A luxury hotel chain has decided it will now offer free in-room Wi-Fi to its guests, even though it was making a substantial profit from its paid model.

According to nbcnews.com, Loews Hotels was making a “couple of million” every year from Wi-Fi fees, but now it is to become one of the first luxury chains to give the service away free. Paul Whetsell, president and chief executive officer of Loews Hotels, believes the company will make the money lost in Wi-Fi fees back in loyalty, as the service will make more people want to return.

He added that the reason why most other luxury hotel chains haven’t made the switch is because they don’t have to, as the corporate guests who stay at these hotels often don’t have to pay the final bill.

All of the 18 North American hotels will offer the service, which will be available in rooms, lobbies, restaurants and pool areas. However, free Wi-Fi is not available in the meeting rooms and will have to be paid for by the groups booking them, reports buyingbusinesstravel.com.

Those wishing to have access to a faster service than the basic free one can upgrade for a cost of around $14.95 a day.

Mr Whetsell commented: “Prompt, reliable internet access has become a necessary and expected hotel amenity. We’re delighted to be one of the first hotel brands in our category to offer complimentary Wi-Fi access to each and every one of our guests.”