With all the ongoing commotion about Wi-Fi access gravitating towards free since the inception of the hotspot industry, it might come as a surprise that most networks in high profile locations remain for-fee, commercial hotspots. Among the top airports, fewer than 10% have chosen to deploy free Wi-Fi. Even within the airline club rooms, most of the clubs charge for service – or outsource the service to an operator who charges for service.
Similarly, outside of the business economy hotels (think about the second and third tier offerings from the prominent hotel brands), Wi-Fi access in major hotels remains feebased, with some frequent traveler programs subsidizing this service for their members. Some hotels are returning to fee-based access after enduring what they consider a failed experiment in providing free access.
While there will always be a place in the market for free Wi-Fi, the explosive growth and exponentially increasing usage of fee-based Wi-Fi demonstrates the viability of a market that was projected to be on its last legs in 2003.
In order to capitalize on this opportunity, it is best to assess the factors that will maximize the chances of success, which generally means generating meaningful revenue. Fee-based Wi-Fi depends heavily on business travelers – users with a real need for Internet access – who are willing to pay for service.
In this regard, the first rule of real estate applies to commercial hotspots as well, “Location, Location, Location.”