• The new (and expanding) “Hotspot” market
   
• The benefits to the visitor
   
• Attractive more visitors to your site 
   
• Increase your revenues

An increasing number of tourists are taking their Wireless-Enabled (Wi-Fi) laptops with them on holiday. This enables them:- 
to keep in touch  
use their e-mail 
browse the internet and for many, (or their children on a wet day) to play online games.
- All at broadband speeds

To do this effectively and at reasonable cost they need to be in range of a wireless “hotspot” to connect to the internet. These Hotspots are now being provided by hotel chains, coffee bars and restaurants, airports, boating marinas, etc.. Some provide free access to the internet (to increase custom) others charge, usually by the hour, £6.00 per hour being a norm rate for businessmen on the move.

It is for this reason the adoption rate of Wi-Fi technology has grown exponentially, with the sale of millions of wireless enabled laptops and approaching ten thousand Wi-Fi hotspots already in the United Kingdom alone.

Many caravan site owners are already providing hotspot facilities to their visitors, usually charging a fee while making their site more attractive to the visitor than the non-Wi-F enabled site down the road.

In time this may become a necessary service like water or electricity and over time this may become a necessary free service as in the USA.

The benefits to the visitor are all those to be obtained by use of the internet.
These include, amongst many others, access to e-mail, information look-up – restaurants, visitor attractions, on-line films, music, games, on-line banking, etc..

Make your site more attractive to the visitor by adding this service to those already offered and getting one step ahead of the competition.

How?

Somerset Systems/MyZones offers a complete out-of-the box service that includes all the hardware and software needed to install and manage an internal Wi-Fi network. For businesses that need it, we also supply the broadband service so that users get fast, uninterrupted Internet access while online.

In addition, we provide an on-site survey, to ensure efficient Wi-Fi coverage (with possible signal boosters for large sites) together with a full on-site Installation service.

How does the system work?

The visitor provides his own Laptop or Wireless enabled device.

This is connected to a Wireless Access Point by means of the Wi-Fi hardware and software within the laptop.

The visitor is automatically redirected to a Landing Page where he or she can buy an Online Voucher or subscribe to the system via Credit Card or mSMS (mobile telephone messaging system)

The system then permits Access to the Internet for the period of the authorized access.

The service includes all the modules needed to run the WiFi solution including payment gateways, access points and configuration and a broadband connection where needed. We also provide landing pages for users which can be customised to allow special promotion of products or services and to advertise the caravan park to users. This is a unique point for our service and is where we really stand out in this market. The payment module is totally customisable by us and therefore allows different payment profiles to be set up for different sites. Payment can be via a number of key methods such as credit card, direct debit for monthly fees and sms mobile charging giving ultimate flexibility for end users.

(For more details see the Appendix)

Increased Revenues

Merely by providing the service caravan sites are likely to improve their position in the market and increase visitor numbers.

However Somerset Systems/MyZones offers site owners a percentage of the revenue obtained from visitor usage.

The system we provide is fully managed, simple to install, and expandable. The key benefits of the Public Zones Service are:

• Rapid ROI - Low costs & high returns, return on investment is rapid.
• New Revenue - Allows extra income stream & possibility new customer.
• Increased Occupancy - New feature enticing new customers from competition.
• Advertising - Control over part of the first page a customer views (optional).
• Point of sale kit - Impressive POS kit to announce the services arrival.
• Secure - Facilitates VPN pass through security for risk free connectivity.
• Simple Payment procedure - Reducing your involvement in the process.

Two methods of operation are offered:

• For the static caravan park with all year round incomes, it is suggested a monthly sum is added to the monthly site rental for those occupants wishing to avail themselves of the service.
• For the touring van park with short-stay visitors either a daily or weekly rate added to the site fees (as per method one) or a usage fee based on an hourly rate.

Both methods will involve a once-off set-up and installation fee.

What are the costs and income for the site owner?

The costs for the service are split into site setup fees (£250) which cover the cost of installing the solution, including a qualified engineer where needed (subject to additional fees). The monthly cost fees pay for the broadband service and the operation of the service on a monthly basis along with any necessary support and maintenance.(Approx. £18.00/month) The usage fees are then charged to end users based on rates we feel are acceptable to the market – current rates for travelling businessmen are typically £6 per hour or £10 per day but you may want to offer weekly, monthly and season passes for such venues as caravan parks.

The usage or service based fees paid by the visitor (possibly £10/week per caravan) are normally split 50% to the venue owner and 50% to Somerset Systems/ Myzones. These splits are to incentivise the venue owners to promote the service as this, in our experience, is the key to success.

Installation of the service and possible other costs can be reduced by application for a 50% Matching Grant from Somerset County Council - Connecting Somerset Broadband program. Somerset Systems can assist in the grant application process.

Taking a theoretical example:

Static Van Park

Normal set-up and installation fees: £250

Assuming a static van park of 50 vans of which 20% agree to take the service by paying an extra £10 per month in the ground rent-

10 vans @ £10 per month = £100 per month = £1200 p.a. of which £600 is returned to the site owner.

Gross profit in first year £600 - £250 setup = £350

Less Broadband Access Fees say, £16 per month = £192 p.a.

Theoretical Profit First Year £158 per annum

Second and subsequent years £600 - £192 = £408 per annum

Touring Van Park

Many Touring Van Sites have a limited season of approximately 6 months.

In addition, most visits are for short periods, a weekend, a week or maybe 3 weeks. However the need for connecting to the internet remains the same, from the increasing number of computer literate “greys” , to the younger generations expecting online access for games etc..

It is not expected that these market segments (or their parents) would be prepared to pay £6 per hour or £10 per day as a businessperson is now prepared to do.
However as the monthly Broadband Access rental of say £16 per month is “always on” , there is no risk of adding to a normal site fee of say £17.40* per night a fee of £20 to cover unlimited usage during a typical 2 weeks’ stay. This usage would be typically limited, depending on weather, to some evenings plus the occasional rainy day. This fee could be varied by season by the caravan site operator.

(*Based on Caravan Club Mid Season rates 2 adults 2 children plus pitch charge)

Theoretical Example.

Average of 50 van occupancy at any one time, during a typical season from early April to early October say 27 weeks of which 20% opt for the extra charge of £20 per 2 weeks, equals:-

50 x 20% = 10 vans @ £20 per 2 weeks = £200 per 2 week. Equivalent to £100 per week times 27 weeks = £2700 of which the site owner receives 50% = £1350

Less

Broadband Access charges say £16 per month chargeable for full 12 months equals £192

Less setup fees £250

Theoretical Profit First Year £908 per annum

Second and subsequent years £1350 - £192 = £1158 per annum

These examples are provided so that site owners can easily calculate their own budgets based on occupancy rates and alternative charging methods and are not provided as examples from real practice.

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