Radisson Drops Free Internet For All But Loyalty Members, Blames Distribution System Limitations

February 15, 2011, 4:0 PMBy Michael B. Baker Carlson is changing its approach to rate-inclusive Internet access as it rolls out a new loyalty program next month. On March 31, Carlson will replace its Goldpoints Plus program with Club Carlson, a pointsbased program that includes free Internet access at Radisson hotels globally and at all Carlson brands across North America. Free Internet previously had been a brand standard across Radissons North America properties, a relative rarity among upscale brands, but Carlson CEO Hubert Joly said that would no longer be the case. The standard had become a handicap from a marketing standpoint, Joly said. From a distribution standpoint, when youre looking at the global distribution system or a selfbooking tool, you dont know whether the Internet is free or not. The strategy of bundling the Internet with the price creates a problem from a price perception standpoint, because you are forced to increase your price, and yet you dont get the credit. Internet at Carlsons midprice Country Inns & Suites brand will remain free for all travelers, Joly said. The change brings Radisson more in line with other upscale and upper upscale brands. A few brands, including Omni Hotels & Resorts, have the same approach as Carlson, in that all members get free Internet access regardless of their status within that program. Most multibrand companies, including Marriott, Starwood and Hilton, offer free Internet only to loyalty program members who have achieved a certain status tier, a distinction that Joly said makes Carlson still more competitive than other brands. Other new features of the new Club Carlson program include partnerships with CWT Vacation and Club Med for resort stays, additional retail and restaurant offerings for lowpoint redemption and an elite tier offering free upgrades, continental breakfast and early and late checkout.