Telecommunications in Hospitality Sector: How to Boost Return?
In Europe telecom services rank fifth in the hospitality sector in terms of profitability next to lodging, catering, business services (conferences and other events) and wellness. In Russia the yield from telecom infastructure does not exceed 1-2% of the hotel turnover. What's the best way to raise the profitability of telecom services in hotels?
The opportunity to remain connected 24 hours a day is one of businessman's key advantages, so telecom plays a tremendous role in business-class hotels. But even in this segment the volume of telecom business is rapidly going down: during the recent five years the proceedsof hotels has decreased by 2-3 times. "The drop in the yield of telecom servicescan be explained by wide distribution of mobile communication, phone cards, and the general erosion of tariffs. Just a couple of years ago the Hotel National would earn $70,000 on communication services but now the proceeds plummeted to only $20,000 per month. The main problem of hotel telecom is the development of wireless solutions, both personal and corporate: the matter concerns mobile communications and wireless access to the Internet, says John Sillen, development director at Gars Telecom. However, in the opinion of most experts in the telecom market, the situation can be reserved.
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