After a long time of waiting, hi-speed internet is coming to our cottage area, and we’re now considering installing it at the cottage. Like everything we do there, any improvement must meet the ‘Does it sell more chickens?’ criteria. Apart from those necessary to keep the property up to the high standard our guests expect, other expenses have to be justified by answering the questions:
Is there demand?
Will it increase occupancy?
Can we increase the rental rate?
Buying a hot tub in 2006 was one of the best moves we’ve made since we bought the cottage and answered all three questions with a resounding ‘Yes’, allowing us to pay off the cost of the tub in the first year of use. So, we’re applying the same reasoning to the hi-speed internet installation.
The cost is just under $150 to install and the monthly fee is $50, so I have to make sure the return is over $750 in the first year.
Demand
Requests for internet access have increased over the past year to a point where it’s in the top five most asked for criteria, particularly in the low season period. The reasoning for this we figure, is that people are happier to take more short vacation breaks if they are able to keep in touch with the office, or even bring some work with them. So, faced with a choice of several cottages they are more likely to select the one with the internet connection.
Occupancy
Given the demand as noted above, there is a good chance that we will sell more short breaks in the low season. We may also find that people take more extended breaks as they can connect to their workplace when necessary. I know as a self-employed person myself, that I could not be away from my email connections for more than a couple of days as my business would suffer so having access to hi-speed internet would be a huge advantage for me.
Rental rate
There is scope to raise the rental rate by around $40 per weekend and still give value for money. People will pay a premium for a property that gives them more value; allows them to connect to the office while away, and gives them peace of mind that they are not missing out on potential business.
From this analysis we’ve decided to install the system and give it a year’s trial. If we book two additional weekends over last year’s occupancy levels, because we’ve added the internet connection, it will pay for the service for the year, so it’s definitely worth a try. I’m thinking this will sell more chickens but time will tell, and I’ll be reporting back with the results.
{ 5 comments… read them below or add one }
Hi Heather, IMO adding Internet at the cottage will add some value. I, for one, would be more likely to rent a cottage with Internet. However, I don’t think I would be willing to pay a premium for the service. So, if similar cottage were renting in the same price range, I’d take the one with Internet…AND the hot tub!
BTW, I’m visiting from your comment at RemarkaBlogger.
Coryan, given two cottages with the same facilities and rooms, then I too would go for the cheaper one, but often there are no two equal holiday homes. Even if both buildings were identical in design, the interiors (kitchens, bathrooms, decor) and general quality of facilities will separate them in value and experience.
$750 is quite a big extra cost for a year of internet, but given that this will become the first rental property in the area with high speed internet and given the growing demand from renters, I think it will be money well spent. I for one would not stay anywhere without internet – it’s the first requirement on my checklist.
Go for it!
Please add Internet it makes everyone’s life so much easier – i know we’re suppose to be on holidays, but no Internet? How many times did you log on during your fall road trip? Weren’t you grateful when you saw the wireless bars light up?
Cheers,
Julie
http://www.cottagedaily.com
PS got a chuckle about your renters who left everything exactly the same.
Jules – you are absolutely right. My laptop is welded to me and I just wouldn’t enjoy a vacation if I didn’t have the internet connection. For me it’s like having a good book to read. My vacation is when I have the time to really kick back and surf for fun and not business.
Jake – so few cottages here have internet access that it is a great feature to offer. Many renters are very willing to pay a little extra for the facility.
Coryan – yes, the hot tub is a big draw too, especially on a snowy night!
Hello Vacation Rental Owners,
We installed a WiFi connection at the end of 2007. It has been a huge draw to our rental. And no we did not raise our rates because of it. Maybe because we use VRBO as our major source of booking our beach house we find our guests extremely computer savy. We have really made up for the cost with the extra bookings it has brought us.
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