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Chains race to provide high-speed access wirelessly.

Article Excerpt
Hyatt Hotels Corp.'s announcement in June that it is partnering with T-Mobile Corp. to install wireless high-speed Internet access in all of its U.S. hotels was the latest salvo in an ongoing high-speed access battle among major hotel companies to gain a competitive advantage.

The original skirmish was about providing HSIA in a wired solution. However, as a number of hotel companies in 2002 and 2003 established a beachhead them, the focus in 2004 has shifted to the wireless arena. Yet, in some instances, hotels only committed to installing wireless capability in their public areas, leaving guest rooms with wired access.

Travel buyers continue to report that travelers cite high-speed Internet access as the most important feature they look for in a hotel after location and physical comfort. Travel buyers, however, remain mixed as to whether a wired or wireless solution is the most reliable and efficient. Some are happy with either format, while others cite security issues with wireless. Some brand managers also are ambivalent about wireless.

Most travel buyers opt for their preferred hotels to provide the service complimentary, building any costs into the room rate. Barring that, buyers would like to be able to bargain any charges away as part of their annual rate negotiations. With hotels' negotiating positions strengthening, however, the chances of most buyers prevailing in this have become slimmer. Midprice brands, mostly, have taken the lead in offering HSIA free to guests (BTN, April 26) as full-service chains have tended to charge a daily fee for unlimited usage. Though the tradition in the midprice...