A SERVICE PLAN FOR GO HOTELS

Presented to the Marketing Department

In Partial Fulfillment of the Requirements
For the Course THSMKTG

Submitted by:

Castro, Kyle Daniel C.

Ching, Lance Renvin E.
Chiok, John Wesley L.
Simeon, Francis Nicolo A.

August 15, 2014

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 ACKNOWLEDGEMENT

This Service Plan paper is made with the help, love and support from our

family, friends, professors, officemates and God. Allow us to give our

acknowledgement of appreciation and thanks to the following people that helped

us throughout the construction of this Service Plan.

First and foremost, we would like to thank our mentor, Mr. Jose Luis

Liongson in guiding us in writing our thesis and for also taking time to read and

make our thesis better. We would like to thank him for everything that he taught

us in his class which we applied in making this paper.

Second, we would like to thank our friends for the help they gave us when

we were struggling in making this paper. We would like to thank Vincent

Emmanuelle De Hoya, Janine Quintana, Vernice Quintana, Myca Lleander, Paul

Christian Onrubia, Jennifer Flordeliza, Patricia Santos, Jeric Cadiz and Gia

Munnariz for all the efforts and advice they gave us.

Third, we would like to thank the staff of Go Hotels located in Robinsons

Equitable Tower. We would like to acknowledge them for all the guidance they

gave us. We would like to thank Ms. Natasha Espina, Ms Margarita Santamaria,

Mr. Adrian Ong, Ms. Clarmaine Co, Ms. Jacq Lim, Ms. Janelle Preposi, Ms Claire

Monserrat, Mr. Karl Trampe, Mr. David Mangalindan, Mr. Jay, Ms. Elizabeth

Gregorio, Mr. Mon Tolentino, Ms. Faye Lee, Ms. Joyce Yang, Ms. Sheila Vitug,

Ms. Lisette Arena, Ms. Nesty Dela Cruz, Ms. Chona Andrande, Ms. Myrene

Argete, Ms. Aubrey Crizaldo, Ms. Gerleth De Leon, Ms. Patricia Salamingan, Ms.

Vanessa of Treasury, and Justin.

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 Lastly, we would like to thank our parents namely Saturnino M. Simeon,

Ruby Asuncion A. Simeon, Hayley E. Ching, Abraham V. Castro, Maria Corazon

C. Castro, Wilfred N. Chiok and Leticia L. Chiok for their guidance and non-stop

support for us while we were making our paper. We want to thank them for their

care, financial support and unconditional love they shared with us.

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 TABLE OF CONTENTS

I. Executive Summary Page 5

II. Current Industry Situation Analysis

a. The Industry Page 6-46

b. The Service Business Page 46-58

c. Competition Page 58-67

d. Porters 5 Forces of Competition Page 68

III. TOWS Matrix Page 69

IV. Target Market Description Page 70-72

V. Goals and Objectives Page 73

VI. Tactics, Strategies and Programs

a. 8Ps Existing and Proposed Page 74-81

b. Fishbone Diagram Page 82

c. Flower of Service Page 83

VII. Investment Plan

a. Advertisement Program Page 84-91

b. Sales Promotion Program Page 91

c. PR Promotion Program Page 92

d. Evaluation and Monitoring of Results Page 92-94

e. Total Investments Plan Budget Page 95

VIII. Estimates of Profitability Page 96-97

IX. Appendix

X. Bibliography

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 I. EXECUTIVE SUMMARY

This thesis document serves as a Service Marketing Plan as well as a

Comprehensive Study on GO HOTELS, a budget hotel and no-frills

accommodation brand of Robinsons Hotels and Resorts, a division of Robinsons

Land Corporation and part of the JG Summit Group. The goals, objectives and

purpose of this academic paper is to take an in-depth look at GO HOTELS as a

businesses by first examining the hospitality industry as a whole, the history of it,

its structure and components along with industry trends as well as observing any

possible issues and concerns that it faces from both an overall global, regional as

well as through a local perspective. From there, this paper will take a look into

actual business operations of GO HOTELS especially from the day-to-day

activities of its Marketing Department from a current perspective. This will be

done through further research, investigation and evaluation into practices,

procedures and the various marketing programs. In addition, a budget and

investment plan will be made which would serve to suggest the best possible

cost allocations and estimates for certain marketing activities. The hope is that

this academic paper would serve to help GO HOTELS achieve greater customer

retention, increase the number of people staying in the hotels as well as to

further enhance the overall perception and awareness of GO HOTELS to the

public (especially with the target market and intended client base). The intended

effect would then be that GO HOTELS would benefit further and this would allow

the company to lead in the Philippine Budget Hotel market.

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 II. CURRENT INDUSTRY SITUATION ANALYSIS

A. The Industry

Industry Analysis

The Hotel Industry covers the business of hotels, resorts and various

accommodations where guests can stay in designated rooms for a given period

of time. However, it is important to first look into the idea and concept where it

derives from which is about HOSPITALITY.

The concept of hospitality involves a relationship process that takes place

between a guest, visitor or customer and a host.

History

There is also a long and deep history that is involved regarding the

concept of hospitality. It actually dates back to the Ancient periods of Rome and

Greece as well as during the Biblical era. During that period in time, there was a

theory that religion played a certain influence because people during that time felt

that it was necessary to be hospitable as a way to prove that they were extremely

religious. On the other hand, another theory suggests people back then were

largely superstitious because they were afraid that they would receive divine

punishment if they were not hospitable to others. In addition, it is also important

to take note of certain ways on how people moved and travelled in the past. For

instance, an example of this is seen during the events that happened in Ancient

Persia wherein people back then used to travel in large caravans and in addition

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to that, these caravans also carried tents that were useful for travelers that

needed to stop and rest for the night. Interestingly enough though, it was also

observed that on certain routes, there were already accommodations that were

already constructed and the locals called these places as Khans. Truth be told,

these Khans were just simply basic structures that were only made up of four

walls but as simple and as basic as these structural walls look, the important

thing to note was that the walls used were strong enough to provide sufficient

protection not only against the elements of Mother Nature but also strong enough

to provide safety and security against any armed enemy soldiers that would

attack at night especially as they approach the premises under the cover of

darkness.

Meanwhile, at a later point during the time of the Roman Empire, it was

observed that there were numerous taverns and inns that provided shelter and

accommodations to traveling merchants, scholars and so forth. However, the

problem was that a lot of these accommodations were said to be primitive at that

time along with the observation that some of these accommodations did not even

have sufficient or adequate facilities. For instance, some inns may have had

enough rooms for people yet unfortunately, these places lacked stables for the

horses. The inverse also holds true as well as there were times when some inns

may have had horse stables but had no rooms for the guests at all.

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 Now, going back once again to Ancient Persia, another interesting

development that should be noted was regarding the discovery of these so-called

post-houses. In fact, the famous Italian explorer named Marco Polo mentioned

this in his journals wherein he described and likened these post-houses as

apartments suitable for a king.

