VoIP for the Hospitality Sector: Pricing, Pros & Cons
The hospitality sector is a fast-paced and customer-centric environment, so clear and effective communication is vital in all businesses. Whether it’s customers calling to make reservations or staff telephoning suppliers to order stock, each area requires access to a quality phone system.
While the sector has relied on traditional landlines for decades, the cost associated with these telecoms has risen significantly. In addition, this technology is now less reliable, and maintenance is required more frequently.
However, in recent years, new telecom technology, such as VoIP, is paving the way for better communication and improved customer experiences. So, how can this phone system enhance the hospitality sector? Read on to find out…
What is VoIP?
VoIP or Voice over Internet Protocol is a phone system that makes and receives calls over an internet connection. By 2025, Openreach plans to make all phone lines in the UK digital. So upgrading to a VoIP service stands users in good stead for the changes.
VoIP works in a similar way as a traditional landline. Plus, if you’re calling a standard phone from a VoIP connection, it transfers the signal to a regular phone signal. So, there’s no need to worry about the limitations of calls.
The costs of VoIP services for the hospitality sector
Traditional hardwired systems require businesses to install phone lines and infrastructure for connectivity. Each time a phone line is added, additional costs apply. Plus, depending on your contract, call minutes are charged separately outside any bundle deals.
In comparison, VoIP systems have a lower cost. There are fewer upfront charges as your telecoms run over an internet connection. There’s also the option of purchasing new VoIP equipment, integrating software into your existing hardware or a mix of the both to save even more.
Pricing is dependent on your business needs. You pay a standard per-user fee per month. Most packages include unlimited minutes, making this more cost-effective, especially for call-heavy businesses.
Adding users is also simple, and this telecom solution is scalable no matter the size of your business.
How can VoIP benefit the hospitality sector?
VoIP hospitality systems have numerous benefits. Below, we explore the pros and cons of this technology.
Pros of VoIP
Improving the customer experience
With calls consistently coming into a hospitality business, giving each customer the best experience during these few minutes is important. With a VoIP system, the features available ensure you have the capability to serve people effectively.
For example, auto attendants create menus and automated responses to help companies manage calls. In addition, call forwarding can route customer calls to an off-site answering solution, so there’s someone always available to answer questions.
When phone lines go down, it is challenging to get phone companies to respond quickly to issues. In comparison, VoIP providers are on hand to help you solve any problems promptly and efficiently to ensure fewer disruptions.
In addition, maintenance and tech support come in each bundle within your VoIP hospitality service, so there are no additional costs to budget.
Easy to scale
A growing hospitality business may find scaling a traditional landline service costly and time-consuming. In contrast, VoIP systems allow companies to grow without limitations.
Adding new phones is simple as bandwidth can also be expanded to accommodate additional requirements. Everything is completed without disrupting businesses, so scaling is seamless and hassle-free.
Enhancing call quality
The latest VoIP technology has excellent clarity and call quality, which in turn, improves the customer experience. It’s also surprising how much time is lost to poor communication due to low-quality phone lines – for example, having to repeat information due to a crackly line. So, upgrading a phone system to VoIP improves the number of calls a business can handle effectively.
Alongside the benefits of VoIP for businesses, this technology has a few disadvantages to consider.
Cons of VoIP
Requires a reliable internet connection
As VoIP uses an internet connection to make a receive calls, it’s essential to have an excellent broadband service. While this technology doesn’t use as much bandwidth as you might expect, all devices must receive adequate latency to work effectively.
Before switching to a VoIP system, your chosen provider can advise on bandwidth and connectivity requirements. Some providers also offer an ultrafast broadband connection with VoIP packages, which is a cost-effective and reliable option.
VoIP technology sends data in small chunks to its destination, as this makes the most effective use of the bandwidth. However, sometimes this data gets stuck or muddled – in this case, you’ll likely see buffering or lagging issues.
While this doesn’t happen frequently, it’s something to consider with your service provider, as interruptions can have an adverse effect on operations.
If the power goes out, traditional phone lines are typically unaffected. However, with VoIP systems, you cannot make calls from VoIP phones if the broadband goes down.
This could be an issue in emergencies. However, as many people carry a mobile phone, it’s unlikely you’d be unable to contact the emergency services if required.
In addition, there’s limited tracking information available on VoIP systems, as this is a portable telephony service. So, the emergency services may be unable to identify a GPS location.
Discover VoIP benefits for the hospitality sector
To experience the benefits of VoIP first-hand, switching to this service couldn’t be easier.
At VS Group, our VoIP experts specialise in providing efficient IT and telephony services to hospitality businesses just like yours. Our VoIP packages include expert support, the latest technology and free applications to help you see the benefits compared to a traditional landline.
This scalable and affordable solution is tailored to your business needs and provides a reliable and cost-effective service to enhance your operations. Want to find out more? Contact our team today and explore the options available for hospitality VoIP services.