Wi-Fi has become a necessary need for us nowadays. Marriott, the hotel, has been reported to pay $600,000 fine for blocking customers’ Wi-Fi.

Since Marriott can get extra incomes by providing Wifi service in the conference facilities, it wouldn’t like its consumers to use their personal Internet connection; it decided to block the personal Internet connect. By making this decision, Marriott has reached its objective-making people to pay fees per device. Moreover, the company spokesman claimed that Marriott does this to protect consumers’ privacy, so consumers can also benefit from it.

However, this action will bring more disadvantages than advantages to Marriott. First of all, it will have to pay the fine because its decision, which is a loss. Moreover, since this news has been reported in public; consumers, one of Marriott’s main stakeholders, would likely to care more about costs than security. Marriott would gain bad reputation, which may leads to lower customer loyalty, which will influence its revenues in the long-term period. This action would benefit Marriott’s rivals, and help them to get higher market share and help them to get competitive advantages, which can be a threat to Marriott’s current position. Finally, as FCC said, Marriott’s action has breaking the policies, which is not benefiting Marriott at all.

In conclusion, this unethical move is likely to lead Marriott to lower sales, bad reputation, and less support from the U.S. Federal Communications Commission.

References: 

• Online business article, [URL: http://www.theglobeandmail.com/report-on-business/international-business/marriott-to-pay-600000-fine-for-blocking-customers-wi-fi/article20916267/] Elizabeth Wasserman, Marriott to pay $600,000 fine for blocking customers’ wifi, last accessed: 2014-10-05