Cheap airplane tickets and discount hotel rooms as well as cheap vacation packages are often cited as the major reasons people travel. However, the decision which airports and hotels are used is increasingly being influenced by the availability of free and/or increased bandwidth Wi-Fi.
While airlines are trying to convince their passengers to pay for Internet access while in the sky, airports and hotels are increasing offering Wi-Fi for free. Today 50 percent of the larger U.S. airports offer free Wi-Fi including Denver, Houston, Las Vegas, Phoenix, and San Francisco. Dallas/Fort Worth started offering free Wi-Fi in September to travelers who first view a 30 second commercial.
Sponsored access has become vital as airports try to balance consumer pressure for free Wi-Fi with the cost of providing service with increased bandwidth to support growing data requirements. Airports and hotels are also starting to offer tiered pricing models whereby limited Internet access is free and faster premium service is available for a price.
Denver International Airport switched from free advertiser supported Wi-Fi to a tiered pricing model in June. Travelers are being offered free basic Internet service as well as more bandwidth for a $7.95 laptop day pass or $4.95 an hour for smartphone use. Business travelers needing to send large files are expected to be willing to pay for premium speed. Free basic Internet access at Denvers airport requires viewing a 15 to 30 second advertisement every 30 minutes.
Non-airline revenue has increased in importance to airports as their landing fees have declined as a result of flight reductions. Wi-Fi deals are seen as a way to help balance budgets while responding to customer Internet expectations given that many passengers have a choice when selecting which airports to fly from or connect through.
Experts expect both airports and hotels to increasingly take a tiered pricing approach to Wi-Fi, with basic Wi-Fi access offered for free, and increased bandwidth being a paid for alternative.
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