May 5, 2010

At Hotels, Making Wi-Fi as Standard as a Bed
By JOE SHARKEY
NY Times

http://www.nytimes.com/2010/05/06/business/06CONNECT.html?ref=technology&pagewanted=print


FOR Yael Smadja and business travelers like her, a Wi-Fi connection in a 
hotel is nonnegotiable.

“Reliable Wi-Fi service is absolutely critical for me. I have come to 
expect it as naturally as a telephone in the room,” said Ms. Smadja, the 
president of Smadja & Associates USA, part of a Geneva-based family firm 
that manages worldwide economic seminars.

The demand for Wi-Fi was never more insistent than last month, when 
volcanic ash caused a six-day shutdown of air service in Europe and 
affected millions of business travelers around the world. Many of them, 
like Ms. Smadja, who was in Asia trying to get to Switzerland, used 
their hotel rooms as a base while they scrambled online to make 
alternate travel arrangements.

The days when business travelers routinely fretted about the 
availability of Internet connections in hotels are gone, or rapidly 
fading. Even business travelers who are bereft of Internet access know 
that Wi-Fi hot spots can be easily found on sites like the WiFi 
Alliance’s hot spot finder (wi-fi.jiwire.com), which lists tens of 
thousands of free and pay access locations around the world.

If a hotel connection is unsatisfactory or unavailable, and finding a 
nearby hot spot isn’t feasible, there are other options. Business 
travelers going by car — as many do on shorter trips — can usually find 
high-speed connections for around $10 at Interstate truck stops, which 
often provide desktop work spaces as well.

Also, growing numbers of travelers carry smartphones that can use either 
Wi-Fi or cellular connections to reach the Internet. Others carry an 
AirCard, a small modem that can link laptops to the Internet using 
cellular networks and fills in when standard Wi-Fi isn’t available. 
(Many cellular providers charge $40 to $60 for AirCard service plans.)

Still, in recent years, most hotels have heeded the message that 
business travelers require Wi-Fi access — no excuses accepted. While 
many convention and luxury hotels still impose a daily charge for 
access, most midlevel hotels and even many budget-price hotels now 
provide it free. And corporate travel managers are pushing hard for all 
hotels to provide free access, pointing out that customers, especially 
younger ones, live in a world where free Wi-Fi is expected.

Moreover, despite the mild travel recovery under way, hotels no longer 
have the degree of pricing power that they had in years immediately 
preceding the recession. Corporate travel managers are in a strong 
bargaining position, even with big four-star-level convention hotels 
that have always charged for Wi-Fi access.

“When the recession occurred, it appeared that convention hotels were 
still dug in, seeing Wi-Fi charges as a continuing source of revenue,” 
said Carl Schneider, the founder of GuestRights, an online membership 
program providing customer-service feedback for hotel managers. “They 
seemed to feel they had a captive audience, that business travelers 
definitely needed the Wi-Fi and would pay for it in addition to the room 
rate for corporate meetings and conventions.”

That’s changing. In an online survey in late April by the Association of 
Corporate Travel Executives, 80 percent of travel managers said that 
Wi-Fi availability was a “deal-maker/breaker” in deciding which hotels 
to select.

Long gone are the days when a business hotel could shrug off a shaky, or 
even nonexistent, connection. “Providing Wi-Fi isn’t an option, it’s a 
requirement,” said Richard Crum, the president of the Association of 
Corporate Travel Executives. Mr. Crum predicted that as the current 
travel recovery gained traction, convention and luxury hotels would bow 
to pressure and start dropping the fees.

It isn’t just the extra $10 or $12 a day, he said. It’s also a cultural 
shift in expectations. “I mean, you can walk into a McDonald’s and get 
it free,” he said. “It’s also the hassle factor associated with paying 
per day, with having to get on your mobile device and put in your room 
number and code. You just want Wi-Fi that works and is ready to go.”

Marriott International, whose 3,400 worldwide properties include the 
midlevel Courtyard and the luxury Ritz-Carlton brands, has a major 
corporate initiative under way to re-evaluate Wi-Fi supply and demand, 
by way of anticipating future requirements from an ever-expanding array 
of devices, whether laptops, Wi-Fi smartphones, Kindles or big Wi-Fi 
video systems for meetings.

Bandwidth is the mantra. “You can’t ignore your bandwidth anymore,” said 
Page Petry, a senior vice president for Marriott’s information 
technology. Hotel owners “can’t just say, ‘Oh, we upgraded our bandwidth 
yesterday and now we don’t have to worry about it.’ You always have to 
be proactively planning so you don’t get yourself in a situation again 
where you have a lot of congestion and you’re trying to play catch-up.”

Traditionally, she said, a hotel “built out a network whenever they had 
a different type of device that needed to be accommodated, whether it 
was a telephone, a TV or a PC.” The result was a “multitude of networks” 
at work in most hotels. Marriott is working to converge those into a 
unified network in which demand can be managed hour by hour, especially 
as people tend to remain online for longer periods, gobbling up bandwidth.

The proliferation of personal devices like smartphones that can use both 
Wi-Fi and cellular connections probably won’t reduce bandwidth demand. 
In hotels, those users often opt for Wi-Fi. “Many of these mobile 
devices work more effectively and burn less battery life on Wi-Fi, where 
they’re usually able to access sites that are higher in graphic 
intensity,” Mr. Crum said.

In making arrangements for an annual conference this month in Chicago, 
planners required that the hotel guaranteed free Wi-Fi access throughout 
the building, not in just rooms and public spaces, but in meeting spaces 
too. They also worked with cellular providers to improve signals in 
meeting areas, were cellular coverage was typically weaker.

“You know how they ask you to turn off mobile devices in most meetings? 
Well, not here,” Mr. Crum said. “I want people posting to Twitter and 
Facebook, communicating, using social networks, setting up meetings. I 
want full connectivity.”

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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