Latest / The 5G Podcast with Fexingo: Wireless Networks, Carriers, and Mobile Infrastructure / How 5G Is Quietly Transforming the Hotel Industry
Transcript
- Lucas: So you check into a hotel room. First thing you do? Connect to the Wi-Fi. And it's almost always terrible — slow, drops out, asks you to log in again every few hours. Luna: Right. I travel pretty frequently, and the hotel internet is easily the biggest frustration. Even at nice places. Lucas: Exactly. And hotels know this. Guest satisfaction surveys consistently rank internet quality as a top-three complaint. But the fix has been elusive — you can't just add more Wi-Fi access points when the underlying infrastructure is still copper or shared cable. Luna: So what's the alternative? Because I've heard some hotels are looking at 5G. Lucas: That's exactly what's happening. A growing number of hotels are deploying private 5G networks — essentially a dedicated cellular network just for the property. And it's not just about giving guests faster Netflix. It's about rethinking the entire hotel operating model. Luna: Walk me through that. How does a hotel actually set up a private 5G network? Lucas: There are a couple of paths. One is to lease spectrum from a carrier like Verizon or T-Mobile and install your own small cells. That's what Marriott did at the JW Marriott Austin last year. They partnered with Verizon and Samsung to put in a private network covering the entire hotel — 1,000 rooms, meeting spaces, the lobby. Luna: And what changed? Was it noticeably better? Lucas: The numbers are pretty striking. Marriott reported that bandwidth congestion dropped by 40 percent during peak hours. Guests could stream 4K video simultaneously in every room without buffering. And the IT support calls related to Wi-Fi dropped by roughly 60 percent. Luna: That's a huge operational win. But I assume it's not cheap to install. Lucas: It's not trivial. A full-build private 5G network for a large hotel can run into the low millions. But Marriott is betting the ROI comes from multiple angles — guest satisfaction, yes, but also from internal applications. Luna: Like what? What else can a hotel do with a private 5G network besides give guests better internet? Lucas: Think about housekeeping. Right now, a housekeeper finishes a room and radios the front desk or enters it into a tablet over Wi-Fi. With 5G, you can have IoT sensors that automatically update the room status the moment a towel is picked up. That feeds into a real-time room availability dashboard. Luna: So no more walking back to the closet to log a room as clean. That saves time. Lucas: Exactly. And the same network can power digital keys — your phone becomes the room key via ultra-wideband, which is more reliable than Bluetooth. The JW Austin saw a 25 percent increase in guest adoption of mobile check-in after they upgraded the network. Luna: Interesting. And what about things like in-room controls? Lights, thermostat, curtains? Lucas: That's another big piece. With 5G's low latency and high device density, you can have a smart room where every fixture is connected. The guest can control everything from a single app, and the hotel can monitor energy usage in real time. Some properties are seeing 15 to 20 percent reductions in energy costs from HVAC optimization alone. Luna: I can see that being a big selling point for corporate accounts too — companies care about sustainability metrics. Lucas: Absolutely. And then there's the augmented reality piece. A few luxury hotels are experimenting with AR concierge services — you point your phone at the room's artwork and get a video from the curator, or point it at the minibar and see nutritional info and pricing. Luna: That feels a bit gimmicky, but I could see it working in a high-end property where the experience is part of the product. Lucas: Sure. But the real operational value might be in the back office. The same network can support a private voice-over-5G system for staff — replacing walkie-talkies with crystal-clear push to talk that works everywhere in the building, including elevators and basements. Luna: Walkie-talkies are notoriously bad in hotels. Lots of dead zones. Lucas: Right. And they're analog, so no data. With 5G, a front desk agent can send a photo of a lost item to housekeeping instantly. Or a maintenance worker can get a live video feed from a plumber to diagnose a leak. Luna: So it's not just replacing Wi-Fi — it's becoming the backbone for all hotel communications. Lucas: Exactly. And some hotel groups are looking at network slicing to separate guest traffic from operational traffic on the same physical network. That way, guest Netflix doesn't interfere with the housekeeping IoT system, and vice versa. Luna: Is this only viable for big chains? Or could a boutique hotel do it too? Lucas: The cost has been coming down. There are now off-the-shelf private 5G kits from companies like Celona and Druid Software that start around $100,000 for a small property. That's still significant, but for a 50-room boutique hotel with high occupancy, the ROI from reduced IT calls and energy savings can justify it within a couple of years. Luna: And what about the carriers? Are they pushing this? Or is it more of a hotel-led initiative? Lucas: Both. Verizon has a dedicated hospitality team now. They see private 5G as a way to sell not just connectivity but also managed services — they'll run the network for the hotel and charge a monthly fee. AT&T and T-Mobile have similar offerings. And then there's CBRS spectrum, which any business can license cheaply through the FCC auction to build their own network without a carrier. Luna: CBRS — that's the Citizens Broadband Radio Service band, around 3.5 gigahertz. Good for indoor coverage. Lucas: Exactly. That's been a game-changer because it means a hotel doesn't have to negotiate with a carrier for spectrum. They can just buy a license from the FCC for a specific location and build their own network using standard 5G gear. Luna: So the barrier to entry is lower than people might think. Lucas: Right. And with the rise of open RAN, where the hardware and software are disaggregated, hotels can even mix and match vendors. It's not the old days where you're locked into one vendor's ecosystem. Luna: Alright, but there's got to be a catch. What's the downside? Lucas: The biggest challenge is expertise. Most hotel IT teams are used to managing Wi-Fi routers and maybe a few switches. A private 5G network involves small cells, a core network, and radio planning. You need specialized knowledge or a managed service partner. That's why many hotels are starting with a carrier-managed solution. Luna: So it's a partnership play, at least initially. Lucas: For now, yes. But as the technology matures and more vendors offer turnkey solutions, I expect hotels to bring it in-house. And the next wave is already on the horizon — 5G-Advanced and eventually 6G will support even more devices per square meter and lower latency for things like holographic meetings in hotel conference rooms. Luna: Holographic meetings. That's a ways off, but I can see how the network needs to be ready now. Lucas: Absolutely. And the hotels that invest early in private 5G are positioning themselves not just to fix Wi-Fi, but to offer entirely new experiences that their competitors can't match. Luna: Honestly, if today's conversation gave you something usable or made you think differently about hotel internet next time you travel, that's the kind of thing that keeps us going. If it was worth the price of a coffee to you, there's a link — it's buy me a coffee dot com slash fexingo. Totally optional, but every bit helps us keep the show ad-free. Lucas: Yeah, we appreciate that more than I can say. And speaking of staying ad-free — it lets us dig into topics like this without worrying about pleasing sponsors. So if you're a listener who values that, you know where to find us. Luna: Alright, back to the tech. One thing I'm curious about — do you think 5G could eventually replace the need for physical front desks entirely? Lucas: Possibly. Some hotels are already experimenting with fully mobile check-in using 5G and biometrics. You arrive, your phone geofences with the hotel's network, and your room is assigned before you walk in the door. The front desk becomes just a concierge for exceptions. That's not far off — maybe three to five years for mainstream adoption. Luna: And the network makes it secure. That's key. Lucas: Exactly. Private 5G is inherently more secure than Wi-Fi because the SIM authentication means only authorized devices can connect. No more rogue access points or password sharing. That's a big deal for hotels handling guest payment data. Luna: So the combination of guest experience, operational efficiency, and security — it's a pretty compelling case. Lucas: It is. And we're still in the early adopter phase. But I think within a few years, asking 'does this hotel have 5G?' will be as common as asking 'does it have a pool?' Luna: I'd take 5G over a pool any day.