Multi-access edge computing (MEC) and 5G are changing the way we can connect with each other and receive information in real time, and from just about anywhere. Data is no longer stored at distant data centers, but rather at the network’s edge – bringing it closer to the access center and end user 5G devices. Through these emerging technologies, hotels are able to use cloud computing capability and IT service environments to reduce expenses and drastically improve in-room entertainment for guests.

Costing the hotel industry billions of dollars, COVID also illustrated a number of gaps in technologies and fee structures that no longer serve hoteliers or their business. Among critical errors in budgeting for a big disaster: not accounting for the cost of in-room entertainment was a severe problem for hotel properties everywhere. Current costs accrued by inflexible fee structures made to trap properties into expensive commitments for middle-of-the-road content are outrageous today given the emerging platforms and offerings in streaming content.

Rather than buying a cable package for a 40-room lodge, a smaller property manager can provide smart TVs with the capacity for individual Netflix logins that require little in the way of recurring fees. Additionally, there are more ways than ever to customize premier streaming content packages that can be served up with custom hotel property branding through interactive displays that can be managed, optimized and monetized. Creating new revenue streams for hoteliers and reducing overcall costs, these interactive displays can also act as 24/7 virtual concierge services.

Say goodbye to cable complications

Cable is expensive, especially when property managers are stuck covering the same costs no matter the rate of occupancy. For operators, the first step to saving on in-room entertainment is letting cable go. New digital out-of-home (DOOH) content management systems make it possible for hotels to cut the cord and still provide guests with the content they want. Best of all, package pricing can flex with bookings and properties can commit to only pay when guests are booked into rooms with streaming content. These guest-centric systems bring the entertainment options guests demand – from streaming A-list movies or sports and music to concierge-like services – at the right price for the establishment. There are different tiers of in-room entertainment models -- consumption-based or premium -- which an operator can choose from, depending on their guests’ requirements.

Cable contracts often last many years, and even when rooms go unoccupied, hotels must continue to pay exorbitant fees. DOOH entertainment systems reduce costs by using flexible fee schedules. Thanks to consumption-based plans, hotel operators don’t pay when rooms are unoccupied. Properties can pick and choose which streaming services they provide their guests with – on a budget they’re comfortable with. Guests will no longer have to tolerate basic cable and pay-per-view options, but will be able to stream live and on-demand TV shows, news, music and even box office movies.

Generate revenue from advertising

While using a DOOH network, hoteliers can generate revenue from advertising that’s customized based on guest preferences and local offerings. Hotels can provide direct advertising through the cloud content management system for on-site restaurants and activities, or partner with local and regional businesses and attractions. While saving money by ditching cable, properties can also increase revenue through ads served directly to their guests. Hotel management can gain rich customer insights through real-time data analytics – essentially getting to know customers better, making it possible to choose more thoughtful and targeted content for advertising. This hyper-personalized customer experience is constantly being updated as new data comes in and is analyzed. This also can increase brand loyalty – the more you know your customers, the more likely they are to book with you again down the road.

Enhance internet and infotainment experiences with 5G

Are your hotel internet services in need of a general update? That’s a massive expense. However, there are now companies that can reimagine a hotel's entire internet and infotainment system by installing a 5G network right on property to provide ultrafast internet speeds, increase the speed and capacity of streaming content and content package offerings, improve broadband reach, support thousands of devices, improve accessibility and provide better security. Customers need secure and fast internet and want convenient entertainment; this can all come in one package.

Utilize interactive customer experience technology

Personalized greetings and content options make for a better guest experience and ultimately, increase the hotel’s bottom line. By shifting personnel-heavy tasks to an online, self-service concierge system, hotels can also leverage a DOOH network to limit staff costs by utilizing the distributed network to interact with customers from their personal screens (phones, tablets), in-room TVs or screens at select locations. Imagine making reservations using in-room remote controls, offering concert tickets to passersby as they walk near an on-site venue and browse the calendar of events on digital displays. These critical touchpoints that have often taken staff and concierge time on the phone can be redistributed through the new entertainment network in an all-in-one service platform.

In conclusion, hotel cable packages are soon a thing of the past. In order to provide a critical win in the guest experience and to better budget for future events, every hotel provider should consider shifting away from traditional in-room entertainment in lieu of a more modern approach.

Dana Sullivan Kilroy
+1 775 828 2495
Edison Interactive