Starwood Hotels recently announced that, beginning Feb. 2, 2015, free internet access will be available to Starwood Preferred Guest loyalty-program members who book their hotel stays through Starwood’s digital channels, including the company’s corporate and brand websites and mobile sites, as well as the SPG app.
Several other hotel chains—including Mandarin Orientals, Four Seasons Hotels, the Ritz-Carlton, and Hyatt Hotels—also plan to offer free Wi-Fi to its guests. And free Wi-Fi will be made available to Hyatt guests around the world in February 2015. Travelers will be able to access free Wi-Fi on an unlimited number of mobile devices or laptops in Hyatt-branded hotel guest rooms and social spaces.
Will this trend among hotels modify enough behavioral change among their customers to create more brand loyalty?
Mark Johnson, CEO and CMO of Loyalty360, believes the challenge for hoteliers is to balance the revenue loss with insights that could offset that cost.
“Hoteliers realize that the value of surprise and delight and other soft benefits is being sought after by more and more individuals,” Johnson said. “It could signal a shift, almost Draconian in nature, that shows that hotels are actually listening to their customers, with a realization that most travelers are spreading their stays across a variety of brands. This is an attempt to consolidate the spend of those travelers with a realization that this benefit (the ‘softer’ attribute of a program) will be a considerable benefit to the traveler, as well as the individual who is making the reservation in light of the financial savings with the hope of getting that one, two or ten incremental stays with the brand.”
Starwood’s digital channels have seen increased popularity among guests and SPG members. The SPG app has seen the fastest growth in bookings across SPG’s digital platforms, resulting in nearly 60% growth in the past year. In total, all of Starwood’s digital channels have seen more than 10% growth, and now, Starwood is rewarding guests who book through its platforms with the services they want.
What’s more, SPG wants to recognize travel professionals who play an integral role in helping travelers book their stays. Following the launch of SPG Pro, a new comprehensive loyalty program designed to reward travel professionals, SPG is offering all travel professionals the opportunity to extend free Internet access to their client base of SPG members when travel is booked on spg.com. This advantage is in addition to all other SPG Pro benefits they’re already receiving if they are enrolled in the program.
“The ability to leverage this into a bigger, mutually exclusive conversation with the customer is key,” Johnson said. “Brands know that individuals truly love only five to six brands, and will engage only with those brands. The challenge is to get into the consideration set, and this could be a great entry point, especially if the brands remain true to the corporate mission and also do not change the program next week or next year.”