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  • Business Travel News Supplier DirectorySUPPLIER DIRECTORY

Upscale Hotels Woo Frequent Guests With Free Internet

By Michael B. Baker / October 11, 2010 / Contact Reporter
Business Travel News on X

By the beginning of next near, most major upper upscale hotel chains, along with one prominent luxury chain, will offer free in-room Internet access to travelers in the upper tiers of their rewards program.

Marriott International most recently made complimentary Internet access for elite guests a global policy. After beginning last May to offer free high-speed access to gold and platinum Marriott Rewards members at hotels across North and South America, Marriott in September announced that policy would apply to all properties globally as of Jan. 7, 2011. Marriott's gold and platinum tiers require travelers to stay 50 nights and 75 nights per year, respectively.

Frequent guests to Marriott's Ritz-Carlton properties will be able to access free Internet as well. Ritz-Carlton last month began offering a rewards program, a first for the luxury chain, that offers such high-end perks as personal shopping excursions at Neiman Marcus, photography workshops with National Geographic photographers and luxury cruises, and partners with Marriott's rewards program.

"We have already brought together some of the most exclusive names in travel and retail. This is just the beginning," Ritz-Carlton president and COO Herve Humler said. "We will continue to add global partners offering our members the very best in customized and one-of-a-kind memorable experiences."

Meanwhile, Hilton Worldwide last month began waiving Internet access charges across its brands for Hilton HHonors gold- and diamond-tier members.

"Specifically, business travelers rank quality, high-speed Internet access as one of the most important guest room attributes," said Hilton senior vice president of global customer marketing Jeff Diskin.

Hilton generally charges guests for Internet access in its upscale and luxury properties, including the Hilton, Conrad and Waldorf-Astoria brands. Midprice and extended stay hotels already make the service available without charge for all guests.

With Hilton's and Marriott's announcements, most major hotel brands now offer complimentary Internet access across tiers for preferred guests. Starwood Hotels & Resorts and Hyatt Hotels offer similar service, but some other brands, including Omni Hotels and Wyndham, offer free Internet access for all loyalty program members regardless of their stay history.

The corporate travel sector largely has driven these changes, said Bjorn Hanson, divisional dean of the New York University Tisch Center for Hospitality, Tourism and Sports Management, and the implementation in part is to make rate increases more palatable to buyers. "Charging for high-speed is an issue of great offense to travel managers, so if this offsets costs so they'll agree to a higher-than-otherwise rate, it's easy to calculate," he said.

Even so, some buyers have reported success in negotiating out Internet access fees, and hotel loyalty programs remain a double-edged sword, said Mauricio Molina, leader of Carlson Wagonlit Travel's hotel consulting group. This applies particularly to companies without strong compliance measures in place.

"When people have memberships in any of those programs, they tend to favor hotels in those brands, even when they go against company policies," Molina said. "Even if they're getting these amenities for free, if at the same time they're not in compliance with preferred rates in a specific city, it goes against the company."

This report appeared in the Oct. 11, 2010, edition of Business Travel News.

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