The Rezidor SAS Hospitality Group, which numbers Radisson SAS, Country Inn, Cerruti, Park Inn and Regent hotels among its properties, is aiming make its High Speed Internet Access (HSIA) service available to all Radisson SAS guestrooms by the end of this year. Provision of broadband access for guests in the group's other properties is also underway.

Partnered by remote access aggregator iPass Inc and hospitality industry broadband specialist NetPoint A/S, Rezidor SAS is installing Wi-Fi as a main component of the service. However, the company isn't expecting major returns on its wireless investment any time soon. Making money on wired broadband access also looks likely to be something for the long haul.

At a presentation in London earlier this month, Rezidor SAS vice president of information technology Finn Schulz produced figures that had current broadband access 'take rates' in different hotels at a high of about 20% and a low of 4%. The averaged revenue per room per night ranged from a high of around €2.5 to a low of around €1.25. Which may not sound too bad, except that use of wireless as opposed to wired access as was running at a high of 8% in one location, and a modest 32% in another, and the revenues cited are for both wired and wireless use. According to Schulz the cost of installing broadband access is around €90 per room.

So why bother to provide broadband access in general, and Wi-Fi in particular? Well, among other things, Schulz believes it's part of the evolution of the hospitality industry, it may initially be a unique selling point, it's a positioning tool, and it's one of multiple factors influencing market share. It's also worth noting that in the case of Rezidor SAS take crates and revenues are generally increasing over time, and some hotels will only have wireless access. Wi-Fi solution vendors would also reasonably argue that that the industry is nowhere near maturity and that, actually, you ain't seen nothing yet.

But if and when hotel Wi-Fi does become a serious money spinner it'll be interesting to see if the hospitality industry can resist the temptation to milk the opportunity out of existence, as happened previously with in-room telephone service.
John Williamson