When one thinks of Club Med’s Columbus Isle Resort in the Bahamas, the words “satellite lifesaver” do not spring to mind. But they should. Satellite communication is the data lifeline between the 280-room resort and Club Med’s headquarters in Paris, France. The island rests 200 miles southeast of Nassau and is a 1.5-hour flight from Miami, FL. Needless to say, without satellite communications, the Columbus Isle resort could not exist.

Now, being out of the way may be a boon to Club Med’s customers, but it does not encourage the development of modern, reliable terrestrial networks. This is why Club Med’s satellite link, provided by Verestar, is so critical to Columbus Isle’s operations. For this resort, satellite is the only choice.

“Our satellite connection ties Columbus Isle directly into our corporate LAN,” says Club Med MIS Director, Mario Fernandez. “Without this connection, there would be no way for this Club Med village to receive reservations, exchange accounting information and keep on top of the immigration documentation that is required for all visitors. Everything we do relies on this connectivity.”

For this resort to open, the new accounting system needed to be accessed via the corporate network. A dial-up connection would not be adequate to sustain the data transfer, according to Fernandez. Therefore, having the satellite link seamlessly tied into the Paris headquarters afforded the resort the ability to process reservations and handle the necessary financial information it needed for business transactions.

The Investment Return

Wait a minute. Surely as a company with more than 100 “villages” worldwide, Club Med could always close Columbus Isle and stick to locations served by landlines. After all, what would losing one resort really matter to Club Med’s revenues? In fact, quite a bit. Club Med rents rooms at Columbus Isle on either a one-week or two-week basis. The current two-week rate per adult is $2,317; at 280 rooms (double occupancy), this works out to $33.7 million in potential revenues each year. $33.7 million: without satellite links at Columbus Isle, Club Med would have to wave this money goodbye.

That is not the only money Club Med would lose if it stopped using satellites. Like Columbus Isle, Club Med’s Ixtapa Village in Mexico also relies on satellite links. Club Med Ixtapa Village has 374 double-occupancy rooms, with the lowest two-week adult rate being $1,498. Again, doing the math, this means that Club Med Ixtapa could generate annual revenues up to $29.1 million. Therefore, the total annual Club Med revenues made possible through satellites is $62.8 million a year just for the addition of these two resorts.

Columbus Isle’s Satellite Connection: Just The Facts

Economical is not a word people commonly associate with satellites. But the facts highlight the savings. Through its satellite backbone, Club Med Columbus Isle receives all of its reservations directly from Club Med’s headquarters in Paris. It also sends and receives all of its accounting and inventory information in real time. Even though it is in the Caribbean Sea, Columbus Isle can manage or reorder supplies as easily as any mainland resort.

Then there is immigration documentation. In today’s terrorism-wary world, it is vital for resort owners to work closely with governments, both in keeping track of legitimate tourists and in providing clues to the whereabouts of known troublemakers. Thanks to its satellite connection, Columbus Isle is able to keep U.S. immigration authorities properly informed, and in real time.

The new immigration/customs processing of vacationers is also automated so customers do not have to wait to enter the village. “In order to adapt to this change, e-mail services were needed to provide Advanced Passenger Information System (APIS) documents 48 hours before guest arrivals and departures,” Fernandez says.

Columbus Isle’s satellite service is based on Verestar’s IPL (International Private Line) point-to-point solution. IPL currently provides Club Med with 128 kbs connectivity, “although this can be scaled up to 512 kbs,” Fernandez says. Verestar’s IPL offers a number of pluses to Club Med. For one thing, this service supports a number of protocols including Frame Relay, which Club Med uses on its terrestrial network. This makes Columbus Isle’s connection to the Club Med LAN seamless. Therefore, satellite technology in general, and specifically for Club Med, can indeed coexist with a terrestrial infrastructure in place. Therefore, upgrading with satellite does not only increase profits, in this case, but also incurs minimal disruptions to the network investments made by the parent corporation.

Fast, Efficient Setup On Location

When the time came to set up Columbus Isle’s satellite connection, “the toughest part was finding a way to get the equipment into San Salvador,” Fernandez says. Once all the hardware made it to the island, setup and sign-on happened within 24 hours. Terrestrial telephone companies often cannot provide efficient service of this kind, this quickly.

This said, Columbus Isle’s data connection does pose some challenges. Take electricity, for example. Occasionally the power goes out on San Salvador, which is why Columbus Isle maintains its own UPS (Uninterrupted Power Supply) battery system and diesel generators to ensure a constant flow of power. As well, parts and service are not always easy to find on an island this isolated. Thankfully, the reliability of satellite broadcasting as a whole keeps Columbus Isle linked to Paris consistently through the worst weather the Caribbean can stir up.

Club Med Trusts Satellite Communications

A successful chain such as Club Med understands and appreciates quality service. In addition, with a possible $62.8 million a year in revenue gain, Club Med also appreciates smart business strategies. So what does Mario Fernandez think of satellite communications? “We’re very, very happy with the service and support we’ve received to date,” he replies. “By doing what they do best, Verestar lets us concentrate on what we do best.” Meanwhile, with Club Med and satellites both on the job, Club Med’s customers can concentrate on what they came for, namely, to relax.

James Careless is a contributing editor to Satellite Business Solutions.