Hotel Online Special Report


Six Strategies to Maximize Hotel Revenue
Through High-speed Internet Access
SuiteSpeed Internet Solutions Provide Hotels with the
Ability to Control and Grow Revenue 

Louisville, CO (December 17, 2003) Travelers are demanding a level playing field when it comes to hotel High-Speed Internet Access (HSIA). They want convenience and economy when it comes to staying productive on the road.  Gone are the days when your guests are willing to run to the nearest business center or local coffee shop hot spot just to check email.  Now more than ever, the hospitality industry has the opportunity to leverage this need for 24/7 connectivity with HSIA packaging to serve the guests needs and at the same time drive incremental revenue for the hotel. 

SuiteSpeed, the hospitality industry’s choice for wireless and wired High-Speed Internet Access (HSIA) solutions without boundaries, helps hotels implement revenue generating Internet solutions that provide differentiating guest service and a quick return on investment.  For each property, SuiteSpeed consults with its clients to determine the best combination of revenue generating strategies that will position the hotel’s HSIA as a long-term profit center. As you consider these six strategies, remember to balance your HSIA marketing strategy with your guests’ expectations of service.

#1 Offer HSIA as a Free Amenity
Free Internet access is a powerful draw, especially for the business traveler.  Hotels are using HSIA as promotional strategy to get heads in beds.  Internet access can be positioned as a loss leader, with hotels assuming the additional costs of free Internet will be offset by incremental room revenue.  For example, if a property room rate is $100/night, it takes 10 room nights at an average HSIA cost of $10/day to recoup one night’s revenue.  Would you rather have your revenue in one night or ten? Hotels are also bundling the cost of Internet access into their room rate, so the operational costs are offset.  Offering free Internet will drive occupancy for a select market that looks for convenience and value. 

#2 Sell HSIA at a Daily Rate
If free Internet access does not fit your business model, consider offering a daily rate for guest HSIA.  It will simplify guest usage and help maximize guest generated HSIA revenue.  Although hourly rates can generate greater $/hour revenue, they have a perception of low value and increased intervention by the user.  Current daily rates for HSIA can range from $3.95/day to $14.95/day.  Make sure your system allows you to have pricing control because nobody knows your customer better than you do. 

#3 Bundle HSIA with an Enhanced Level of Service
Hotels can provide differentiated offerings by bundling HSIA with other amenities. For example, Internet access may be included with continental breakfast, and newspaper for Concierge Level service.  Pricing for these amenities is bundled into the room rate seamlessly to the guest. 

#4 Leverage the HSIA Network for Additional Productivity Applications
Hotels can enhance their operational bottom line by leveraging additional productivity applications over the wireless network.  For example, in-room services such as housekeeping and minibar inventory can communicate status or trouble tickets over the wireless network to a PDA device.  Other wireless-friendly applications include curbside check in and point-of sale where speed of service improves satisfaction and repeat visits. 

#5 Tier Bandwidth Prices, Up Sell Higher Speeds
Internet access has become a business travel requirement.  Hotels can promote different levels of service by tiering bandwidth pricing. For example, hotels have a unique marketing opportunity by offering free 128kbps service.  Users that require higher bandwidths for VPN access or other applications can upgrade their service for a fee.  This strategy allows a hotel to promote “free Internet” while generating revenue from high bandwidth users.  In the case of extended stay properties, there is pricing flexibility based on duration of visit and bandwidth.  See a sample rate chart below that is generating over $1,500/month in HSIA for a Colorado-based 100 room extended stay property. 
 

.
Daily
Weekly
Monthly
128k speed $3.95 $23.00 $69.00
512k speed $5.95 $29.00 $89.00
1MB speed $7.95 $39.00 $119.00

#6 Sell HSIA for Meetings and Events
Operators frequently forget to leverage their HSIA services for meetings and events.  Attendees often need Internet access for demonstrations, business applications, as well as standard requirements such as checking email.  Make sure your group sales department use HSIA as a differentiator and promote access in meeting rooms and common areas.  This amenity for full service properties can be a very strong revenue driver with prices ranging from $100 per connection to $750 per connection in certain locations. Understand your groups’ requirements and the value of wireless access for attendees as well.

These strategies will help hotels, resorts and timeshares maximize revenue opportunities from Internet access while providing enhanced guest services.  For more ideas on how to make the most from your wireless or wired Internet solutions for your property, call SuiteSpeed at 1-888-445-5118 or email info@suitespeed.com

About SuiteSpeed
SuiteSpeed provides innovative wireless and wired Internet access solutions "without boundaries” for the hotel industry.  With a focus on incremental revenue generation and measurable ROI, SuiteSpeed offers a variety of solutions to fit the needs of the hotel guest and the hotel operator.  Through high performance systems, proven technology, and customer-focused solutions, SuiteSpeed helps improve the hotel guest experience and build hotel loyalty. SuiteSpeed’s customer brands include Marriott Courtyard, Holiday Inn, Best Western, Radisson, Embassy Suites, Days Inn, TownePlace Suites by Marriott, and Hampton Inn & Suites, as well as many boutique hotels. For more information, visit www.suitespeed.com or call 1-888-445-5118. 

SuiteSpeed is a trademark of SuiteSpeed, LLC.  All other names or brands are property of their respective owners.

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Contact

SuiteSpeed
287 Century Circle, Suite 101 
Louisville, CO 80027

1-888-445-5118 toll free
* 303-544-1111 phone
* 303-544-1110 fax
info@suitespeed.com
www.suitespeed.com
-
Katrina Pruitt-Andrews
KPA Marketing & Public Relations
301-604-7377 phone
kpandrews@comcast.net



 
Also See: Denver Hotel Chain Boosts Occupancy and Drives Incremental Revenue with High Performance Internet in All 700 Guest Rooms / November 2003
SuiteSpeed Showcases Wireless Internet Management Gateway at IH/M&RS in NY / November 2003
Magnolia Case Study Shows Increase in RevPAR and Occupancy with SuiteSpeed / May 2003
Hotels Show Success with SuiteSpeed’s Wireless High-Speed Internet Access / April 2002


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