Moving on, another era worth looking at throughout the history of

hospitality is the time of the Middle Ages. During that period, it was worth noting

that religion continued to have an influence in the realm of hospitality and this

was evident during the time when Christian monasteries were used not only as

places of worship, reflection and meditation but also as places wherein weary

travellers were allowed to stop-over and rest for the night. Simply put, these

monasteries in a way also functioned as inns. Later on though, some monks and

priests felt that there was a need to welcome outside guests to stay without

disturbing the people who were worshipping and meditating inside the

monasteries and as a result of that, separate buildings and structures were built

near at or adjacent to the monasteries so as to continue catering to travellers and

guests without causing any inconvenience to the people who actually visit the

monasteries for spiritual and religious purposes.

Also, another important perspective to look at from the Middle Ages is the

belief that early Christians had regarding the relationship between being

hospitable and being faithful. The reason here was that for many early Christians,

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it was considered a responsibility for the faithful to always take care of their

fellow man and it was more than just something that people are requested or

obliged to do but rather it was something that is expected from Christians during

that time. In fact, King Charlemagne enacted laws during his reign which stated

that it is the duty of every Christian to provide a free resting place for each and

every traveler as long as the guest does not stay beyond three nights so as to

avoid any instances of abuse or overstaying by a guest.

Interestingly enough, at a later point in human history, it was observed that

the idea of hospitality started to evolve not just as a gesture or as a religious

obligation but as time passed, this idea changed and that people started to see

hospitality as something that can be turned into a business for the purpose of

gaining profit.

In fact, during the year 1282 in Florence, Italy, it was observed that a lot of

the innkeepers of that city have decided to form an association just for the

purpose of turning their hospitality inns into business where they can earn

money. This eventually became a successful idea in that after its success in

Florence, the concept of turning hospitality into a business has spread to other

areas of Italy.

Moving on to the 16th and 18th centuries, a new development was taking

place in England especially as the level of quality and service of

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accommodations was improving. During that time, the most common form of

transportation used was the stagecoach and this was viable for many innkeepers

who have decided to build inns and taverns along the stagecoach routes. With

that in mind, one factor that led to the improvement to the quality of these inns

and taverns can be attributed to the passengers of these stagecoaches. The

truth is that the passengers of these stagecoaches are of high nobility, wealth

and status. With that in mind, at the latter part of the 18 th century, the

development of coffeehouses was established and thus became a part of the

inns itself.

The Importance of the Hospitality Industry

The importance of hospitality industry is that it is not just a viable business

but it has also, in a way, become a necessity for people, commerce and for

society. For instance, any place that wants to be a destination obviously needs

dedicated facilities where people can stay. Furthermore, people that are staying

at a given accommodation also need food and other basic services. In addition,

this sector also generates revenue as a business and for the economy because

after all, people need a place to stay. In addition, there is also the employment

that is generated because after all, each and every hotel needs people and staff

to run the place and serve as the lifeblood that helps keep the business running

so that the guests are taken care of during their stay. Without a doubt, the

windfall benefits obviously cannot be ignored.

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The Components of the Hospitality Industry

Within the hospitality industry, there are various sectors involved that

make up this viable industry. There are many sectors involved and these include

the: Accommodation sector; Food and Beverage sector; Meetings, incentives,

conventions and events (MICE) sector; Clubs and gaming sectors; Entertainment

and recreation sector; Travel and Tourism sector and Visitors information sector.

Accommodation Sector

The main purpose of the Accommodation sector is meant to provide

people with a place to stay. This sector includes hotels, motels and motor lodges,

resorts and bed and breakfasts (B&B), caravan parks, hotels as well as serviced

apartments. Of course, there are various differences that set each type of

accommodation apart.

Food and Beverage Sector

The Food and Beverage Sector is meant to provide various meals and

beverages that are served in either the dedicated venues within the hotel

premises or inside the hotel rooms. For instance, there are restaurants, cafs,

fast food outlets, bars and in certain cases, there are also outside caterers. With

that in mind, it is important to take note that various establishments may offer

different types of food at different price ranges that cater to different types of

people at different and varying levels of quality and service. For instance, a

restaurant that is operated by a simple family business may offer an ambience

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that is friendly whilst offering relatively inexpensive food. On the other hand, fine-

dining restaurants may offer a more exclusive menu and food palette that is

priced higher yet offers higher quality with a higher level of service and in certain

cases, additional services may be offered.

In some hotels and accommodations, there may be some cases where

fast food restaurants are present. In such cases, these Quick Service

Restaurants cater relatively inexpensive food but more importantly, its about the

speed and efficiency of how the food is delivered or offered because more often

than not, the people who go for fast-food are the ones who are always on-the-go

and those people need to have their food prepared in the fastest and shortest

amount of time.

Also, it is important to note the presence of food caterers. These food

providers are the ones that provide food and beverages for big meetings, events,

functions and corporate set-ups within the hotel and in some cases, these food

caterers can also be hired to provide food in venues that may be outside of the

hotel.

Meetings, Incentives, Conventions and Events (MICE) Sector

This is a sector that deals with things on a larger scale. The main clients

here can usually involve big corporations and firms with numerous employees as

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well as big forums and symposiums with a lot of attendees that are gathering for

a special yet specific event or happening.

In this situation, most hotels would have conference centers and the role

of these hotels is to provide everything that is necessary for every event attendee

such as food, accommodation and transport services (if necessary) and so on.

Club and Gaming Sectors

It is important to note that some hotels may have a relationship with

certain sports clubs that offer different types of sport activities for members of

those said clubs as well as for the hotel guests. Furthermore, such membership

clubs may either an in-house service provided by the hotel itself or in other

cases, hotel establishments would choose to make arrangements with outside or

third-party membership clubs to be a provide the said service within the hotel

premises. In addition, certain arrangements can be made to club members such

as rewards given by the hotel to special members (i.e. like free stays, discounted

rates for hotel services, etc.)

Aside from this, there is also the mention of the gaming sector. Casino

gaming is a business where money comes in very fast. With that in mind, certain

hotel and resort establishments choose to operate a casino gaming facility within

the hotel premises as long as it is subject to regulation by the gambling

regulatory board or commission of the given country or territory. This sector is not

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just limited to casino games though because there may also be the presence of

other facilities such as live entertainment and even non-gaming activities such as

restaurants, theme parks and so on. In fact, an example of this would be similar

to the ones seen in Singapore wherein in Marina Bay Sands and Resorts World

Sentosa are known as Integrated Resorts that combine casino gaming facilities

with non-gaming activities within the premises of those respective hotel and

resort complexes.

Entertainment and Recreation Sector

This sector is mostly responsible for leisure-related activities inside or near

the hotel area. For instance, there are certain activities such as cultural events

held within the area in which the hotel may promote and that serves to provide

guests with more unique and varied activities. In addition, a few hotels may also

have their own exhibits and attractions as well. For example, Sofitel Hotel at the

Ponte 16 area in Macau houses a special permanent exhibit and gallery

dedicated to Michael Jackson. Furthermore, this sector also takes care of certain

recreational activities that guests may want to avail such as the usage of the

swimming pools, fitness facilities, outdoor equipment, etc.

