Net gains

01 January 2000
Net gains

Internet fever may be gripping the public, but until recently it has left many businesses wondering what all the fuss is about.

There are 29 million possible customers in "cyberspace", however, providing a great opportunity to increase business at low cost. Offering Internet access and using the Internet for promotion and bookings are both growth areas for the hotel and catering world.

The Internet is thousands of computers linked together around the world. It is a massive interactive communication device that allows its users to access information, buy goods and send electronic mail (e-mail) 24 hours a day for the price of a local phone call.

To access it you need an Internet account, a computer and a piece of equipment called a modem, which allows graphics, sound and text to be transferred down an ordinary phone line. The equivalent of a hotel brochure, for example, could be sent to someone in a few minutes.

To open an Internet account you need to contact an Internet provider, a company that lets you "rent" time on the Internet. An account will give you an e-mail address and the necessary software to get started.

A typical session on the Internet works like this. Using a modem and computer you dial a telephone number obtained from the Internet provider. The modem will connect your computer via the phone line to the provider's computer and you are now on the Internet. It all takes a matter of minutes.

Internet-ready computers have started to appear and cost about £800 to £1,000. An existing computer will need to have a modem fitted, which costs about £200 to £300.

The two main uses of the Internet are e-mail (a document that can be sent from one computer to another anywhere in the world in less than a minute) and the World Wide Web.

The Web is where most of the action - and most of the advertising - is. It is best described as a big, interactive book. You can access Web "pages" via a normal computer. These pages are screens of graphics, photographs, sound and text. If you find something interesting you can then "jump" to a page for more details.

The Web is accessed using software from the Internet providers. The most popular is Netscape, a Windows-based software package which allows you to view Web pages and to transfer them to your computer if desired.

The Internet is a perfect advertising medium. It is cheaper than conventional methods and can be targeted towards specific audiences or made generally available. It also allows customers from abroad to get in touch quickly and cheaply.

Before you rent space for a Web page it will need to be "written" and designed. Some Internet providers offer this service, though you can go to specialist companies to have it done for you. It is impossible to say how much it will cost, because every Web page is different. Most design companies will give a quote before you begin. A rough guide would be about £200 a day.

Companies such as the Hilton International Group and HotelNet are already on the Web, attracted by the potential custom.

The Hilton International Group came on to the Web to place promotional material about its services on what corporate vice-president of marketing Geoffrey Breeze calls "a new and exciting medium". It hopes to make its services better known to both the travel industry and frequent travellers.

HotelNet lists hotels and their brochures in full colour, plus extras such as maps. Users can access this information and make bookings accordingly. At the moment, most of these are made off the Internet by phone. HotelNet says most enquiries come from the USA, but there is increasing interest from Europe.

The Internet is not owned by anyone, but it does have its own set of unwritten rules and many businesses have fallen foul of these. Advertising and the presence of businesses on the Internet has upset some of its long-term users.

These unwritten rules are simple. Don't use certain areas of the Internet (such as Usenet) for advertising, keep it to the Web. Don't use too many graphics and photographs on your Web page as they take a long time to be transferred and cost the user a lot in telephone charges. And don't "mailbomb", that is, send the equivalent of a direct mailing via e-mail. Though in principle it sounds a good idea - lots of messages sent at very little cost - many users object strongly to it.

There are moves towards setting up mailing lists on the Internet for specific, direct e-mailing. Mailing lists are subscribed to at no or very low cost by Internet users. Currently they are just for specific interest groups. Whether it is successful or not remains to be seen.

Other problems, such as hackers and computer viruses, have been over-hyped in the tabloid press. Most hackers are only interested in proving how clever they are at getting into a system. Once they are in, they may leave a "tab", a message saying they got into the system, but nothing more.

Catching a virus

It is impossible to make the Internet totally secure, but you can take simple precautions such as using passwords and not keeping sensitive information on Internet-linked computers. Computer viruses do occur but if you have good virus-scanning software, there is little need to worry.

Offering Internet access at an hourly rate, or simply providing Internet facilities similar to the now widely offered business facilities are both areas of growth the hospitality industry should be aware of.

A business realising this new technology boom was Cyberia café in central London, where access to the Internet is offered alongside food and drinks. It costs £2.50 for 30 minutes of Internet time (£1.90 for students and the unwaged). Cafés have spread around the country, with openings in Kingston-upon-Thames, the Web 13 Café in Edinburgh and CB1 in Cambridge.

The café idea appeals to young and old alike. Transferring this idea to pubs successfully is an offshoot of this. The Cyberpub at Nottingham charges £5 for an hour of Internet access, with a reduced rate of £3 for students. A visit there appeared to show that most customers preferred the bar, leaving the screens to a computer-literate few.

Other areas of the hospitality industry could make profitable use of the Internet. The Andest V.PA system allows full business services such as e-mail and voice mail to customers. It can be bought or leased and provides a way for hotels to offer Internet services to guests.

G&D, a made-to-order bagel bar and ice cream shop, has another use for the Internet. It is based in Oxford and run by two Americans, George Stroup and Jim Hansen. They use the Internet e-mail to keep in touch with their investors quickly and easily and for franchisees to get into contact with them.

The Internet is unlikely to take over from more conventional methods of marketing, but it is a valuable tool, and it is still growing. There is a new breed of hi-tech customers waiting to be courted and the industry cannot afford to be left behind.

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