Eleven Blog

Myth-busters: Hotel Wi-Fi Edition Part I

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Posted by Jacqui Monahan on Feb 19, 2016 7:00:00 AM

By now we’re all well-aware that Wi-Fi is is a must-have...However, there are opposing forces at work making it increasingly difficult for hotels to deliver a high-performance guest Internet experience. Guests use an average of 2GB of data per month on their  2.9 devices (Skift). The average cost of a network  installation is $300,000 and $5,000 per month for 500MB of data at a 500-room hotel (Meetings&ConventionsCloudflare). At the same time, guest willingness to pay for Wi-Fi is declining. According to a 2015 Hotels.com survey, 53% of hotel guests demand free and reliable Wi-Fi as a standard.

We call this the Wi-Fi Paradox and it’s no wonder why the industry is hard at work trying to keep up by bringing in bigger pipes and faster connections. While performance is critical, bandwidth is just the beginning of the Wi-Fi experience.

TripAdvisor is riddled with reviews nagging on poor hotel Wi-Fi. One reviewer commented in September, 2015:

“Management: listen up! How many reviews do you need to see complaining about the Wi-Fi before you do anything? It’s the top 3 most important things a guest expects.”

The truth of the matter is that poor Wi-Fi is a loyalty opportunity lost. A whopping 80% of guests will not return if they have a bad technology experience (Hotel Business Review). According to this New York Times article, even luxury hotel guests registered a 65 point drop in guest satisfaction when having to pay for basic Wi-Fi. What does this mean for your bottom line? Take this scenario for example:

Average Daily Rate: $200
Average Stay: 3 nights
Total: $600
Loyal Guest Average Trips/Year: 12
Lost Revenue for 1 Year: $7,200
 

That’s a possible $7,200 loss for ONE guest. ONE. Are you prepared to let lose that $7,200 time and again? More than half of guests read online reviews before booking (Search Engine Land). Not only is a loyal guest on the line, but so are potential guests who could be deterred by multiple Wi-Fi complaints. Suddenly poor Wi-Fi becomes a much more expensive problem. It turns out, great Wi-Fi is all about building loyalty and delivering the connected guest experience travellers crave.

Make sure you check out Myth-busters: Hotel Wi-Fi Edition Part II where we debunk 2 more hotel Wi-Fi myths!

Topics: HSIA, Guest Experience, bandwidth

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