Travel and Tourism Sector

These sectors are mostly tied up with various travel organizations. In here,

there are certain travel organizations that are willing to help tourists as well as

give suggestions on places to visit, things to see-and-do and whatnot.

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Transportation in these sectors includes different and all available modes of

transport that can be used and/or are provided to tourists and guests.

Visitors Information Sector

It is greatly beneficial and helpful for tourists if they are given the right

information that is given or shown to them in the most professional yet also the

most courteous manner. This is where the official tourism organization body of a

given country/territory comes in as the entity that serves as the umbrella

organization for tourism promotion. Most, if not all travel organizations have a

website that can be accessed by people locally and internationally which

provides all kinds of relevant tourist information such as places to visit, tips and

suggested itineraries.

Hospitality Trends in the year 2014

There are many new developments that occurred ever since hospitality

started centuries ago. It is always a constant process of growth, change and

evolution especially since there are new things and new innovations that happen

along with the fact that the needs and wants of consumers are also rapidly

changing as well. For the year 2014, the website known as hospitalitynet.org has

listed some trends and developments to look out for as stated in an article piece

written by Robert Rauch (Rauch, 2013). Robert Rauch has stated ten (10)

different key points that will be one of the defining driving forces for the hospitality

in the said year:

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1. Millennials

The author of the article stated that the Generation Y group composes the

majority of customers of hotels and accommodations for the said year. Hence, it

is suggested that hotel businesses and those in the travel and tourism industry

should pay attention to their needs, wants and preferences since these are the

people that could make or break the business.

2. Speed and Precision

The Generation Y people are more knowledgeable in obtaining

information with every increasing speed and efficiency and in this case, it is no

exception. These people can easily look up in a hotel website, compare prices,

visit reviews and feedback and if they do not like it, then they can easily voice a

complaint in a matter of seconds (Rauch, 2013).

3. WOW Customer Service

These types of people are very particular to getting not just effective

service but rather on service that goes the extra mile and something out. Robert

Rauch mentioned in his article that there are four levels of quality service: Basic,

Expected, Desired and WOW (Rauch, 2013). In this case, hotels have to pay

attention to this because this may be the only way to get repeat customers. It is

thus important to give these customers special and undivided attention (Rauch,

2013).

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4. Leadership

This is an attribute that would be applicable to hotel managers. After all,

leadership requires that managers can manage people yet at the same time

allow each key member and subordinate to be able to be motivated and guided

enough to be able to perform at his/her best.

5. Expectation of More International Visitors

There is an expected demand for more hotel rooms and vacancy. In line

with this, it is expected that there would be greater tourist arrivals and a greater

mix of tourists and visitors from more and more overseas countries around the

world.

6. Social media and mobile will be inseparable

The premise of connectivity and more importantly interconnectivity has

been made evident with the number of cellular/mobile phones out there. As

stated in the article by Robert Rauch, it was mentioned by Ericsson that the firm

estimates that there will be over 50 billion connected devices in circulation by

2020, including laptops, tablets and smartphones. (Rauch, 2013). Furthermore,

smartphone penetration will continue to grow each and every time as well which

means that the numbers cannot be ignored anymore.

7. Content Marketing Will Replace Traditional Advertising

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 It was stated in the article that traditional advertising is starting to lose its

foothold to newer types of advertising and promotion. Once again, social media

will lead the charge for the proliferation of necessary resources and majority of

information will be searched via the Internet.

8. Renewed Focus in Property Websites

The author implied that majority of any hotel bookings will be done via the

company websites. This means that direct bookings will also continue to grow

year-after-year.

9. Review Site Tactics

Specialty sites such as the Tripadvisor.com as well as Google Places will

continue to be powerful tools in this online-centered business environment.

Google Maps will also be something that both customers and operators would

want to look out for as well because after all, location plays an important factor.

10. Reputation Management

The attributes and principles of credibility and reputation had, have and

will always continue to play an important part in this industry. In todays

environment, people can post feedback and reviews and its not just their friends

and family that will read them but people from far-and-wide have access to such

information. Hence, this is why reputation is important because if customers are

not satisfied with what you offer, then they will logically choose someone else the

next time around.

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Issues and Concerns that Affect the Hospitality Industry

There are some issues and concerns however wherein certain

establishments must take into consideration especially in this fast-changing

business environment. First off, one concern involves labor costs and this is

something that is of a concern as it can sometimes be a very sensitive manner.

According to an academic paper written by Wang Jin-Zhao and Wang Jin for the

Management Science and Engineering Department of the Canadian Research

and Development Center of Sciences and Cultures, it was stated that labor costs

accounted for as much as 44.6% of the total operating costs that hospitality

managers have to deal with (Wang & Wang, 2009). This then serves as an

important balancing act because while it is of high importance that labor costs

are kept manageable, it is also important to note that employees are part of the

labor force and these people are the lifeblood of the business because without

them, there would not be any hospitality business to begin with (Wang & Wang,

2009).

Secondly, another issue is something that is cultural in nature. This is

evident when there are guests that come from other countries so its important to

at least be sensitive enough to not do anything disrespectful to these guests. In

some cases, it goes further than that especially in countries that have allow

immigrants in from all over the world (e.g. USA, Australia, etc.) and as result, a

hotel may have employees from different countries and different racial

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backgrounds. From the perspective of the establishment, it is extremely difficult if

there are any tensions of racism or if ever there are cultural conflicts that occur

amongst employees and this will show even inside the premises. Hence, it is

important that tolerance and respect between all people should be given.

Third, another concern revolves around marketing issues and this is

important especially knowing that there are numerous establishments that offer

similar business that one offers. With that said, it is important for an

establishment to determine on how to stay relevant amidst the competition. Now,

one important tool that can be used for this is with Market Segmentation. The

reality behind this is simple wherein no one can be everything to everyone so

instead of satisfying everyone, a hospitality establishment is suggested to just

choose a specific type of customer and fulfill his/her needs and wants based on

their preferences and attributes that they look for in a hospitality establishment.

Fourth, another factor that a hospitality establishment looks for (or rather

that any business establishment looks for) is the status of the economy. After all,

if the economy is good, people would be willing to pay for products and services

without much thought. However, if the reverse happens, then the opposite may

happen. This becomes a problem when an economic crisis occurs because

people may be reluctant to spend on such services. Once that happens,

occupancy rates plummet and establishments have no choice but to slash room

rates. Still, even with a reduction of room rates, operators would still take a hit

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from reduced yields and lower amount of profit per room booked (Wang & Wang,

2009).

Fifth, another aspect to look at is globalization as it is extremely apparent

in the world today. Globalization is a double-edged sword in that while it brings a

lot positive developments such as the faster movement of goods and services

due to improvements in global trade, there are some negative aspects as well

especially in that the national economy is more closely linked to that of the

overall global economy. For instance, any geopolitical disturbance in a certain

region may affect the supply of certain raw materials or goods. If a large-scale

war ever breaks-out in the Middle East for example, then the effect on these

would be on global oil prices and this would have a strong negative effect on

logistics for the reason being that fuel costs will be affected. In short, one thing

leads to another and in this case, these are factors that are out of the control of

the business establishment.

