With the growing demand for high-speed Internet access in hotels by the traveling public – most notably business travelers – hoteliers are looking more closely at how offering such a service can be beneficial to their property and their guests … and the revenue implications it may have.

As high-speed Internet access has become a more popular offering for hotel guests, hotels are investigating – and rightly so – all their options for providing such a service. An increasing number of hoteliers have begun considering and some even implementing high-speed Net as a free amenity to their guests.

Though a free-to-guest model may be appropriate in some cases, it may not be the best option available for the hotelier or their guests. There are a number of issues that should be considered when deciding to charge or not to charge for high-speed Internet access. With a comprehensive view of the entire issue, hoteliers will be able to make the best decision for their unique situation.

Survey Says…
A recent survey conducted for Wayport by marketing research firm Fletcher Spaght investigated business travelers' attitudes toward high-speed Internet access in hotels, including awareness issues, usage factors, price sensitivity and other relevant factors.

The survey targeted business travelers and corporate IT managers and included in-depth personal interviews and Web surveys. Questions centered around identifying usage and attitude patterns, user likes and dislikes, pricing levels and preferences, company expense policies, and the user experience. The results offer some insight on the debate of charging for high-speed Net as opposed to giving it away.

On a broad scale, the survey found that Internet access users in hotels fall into five general segments: 1) high-speed believers (use high-speed Net whenever available); 2) rational choosers (use high-speed Net when it fits their needs); 3) newbies (not highly familiar with the two different options); 4) price-constrained dial-up users (use dial-up when high-speed is deemed too expensive; and 5) die-hard dial-up users (use dial-up all the time, regardless of availability or price of high-speed).

More specific results of the survey include:

· Awareness of HSIA (high-speed Internet access) is very high
· HSIA is a must for many users
· Price sensitivity varies by segment (i.e., high-speed believers, rational choosers, etc.)
· Unavailability of HSIA, not cost, is the top reason for choosing dial-up over HSIA
· Nearly 1 in 4 business travelers decides where to stay based on availability of HSIA
· 66% of respondents stated that price is only somewhat important to not at all important in deciding whether to use HSIA
· Only 11% expect HSIA to be free
· More than 50% expect to pay more than $8 for HSIA
· Most business travelers (85%) are able to expense HSIA to their companies


What Do These Results Mean?
This survey confirms the established fact that high-speed Internet access has become a must-have for many travelers, and that many more are poised to become regular users of the service as well. It also uncovers the interesting – and perhaps counterintuitive – point that price is not a major factor when it comes to usage of high-speed Internet access. Most travelers expect to pay for the service, and price point is not the major factor for them in deciding whether to use it or not; this likely is largely due to users being able to expense the charge as a business-related cost.

The data supports that charging for high-speed Internet access is a viable model considering your guests' attitudes, though offering the service for free can still work. Even in light of the above survey results, the manner in which a hotelier may want to offer an amenity such as high-speed Internet access ultimately is their decision. Free-to-guest may be a good option for a limited-service hotel that doesn't anticipate extensive usage of the service or feels that a potentially lower quality of service is acceptable for guests. And while there may be sound reasons for offering high-speed Net for free, it should be understood that there also are challenges of doing so … challenges for the hotel, for the service provider and potentially for the guest.

First, under a free-to-guest model, there will be pressure to provide the service at the lowest cost possible, in which case the service itself may suffer. For example, if high-speed Net is positioned as a free amenity, it may consist solely of hard-wired connectivity as provided by the hotel on its own – without the type of comprehensive solution including professional network engineering, system monitoring, sales and marketing, customer care and much more that a full-service provider can offer.

Secondly, the costs of providing high-speed connectivity (i.e., bandwidth charges, etc.) are likely to rise when the service is free, assuming that the attractiveness of "free" will drive at least some usage. This is the type of problem that will only compound itself as usage rises, since you'll be adding no revenue but costs will continue going up.

The bottom line is that the decision to charge or not to charge comes down to your own unique situation. Deciding what is best for you and your guests in terms of high-speed Internet access involves understanding your guests' needs and expectations, while matching those up with the opportunities you have to benefit from them. Ultimately, the goal of amenities such as high-speed Internet access is to serve your guests and potentially drive occupancy; how you choose to do so remains up to you.