Travel managers and analysts see little shift on the horizon in upscale hotels charging for in-room Internet access, although reward programs, public area Internet access and business travelers' personal communication devices increasingly are mitigating that charge.
On a pure availability basis, the news is good for travel managers who want to ensure that Internet access—an amenity many hoteliers have said is the top demand from their corporate customers—is a part of their hotel programs. A study last year by the American Hotel & Lodging Association indicated that 82 percent of all hotel rooms had wireless capabilities, a growth from 35 percent in 2004, and more than 95 percent of hotels in the midprice tier and higher had some form of high-speed Internet access
(BTN, Aug. 14, 2006).PricewaterhouseCoopers hospitality and leisure group principal Bjorn Hanson said that it's largely low-tier and independent properties that lack the amenity, and it's nearly ubiquitous among branded hotels.
While most midprice and extended stay properties include Internet access as part of the overall rate, most upscale properties still charge extra for the service. Some upscale brands, including Omni, Radisson and Kimpton, as well as individual properties within other upscale brands, have opted for free Internet access
(BTN, Feb. 5), but travel managers predicted those would remain in the minority in the near future.
"It will not change this year, but there is going to be pressure from quite a few new upscale hotels opening this coming year in critical markets, and they're proposing including Internet service to be competitive," said Cindy Gillen, BDO Seidman director of procurement and travel management. "A proactive-thinking hotel looking to maintain its customer base is looking at including it now."
In the meantime, PwC's Hanson said travel managers could expect to see costs related to Internet service rise at some of those hotels. Many recently have upgraded their service, some even offering 24-hour call-in technical support, and pricing reflects that, he said.
"If there's one trend, it's that instead of charging $9.95 a day, some are now charging closer to $19.95 a day," Hanson said. "That's partly in exchange for a higher level of service."
Cynthia Shumate, Estee Lauder Cos. director of travel services, said the proliferation of personal digital assistants also is changing the conversation surrounding Internet service at hotels. It's still a necessity for those who have to work constantly on the road, but senior-level executives carry their computers with them less frequently now, she said.
"You can continue to stay up on your e-mail with a BlackBerry," Shumate said. "It's not easy to produce reports or access attachments, so you have to figure out a workaround for that, but for the most part, you can stay connected, you can respond and you can give direction."