This view is taken by persons who see the value of the DDV only in direct comparison to a peephole. The true worth of the DDV is the sum of its functional, image and marketing value to the entire property. The successful counter to the price objection is to explain the true value of the DDV in terms of property differentiation and security. An economic justification for the purchase of Digital Door Viewers can be based upon calculating how the cost can be recovered. For example, how much the average daily room rate would have to increase in order to recuperate an investment in Digital Door Viewers can be estimated. The following example represents an analysis of the payback. This example is based on the performance statistics in the Singapore hotel market in April 2009 and the method can be applied in any market.
The average daily rate in USD was 170.24. The occupancy rate was 64.9%. By projecting this data the average 150-room property can thus generate approximately USD 12,098,190.72 in room revenue in 24 months. Introducing DDVs in all guestrooms within two years would mean the purchase of 75 DDVs per year, at an estimated cost per unit of USD 399.
Related costs are estimated at approximately 1.0 % of the per-unit cost, resulting in an estimated total investment of USD 60,448.50 over a two-year period. This cost expressed as a percentage of room revenue is 0.5 %. The investment could be recuperated by either an extra 0.5% increase in average rate, occupancy, or some combination of the two. In case of average rate, an ADR increase of just USD 0.85 would be needed in order to recuperate the total investment within two years. It is obvious that in preventing just one violent or criminal activity directed forwards a hotel guest the cost of a Digital Door Viewer would be insignificant.
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