AUGUST 10, 2023 - NEWS

Three Considerations For Campground Leaders When Charging For Wi-Fi

AUGUST 10, 2023 - NEWS

Three Considerations For Campground Leaders When Charging For Wi-Fi

September 2, 2020 - NEWS

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To charge for Wi-Fi or not to charge for Wi-Fi? This is one of the often-asked questions in the hospitality and travel industries. For example, look at air travel. I remember when Delta started first offering Wi-Fi in-flight. The traveler had to pay for it. Now if you have a SkyMiles account or sign up for one in-fight, they give it to you for free on many of their domestically flown aircraft.

Now many modern travelers expect Wi-Fi will be available throughout their journey, and campgrounds are starting to see that expectation creep into their industry as well. Even if the location is remote and far from standard internet infrastructure. I mean, if an airplane can do it at 30,000 feet, why can't a campground?

And just as not all airlines give free Wi-Fi service, campground operators should consider the following three items when considering whether to charge for Wi-Fi or not:

1. Wi-Fi is viewed as an amenity by guests, not as a utility.

Camping offers a wide variety of stay options that appeal to a broad range of guests. From staying in an RV or pitching a tent, to staying in a cabin. Not to mention the type of experience can vary from staying at a state park to being on-site at a world-class vineyard. For example, glamping often attracts guests who had not previously considered camping because it was seen as too uncomfortable or unfamiliar.

But one thing many of these guests have in common is that, for the most part, Wi-Fi is viewed as a must-have amenity. Remote work options have increased this expectation. In fact, KOA's 2023 North American Camping & Outdoor Hospitality Report shows that 40% of campers surveyed said that access to Wi-Fi had a "great deal" of influence on their ability to camp for a longer period of time—which means a fuller park.

In addition, the same study found that 62% of suburban/rural residents and 80% of urban residents found that their access to technology was a barrier to camping.

2. Evaluate your overall install and maintenance cost.

While campers might see Wi-Fi as a must-have free amenity, campground owners know that all amenities have a cost attached to them. Providing Wi-Fi in campgrounds requires installing routers, antennas and network equipment. It often means working with a local service provider to see if your remote area can get the necessary infrastructure or purchasing remote satellite solutions.

When deciding to install Wi-Fi, make sure to keep all these factors in mind, as well as the initial installation cost. Use these hard costs to evaluate how much you should raise your rates per site.

Bottom line, the investment in Wi-Fi should increase the value of the camping experience. And that is worth more. One way to cover those costs and make more money long term is to build it into new rates. That way the camper gets their Wi-Fi without a separate charge, and the campground can increase revenue.

3. Not all Wi-Fi is equal, nor are your sites.

Not all RV campsites have electricity and sewer access. Many tent sites don't have water. The same is true about signal strength and speed of your Wi-Fi. Another great solution for campgrounds to increase revenues through Wi-Fi is to provide both a free and premium option for Wi-Fi.

The free or complimentary tier of Wi-Fi should be fast enough to let a guest send and receive email, text and make calls. But for those who desire to use streaming services or gaming apps, your campground can offer a premium paid option. This is a pretty fair solution as I've found most campers are willing to pay for more usage.

This is similar to how campgrounds are handling electric vehicles and the increased cost associated with charging them. For example, traditionally electricity is included with the cost of the overnight stay at most campgrounds. But with increased electrical demand and utility costs charged to the campground with the arrival of EVs, many campgrounds are switching to a metered usage approach.

If a campground took a similar approach with a premium Wi-Fi option, the campground could make a profit and pay for the cost of installation and maintenance, while expanding its overall benefits to campers.

For instance, consider a typical short-term RV park with 150 units that charged $5 per night for premium Wi-Fi (which is the same as many airlines). Many campgrounds have an average of 70%-80% average occupancy for their season, and if they had about 30% of the guests using that service through a typical eight-month season, they could expect to make an additional $252 per campsite per year.

If that short-term RV park spent $100K to put in a quality Wi-Fi service, they would start making a profit about 5-6 months into the new offering if they increased their base rate by $5 and implemented a $5 additional charge for premium Wi-Fi.

It's definitely worth considering your options.

Conclusion

In conclusion, campers' expectations are likely going to continue to grow and include on-site Wi-Fi as a must-have amenity. Any campground owner who is considering installing or upgrading their Wi-Fi capabilities should explore their options and realize that there is no one-size-fits-all solution or approach to cover the costs of the infrastructure and maintenance.

If you're looking for more information about strategies behind charging for Wi-Fi, Richard Rothschild from WiFi Charlie—who contributed to the information in this article—is an excellent resource.