Hotel Telephone Revenues Drying Up, Says Industry Association

6:30 am on November 5, 2006 | Category: Business, Telecom Services, Telephone

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Fewer and fewer visitors are using the phones available in hotel rooms, according to a recent study by the American Hotel & Lodging Association.

The widespread availability of cell phones has reduced the need for landlines among business travelers, eliminating one of the hotel industry’s biggest cash cows.

Hotel and Lodging Association president, Joe McInerney, says that what was once “a huge moneymaker” for hotels is disappearing quickly now that “everybody has a cellphone attached to their ears.” Hotels are now lucky to make $1 on a guest, he noted.

As a result, the majority of hotels (75%) are now offering free local calls as part of the cost of each room. Many are also offering internet access at no charge, or for a nominal fee, in hopes of attracting the lucrative market of business travelers.

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