A "Q & A" ON IN-PARK WIRELESS INTERNET

RV Park Consultants Discuss Potential for Free Wi Fi Offering (Updated 08/08)


[NOTE: We've retained this original article as written in 2004, because the message it offered in 2004 is as compelling today as it was in those early days of wireless connections at RV parks. In that sense it offers a unique historical perspective, along with some excellent predictions.]

In our continuing coverage of high speed wireless internet service offered at an increasing number of RV parks, we found a variety of strategies that parks have adopted. While some are not yet convinced wireless is "here to stay", many parks have opted to offer in-park wireless by contracting with one of many outside service providers. The result is that while many parks now or will soon offer wireless internet access, the cost of these services will vary dramatically -- particularly the "daily rate" -- which typically means a 24 hour period. Another consequence of the developing "patchwork" of different outside providers is that many RVers will find they cannot take advantage of the relatively lower cost monthly rates, because the parks they intend to visit over the next few weeks may all have different service providers.

There is one bright spot in this scene -- parks that have concluded their interests will be best served by offering the service free of charge to its guests. We contacted Rich and Barbara Stockwell, RV Park Consultants, about the experience they had in setting up the first completely free in-park wireless network. That park subsequently enjoyed a 20% increase in guest revenues, most of which they attributed directly to the addition of this amenity.

In order to probe this issue further, we contacted the Stockwells. We believe they are well qualified to answer some of the key questions concerning how wireless might best be deployed in RV parks. What follows are the queries we sent along, and their responses.


WHAT ARE THE ADVANTAGES OF “WI FI” AT RV PARKS?

We have been advocates of parks becoming "modem friendly" since 1995. Most parks did not then recognize the growing demand of RVers to have online access. If they offered a connection at all, it was usually just one of the office lines – and not a very convenient place for RV guests. Then, like now, there were also outside service providers that offered to put their “system” into parks – and charged a per-minute fee to RVers who used their dial-up connection. In the park we were then managing we opted not to use any of the fee base systems, preferring to offer our own dial up options. In time we added three additional phone/modem connections in public areas, and provided live phone service to five of our sites. Our park had nine modem hook-ups available to our guests. Not enough!

By being ahead of the curve parks had the opportunity to attract the Internet traveling crowd. Guests increasingly had a real need for financial and personal communication, and the parks that offered easy modem access saw a payoff in occupancy rates.

As high speed connections became more generally available, many RVers began using a broadband connection at home. And once they had a taste of the “high speed” connection, dial up service seemed glacial by comparison. As Wi-Fi came on the RV park scene within the past year, we recongized this new technology had great marketing potential for RV parks. Now instead of having to lug their laptops across a park to find a phone hookup, they wold have the luxury of pouring another cup of coffee, and at their leisure downloading their email as well as searching through the internet for future RV needs and other information -- all at DSL speed, and all from the comfort of their own RV.

And of course cost is a factor. A telephone system with switchboard for a 200 site park could cost upwards of $80,000. Wi-Fi costs only a tiny fraction of a phone system. Moreover with the growth of cell phones, switchboard systems for RV parks seem to be obsolete.

HAVE YOU CONSIDERED RECOMMENDING ONE OF THE FEE-BASED OUTSIDE SERVICE PROVIDERS?

Some parks have outside providers that charge up to $7.00 per day for a system, and we think that is too expensive. As wireless in-park connections become more commonplace, we feel many guests will not go to some parks because of the excessive cost of Wi-Fi. We found the cost was minimal to set up a park's own free service. By contrast, if we had to set up a secure system to take the credit card information to pay a daily charge for Wi-Fi, the costs would have to be recouped from our RV guests. Since the cost of processing a single day’s usage is substantially the same as the cost of setting up a monthly service, obviously the daily rate will be much higher. This is precisely what we would advise parks to avoid.

We have nothing against the outside service vendors. It’s simply that we see their product offering as being quite different in an RV park than in a coffee shop or the local tavern.

WHAT CAUSED YOU TO RECOMMEND NOT CHARGING FOR WI FI?

Some of the outside service providers that that we spoke with want RV parks to make an initial investment of up to $20,000 -- and they would take all the revenue. This hardly seems like a "win-win" situation! The service provider would be raking in revenues based on the park's up-front investment. RV guests would be paying fees to an outside service, and the rates would essentially be beyond the park's ability to control. From the RVers perspective, the actual "daily rate" would be the sum of the park's daily rate plus the wireless vendor fee.

The bottom line here is that RV parks will look at Wi Fi either as a “revenue opportunity” or as a “marketing opportunity”. We think in-park wireless will bring RV parks significant new revenues – not because they’re getting a percentage of a fee, but because RV guests will choose a park with free wireless access, and/or stay longer when they discover the park has free in-park wireless. As wireless high speed connectivity grows – and it will do so at a very fast pace – RVers will begin to make choices to stay at parks where the service is available at the lowest possible cost. We question the wisdom of parks making a long term commitment to an outside service provider that is charging rates that may soon appear non-competitive – and drive RVers elsewhere.

HOW DIFFICULT IS IT FOR A PARK TO OPT FOR A “DO IT YOURELF” SOLUTION?

The system isn’t difficult once all of the parts are in place. Most important is working with someone who understands wireless applications fo RV Parks, rather then someone who is experienced in Wi-Fi for offices. There is a big difference between offices and large RVs that are often parked parallel to one another, blocking the “line of sight” required for effective wireless service.

Once we'd been through the process of precisely how to set up a wireless system in an RV park, we became quite comfortable with it. Hopefully parks considering a “do it yourself” approach will have the benefit of some help from a person familiar with wireless applications in RV parks. It will save both dollars and headaches. We of course can help any park interested in setting up their own system. But the main thing is that they should contact someone who has experience with wireless systems designed specifically for the needs of RV parks.

WHAT ADVICE MIGHT YOU HAVE FOR OTHER PARK OWNERS THAT MAY BE CONSIDERING ADDING WI FI?

Third party providers of Wi-Fi have the option of raising rates. If you, the park owner, have a long-term contract with them, you are at their mercy. Your guests are not! They may decide to leave for another park that is less expensive. And while Wi Fi is a new technology for most RVers, we are convinced it will grow at a rate far faster than in the early days of “modem friendly”. We think all parks need to become familiar with their options for offering wireless access, and address this issue promptly. Because once RVers have experienced the speed and convenience of in-park wireless, this will rate very high on the list of amenities they’ll be looking for when booking a reservation.

As some parks have recently discovered, one easy way to get started is to simply provide free wireless access in and around the park's main building. This usually catches at least some of the sites located immediately adjacent to that area. And for RVers parked beyond the wireless coverage, they can bring their laptop into the building's lounge, adjacent patio, etc., and get a high speed connection. This is much more convenient than waiting for an available phone line, and the slower diao-up connection. Perhaps best of all, with this "first phase" setup in place, it is usually quite easy and inexpensive to take the next step and provide outside antennas to broadcast the signal throughout the entire park.

Finally, we believe there is a persuasive case for parks to consider offering the service without charge. Seattle’s Starbucks coffee has offered Wi-Fi for a daily charge. A new coffee company opened in Seattle, offering free Wi-Fi, and their business is booming. Where would you rather have a cup of coffee while you surfed the Internet?

We love the quote we recently heard, “Wi-Fi is like air conditioning, nobody will make a lot of money from it, but everyone will have it”. Would you stay in a hotel that didn’t have air-conditioning?


BACK

MAIN MENU