Monday, November 07, 2005

InRoom Connect Providing Internet Connectivity

What does InRoom Connect mean by "no up front costs or capital expenditure"? Why is that important? What is the InRoom Connect business model that permits a hotel to purchase the system?
By "no up front costs or capital expenditure" InRoom Connect means that this service is a cheap cost for a hotel. Indeed, when users purchase the system, they don't need to pay for it in advance or it is not some kind of investment: you pay as you use it.
It is important because the hotel pays the system's company only when a guest is in-house. Moreover, the hotel will charge a fee to the guest for using the system which will pay directly the hotel a large amount of revenue. It is also important because that way the property does not need necessarily to invest a great amount of capital just in order to be able to have this system.
The InRoom Connect business model that permits a hotel to purchase the system is the application service provider (ASP) model; the system can be very expensive but as users pay only as they use it, the cost becomes very affordable.

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