Saturday, August 9, 2014

Rent a car, Rent a Hotspot with a data plan

Mobile data has impacted multiple industries because of its convenience. In New Zealand there is a new variation.

The News

Thrifty, a car rental company, offers a 3G Hotspot with 150MB/day at NZ$12.50 ($6.50/day through 30 September 2014) when renting a car. The Thrifty hotspot connects to Vodafone New Zealand's 3G mobile data network.

Who Benefits?

Thrity's target consumer, of course, is the traveler.

  1. The traveler benefits from the convenience of being able to hire a car and obtain a mobile data package to accompany them as they roam New Zealand.
  2. The hotspot is pocket-sized and removable for the vehicle. Hence, the traveler need not stay in the car of near parking garages/lots. The traveler may take the hotspot into buildings.


Vodafone New Zealand benefits in at least three ways.

  1. Of course, there's the simple fact of having a large enterprise, Thrifty, as a customer, to increase revenue.
  2. Vodafone releases 3G Hotspot inventory, which will become harder to off-load as 4G LTE products become more popular and affordable.
  3. Vodafone's investment on their 3G network is milked for cash as other customers migrate to 4G.

Who is impacted?

The hospitality industry is impacted by such a pairing.

  1. Travelers that pay for WiFi in a hotel have an alternative access point provider, thus some of the hotel's amenities revenue may be lowered.
  2. Travelers have differentiated hotels based on the availability of free High-Speed Internet connections. 150 MB/day may not be sufficient for all of a person's daily data use, but it may be sufficient for the first day of a car rental agreement. Might the traveler change their hotel selection criteria for the first night of their travels?

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