Picking Up The In-Room Cyber-Tab
<B>Picking Up The In-Room Cyber-Tab</B>
By Bruce Serlen
Faced with a surge of business guests tapping in to the phone lines in their rooms to access e-mail, hoteliers are moving quickly to expand their Internet capabilities through the phone, as well as via technology that bypasses the phone completely--but that access comes with a price.
For travel buyers, the rush to the Internet not only raises the possibility of adding another layer of costs, but holds the potential of creating a new element--access to an Internet-friendly guest room--in negotiating rates for hotel programs.
"Gaining access to their e-mail messages is extraordinarily important to our travelers," said Wendy Nathan, manager of travel services for New Brunswick, N.J.-based Johnson & Johnson. But questions about who pays for it are another matter, she said.
"Because any surcharges are new, the communication has to be particularly clear between the hotel and the travel buyer and between the buyer and the traveler," said Rick Wakida, travel analyst and technology manager at AirTouch Communications in San Francisco. "Otherwise, the potential for confusion is too great."
As they try to get an accurate read on the true need of the business traveler, hotel chains are making choices as to which technology is worth the investment of time and dollars. Some are holding the line with existing systems, while others are going with alternate wired systems. Still others are opting for wireless systems. All want to be perceived two ways, if possible: sensitive to the needs of the business traveler--and at the cutting edge technologically.
Starwood Hotels & Resorts Worldwide reported it is finding acceptance for its recently introduced one-hour threshold: After 60 minutes online using the standard telephone line on a complimentary basis, guests are charged 10 cents for each additional minute. The policy is now in place at all hotels for all Starwood brands.
"We need to preserve the ability of guests to have available phone lines to get online and this seems a reasonable way to achieve that," said Glenn Tuckman, senior vice president of staff operations. "Our research indicates that business guests aren't using the technology to cruise the Net. What they really want is their e-mail messages."
Starwood believes 60 minutes is adequate. "While they may not be many, there is a small group of travelers who are going online, then taking a dinner break, for example, and leaving their laptops still connected. The new policy is meant to discourage that," said Tuckman.
Adding high-speed Internet access through T-1 lines is a way to speed up the online connection, thereby cutting the time business guests need to access their e-mail. "T-1 lines get people online and offline faster," said Tuckman. Users can achieve high-speed access through the phone line via T-1 or through a small box installed next to the phone dataport that accesses the Ethernet or USB connection.
Marriott International has chosen three of its brands--Marriott Hotels, Resorts and Suites, Renaissance Hotels and Resorts, and Courtyard by Marriott--to roll out a system that provides high-speed access through standard phone lines, the Ethernet or USB connections.
Marriott executive vice president and CIO Carl Wilson said his chain's system is "user-friendly, safe and secure." Travelers are charged $9.95 per day for unlimited use of the service, which is available in every guest room--as well as meeting space--in properties where it has been installed. However, it's not yet available at all of these brands' properties. As of mid-February, it was available in 120 hotels and should be installed in 600 by the end of 2000. At present, there are no plans to roll out the system to other Marriott brands.
Likewise, guests at Ritz-Carlton Hotels have a choice of the phone line, Ethernet or USB. "Business guests told us they wanted the flexibility to be able to use the phone and Internet simultaneously, which they can now do," said Pamela Angelucci, vice president of technology. All but four Ritz-Carltons were up-to-speed by 1Q00.
Ritz-Carlton also imposes the $9.95-per-day charge. "This isn't a money-making endeavor for us. Rather it's a shared revenue arrangement with the vendor," said Angelucci. "Like any advance, however, we're careful not to let technology lead service. We're really just responding to what business guests tell us they need."
In terms of speed, there are doubts as to how effective T-1 lines actually are. "Even with T-1 lines, business travelers still have to overcome their companies' own internal electronic security, known as firewalls, before they can access their e-mail," said Starwood's Tuckman. "Only about 15-20 percent of companies have made the necessary adjustments. Otherwise, the process can slow down to the speed of using an 800 number."
Ethernet also is being offered in a wireless format. At Hilton Hotels, a wireless system had been installed in 52 U.S. hotels by mid-February. "It's an incredible opportunity for us," said Robert Dirks, senior vice president of marketing. The Internet connection is established by inserting an Ethernet card into the laptop. The card then transmits digital data to access points within the hotel and starts the wireless connection.
Hilton, meanwhile, also is implementing a high-speed wired system that works over the phone line. It had been rolled out to 90 U.S. hotels by mid-February. But there will be some overlap between the two systems. Based on anticipated demand, some properties will offer both wired and wireless options.
An issue for travel managers is that the wired system only will be available in approximately half the guest rooms in hotels where it has been installed. Conceivably, where access is a high priority, buyers will have to negotiate to be sure their travelers are booked into these Internet-friendly rooms as part of a national or local contract.
Wyndham International also is going wireless. In January, Wyndham announced plans to provide wireless Ethernet service in guest rooms and meeting space in all 200 of its branded hotels by mid-year.
As for threshold charges to use the standard phone line or flat per-day fees to use high-speed access, buyers like Johnson & Johnson's Nathan aren't sure they're comfortable with the whole idea.
"I'm not convinced we should be paying for these things as a separate charge in the first place. I thought we were paying for them already," she said. "After all, shouldn't hotels be keeping up with these advances on a regular basis simply as part of the cost of doing business?"
AirTouch Communications' Wakida--who also is chair of the NBTA hotel committee--said that if there are going to be surcharges, "travel buyers have to know about them going in to make sure their hotel programs can accommodate the added costs budget-wise, and to instruct travelers accordingly. If only a limited number of rooms are wired for high-speed access, travelers who really need to retrieve their e-mails also have to know to request one of these rooms. It needs to be clear if you request one at checkin or if you can reserve one in advance."
Conversely, Wakida believes that to travelers who may have no need for the service these rooms would be a waste because it would generate no extra income for the hotel and deny other travelers the convenience of having access.
"It's a very real possibility that access to Internet-friendly guest rooms will be something travel buyers will want to negotiate," said Alison Guilbeaux, manager of business development and corporate hotel programs for WorldTravel Partners in Atlanta. "High-tech companies--especially companies where the Internet is part of the culture--would want to be sure their travelers get the most technically sophisticated rooms. "In addition, the surcharges would be one of the things you could negotiate when there is no more flexibility on rates," she said.
As the situation continues to evolve, Wakida can see high-speed Internet access becoming part of a menu of options a business traveler could elect in reserving a hotel room. "Like booking an executive club floor room today," he said, "high-speed access would be one of the things you would get for a flat daily fee.