Free Wi-Fi in Corporate Contracts on the Rise

What do business travelers want from hotels? Wi-Fi. Free Wi-Fi. In their rooms.
 
“Issues of paying for Wi-Fi are starting to affect the decision on where to stay,” said Stuart Grief, vice president and general manager of the global travel and hospitality practice at J.D. Power & Associates.
 
In response, business travel agents and corporate travel managers are negotiating rates with hotel partners that include Wi-Fi as one of the featured amenities. Grief said J.D. Power doesn’t have data on how many contracts currently include free Wi-Fi, but he noted that not having travelers’ top rated amenity in the contract is asking for problems.
 
“We have seen friction points with travel sellers and planners as well as hotels when hotels charge for Wi-Fi, especially when they charge excessively,” he said. “If Wi-Fi can be negotiated as part of the room package, it can be an advantage to all parties.”
 
Free wifi has been on J.D. Powers’ list of favorite amenities for several years, Grief said. The firm’s 2010 survey of hotel satisfaction found that free Internet access in guest rooms had passed the pack of more familiar amenities such as free breakfast and free workout facilities to become the most desired amenity in almost every segment from budget lodging to the luxury market. The problem is that the more expensive the property, the less likely it is to offer free Internet access in guest rooms.
 
Of the 53,000 travelers surveyed, 96% who stayed at mid-range properties said they got free Wi-Fi. Exactly zero percent of travelers who stayed in luxury properties said they got free wireless Internet access in their rooms.
 
That puts hotels in a bind. Many brands have free Wi-Fi in lobbies, lounges, and other public areas, including meeting rooms. That sits well with guests who are accustomed to opening a laptop or a phone and going online at home, in the office, at the nearest corner coffee shop, on the train, and on many domestic airliners. The displeasure comes at having to pay for the same access in their own rooms.
 
 “People expect to have the amenities of home and office when they travel, especially when they are paying top dollar,” Grief said. “Business travelers know it’s not a technical issue because they get Wi-Fi everywhere else.
 
“It’s also a service issue. When you force people to pay for something, it had better work and work well the very first time. Everyone who travels knows that just because you pay for Wi-Fi doesn’t mean it’s going to work, especially at peak hours. It can be like trying to get into the health club before breakfast on a weekday morning and all the treadmills are already taken.”
 
It’s a problem luxury hotels recognize. Ritz-Carlton typically charges $12.95 per day for in-room Internet access and Wi-Fi charges have become a leading guest complaint. The company may be discussing the issue internally, but spokeswoman Vivian Deuschl said there are no plans to offer free wifi in guest rooms any time soon.
 
Other luxury groups are hewing the same line. They know customers are unhappy about the charge, Grief said, but as long as neither Ritz-Carlton, Four Seasons, nor their competitors break ranks, luxury guests have no alternative except to pay.
 
That’s not likely to change, especially if business travel continues to show signs of improvement. It has been a lean few years for luxury hoteliers, Grief said, and they are not likely to abandon a rich revenue stream just as the market seems to be strengthening. At $12.95 per room per day, wifi charges can generate a steady tide of black ink that hoteliers are in no hurry to give up.