How to generate hotel revenue using IPTV tech?

As a result of new competitive booking services, some hotels may show a decline in revenue. It might be your hotel.

As technology continues to evolve, hotels are adopting new ways to enhance the guest experience and generate revenue. One such way is through the use of IPTV technology, which enables hotels to offer a range of services to their guests through their in-room televisions.


In recent decades, competition in the hotel industry has intensified with the proliferation of various hotel booking services. It is now much easier for guests to compare booking prices in a region and choose the optimal option, leaving more expensive offers to the left. This can lead to some hotels losing revenue. This could be your hotel as well, and you will only realise that something is wrong when quarterly and annual reports show such a discrepancy with previous results. So you need to plan some countermeasures in advance. One way to plug such holes in your hotel's budget is to offer additional revenue-generating services to guests who stay at your property. In this article you will learn how to upgrade your hotel's TV system with IPTV technology and generate additional revenue.


This graph indicates an example of the booking price drop, prepared by KriyaRevGEN




ROI from Hotel TV systems upgraded with IPTV technology



IPTV has been the subject of extensive investment over the past decade, following the global trend IT. To be fair, a hotel following the TV hotel trends actually benefits from installing the latest Hotel TV system. Value-added services generate additional revenue, facilitate hotel management and help maintain competition. This kind of investment in hotel infrastructure is a good sign ROI and not only covers the installation costs, but also generates additional revenue when guests start using paid IPTV services.


In the last decade, the revenues of several hotel chains have increased with the help of IPTV technology, which has significantly improved the TV system in these hotels. Hotel guests enjoyed the additional services of the IPTV system and the convenience of the IPTV user interface. Hotel managers and administrators found it easier to manage the hotels equipped with the PMS integrated with the TV system.



Technical data



The reason why IPTV technology offers such advantages for TV hotel systems is that it uses an IP protocol; Android in the client app and Linux OS in the server part. IP is a protocol that allows data to be transmitted in both directions. So if your guests want to watch the latest movies...? That's no problem. Do you want to collect statistics from each room and see which movies your guests prefer? That's entirely up to you. Is your hotel a resort where many families stay? Kids and parents want to play video games, and the IPTV set-top box is actually a good gaming platform. And thanks to the openness of the Android and Linux platforms, which are supported by a large community of developers and enthusiasts, it's possible to implement just about any feature.


CATV, analog TV and DTV systems do not remotely resemble the capabilities of IPTV. And, of course, there is no chance that these older technologies can match IPTV in terms of flexibility, variety of services and features. With IPTV, any kind of digital service can be offered via a hotel set-top box TV, and you can charge for the use of these services. The integration possibilities open up another field for the overarching use of the IPTV system with the aim of facilitating the hotelier's work and making operations more transparent.



Trends in the hotel TV system solutions


In the first half of the last hundred years, television was the most sought-after form of media entertainment for hotel guests. Thanks to IPTV technology, hotel guests still watch TV, even though they all have tablets and smartphones with access to their favorite content and apps. Yes, they tend to get distracted by their smartphones or tablets, but IPTV is there to save the day. TV Hotel systems are not the same as they were 10 years ago. They now offer the same features guests are used to on their tablets or smartphones, only this time on a big screen and from the comfort of their couch or bed.



Graph, prepared by VentureBeat based on an Accenture survey



"Watching TV shows on devices other than the traditional television set is becoming more widespread, and the pace at which people's viewing habits are changing is accelerating. According to a recent survey, only 23 percent of people now prefer TV to watch shows, down from 55 percent last year."

Says Techspot, based on an Accenture survey




IPTV Entertainment



Systems based on IPTV technology in hotels TV are true entertainment centers that include all kinds of services typical of networked platforms and devices we use every day. Internet, social networking, music, YouTube videos, Netflix movies, games, apps, messenger services and many other things are now hosted through the hotel's TV system.



Even ordering food and checking out are now just a click away through the hotel's interface TV. Images are so much more engaging than a single line of text in a printed menu. Guests who are otherwise unsure and afraid of what they might get can now order without fear. Other useful service applications are also available for quick integration. Aggregation is currently a big trend, with numerous systems available at IT, and the ability to integrate them is critical when it comes to efficient workflows.




Services with added value


Surveys show that revenue from value-added services is growing rapidly.


IPTV is clearly having a good time, as both the CAGR for the industry as a whole and RGI, which impacts hotel RevPar metrics, are expected to increase immensely over the next few years. For example, iBahn, backed by financing from JPMorgan Chase, has successfully invested in upgrading the TV system of hotel chains such as Hilton, Marriott and others with IPTV technology. These big sharks can not be wrong; IPTV is the right choice for any hotel looking to increase revenue.


