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News Release

Vol. 1 Issue #2                         Sep. 15, 2000

Offering news and tips concerning the Public Internet 
Industry.  Each month we will bring you the latest information on 
what's hot and what's not when it comes to offering Internet Access 
to the public.  Please feel free to contact us with any information 
or feedback you may wish to contribute (yes, we will be publishing 
contributing articles).  We look forward to hearing from you!

How To Pick A Winner

Good Location, Bad Location?

Choosing a winning location can turn out to be
a lot more profitable than any trip to your local OTB.

How can you ever tell a winner with just a quick glance
or a promising word from a business owner?

Let's face it, if a business owner wants to place
an Internet Terminal, he'll tell you his or her location
brings in "..huge amounts of traffic...with very Internet
Literate customers..."

We would love to believe that this is always the case,
but you need to be selective when choosing your locations.

Many factors depend on the particular type of business
you intend to target.  What niche would you like to serve?
Cafes, bars, hotels, airports or shopping malls?  To keep
this issue down to just a few pages, we'll use hotels as
an example.

Hotels come in all sizes and flavors.  You have the popular
and inexpensive chains like Motel6, Econolodge and Super8s.
Then there's the mid-level hotels like the Best Westerns, Holiday
Inns and Marriotts.  At the high end, we're talking about the
top Sheratons, Westins and Wyndhams.  There are such a large
variety of hotels catering to so many travelers that it
is the perfect business segment to compare potential 
host locations.

The most common opinion when choosing a hotel location
is 'The Bigger The Better'.  A big hotel with big rates
and big occupancies mean big money for the Internet Vending
Terminals, right?

Yes and No.

There is no question that the bigger and more pricey hotel
chains can produce above average returns for an Internet
Terminal Placement.  They attract a higher income traveler
who often has an above average demand for Internet Access.

On the downside, these chains are well aware of this demand.
In-room terminals and high speed data ports are becoming more
and more prevalent in these hotels.  Business travelers with
latops will plug in to these ports to access the Net, thereby
decreasing the usage of your Internet Terminal.

How much does it decrease?  It's difficult to tell.  If hotels
have in-room phones, why do they have pay phones in the lobby?
The demand is still there, so don't be too quick to turn down 
an upscale location for this reason.

The economy chains are a lot less likely to offer this type 
of enhanced service to its guests, so your machine could
really come in handy to someone staying at a Motel6 or
EconoLodge.  The question here is, how badly would these
guests need to get online?  Although not a bad choice for 
a placement, I would focus on some of the best locations -
the mid-range hotels.

Chains like Best Western, Holiday Inn Express, 
Courtyard By Marriott and The Hampton Inn are increasingly
becoming the choice of cost-conscious business travelers
nationwide.  This is why they seem to be popping up
everywhere.  They offer high-quality accomodations at a
reasonable price and business travelers are taking notice.

You can be in the driver's seat when dealing with these
types of locations, because they don't have the monster
budgets of the larger chains.  They are more than willing
to partner up with vendors to offer cost-effective service
solutions to their guests.

You may not get the higher rates that you could charge in 
a Westin Hotel, but you could make up for that with the
increased volume in these smaller chains.

Not to mention that there are quite a few of these hotels
to choose from.  You would not need to travel too far.

Choosing a location for your Public Internet 
Terminal does not have to be a daunting task.  
Keep in mind that this business model leaves plenty
of room for error.  Even if a location turns out to be
less than stellar, it can still be profitable.  The best
bet is to stack up as many of the positives in your favor.
In the case of the hotels, the mid-range locations
seem to offer the most benefits, and therefore the most
potential for profit.

Thank you for your time, and best of luck to all of you.


Ben Mannino
Media 1 Incorporated
[email protected]

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