WiFi-something most hotels provide, but a subject that raises the same question from guests all over the world which is:
‘Why do cheap budget hotels offer FREE WIFI, yet the luxury hotels charge guests to use it’?
Unfortunately the answer is simple, the main reason they charge is because they know their guests will pay for wifi, known as price sensitivity, let me explain.
The business guest
Most business travellers will have an expense account which their company pays for. Wifi will be used by this type of guest because they will need to have online access and be able to email their company. But because their company will foot the bill business travellers will not be concerned what the charge is. This type of guest is rarely price sensitive
Guests who stay in luxury hotels on holiday or short breaks won’t worry about the room rate so being charged for wifi isn’t usually a concern. So this guest too is not price sensitive
Guests on a budget
This type of customer is definitely a price sensitive guest. They will have probably shopped around to get the cheapest deal on the room and therefore will not want to pay extra for the wifi. Budget hotel owners and managers offer free wifi in order to be competitive
Things are changing however and we have seen more and more upmarket hotels in the last 12 months introduce free WiFi. Whilst this is a positive change be sure to check the room rate as lots have increased this to cover the cost of giving the WiFi free!