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How Much Does a Hotel Phone System Cost?

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Motel Phone System Prices

As a member of the hospitality industry, you don't need to be told that top notch customer service is the key to running a successful hotel. And while employing the right people to vital to providing a high level of service, the role of technology should not be overlooked. A hotel that offers the latest technology has an advantage over those with outdated systems, and this includes the hotel phone system. Modern hotel phone systems can provide not only features that appeal to guests, but a high level of functionality that can reduce ownership costs, streamline management, and even provide new revenue streams. This buying guide provides an overview of the major types of hotel phone systems and how much they cost.

Types of Hotel Phone Systems

Hotel and motel phone systems are typically PBX systems. PBX phone systems consist of telephone hardware and switches, typically stored in a telecom cabinet at your hotel, to process calls. A standard hotel PBX phone system has all of the features you'd expect. In addition to making and receiving standard voice calls, hotel PBX phone systems offer voice mail, auto attendant, dial by name/extension, music on hold, and more.

Another option that is becoming much more popular in hospitality is the IP phone system. IP phone systems are a completely digital version of PBX systems that allows your hotel phone system to be run over an internet protocol network (typically broadband but wireless is also possible). This allows for not only voice over internet protocol (VoIP) phone calls—which can greatly reduce long-distance calling costs—but also a long list of sophisticated functions. By using a hotel IP phone system that can connect directly with hotel management systems and replacing traditional phones with IP telephone handsets, you and your guests will be able to enjoy such functions as:

  • Checking in and out of rooms
  • Room moves
  • Guest contact management
  • Guest messaging
  • Storing details and preferences of frequent guests/VIP
  • Video and conference calling
  • Access to information such as weather forecasts, news, and flight schedules

A hotel or motel phone system that offers such advanced features will certainly be viewed favorably by guests, and you may offer some of them as free services. But, from a business point of view, hotel VoIP phone systems also represent huge revenue opportunities through advertising, fees and referral commissions.

Hotel Phone System Average Costs

There are many factors that go into pricing hotel phone systems, including size, features, and whether you need to add/upgrade wiring and cabling. Because of this variability, the following prices should only serve as a rough overview.

  • For a PBX/IP PBX system you might pay a total cost of approximately $750 to $1,250 per user. Large hotels should spend less on average, while smaller outfits usually pay more per user.
  • If you're adding new phones, expect to pay around $100 to $500 apiece.
  • The factors that most influence price are: the central cabinet, add-on features, new phones, wiring and installation, training, programming, and service. Be sure to carefully compare prices on these factors from different vendors.

Hotel Phone System Sample Costs

Check out what businesses nationwide paid for phone systems for a better idea of what a hotel phone system might cost:

  • Average cost of $6,000 for a 16 phone PBX system in Pennsylvania
  • Average cost of $40,000 for a PBX phone system with up to 69 extensions in Chicago
  • Average cost of $35,000 for a 20 to 29 extension PBX system in Tennessee
  • Average cost of $12,000 for a 50 extension VoIP system in California
  • Average cost of $20,000 for a 30 extension VoIP system in Indiana
  • Average cost of $40,000 for a VoIP system with up to 50 extensions in Florida

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