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Triple Profits On Phone Calls Made By Guest From Their Room. (without gouging the guest) |
| Telephone deregulation in 1984 changed the way the way that the hotel
industry did business. Before that time, the hotel was a captured
client of AT&T who paid them a small commission on each call that was
made by hotel guests from their room.
AT&T still has a great market share on these hotel guest room calls, which are dubbed “Zero Plus” calls---because the guest will dial a “0" on the phone dial to make a collect call or credit card call. The allegiance that AT&T has is that the hotel can generally choose an alternative “Zero Plus” provider. However, by doing this, a segment of hotel guests who wish to use their AT&T calling cards experience having them “blocked”. AT&T is in no rush to solve that problem for their competitors. On the other hand, if a hotel chooses an “alternative carrier” to provide their “Zero Plus” calls, they have been sold on the fact that this provider will pay them a better commission than AT&T. The “bottom line” is that while the hotel may get a better commission...the “lions share” of each mark-up to the hotel guest goes to the “Zero Plus” phone company. So, a company of experienced hotel telecommunications executives decided to develop a new technology that would allow any hotel in the United States or Canada to lease equipment that would provide them the opportunity to make the majority of money on each transaction. Instead of the hotel making a moderate commission, it can retain the majority of profit available on each phone call. It simply pays the creator of this system, Vis-A-Vis, a $1 per room leasing fee, per month, and a small transaction fee, per call. Now, the hotel can charge what its competitors would charge the guest (without gouging the guest), and make three times more per call to what they are making now. Furthermore, the advantage of this new solution is that the hotel can keep the same “Zero Plus” carrier it has now as an option. And, the hotel guests who want to use their AT&T credit cards can use them without any problem. The company has a prestigious customer list which includes the Sonoma Mission Inn, Pacific Plaza Hotel, and the Burbank Airport Hilton. The projected profitability also is done without the need to charge the guest a surcharge of 50 cents to $1 per call, which generally creates ill feelings on the part of the customer.
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