Marriott To End Internet Fees At Midprice Chains

Marriott International today announced that it would start waiving fees for high-speed Internet access in four of its midprice hotel brands by year-end. Two of the brands--Courtyard and SpringHill Suites--are targeted to transient business travelers, while two--Residence Inn and TownePlace Suites--are intended for extended stay bookings. In addition, Marriott said it will start waiving the fees at its Fairfield Inn brand by year-end 2004. The five brands together total approximately 1,700 hotels, a majority of Marriott's 2,500 overall portfolio.

The announcement is significant for the lodging industry because it is the first move by a major multi-brand hotel company to absorb the cost of a technological amenity such as high-speed access into the basic room rate. Analysts expect this approach eventually will become the industry standard.

For travel buyers, high-speed connectivity remains important to their travelers who want to gain quick access to their e-mail and stay connected to their offices. Up to now, many buyers have viewed high-speed access fees as a value-add and been able to lower or eliminate charges as part of rate negotiations. The Marriott announcement would allow buyers to focus on other value-adds.

"Our customer research indicates that high-speed access will continue to be a high priority for business travelers," said Lou Paladeau, Marriott vice president of technology business development, "to the point where they'll choose a hotel based on the availability of high speed and the ease of the connection."

Previously, Marriott--like most hotel companies--charged $9.95 per day for unlimited high-speed access. Marriott earlier this year rolled out a packaged approach at hotels in select markets where high-speed access fees were bundled with unlimited local telephone calls and U.S. long distance calls for a fixed daily charge.

Marriott has no plans to extend the complimentary service to its upscale core Marriott or Renaissance brand hotels, upper upscale J.W. Marriott hotels or deluxe Ritz-Carlton hotels.