HTU 13
Hotel Technology Update Hotspot Research iBAHN helps hotels cope with exploding demand for high-speed Wi-Fi connectivity Recent market research supports travellers’ growing expectations for ubiquitous Internet access. As more and more consumers use new applications and handsets that rely on Wi-Fi networks, demand for high-speed, high-capacity broadband services in hotels continues to grow at an increasing rate. iBAHN offers solutions for broadband prioritisation and tiering to help manage the increasing demands for Internet services. We also help hotels understand when and how to expand the broadband capacity of their Wi-Fi network to meet their guests’ connectivity expectations. What's happening in the Wi-Fi hotspot market? MultiMedia Intelligence (MMI) (http://www.MultiMediaIntelligence.com) reports that the worldwide Wi-Fi hotspots market will grow to over 170,000 venues connected by the end of 2007. In addition, branded venues such as Starbucks and McDonalds are becoming increasingly important in driving incremental usage. Europe remains the leading region in terms of hotspot footprint, with 42 percent of worldwide locations, while North America leads in worldwide usage, with 53 percent of hotspot connects in 2007. “The hotspot market is on the verge of a revolution — a revolution being driven by new users, new access devices, and new applications,” according to Amy Cravens, an Analyst with MultiMedia Intelligence. “In the near future, hotspots will not be just for business travellers any more. The increasing availability of dual-mode handsets in 2008, coupled with the anticipated introduction of lower priced access fees, will result in the hotspot user base broadening to include consumers.” The beginning of a trend toward consumer usage is already evident; with consumers accounting for nearly 25 percent of connects in 2007, up from approximately 15 percent in 2006. This trend is anticipated to accelerate going forward. While revenue per connect is expected to fall significantly for cafés and similar venues, we believe revenues will be sustained by access fees in full service hotels and airports, which together will comprise over 90 percent of access revenues. To help offset the lower ARPU of consumers, hotspot operators are also beginning to explore new revenue opportunities including back office services, application/content offerings, and advertising to bolster revenues generated from access fees and roaming partnerships.