USA’s Biggest Hotel Chains Considering Pulling Free WiFi

Massive usage in internet bandwidth is leading some of the biggest hotels in the US to ponder whether they should keep offering completely free WiFi.

Currently, all hotels are still offering WiFi, but many large hotel chains like Marriott International and Carlson Hotels are now giving guests a choice of an upgraded connection that offers faster speeds and more bandwidth, for an additional cost, of course.

The demand is growing out of control with free internet access being the most highly requested amenity offered during a hotel stay. With the increase smart phone and laptop presence for travelers, hotels are seeing bandwidth demand rise.  Dave Garrison, the CEO of iBahn, references data acquired in the months of March 2011 to December 2011, saying they have seen a 50% increase in data usage from hotel internet connections.

The increase of bandwidth usage increases the costs for the hotel to provide smooth internet service. Hotels have been beefing up their connections, and with the additional costs on their end, they are open to the idea of offering different speeds of internet with different cost brackets.

IBahn recently stated that 40% of their guests have 2 different WiFi devices, while a 1 in 4 of their guests are carrying 3 or more.

This battle for bandwidth could spell additional fees for travelers.

Michael Patton, CEO of POTHOS, believes this is the wrong decision to make. "When more than 70% of travelers saying internet is the single most important service offering. Just like TV, this service should be for free as it is a business and life requirement for us to stay connected." 

Hotels Inside of Airports Becoming More Common

Airports have evolved into substantial commercial centers in recent decades with expanding restaurant, bar, and shopping options. The recent trend of on-site hotels has made some major airports even more encompassing (next they'll have elected leaders and their own form of currency).

The chain Yotel, with locations in major European hubs like London's Heathrow and Gatwick airports and Amsterdam’s Schiphol airport, provides travelers with the option of renting a room by the hour as needed (not quite the same as other hourly motel options I don't think, but in Amsterdam, who knows?) or for the entire night. A four hour block costs about $45 and an overnight stay runs at roughly $90.

Other hotels inside of airports include the Hyatt Regency inside the Orlando airport, the Marriott in the Tampa airport, and the Sheraton in the Bradley airport in Windsor Locks, Conn.

These higher-end hotel chains have extensive plans to continue to expand the hotel-attached-to-your-terminal market even further. Msnbc reports, "last year, Hilton Hotels & Resorts opened a 320-room hotel inside Terminal 3 of the Beijing Capital Airport in China"- and visitors can be sure to visit one of the seven restaurants and bars, 21 meeting rooms, spa, fitness center, and cigar bar.

According to msnbc, "the Hilton chain expects to open hotels at JFK airport in New York and the Frankfurt airport in Germany in December and three more hotels inside airports in Nigeria, in Ghana and in Alberta, Canada, by 2014." This market may prove to be particularly popular for business travelers with little to no time to partake in anything touristy, those with gruelingly long layovers, and people just wanting a shower and a place to freshen up between flights or before a big meeting after arrival.

Find more details here: http://overheadbin.msnbc.msn.com/_news/2011/10/11/8271262-more-hotels-opening-in-airports

Hotel Occupancy- and Rates!- Rising

A new projection from PricewaterhouseCoopers Hospitality and Leisure Practice predicts that the average daily hotel rate in the United States for the full-year of 2011 will increase by 3.6% as compared to 2010 rates. An additional 5.1% rate increase in 2012 is expected to follow.

Despite this, demand for hotel rooms has been abnormally high in 2011, especially in July, when, according to Smith Travel Research, 105 million room nights were booked- the highest number of room nights ever sold in one month, even with a 3.9% average daily rate increase for that particular month. The only other single month (in any year) that more than 100 million rooms were sold in the U.S. was in July 2010.

It will be interesting to keep an eye on whether the predicted price increases for the average daily hotel rate will have a substantial adverse effect on the increasing occupancy rates, or if travelers will continue to book more hotel rooms regardless of price increases. It would be unfortunate if hotels detracted potential customers with a continuation of inflated rates; however, considering the data above, this scenario does not seem to coincide with the findings of the conducted studies.

Hotel industry update

Luxury hotels are reporting an uptick in occupancy, but not from group business, leisure travelers. Overall, hotels rates are down 24% this past year and analysts expect them to fall further as overall occupancy continues to reduce.
This is good news for the traveler as hotel rates stay lower but what is even better is that many more hotels are now offering free internet and free breakfast as part of their value add's, especially with groups. With lower revenues, hotels don't want to give up these revenue sources but they are finding that to stay competitive and retain market share, it is what travelers are saying they need. (who doesnt travel with a computer nowadays) I remember when the new bedding packages were all the rage.... and should be. Comfortable beds are important. But I really like these perks too!