A Global Outlook on the Hospitality Industry

The hospitality industry has definitely come a long way from something

that has existed for hundreds of years to what it is today. It has evolved from

being just a simple human gesture of kindness into something that has evolved

into a basic institution that gives shelter to wandering travelers that need a place

to stay. Now, it has continued evolving until it has turned into a business and not

just that, it has also become a system in itself that has an organizational structure

and through that system, there are numerous individuals that come together to

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be a part of it. The outcome turns into an experience for the guests and the

people that choose to come and take part in this endeavor.

There are many reasons or factors that lead to what can be said as the

force behind the success of the hospitality industry. First off, it caters to

something that people need or demand and that is a given whenever say a

tourist from another country visits and needs a place to stay. Nevertheless, it is

important to note that there are fundamentals and principles that serve as a

foundation for the industry. With that said, one primary ideal that illustrates this is

the importance of Guest Satisfaction.

There is a report made by Euromonitor International (market intelligence

and business intelligence data gathering and research firm) that takes a look into

the Travel and Tourism Industry with special emphasis on the business of hotels

on a global perspective. In that report, there is a diagram that showcases the

importance of Guest Satisfaction as an underlying factor that makes a hotel

business successful not just from a financial and internal point-of-view but also

from the point-of-view of external sources such as the hotel guests and from

outside observers. This graph is the one that is featured below:

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 Figure 1

In that diagram, it can also be observed that there are six other attributes

that are positioned near or around it and these are the following attributes:

Technology; Design; Corporate Responsibility; Health & Wellness; Service and

Localisation.

The first aspect is Technology and this deals with innovation in the use of

certain tools and methods to enhance the efficiency and productivity of any hotel

establishment. This can also mean other things as well such as how hotel guests

can stay connected and through that, it can be said that technology serves as an

interactive medium where guests can have an enhanced experience during their

stay. This can be seen either through the room amenities used, booking

procedures through online websites or through social media and so on.

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 The second aspect is on Design and this involves not just the outside but

also on the inside. This attribute focuses heavily on the visual aspect because

these days the hotel guest wants more than just the functional and utilitarian

aspect whenever he/she stays and checks-in. This can be observed in how some

hotels pay attention to design layouts when building the hotel because the hotel

area is not just only a place with a function but by giving it proper design, the

place is given new life and this emotional connection is something that hotel

establishments these days want to bestow and instill upon their guests.

The third aspect is on Corporate Responsibility and this is important in

defining what are the purpose and objectives of any hotel establishment. It is

evident that the primary goals are for the establishment to make money (which is

true just like in any business) but it also important to take note that values, ethics

and morals also play a part here as well. The hotel establishment should always

remember that its guests are a priority and they should be taken care of. It also

goes another way as well because the employees are also a part of the

establishment. This means that there should be respect between employees and

the management as well as within one another. In fact, each individual that is a

part of the hotel organization should help each other out and encourage one

another through positive encouragement and motivation. The obvious effect is

that this leads to better quality of service as well as that there is a level of

hospitality and care that is properly given and received. Furthermore, this also

extends to other aspects such as the need to cooperate when addressing

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potential problems or concerns instead of bickering and blaming one another.

Also, this can be seen when the hotel establishment engages in social

responsibility such as through exercising environmental conservation as well as

to awarding performance bonuses to employees and staff that exert outstanding

behavior and conduct.

The fourth aspect is on Health and Wellness, which is what most guests

look for when staying in a hotel. This would include facilities such as the health

club/gym, wellness spa, massage rooms and so on. Nevertheless, this also

includes the intangible attribute that guests should feel at ease when staying in a

hotel. The hotel guests should feel relaxed and rejuvenated and in fact, some

people would see it as a way to calm down and be at ease as they escape from

the busy routines that they face in their daily lives. In a sense, those hotel guests

want calm and solace by being away from it all and the hotel establishment is a

place that these people can look forward to in order to achieve that.

The fifth aspect deals with Service which is obviously a given in this

industry. It is an intangible act and yet it is something that is intrinsic in nature

especially given the context of the hotel establishment. This level of service is

expected by hotel guests and must be exercised by all employees not just

through the chefs, waiters, janitors and housekeepers but also by the

receptionists, managers and all the way up to the person of the highest position

in the hotel establishment.

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 The sixth and final aspect is about Localisation and this involves bringing

a closer relationship to the hotel guests. There are a lot of hotel establishments

that are global hotel chains that may have been based or have originated in other

countries. Nevertheless, it is important that a hotel should be able to connect with

local area, its culture and even its way of life. Furthermore, it may not just involve

geographic locale but it talks about creating a unique bond and relationship

between hotel and its guests. After all, the hotel guests do not want to feel

alienated or intimidated during their stay. Otherwise, those people may not return

to such a place ever again. Hence, it is important that guests feel like they are at

home and this makes them want to come back again and again.

With that in mind, all these factors help to make the hotel establishment

relevant and important to all the people that become a part of it and take part in

such an endeavor. With the global hotel industry, it can be said that the industry

as a whole has gone through a lot and has experienced a lot. There were

obviously various challenges and concerns but with that said, as a whole, the

industry will continue on its growth path. This is proven by this diagram made by

Euromonitor International and is seen here below:

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 Figure 2

It can be seen and observed that through the period of years 2011

onwards, the number of trips made is increasing which is a positive effect and

outcome of global tourism. This works well for the hotel industry worldwide in that

more trips means more people need a place to stay and as such, there is a

growing demand for more hotel rooms. This growth trend is expected to continue

all the way up to year 2016 based on data obtained by Euromonitor International

(Euromonitor, 2013). If this keeps up, then this will continue all the way to year

2020 and beyond.

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This further confirmed in this table below written by Euromonitor International

which validates the developments that have been happening in the hotel industry

and this gives a preview of what the overall hospitality industry will be like in the

next few years.

Figure 3

Figure 4

28
 The following data graph from Euromonitor International (as shown above)

highlights that all geographic regions will experience growth in this sector. In

addition, the data graph shown above highlights that the Asia Pacific region will

have the highest percentage growth share in terms of number of hotel rooms as

well as the value percentage in terms of market share. This is evident especially

with the number of hotels being built in growing Asian regions such as in China

and in India (which is in-line with the rapid growth and expansion of their

respective national economies).

The Hospitality Industry Outlook from the South East Asian Region

Figure 5

29
 Interestingly enough, the hotel growth in the region is not only happening

in China and India but in fact, it is happening elsewhere as well. Euromonitor

International data suggests that South East Asia is also on a growth path as well.

In fact, countries such as Singapore, Malaysia, Indonesia and Thailand are

leading the way in the region (Euromonitor, 2014). Nevertheless, there is

expectation that the Philippines will also be a stronger contender for future

growth in this industry.

