starwood:  Following on Marriott’s footsteps, Starwood announced on December 17, 2014 that starting February 2, 2015 you could get free standard WiFi.  Same story as Marriott, you must be an SPG member and book through an SPG direct channel.  Also, only Platinum and Gold members get what Starwood calls “premium” internet. 

Hyatt:  Coming to the party on December 22, Hyatt brought the gift of free internet with no strings attached: everyone gets free internet, regardless of booking method.  There is a mention in their press release that in some places Gold and Platinum members would have access to “premium WiFi service”. 

Hilton:  Finally.  Just today, Hilton announced through FlyerTalk (no official press release available yet), that it would begin offering free internet for everyone starting in August, must book direct.  Diamond members will have access to premium Wifi as long as they book thorough a Hilton channel. 

Aside from the obvious good news to travelers, there are some key takeaways:
  • Most importantly, hotel companies are now being able to shorten the roll out of a worldwide program like this to as short as 2-3 months.  It might not seem like a complex process to roll out a product upgrade change, but with hundreds of properties in different geographic operating areas and hundreds owners to deal with, this is a refreshing change from the usual 1+ year timeline for a corporate rollout of this kind. 
  • Free WiFi has become a point of parity (and a standard amenity in this day and age)
  • Peer pressure continues to work and hotel companies continue to follow. 


Comments

  1. Sean Lyons Group executive search services provide specialist recruitment expertise to help our clients secure the best talents within the Hospitality Industry. Sean Lyons Group's team of experts is well placed to support multinational and national companies within the Hospitality industry to identify the best available candidates. So if you are looking for the best Hospitality Executive Search at New York, then you can visit our site. New York Hospitality Executive Search

    ReplyDelete

Post a Comment

Popular posts from this blog

Social Media + Hospitality

A recent study by The Center for Hospitality Research at Cornell University constitutes one of the first pieces of empirical research on the effect social media has on hotel purchasing decisions by different market segments. The report titled How Travelers use Online and Social Media Channels to Make Hotel-choice Decisions   takes a snapshot of the rapidly changing field of how consumers gather information and make their decisions regarding travel purchases, based on responses of 2,830 recent travelers.   This report is particularly helpful in that it gathered findings based on the guest's market segment and reports how a channels importance varies according to the stage in the decision process.   "Business travelers often use the hotel recommended by their company, although many of them use search engines or online travel agents for their hotel search. Recommendations of friends and colleagues are less important to business travelers than they are to leisure travelers

Seven Weeks of Modest Occupancy Growth for US Hotels

Weekly US Hotel Demand Update: Week-ending May 20th was the 7th straight week of modest occupancy improvement; at 35%, up from a low of 21% on April 11th. Despite the increase, this is still a 70% RevPAR decline vs last year. April closed out with the worst RevPAR decline ever, down 80% in the US. Driven by declines north of 90% at Upper Upscale & Luxury properties. Top 25 markets continue to be heavily impacted. Finally, on the development front, the pipeline has peaked, with a number of projects on early stages moving to abandoned or postponed. Originally from LinkedIn: https://www.linkedin.com/posts/andres-orta-travels_us-hotel-performance-results-april-2020-activity-6672148618444701697-FUlL

United Airlines' loyalty program worth $22B

United Airlines  values its loyalty program at $22B, Skift reports.  Opening the secret box to the industry's most valuable assets... its loyalty member audience and point currency. As the travel landscape changes, companies will have to look at ways to leverage their loyalty program members as an addressable audience in new ways without eroding trust. Not since  Air Canada   sold (and then bought back) its loyalty program, have we had such a public view of the revenue-generating power of loyalty. United's program generated 12% of the airline's total revenue in 2019, you bet that number will be much higher in 2020, and they will be looking for ways to continue to grow that number. Important to note that hotel companies have turned to their loyalty programs as for financing as well, by pre-selling points to their credit card partners.  Both Hilton and Marriott have presold close to $1B dollars each.  Will we start valuing travel companies by the size of their loyalty program