On Line streaming of TV and Movies is now readily available to most Australians and we are seeing fierce competition and amazing deals.

  
So you are wondering how this might effect you.  One of the largest service providers, iinet, saw a 25% increase in bandwidth requirements within a month of not counting Netflix data towards download limits. 

I am sure your bandwidth usage from your guests has gone up dramatically since Netflix, Stan and Presto were introduced.  I also would imagine several of you have received guest complainants that your Internet speed is too slow. 

Smart hoteliers understand the impact and put in place measures to maintain, if not improve guest satisfaction whilst still managing the associated overheads.  This is quite a challenge and below we look at some of the issues and proposed solutions.


 

Yours in Hospitality,

 

Brendon Granger

Technology 4 Hotels 

Phone: 1300 503 657

Mobile: 0422 236 236  

 

Helping Hoteliers Deliver The Best Possible In Room Experience To Their Guests

Take Care if Offering Unlimited
Free 
Internet Access
If you offer unlimited, uncontrolled free Internet, guest complaints will sky rocket unless you continually increase your bandwidth.



Internet usage is changing and changing fast.  Within 28 days of the introduction of Netflix, traffic from Netflix almost exceeded all combined traffic from YouTube and Apple Traffic.

Over the years we have seen a dramatic move from text based to video based Internet traffic and video traffic uses a lot more bandwidth.

Web browsing and email traffic goes in bursts but video traffic is continuous so it is highly likely that one guest's TV or Movie streaming will impact other guests. 

iinet, saw a 25% increase in bandwidth demand in 1 month, normally it would take 9 months for this type of growth!
Internet Access

 

Why Has My Bandwidth Consumption Grown So Much?

Video content uses a lot more bandwidth that text based content such as email.  As a result, hotels have seen bandwidth consumption by guests double year-on-year over the last couple of years. With the added ease of streaming TV and Movies, I am sure you have already observed an even greater growth in band width requirements.


 

Why Are My Guests Complaining About Our Internet Service?

Guests are now checking in with multiple devices.  40% of guests have 2 or more Wi-Fi devices and 25% have 3 or more Wi-Fi devices.  If there are 2 individuals in a room , they could easily each watch their favourite TV Show or Movie via your Internet service

 

In addition, when it comes to the quality of the Internet service you provide to your guests, they expect it to be just as good as they have at home, if not better, and if they have a bad experience they may not return to your property.

 

So both factors - more devices per guest, and the increased demand for bandwidth due the video-centric nature of what they access has put a lot of pressure on your available bandwidth.

 

Should Internet Access Be Free?

Dollar Sign This is a whole topic in its own right.  However, in my opinion with the increasing demand for more bandwidth it is going to be difficult for hotels to provide an unlimited Internet service for free.  Instead, I believe that a tiered service will be the most common way forward for guest Internet access.

 

Under a tiered solution there could be an entry level service for free or at a very nominal fee which is mainly for emails and web browsing, and then a higher level offer which is user pays. There could even be a couple of levels of service that provide differing levels of bandwidth /download and allow for more devices to be simultaneously connected.

 

By example, a business traveller may need to access emails and do a little web research - they would select a service offering at the lower end of the scale.

 

Another business traveller may have 3 devices; a laptop, an iPad, a Smartphone, they may want all three of them connected.  In addition, this person may be doing some video conferencing which is bandwidth intensive so they would choose a plan at the higher end of the tiered structure which is appropriate to meet their requirements.

 

 

How do I Offer a Tiered Internet Access Service?

If you are offering a tiered service, I believe it is imperative that your bandwidth be segregated or compartmentalised so that those guests that are paying for the better service actually get it.  To give you an example, let's say you have a 40 Mb connection into your property so via the server that provides guest Internet you may allocate 6 Mb to the Free Service, 14 Mb to the first tier chargeable service and 20 Mb to the second tier chargeable service.  This will ensure that those paying for the Premium Service receive a premium service and those that have the lower end service receive that and cannot impact on the Premium Service offering.

What should be included as Standard when you book a  hotel room?
 
"Wifi has become a standard expectation, like electricity, AC, or a television. If you are going to charge for wifi, you might as well start charging for those items. Heck, why not charge for toilet paper and towel service, that seems like a good idea too." 
This was a real response to an article about the challenges of juggling increasing guest demand for WiFi and associated increases in bandwidth.
 
I am sure you have heard similar comments or seen them on comment cards.
 
Different properties offer different things - maybe tea and coffee, bottled water etc.  It depends on the property but, unlike Internet Access, these are controlled. By way of example, you might give the guest 2 bottles of water per stay/day, when the guest runs out they need to ask for more and you may or may not elect to give more free of charge.  There is an inherent control in how much is consumed. 
 
With Internet access, if a guest chooses to stream every episode of Law and Order, they will consume a massive amount of bandwidth.  In addition, depending on your set up, the guest watching Law and Order may decrease the Internet speed for all other guests.  Internet access is often uncontrolled and can quickly cause spirally costs as bandwidth is increased to quell guest complaints.
 
So....we have to look at free Internet access differently from free bottled water.
Even if its free you need to have some controls in place so that the service can not be abused. Most Internet gateways have the ability to set reasonable download limits per guest or limit the consumption of bandwidth from certain protocols.  That means that you can let email traffic take priority over video traffic.
In Closing

 

What is the Impact of Netflix, Stan and Presto?

 

A dramatic increase in demand for bandwidth from your guests.  The key for hotels is to provide them with the infrastructure and the bandwidth to ensure their stay is wonderful.


 

How do you Handle this Increase in bandwidth Requirements?

 

My advice, review your Internet offering and ensure you have enough bandwidth and your  provider can segregate and pool your bandwidth so you can offer a genuine tiered level of service for Internet access to your guests.

 

The ideal scenario is a free or nominal fee entry level offer and another tier or 2 of premium Internet Access.  This will ensure guests who want a premium experience will receive it and those who are accept the entry level offer get what they pay for - harsh words but you need to have a way of managing use of your available bandwidth as continuously increasing bandwidth to quell guest complaints will result is your costs spiralling out of control.

Contact Details

New 2 Portrait BG 

Contact:    Brendon Granger

Toll Free:  1300 503 657 (Australia Only)
Direct:       +61 2 9476 3505
Mobile:     +61 (0) 422 236 236
Email:        Brendon@Technology4Hotels.com.au
Web:         www.Technology4Hotels.com.au


 

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Technology 4 Hotel's sole focus is Helping Hoteliers Deliver The Best Possible In Room Experience To Their Guests.  We bring together the latest research on current and emerging guest needs and demands with the latest technology designed to enhance the overall guest experience.