The hotel industry in the Philippines presents a very unique environment

for the hotel industry. This SWOT Analysis table prepared by Euromonitor

International showcases the positive things about the hotel and tourism industries

in the Philippines.

Figure 6

30
 For instance, one of the positive things mentioned include the natural

tourist attractions such as beaches as well as cultural tourist destinations and

heritage sites. In addition, Euromonitor International mentions that the Philippines

can ride on the wave of the growth of Asia Pacific travel and tourism.

Nevertheless, there are also some concerns as well such as the lack of

awareness of some people about the Philippines as well as issues on crime and

the peace-and-order situation. In addition, the Philippines needs to find

something that can differentiate itself from its peers in South East Asia and

having that would be an advantage and build a strong case on why more people

should visit the Philippines.

On an overall scale, this presents unique strong points as well as

challenges that would set the pace for the hotel and tourism industry in the

Philippines.

The graph below indicates the age demographics of travelers visiting the

Philippines. Euromonitor International states that most travelers are aged 35-49.

Nevertheless, it would be a good suggestion to also find a way to encourage

more young travelers to visit the Philippines more often. In that way, if these

young travelers would learn to love and appreciate the Philippines from an early

age, then there is the possibility that they would come back and visit more often

even as they grow older.

31
 Figure 7

Figure 8

Now, as for this table above, Euromonitor International suggests that the

months of April and May are the strongest months of foreign tourist arrivals. This

can be most likely attributed to the fact that those months are part of summer

time in the Philippines so they would visit the country and hit the beaches at the

best possible time for that ideal summer vacation. Other than that, the months

belonging to the Fourth Quarter (October to December) also indicate strong

numbers as well.

PHILIPPINE CENSUS PHILIPPINE HOTEL INDUSTRY STATISTICS

32
 Figure 9

Figure 10

The above graphs come from data obtained by the Philippine Census

(which is spearheaded by agencies such as the National Statistics Office of the

Philippines). The data obtained from year 2009 and 2010 point out to the

situation wherein restaurants and food service providers make up majority of the

hospitality industry whereas hotels and accommodations only contribute a very

small segment of the industry as a whole.

33
Figure 11

Figure 12

34
 Figure 13

Figure 14

As for the following charts and graphs shown above, these were obtained

from the Department of Tourism of the Philippines. The graphs illustrate the

distribution of foreign tourists that come to the Philippines. The data indicates

35
that majority of tourist arrivals come from countries such as South Korea, United

States of America, Japan, United Kingdom, Australia, Mainland China, Taiwan,

Singapore and Malaysia and so forth. With that said though, there is also need to

highlight the importance of other countries not mentioned and it is suggested that

tourism agencies and even hotels tap into new areas. For instance, there is

potential from big markets such as India, Brazil and even Russia as well and

local hotels can seek new options to cater to broader tourist markets beyond

existing clientele. This presents a new and fresh opportunity and something that

this industry should highly consider.

An Outlook of the Hospitality Industry in the Philippines

The tourism is considered as a strong growth driver of any economy and

in the Philippines, such is no exception. The number of hotels room throughout

the country and now with the recent Its More Fun in the Philippines campaign,

it is expected that tourist growths will grow at an even faster pace. There was an

online news article posted by BusinessMirror dated February 3, 2013 which

showed an interview with Traders Hotel Manila General Manager Gordon Aeria

wherein he stated that the Philippines has a strong reputation for being service-

oriented. Mr. Aeria also mentioned a lot of different things to lookout for such as

the opening of Pagcor City (near the SM MALL OF ASIA COMPLEX), the

upgrading of infrastructure around the area as well as the improvement in the

local economy. These factors all lead to more positive news, which is something,

that investors and businesses want to hear. In the luxury and premium sector,

36
there is an estimated target that more than 6,000 high-end hotel rooms would be

available in the Philippines. In another example, it was stated that Manila alone

has more than 15,000 hotel rooms as of this current moment and the number is

still growing.

There is also another aspect that it worth looking at when talking about the

state of the hospitality industry here in the Philippines. In fact, this information

can be found in the academic paper and study called An In-depth Study on the

Hotel and Restaurant Industry In the Philippines which was written by Dr. Divina

M. Edralin and Miss Paulynne Castillo, both of which are faculty members of the

De La Salle University Manila (the former being a faculty of the Management and

Organization Department while the latter being a faculty of the Economics

Department). The paper suggests and highly emphasizes the effect that tourism

has on the hotel and restaurant industry as well as the hospitality industry in

general (Castillo and Edralin, 2001). In addition, it is also worth noting that during

the Asian Financial Crisis of 1997 which was a tough period for many

businesses, it was shown that tourism receipts still fared quite well and this

shows the resilience of the tourism sector even during times of financial hardship

(Castillo and Edralin, 2001). This is something that many hotels and restaurants

should take notice of.

There are many things that can be looked upon regarding that status of

the Hotel Industry in the Philippines. Of course, long-time hotel establishments

37
that are present in the country are fully aware of this. Consequently, newcomers

and new entrants may find excitement in joining such a lucrative sector of a

rapidly growing business (especially here in the Philippines). However, it is

important to note that newcomers face certain challenges that these

establishments will have to face. For instance, one concern that new entrants

would have to face is the concern regarding land usage and construction costs.

In fact, to give a specific example, it is said that is costs around PHP1 Billion to

PHP3 Billion or even more to construct a hotel depending on the number of

rooms, amenities and facilities (Castillo and Edralin, 2001). Of course, small

hotels like apartelles or condotels require investments of at least 25 Million

Philippine Pesos or more (Castillo and Edralin, 2001) and this does not include

other costs such as advertising as well as the need to invest in people such as

the employees.

Next, there is also the concern of infrastructure as well as other external

factors such as political stability and the current outlook of the national economy,

which should also be taken into account. In addition, there is also a need to

consider the need for product/service differentiation because after all that, any

hotel establishment needs to consider the reality in that there are numerous hotel

businesses that offer this similar product/service. Hence, by aiming for something

unique, hotels can gain an advantage with clients who are looking for something

that is beyond ordinary (Castillo and Edralin, 2001).

38
 It is said that the Philippines is said to have an advantage for hotel and

tourism industries in terms of geographic location. The reason lies in that the

Philippines is situated in a central part of Asia wherein the country has close

proximity to nearby Asia countries and territories such as Malaysia, Singapore,

Hong Kong, Indonesia and so forth. With that in mind, aside from geography,

there is also another factor that would be beneficial to hotels and that is through

the role of government. This means that certain regulatory rules/policies/laws and

the proper legal framework would go well into making sure that hotels can benefit

from more tourists and clients coming in (Castillo and Edralin, 2001). For

instance, one such thing that can be looked upon is the supervision of hotel

standards and certification to make sure that the quality and level of service

offered by any hotel in the country would be given the proper importance that is

due and expected. After all, reputation plays a key role into making sure that

customers and guests return and visit regularly after their first-stay and this is

important because the first impression can make-or-break a persons opinion on

someone or something.

