Wi-Fi will be a free amenity
Boingo Wireless signed a deal that expands its presence in the hotel industry, and IDC analyst Keith Waryas says "The question is whether or not they (hotels) are going to be a moneymaker for hot spots, because travelers have multiple ways of (getting) broadband access, including wire-line connections." This is missing the point.
Hotels and restaurants are going to provide free wireless connectivity in common areas as a competitive necessity. They may still charge for wired or wireless connectivity in guest rooms, but it will be free flowing in conference rooms and lobbies in order to make the hotel an attractive meeting space, so comparing the business model to the airport connectivity model is to understand the evolution of the business, IMHO.
The added cost of providing connectivity in common areas is low -- it requires few access points and every hotel has some significant IP connectivity available already that it can give away. The question is whether they can get guests in their rooms to pay $3.95 or $5.95 a day for access in their rooms, whether it is wireless or wired broadband, instead of seeing them wander into the lobby to do their data networking. I do think the convenience and privacy of sitting in the room can carry a small premium.
Posted by Mitch Ratcliffe at August 26, 2003 04:09 PM | TrackBack