Netflix has shown that viewers prefer the content of their choice over programming on traditional live channels TV. The hotel's system TV, supported by the IPTV Video on Demand server, gives guests the freedom of choice they desire. The list of live channels from TV can be easily changed or updated, especially for IP content that is not tied to the geographical location of the hotel. Thousands of channels, different languages, time zones and genres are available from content providers over IP networks.





IPTV potential


Many direct revenue generation models are available through Hotel TV 's system. Renting the latest movies, accessing paid movies and channels, ordering food or purchasing merchandise from the e-store, making international calls, accessing the Internet and more - all through a unified IPTV system interface. Indirect revenues are also generated from information services such as advertising, banners and digital signage for various services such as car rental, tickets, travel guides, etc.


The potential of IPTV to enhance the guest viewing experience is becoming increasingly clear. A 2010 report by MRG indicates that over 11 million hotel rooms and 1 million airline seats could be IPTV-enabled. IPTV expands choice and offers the potential for a range of interactive services, such as the ability to instantly purchase items that appear on a TV program - which could create additional revenue streams for hoteliers. - Amadeus, "Hotels 2020: Beyond Segmentation


Here are some ways to generate revenue off hotel TV using IPTV tech.


1.Offer pay-per-view movies and TV shows


One of the most common ways to generate revenue off hotel TV is by offering pay-per-view movies and TV shows. With IPTV technology, guests can easily access a variety of entertainment options through their in-room TV. Hotels can charge a fee for each movie or show watched, with the revenue going directly to the hotel.


2. Sell advertising space


Hotels can also generate revenue by selling advertising space on their IPTV platform. For example, they can offer local businesses the opportunity to advertise their products or services to guests through targeted advertising. Hotels can charge a fee for advertising space, with rates based on factors such as ad duration, time of day, and location.


3.Provide in-room dining menus


Another way to generate revenue off hotel TV is by offering in-room dining menus through the IPTV platform. Guests can easily browse the menu and place orders directly from their TV, with the revenue going to the hotel. This not only generates revenue, but also enhances the guest experience by providing a convenient and streamlined way to order food.


4.Offer virtual tours and activities


Hotels can also use IPTV technology to offer virtual tours and activities to guests. For example, they can provide virtual tours of nearby attractions, such as museums or historical sites, or offer interactive activities, such as cooking classes or fitness classes. These experiences can be offered for a fee, generating additional revenue for the hotel.


5. Sell upgrades and add-ons


Finally, hotels can use IPTV technology to sell upgrades and add-ons to guests. For example, they can offer premium movie channels, high-speed internet access, or late check-out for an additional fee. By offering these upgrades and add-ons through the IPTV platform, hotels can generate additional revenue while providing guests with a convenient and streamlined way to enhance their stay.



The wide range of content ensures that you meet your guests' expectations



A TV hotel service must include multiple language packages in the channel list to accommodate the main nationalities of guests. This way, a hotel can be sure that it will not miss out on potential revenue due to differences in content localization. This is where IP content comes into play. Typically, live channels are received from broadcast sources such as satellites or antennas. With IP networks, live streams can be received from almost anywhere in the world. This way, guests can watch their local news or favorite shows in their native language despite the long distance. With IP content, it is very easy to add, remove or manage channels.


If you have exclusive content on your network, you need to protect it, especially to make sure you do not lose potential revenue. Hotel TV 's system makes it easy to protect contents as if they were in a safe. By using various techniques to encrypt the contents and making it impossible to reuse the stream address, the IPTV system effectively hides the contents from malicious intentions.




Network and infrastructure for the hotel TV powered by IPTV



IPTV technology has no special requirements and any hotel TV can be upgraded with it. Ideally, CAT5 or CAT6 cable should be used to connect newly installed IPTV headends and set-top boxes that become part of the Hotel TV system. An existing Ethernet network can be used or a new network can be installed.


In cases where it is not possible to install an Ethernet network, a coax network can be used as it still allows the transmission of IP data. Switching from coax to hybrid TV is possible and is an effective solution. Since IPTV can share a network with services such as VoIP telephony, broadband Internet and other services, a hotel can save on infrastructure and use a single converged network for all services that require such a network. The only concern is bandwidth and proper network segmentation, which can be successfully solved if the network is properly planned and designed from the beginning.




