Tech-savvy guests bring entertainment with them

— -- Laurence Shapiro embodies a new wave of guests who have hotel operators on edge.

The physician from San Diego never buys in-room movies while traveling. Before leaving home, he converts movie DVDs into digital files compatible with his personal digital assistant, a Dell Axim X51, and plays them on the handheld device. Some of his favorites: "relaxing waterfalls or surf movies to have in the background to relax."

The latest generation of media-player devices, such as iPod, Sony PlayStation Portable and even the laptop PC, is rapidly changing the way travelers entertain themselves on the road. Greater availability of online movies and TV shows and improved Wi-Fi signals at hotels and airports (and now increasingly airplanes) are also helping to fuel the travel entertainment revolution.

"Even compared to just a year ago, travelers have a lot more control," says Elizabeth Curtis, analyst at technology research firm IDC. "Content owners are more comfortable with online distribution."

In a survey this year, IDC found that 92% of people who've watched movies online want to do it again. It's "most likely due to increased (program) availability online and better delivery options," Curtis says.

Meanwhile, in-room movie revenue for hotels is declining, says Brian McGuinness of Starwood Hotels, even as hotels place more flat-panel HDTVs in rooms. And business travelers say download speeds slow as more guests jam the hotel's Wi-Fi network for movies.

Streaming media — movies, TV shows, Internet radio — now occupies about 40% to 50% of Starwood's hotel Wi-Fi traffic, McGuinness says.

Starwood owns Sheraton, W and Aloft, among others. Aloft, popular with younger travelers, is experiencing a higher percentage — close to 60% of traffic used for streaming media — and has had to install faster Internet connections.

Entertainment providers also are gearing up to meet demand. Netflix, a DVD-by-mail company, daily adds new streaming movies and TV shows that are free to monthly subscribers. Amazon, Movielink and CinemaNow sell streaming or movies that can be viewed for typically $3 to $5 apiece.