In the hospitality sector, connectivity has evolved from a luxury amenity into a mission-critical service. Whether a boutique hotel or a sprawling resort, modern properties rely on robust, reliable networks to deliver great guest experiences and operate efficiently behind the scenes.
However, despite technological advances, one fundamental challenge remains: the complexity of decision-making and alignment among stakeholders. I recently sat down with Mark Holzberg, CEO of Cloud5 Communications to discuss the trends and challenges in hospitality connectivity.
Among the challenges, the lack of cohesion between brands, owners, and operators is a major roadblock to the delivery of next-generation connectivity.
Who Decides? The Governance Gap
A major hurdle in hospitality technology planning is governance. Unlike multifamily housing or commercial offices, where the ownership structure is simple, hotels operate under a fragmented model:
- Brands define technology standards and guest experience requirements.
- Owners fund the capital expenditures and want ROI-driven decisions.
- Operators handle day-to-day management and support.
“A brand can say they’re making the decision, but the owner can say, ‘It’s my money.” Said Mark.
This disconnect often delays or derails network upgrades, introduces friction during procurement and stifles innovation. The consequence? Piecemeal solutions and delayed investments result in outdated infrastructure.
Connectivity Is No Longer a Line Item—It’s Infrastructure
Today’s hotel Wi-Fi is far more than just internet access. It powers:
- Guest streaming and entertainment
- Smart room controls and keyless entry
- POS and PMS systems
- IoT devices (e.g., smart locks, lighting, HVAC)
- Back-of-house operations
- Security and compliance frameworks
“Wi-Fi today is like water, it touches everything.” Said Mark.
This transformation demands a new mindset. Connectivity must be treated not as a commodity purchase, but as a strategic investment with operational, reputational, and financial implications.
Why Execution Matters More Than Equipment
Many hotel groups operate under standardized technology mandates, often limited to approved hardware vendors like Ruckus or Aruba. But this hardware uniformity means true differentiation comes down to execution.
Service providers who can deploy, support, and evolve the network at scale are gaining market share, not necessarily the ones selling the latest box.
“Everyone’s got access to the same gear, but not everyone can deliver consistent, high-quality execution across hundreds of properties.”
Toward a Horizontal, Vendor-Neutral Future
We’re also witnessing a shift away from vertically integrated, vendor-locked ecosystems. More MSPs and hospitality groups are pushing for horizontal integration, where best-of-breed solutions can be combined more freely through open APIs and interoperable standards.
Yet achieving this vision is not simple. Our recent research found that many MSPs spend over $500,000 annually on custom integrations. Vendor promises of “open systems” often fall short, requiring in-house development to bridge the gaps.
Consultative MSPs
The most effective MSPs today aren’t just network installers—they’re strategic partners who understand hospitality's business and technological intricacies. They facilitate conversations between owners and brands, guide long-term planning, and look beyond Wi-Fi to offer a full stack of managed services, from telephony and IPTV to cybersecurity and cloud-based monitoring.
This evolution—from a transactional vendor to a consultative partner—is what separates enduring players from commoditized competitors.
Collaboration is the Missing Link
The hospitality industry doesn’t lack technology. It lacks alignment. If brands, owners, and operators remain out of sync, even the best technology will struggle to deliver its full value. The path forward lies in collaboration between stakeholders, with technology partners, and through platforms that enable more flexible, integrated, and scalable connectivity solutions.
Maravedis is an independent research and analysis firm founded in 2002, focusing on managed connectivity and convergence of WiFi with 5G/6G. Contact us to learn more about our custom research, consulting, and bespoke marketing services.