Android set-top boxes



Android STB is a classic way to enable an IPTV service on a regular TV panel. It is a small computer specifically designed to decode IPTV streams and provides an Android OS environment to host an Internet browser, apps, games and a client app for IPTV services. Although there are several ways to enable IPTV services on a TV panel, the set-top box solution is the most reliable and flexible.


Nevron FastBox product


FaSTBox Luxury Set-Top-Box with all the most demanding inputs for hotel needs.A set-top box running Android OS, with the IPTV client app installed, provides a smooth, intuitive and rich user experience that can be optimized, customized and enhanced through simple software updates. By integrating with other systems used in the hotel, the TV system becomes a powerful medium that provides guests with the most requested and important services and is used by hotel management to manage the property.




Alternatives to set-top boxes



Global convergence is increasing and trends tell us that we need to integrate things; IPTV technology is also trying to stay integrated. Interestingly, the external set-top box has been moved inside TV, in the form of a small module that turns ordinary home panels TV into smart TVs. Manufacturers such as Samsung, LG, Sony and Philips are trying to market their smart TV models in a way that adds value to TV users and positions the smart TV as just another type of Internet-enabled device. In fact, it seems like a good idea to extend the functionality of TV devices with apps, an Internet browser, online content, games, communication apps, social networks, and so on.


This has indeed worked and helped users not abandon TV in favor of more flexible smartphones, tablets and laptops. Still, manufacturers impose far too many restrictions and specifications on their own TV hardware and software. We recommend reading this article: hospitality TV. There you will learn why using an external set-top box as part of a TV system in a hotel is still a better option than using a SMART TV client.




Real use cases



A good example we had recently is the luxury cruise ship Silversea. The company offers 5-star service and strives to provide it in all areas. On TV, there was no solution for running TVs in areas where there was no satellite signal. Guests then had nothing to do with TV, nothing to watch. Now, with an IPTV system, when they turn on TV, they can see a large collection of movies and services with locations and times that the ship offers. Instead of the dead TV channels, they can see a collection of Silversea promo expedition videos (ads for other expeditions) and live cameras on board, as well as a special TV channel that shows the ship's location on a map. They have found that guests are more satisfied. When we set up Hotel TV 's system, they personally and specifically thanked us for the movies and the ship map. When we later spoke with support on the ship, they said that the reports of TVs not working had immediately decreased. Below is a picture taken on the ship after the IPTV system went live.



Silversea Explorer I.T. Communications Officer, June 2017


Another good example is Rogla, Unitur Sport resort & Climatic SPA. There are winter and summer activities there, and athletes train all year round. Their company also makes all kinds of tools, so we decided to set up a shop menu at the hotel TV with bike tools that guests could buy. After a few months, they reported that guests were buying tools quite frequently. We were sceptical at first because we don't usually create this type of content, but it seems to be working here because guests are coming in regularly. Below is an example of a full-screen image of an info channel promoting ski tickets. The info is automatically removed when the duration of the promotion expires. The receptionist no longer has to worry about which offers need to be removed.



Screen image advertising ski tickets at Rogla, Unitur Sport resort & Climatic SPA




In short...


Finally, we take a look at the current situation in the hotel market and the systems of TV and how IPTV technology can help. Hotels are facing more competition from booking services and the hotel industry has to face this new reality. TV Manufacturers are trying to retain customers by offering converged devices that can do more as they have to compete with smartphones and tablets. Would not it be a smart move for a hotel to take advantage of this strategy and offer something else from its hotel TV in addition to the channels from TV?


Fortunately, the IPTV industry cares about its customers and offers many opportunities for hotels looking to generate additional revenue through value-added services they offer their guests via TV. IPTV offers another way to reduce a hotel's costs by using coaxial cable or a converged Ethernet network. It also supports integrated management tools such as the Property Management System, which enables hotel management to manage the hotel more effectively.




Have you won yet?


IPTV technology offers hotels a range of opportunities to generate revenue and enhance the guest experience. By offering pay-per-view movies and TV shows, selling advertising space, providing in-room dining menus, offering virtual tours and activities, and selling upgrades and add-ons, hotels can generate revenue while providing guests with a convenient and personalized experience. As technology continues to evolve, hotels that embrace IPTV technology will be well-positioned to succeed in a competitive industry.


Is your hotel in the league of most popular and most booked hotels? Can your guests say that everything was perfect during their stay? At Nevron, we have already taken care of your guests and are ready to help you improve your hotel business by upgrading the TV hotel system and using the best IPTV technologies developed with the latest trends in mind.


Contact us today for a free consultation and let our specialists discover more ways to give your guests a new look at the media entertainment they can receive through the hotel's TV system.


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Published on February 19, 2022

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