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July 13, 2004
Hotels Use Wi-Fi as the Means, Not the End
Posted by John Yunker
Hotel chains, such as Hilton, Wingate and Marriott, have been aggressively deploying Wi-Fi over the past two years. But more often than not, the chains have viewed Wi-Fi as a source of revenue, at the average rate of $9.95 per night.
Privately, most hotel executives admit that Wi-Fi will become just another free amenity they offer, like cable TV. Now, that's not to say they won't sell additional Wi-Fi-related features. Just as a guest will pay extra for a specific movie, that guest may also pay extra for additional bandwidth.
But basic Wi-Fi will be included in the room rate. Every few weeks I become more convinced of this. This week, Red Lion Hotels & WestCoast Hotels announced that they would offer free Wi-Fi to all registered guests. They call their program Net4Guests.

What makes this program noteworthy is that it allows members of the hotel's GuestAwards program to also access the networks for free, even if they're not hotel guests. This is a great idea, as it will incentivize guests to join the program and give the hotel valuable information about users. For example, let's say a member from Sacramento accesses the network in a San Diego hotel. Perhaps that person is using a competitive hotel chain and can be enticed back with a customized email. Also, every time a member accesses the network, the hotel chain can put up a splash page to promote various hotel properties and rates. Hotels are in the business of filling rooms, and Wi-Fi, used effectively, can help them do a better job of it.
Wi-Fi provides hotels with much greater opportunities than an extra $9.95 a night in revenue. Red Lion and West Coast Hotels are wisely seizing these greater opportunities.
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