As for tourism arrivals, the highest concentrations of tourists into the

Philippines came from places such as the United States, South Korea, Japan,

Taiwan, the United Kingdom and so on (Castillo and Edralin, 2001). However,

there is also an area which can be explored and which is untapped and this

involves new markets such as tourists from Russia, the Baltic states of Estonia,

Latvia and Lithuania, South Africa, Brazil and so on so forth.

39
 In another matter and as mentioned beforehand, it is an advantage if a

hotel has something that sets it apart from the competition because such a factor

would greatly help in making the establishment stay relevant and more thus

remain important in the minds of guests and customers. In that case, the pursuit

of specialization goes a long way to ensure that a hotel can seek and offer

something unique. For instance, many hotels in the Makati area would leverage

on their accessibility and presence in the Makati Central Business District (which

is said to be the heart of business and commerce in the country). These hotels

would then specialize in targeting and focusing on business and corporate

travelers so what these hotels would do is to offer and promote services such as

having telephone and fax machines in each room. In fact, Hotel Intercontinental

Makati went further by providing keyboards in all rooms so that guests can use

the Internet or in that businessmen can use it for typing documents, making

spreadsheets and other important memos. In short, the hotel room has also

become sort of a mini-office and businessmen really like such a concept

(Castillo and Edralin, 2001).

Moving on, there is another factor that can be looked upon especially in

the Philippine context and that is the aspect of labor and manpower. It is said that

one of the strengths of the Filipino person is about being kind, friendly and

hospitable. In addition, it is also said that Filipinos are among the best-educated

and most trainable people in Asia (Castillo and Edralin, 2001) and because of

40
that, many believe that this is one of the strengths of the hotel and restaurant

industry in the Philippines (Castillo and Edralin, 2001). Also, it is an advantage

that Filipinos have a strong command of the English language as this is obviously

helpful when dealing with foreign tourists as well as when Filipinos are employed

in hospitality industries in other parts of the world (Castillo and Edralin, 2001). On

another related development, the education and training of people involved in the

hospitality industry plays a vital role in the continued success of this industry

especially in the local Philippine context. On a local level, institutions such as the

De La Salle University College of Saint Benilde are extremely well-known for

offering hotel and restaurant management courses that cater specifically to

needs of the industry (Castillo and Edralin, 2001). Furthermore, there are some

new universities and educational institutions that are starting to offer it as well

such as the University of the Philippines (Castillo and Edralin, 2001). In addition,

there are also the presence of culinary colleges and learning centers such as

Center for Culinary Arts (CCA) in Katipunan, Quezon City as well as the Enderun

College, which is said to offer one of the most prestigious hotel and restaurant

education programs in the country to-date. This however does not just stop there

because even hotels themselves are starting to run training schools for future

hotel and restaurant employees. For instance, Dusit Hotel (the internationally-

renowned hotel chain in Thailand) offers its own training academy. Also, on a

government level, agencies such as the Technical Education Skills Development

Authority (TESDA) offer training and certification programs to such individuals. Of

course, it is important to realize that hotel employment positions do not just end

41
with chefs, janitors and housekeepers because there is also the need to train

certain people to handle hotel management and operations and this is important

because there is need for the presence of certain people to deal with higher level

tasks and duties in the hotel (Castillo and Edralin, 2001).

If there are positive things that come with running a hotel, then conversely,

there are obviously weaknesses and threats that have to be dealt with as well.

For instance, one area of concern deals with market saturation among hotels

firms that are sticking with a certain hotel market. On another note, there are also

issues related to the supply chain because a hotel obviously needs equipment

and materials and more often-than-not, it comes from suppliers that can dictate

the price of what theyre offering to hotel firms. Furthermore, government policy

can make or break the business environment that the hotel is in.

With that in mind, there is a way for hotel firms to address certain

challenges and constraints that it faces. For instance, one way to do that is by

developing a Tourism scheme based on Sustainability. This involves things such

as eco-tourism as well as for the hotel to resort to practices that are more

environmentally friendly (e.g. improved water usage, recycling, electricity

reduction, etc.). In addition, a framework can also be set which allows various

hotel firms proper representation within an association that allows different hotel

firms to air any possible concerns and discourage any harmful rivalry that may

damage the reputations of other hotels and that of the local industry. Also, there

42
can also be arrangements to set-up a performance-monitoring scheme that can

inspect and evaluate the standard of hotels in the country, which would give hotel

guests greater peace of mind, and more importantly help them gain trust, which

is an intangible yet extreme valuable benefit. These are just some of the things

that can be done especially as the hospitality industry continues moving forward.

An Outlook on Industry Issues In Terms of Consumer Benefits

As mentioned earlier, any problem or concern that a hotel establishment

faces does not just affect the business but it also has an effect upon end-users

such as the hotel guests themselves. For instance, one concern that a number of

consumers would find hard to accept would be with regards to price increases.

The hotel industry is affected by numerous macroeconomic and microeconomic

factors as well as internal and external forces which all have an effect on hotel

operations. If a hotel is forced to increase prices either due to increasing labor

costs or rising inflation, then it leaves the consumer with the choice of either

continuing to pay more to obtain a certain benefit (from his/her stay) or that the

consumer will look for another hotel elsewhere. Furthermore, it is imperative for

hotel establishments to understand that perceptions and opinions can change

very quickly. For instance, a fine-dining restaurant can have numerous Michelin

stars but the moment that a customer complains, the perception, prestige and

reputation can change rapidly. Conversely, budget hotels and hotels that do not

exceed three stars may not necessarily be seen as great or exciting in the eyes

of consumers but once consumers see, understand and fully appreciate the

43
benefits being offered, then it only follows that any point-of-view will work in favor

of the hotel establishment. In addition, there is also the benefit that is intangible

and it is something that appeals more than just human logic or reason but rather,

it satisfies human emotion and human desire. For a number of hotel guests, it is

important that they feel welcomed and feel that they are home. In that way, the

hotel guests will feel and experience the benefits during their whole stay and

because of that, the guests will never feel the need to shorten their stay at all as

they would savor and crave for every moment that they feel relaxed and

pampered.

There is also the issue of the position of Philippine tourism with regards to

its standing from a regional and international perspective. As it stands at the

moment, the Philippines currently do not have as many tourist arrivals when

compared to its South East Asian neighbors. Nevertheless, this presents an

opportunity in that the number of tourists coming into the Philippines will continue

to increase and hotel owners and establishments continue to build more hotels.

Inevitably, this will benefit consumers, as more options will be given unto them

when looking for a place to stay.

Also, there is the issue of saturation, which becomes apparent when there

are too many competitors. This then forces hotels to think differently, innovate as

well as find ways to seek for unique approaches in order to stay relevant and to

convince customers who want something new and different. This would work in

favor of consumers who want to stay in a hotel that offers something out of the

44
ordinary and wants their stay to not just serve as a routine but rather as an

opportunity as well as an experience and an important event in a persons life.

This makes the stay more meaningful to a guest and this goes beyond the

intrinsic benefits offered and is an experience that will not stick within the minds

of guests who have enjoyed their stay to the fullest.

