Your Return on Investment (ROI)

The ROI of Wireless Access
Providing wireless Internet access as an amenity for your customers is a business decision. If you want to gain real value from offering high-speed access, below are some key factors for your consideration:

What are the benefits?

• Increased customer loyalty
  Making high-speed Internet access available to your guests will make them happier, providing a faster, more convenient way to connect to the Internet. No more dialing up, no more going to a business center or your front office to wait in line for a modem connection. Happier guests will stay longer at your location if they know they won’t have Wi-Fi at their next stop. Plus, they are more likely to favorably consider your location for a visit the next time they are in the area.
• Increased occupancy
  Wireless access will help you attract more premium guests as you move from “modem-friendly” to “people-friendly.” In the future, you could even bundle high-speed Internet access with your extended stay or preferred guests. Satisfied guests will also tell their friends. You don’t want to be known as the “location without Wi-Fi.”
• Extended brand presence
  Using the online experience to promote your resort will increase your brand awareness and ability to connect to your customers.
• New revenue stream
  Each of your sites or rooms has the opportunity to generate $25-$60 month. To determine potential revenue, multiply your monthly customer capacity by the monthly or daily pricing. See the ROI formula below for more details.
• Reduced modem costs
  High-speed Internet access can be used to support company operations, and in some cases reduce data modem requirements, which will save you money.

What are the costs?

• Monthly Access Connection Fees:
  There will be a monthly cost for a high-speed Internet access connection, which can be DSL, Cable, Satellite, T1 or Fixed Wireless. This is normally a flat-rate cost that ranges from $100-$800, depending on your provider and the class of service desired. This connection can be shared with your office. DSL and Cable are the top choices due to speed of service and overall lowest monthly cost. If you are located in an area without access to DSL or Cable, you will likely need to consider Satellite Internet access though it is more expensive and slightly less reliable. When reviewing the service plans offered, you need to select a business-level of service over residential service, as the added bandwidth will allow more guests to use the service at the same time and at faster speeds. Plus, the business-level service often allows you to resale the service to your guests, an important point to confirm upfront.
• Network Installation Cost:
  A one-time cost to obtain suitable wireless coverage that provides convenient Internet access to your guests in the places they want–rooms, site, pool, recreation or business center–on your property.
• Monthly Management and Support:
  Includes the solution and services to provide a great customer experience for your guests, bill them for usage, provide ready-to-use promotional materials, minimize employee distractions and support the network.
  

How do I make the financial decision?

Using a 1-, 2-, 3-, 4-year horizon, determine the economics of the opportunity using the revenue and cost factors below in a Return on Investment Model. In most cases, for less than the price of an advertisement, you can offer high-speed wireless Internet access at your location and generate access revenue.

• Monthly Revenue = # of sites/ rooms x access pricing x usage rate
  
• Monthly Cost Savings = # of data modems reduced x monthly data cost
  
• Monthly Access Cost = monthly cost of access + management and support
  

Make a decision that will make your guests happy and make your property more valuable. Contact TengoInternet for more information.