Hand-held devices like smartphones and tablets have become the norm for pretty much every traveler today. Comscore.com reports that 4 out of 5 millennials in the USA carry a smartphone while more than half of individuals aged 35- 55+ year-olds carry a mobile device with them regularly. It’s fair to assume then that the majority of guests staying in your hotel are going to be looking for an internet connection when they arrive. A report from Hotels.com illustrates that an internet connection in a room is the most important amenity that users on their site look for when booking accommodations. That fact leads to the question of whether or not your establishment should offer free Wifi.
It depends on the clientele
It’s estimated that 64% of hotels now offer free Wifi. While that is a significant portion of hospitality businesses, it still means that there are a large number of establishments that are charging their guests to connect. When you understand what brands are still charging, it’s easy to see that the clientele of the business is a contributing factor to whether or not the in-room connection is free. Big, luxury chains like Marriott, Ritz-Carlton and Hyatt are still charging for in-room Wifi; their rooms regularly go for a couple hundred dollars for a single night. One reason behind the Wifi charge (which can range from $20 -$40 a day in places) is that guests are paying that much for a room, a relatively small additional charge doesn’t seem that bad.
Less expensive brands that are appealing to families or millennial travelers usually opt for free in-room connections as they recognize the importance of the amenity to these demographics.
WiFi as an up-sell opportunity
One route many brands are taking is to offer in-room internet as a scalable service, offering slower speeds for basic internet browsing, but charging for enhanced speeds when guests are hoping to use streaming services like Netflix. This creates a revenue opportunity and also offsets related data usage costs incurred when guests stream content online.
Make it free somewhere
A great alternative to not offering free in-room Wifi is to offer it in a public space like the hotel bar, restaurant or café. This creates an additional opportunity for revenue as guest will feel more inclined to take advantage of menu if they can access the internet. Not all guests will end up buying something, but the availability of a connection with a drink or meal will appeal to some. Either way, the public space Wifi should remain free.
What do you think about offering Wifi as a free in-room amenity? Should all hotels do it to keep up with changing trends or do you feel that charging for a connection is reasonable? Let us know in the comments!