INDUSTRY STATEMENT

The state of the hospitality industry is a fast-changing and very dynamic

industry that has existed for hundreds of years and has evolved all the way to

what it is today. It has grown from a simple gesture of courtesy into a religious

custom and has now evolved into a lucrative business. The business covers

many facets with numerous components that make up the very huge and

complex nature of this industry and yet, it has become a relevant part of human

society in the world because it provides something that human beings want and

need which is about providing shelter to people when they are away from home.

The industry has many different facets and is something that is present in

virtually each and every country in the world and employs thousands of people to

be a part of this ever-growing industry. From a South East Asian regional

perspective, it can be said that the hospitality industry is continuing to grow

especially in many emerging markets. From a Philippine perspective, it is also

growing and this is made so by taking advantage of numerous factors such as

the English language proficiency of the local people and the friendly and

hospitable nature of the Filipino people. This serves as a unique opportunity as

45
there will be numerous advantages especially as the industry continues to evolve

and change through the coming years especially with the advent of technology

and globalization. This is indeed an exciting time, as this industry shows no sign

of stopping because after all, hospitality is more than just an idea or a concept or

a gesture. In fact, it is more than just a religious act and is more than just a

business. Rather, beyond all these things, hospitality is considered as a way of

life.

B. The Service Business

Go Hotels-Company and Brand Situation

GO Hotels is a hotel brand under Robinsons Hotels and Resorts (which in

itself is part of Robinsons Land Corporation). The Robinsons Hotels and Resorts

serves as the controlling organization for other hotel brands that are under it such

as Go Hotels, Summit Hotels as well as the Holiday Inn Manila Galleria and the

Crowne Plaza Manila Galleria (which are both hotels that are a result of

partnership with Robinsons Land Corporation and Intercontinental Hotels Group).

JG Summit Holdings Inc.

JG Summit Holdings Inc is a holdings group which has many subsidiaries

that operates numerous businesses in the areas of consumer food products,

agro-industrial and commodity food products, real property developments, hotels,

banking and financial services, telecommunications, petrochemicals, air

46
transportation as well as power/electricity generation (Marketline, 2013). The JG

Summit Group is based in the Philippines and is headquartered in Pasig City and

currently employs more than 16,000 people. The group primarily operates in the

Philippines but it also has overseas operations in the following countries and

territories: Cayman Islands, British Virgin Islands, China, Thailand, Singapore,

Indonesia, Vietnam and Malaysia (Marketline, 2013).

The JG Summit Group

JG Summit Holdings first started in back in the year 1957 under the name

Universal Corn Products Incorporated, which is now known today as Universal

Robina Corporation (one of the JG Summit Groups subsidiaries). The first foray

of the firm back then was the construction of a cornstarch plant in the Manila

area (Marketline, 2013). As the years passed, the firm began to grow rapidly and

during year 1990, it was announced that JG Summit Holdings would be

incorporated as the holding firm of the Gokongwei Group of Companies. As time

passed, the firm ventured into more acquisitions of small companies and made

tie-ups and arrangements with them. For most people, JG Summit can be

associated heavily with Universal Robina Corporation (URC) which handles the

Jack N Jill brand of food products along with beverages and other food items.

Furthermore, URC is not only involved with food and beverage products but it is

also involves with the sugar industry and in other raw material products With that

said however, the JG Summit Group did not just settle with its businesses in the

food industry as well as the raw materials industry as later on, the group

47
expanded into financial services (particularly with the presence of Robinsons

Savings Bank) and eventually into telecommunications (as evidenced by their

ownership and involvement with Sun Cellular as well as the groups involvement

in PLDT wherein JG Summit has 12% shares in that company). In addition to

those, JG Summit also has a sector dedicated to Air Transport under its

subsidiary called Cebu Pacific. This substantial as Cebu Pacific has built itself up

to be considered as a driving force in the budget airline and Low Cost Carrier

(LCC) market in the Philippines. In fact, it has served has served a total of more

than 12 million customers and counting and because of that, the company claims

to be the largest air carrier in the Philippine to-date.

The firm is an enterprise that is operated primarily by the Gokongwei

family. The key people of the organization include Mr. James Go, Mr. Lance

Gokongwei, Mr. John Gokongwei, Ms. Robina Gokongwei-Pe, Johnson Robert

Go and Patrick Henry Go just to name a few of the key people in the JG SUMMIT

organization.

The scale of the entire family enterprise is massive not just in the number

of business subsidiaries that it handles but also in the amount of revenue/income

that it generates. For instance, according to data obtained from Marketline

Advantage (a market intelligence and financial data collection firm), the JG

Summit Group recorded revenues worth more than 135 Billion Philippine Pesos

(or approximately more than USD$3 Billion) as of fiscal year ended December

48
2012 (Marketline, 2013). In addition, the JG Summit Group had an operating

profit of more than PHP 20 BILLION (or approximately USD$480,000,000) in the

same period. Also, its net profit was stated at more than 13.5 Billion Philippine

Pesos (or approximately USD$321.5 Million). In short, to put it casually, these

numbers are nothing to sneeze at and this is proof of how much and how fast

money moves within the organization that is JG SUMMIT HOLDINGS INC.

The money generated by JG Summit comes from their core businesses

ranging from food to raw materials to air travel and the like. However, there is

also another core business of JG Summit that is a strong contributor to its

financial position and performance and that is the division the deals with real

estate and property developments. The name of that division is simply known as

Robinsons Land Corporation.

Robinsons Land Corporation (RLC)

In addition to the industries of food, petrochemicals, raw materials, air

transportation and telecommunications, the firm is also actively involved in real

estate and property developments under Robinsons Land Corporation (RLC).

The organization has numerous kinds of real estate developments and properties

that it handles ranging from shopping malls, condominiums & apartments, office

buildings, hotels and residential subdivisions. Right now, the firm handles 32

shopping malls, 59 residential condominiums, 32 housing subdivisions, 9 hotels

and 8 office buildings (Marketline, 2013). In terms of financial standing, RLC has

49
recorded revenues worth more than 13 Billion Philippine Pesos (or approximately

more than USD$300 Million) as of fiscal year ended December 2012. As for

operating profit, the firm registered more than PHP5.2 BILLION (or approximately

more than USD$122,000,000) within the same period. Lastly, the firm had a net

profit amount of more than PHP 4,200,000,000 (or almost USD$100 Million in

approximate figures) through the same fiscal year (Marketline, 2013).

The key people who operate JG Summit are also present as part of the

management of Robinsons Land Corporation which means that Gokongwei

family is heavily involved. With that in mind though, there is one key person that

deserves to be given mention and that person is Mr. Frederick D. Go, the

President and Chief Executive Officer of Robinsons Land Corporation. Mr.

