Every day RV Park owners across the country hear the same question when booking new guests. “Do you have Wi-Fi in the park?” And every day, parks across the nation say yes, but with some caveats.
Often smaller parks deploy small Wi-Fi systems that don’t cover the entire park. Or they deploy systems available at the office. Whatever the case may be, many parks have skimped on costs and deployed sub-par systems because they don’t recognize the true potential that “Free Wi-Fi” offers. Put simply, you can make more money with a good Wi-Fi system.
December of 2015 RVBusiness.com published an article about Wi-Fi becoming the next utility for RV Parks. The article’s link is http://www.rvbusiness.com/2015/12/the-buzz-wi-fi-becoming-a-utility-in-rv-parks/ if you’d like to give it a full read. The article covers an interview with TengoInternet, a very well know Wi-Fi Solutions company. And the bottom line?
You can make additional revenue with your park Wi-Fi.
Now you don’t necessarily have to hire TengoInternet to build your park’s solution. But you need to start looking at your park’s Wi-Fi as an investment, not a money sink. Most park owners approach Wi-Fi with the wrong mindset off the bat. They look at the cost of the Internet connection, the equipment, and the tech support as a money sink. That viewpoint is 100% wrong, and when you approach Wi-Fi with that mindset you are setting yourself up for failure.
One of our most recent clients deployed a new Wi-Fi system and viewed it as a sunk cost. While RLC Design worked with them on their Online Business Presence we pointed out a new revenue stream they hadn’t even considered. Their “Free Wi-Fi.” Yes, you offer it for free, but the fact that you’ve added such a valuable utility isn’t lost on your guests. Wi-Fi has extreme value for them. So…….
What if you upped your rates $1 per night after adding your Wi-Fi System?
That’s the question we asked of our client. Can you up your daily rate by $1 per day? Surprisingly, the park owners hadn’t even considered this as an option. They looked at their investment in their Wi-Fi system as a sunk cost with no returns. Is that how you view your Wi-Fi system?
Amenities have value!
Visitors to your park value the amenities you offer. RV Resorts pop in swimming pools, hot tubs, game rooms, mini-marts, and more. Parks have been doing that for decades, and their nightly rates reflect all of those added amenities. With that in mind, should it be any different with Wi-Fi?
Here’s a simple example from our recent client’s change in pricing. They upped their nightly rate by $1, which didn’t affect their reservations at all. The park has 96 sites, and their peak season runs for over 180 days.
- 96 Sites at $1 extra per night yields $96 per night in additional revenue
- Call their season 180 days. $96 per night times 180 days yields $17,280 in additional revenue.
- The cost of the system they deployed was under $10,000.
- Monthly cost for their connection was under $350 per month. For a full year the cost of the connection is $4200.
- So, additional revenue of $17,200 during the peak season minus the cost of the system and the cost of the connection for the year leaves the park with $3080.00 in additional revenue.
The example above covered their first year. And it only talks about their peak season. 6 months with their “Free Wi-Fi” paid for their system, connection, and left them with some additional revenue. The investment has been made, and going forward even with maintenance and upkeep, the system will be providing even more profit.
What if they raised their rates by $1.50 per night, or even $2 per night?
Look past the costs, and start asking about the benefits.
RLC Design is not a Wi-Fi system installation group. We’re a small agency that helps RV Parks and Destination Businesses find new ways to increase their revenues. If you need help adapting to the new mobile technology market, we can definitely be your partner and help you see past the costs and start thinking about the benefits and increased revenue opportunities!
The travel landscape is changing. Technology is altering how your park is found, what your business can offer its guests and customers, and how your business is perceived. And RLC Design Services can help you evolve your business for what’s coming next.