Frederick D. Go has served as the President of RLC since year 2006 but he

already served as the Director of the firm since year 1999. In addition to his

duties at RLC, Mr. Go also serves as the President and Chief Operating Officer

at Robinsons Recreation Corporation, the President of the Philippine Retailers

Association and has also served as a Director for other JG Summit companies

and subsidiaries such as Universal Robina Corporation, Cebu Pacific (known

formerly as Cebu Air), Robinsons Bank as well as JG Summit Petrochemical

Corporation among others.

Robinsons Land Corporation (RLC) BRIEF HISTORY

The history of Robinsons Land Corporation began when it was first

incorporated in the year 1980. Soon after nearly a decade, the firm listed itself in

50
the Philippine Stock Exchange. Then, in 1997, RLC formed Robinsons (Cayman)

Limited (RCL) in the Cayman Islands. Then after many years, the company

decided to launch and commence operations of gohotels.ph by opening its first

hotel located in the Mandaluyong area during year 2010. Then after two years,

the firm launched their first provincial branch, which is located in Puerto Princesa

in Palawan. In addition to that, RLC decided to build a mall to complement the

hotel located

Robinsons Land Corporation (RLC) the divisions and departments

There are obviously many divisions within Robinsons Land Corporation

(RLC) because after all, RLC does not just deal with one type of property

development. In fact, there are numerous departments involved and these are

the following: Residential Buildings Division (RBD), Office Buildings Division

(OBD), Commercial Centers Division (CCD) and now, Robinsons Hotels and

Resorts (RHR).

The Commercial Centers Division (CCD) is responsible for the

development, leasing and management of all Robinsons shopping malls

throughout the Philippines. Meanwhile, the Residential Buildings Division (RBD)

is in-charge of residential and housing developments that range from

subdivisions composed of housing clusters of individual houses all the way

condominiums and apartments. The brand names included here are properties

such as Robinsons Luxuria, Robinsons Homes, Robinsons Residences and

51
Robinsons Communities. As for the Office Buildings Division (OBD), this

department is responsible for the buildings and development of office buildings

under the Robinsons brand and is also responsible for handling the leasing of

building space. Currently, this division has office buildings situated within Metro

Manila as well as in Cebu City. For example, there are buildings such as

Robinsons Cybergate Complex, Robinsons Cyber Alpha building and Cyber Beta

building which are under the management and jurisdiction of this division. Lastly,

the Robinsons Hotels and Resorts (RHR) division handles the properties related

to hotels and resorts. Currently, this division has three brand segments namely:

Intercontinental Hotels Group, Summit Hotels and GO Hotels. The

Intercontinental Hotels Group is a tie-up between Robinsons Land Corporation

Robinsons Hotels and Resorts as well the world-renowned Intercontinental

Hotels Group (IHG) and this relationship brings two powerful organizations

together in such a great tie-up. In this agreement, Robinsons Hotels and Resorts

will be primarily responsible for managing two IHG hotels in the Philippines and

these are Crowne Plaza Manila Galleria Hotel as well as the Holiday Inn Manila

Galleria. Second, there is the Summit Hotels brand and there are currently two

hotels that are operational, which are Summit Circle Cebu and Summit Ridge

Tagaytay. In addition, a third hotel named Summit Hotel Magnolia (located

beside Robinsons Magnolia) will be launched in the latter part of year 2014.

Lastly, there is GO HOTELS - the budget and low-cost hotel brand of RHR,

which currently has seven (7) hotels, located in Mandaluyong, Puerto Princesa

(Palawan), Dumaguete, Tacloban, Bacolod, Otis Manila and Iloilo. Furthermore,

52
three (3) more locations are coming before the end of year 2014 and these are

the branches located in Ortigas, Butuan and Davao.

GO HOTELS

GO Hotels defines itself as the First Value Hotel Chain as it offers no

frills accommodations to guests that are looking for a reasonable place to stay at

very reasonable prices. The company says that their room rates are reasonable

as only the basic accommodation and room services are offered and that all

other services that are non-essential are offered as additional services that

guests could opt and pay for an additional fee. This is the value proposition that

GO Hotels wants to promote in that it believes that there is a growing emergence

of smart and savvy travelers that want no frills accommodations at reasonable

prices with great value for money. This is heavily mentioned in their tagline that

says GO HOTELS a place for every Juan . The word Juan here, for those

that are not aware, is an informal term used to describe the average, ordinary

Filipino. With that in mind, GO HOTELS shows that it positions itself to providing

accommodations that ordinary Filipinos can afford and more importantly

appreciate. This simply means that everything that any traveller needs is there

but of course, additional services may be availed should the guest want more

than what he/she would need.

53
GO HOTELS BRIEF HISTORY

The company has opened its first hotel in the Mandaluyong area back in

April 2010 and it is located near the Pioneer Street area. The area is part of the

Robinsons Pioneer complex, which houses the Robinsons Cybergate Complex of

office buildings and Business Process Outsourcing (BPO) facilities such as the

Accenture Call Center. In addition, there is also a nearby mall as well called

Forum Robinsons Pioneer. This allows GO Hotels Mandaluyong to be a fully

convenient hotel with numerous facilities and wide accessibility, which is what

their customers want and expect even for a budget hotel such as GO Hotels.

In addition to the Mandaluyong Hotel, GO Hotels has expanded by

building their second hotel in Puerto Princesa, Palawan (the first GO Hotel

branch outside of Metro Manila) which opened back in January 2012. After

which, the third GO Hotel facility opened on March 2012 in Dumaguete. Then

later on, the fourth hotel opened in Tacloban, Leyte one month after. Next, the

fifth hotel opened in Bacolod on July 2012. Now, as for the sixth hotel, this time it

goes to Otis Manila which opened on June 2013 and is the second GO Hotel

branch that opened in the Metro Manila area. For the sixth hotel, it opened in

Iloilo on December 2013 and was considered to have be biggest provincial

branch of GO Hotels.

For the year 2014, three more hotels are on the way: Ortigas Center;

Butuan and Davao. With that said, it does not stop there as the GO Hotels brand

54
is planning further growth and expansion with a total 30 branches planned by the

period of year 2015-2020.

The pricing and operational model that GO Hotels is following revolves

around the model of a budget hotel that only offers basic amenities such as

rooms, beds, TV, shower as well as a personal safe. Other than that, everything

else is available for a fee. This is obviously different from what is offered at full-

service hotels wherein those services and amenities are already part of the

premium price. In a sense, GO Hotels has adopted the model used by a fellow

JG Summit-owned company, which is Cebu Pacific. The Cebu Pacific model

follows the budget airline model, which offers low pricing but does not include

any added services such as food and beverages and as such marks them as

additional services that can only be availed if customers pay for them. This is the

same principle that GO Hotels has adopted but this time applied into the budget

hotel model.

In the past, it was observed that youth hostels, motels and basic lodging

often served low-budget accommodations. However, the arrival of budget hotels

has offered another option for people that want basics and a more flexible pricing

scheme. This is well-suited for backpackers, balikbayan Overseas Filipino

Workers, short-stay business travelers (i.e. corporate travelers) and families on a

budget. With seven (7) branches as of July 2014 and growing, GO Hotels is

growing and expanding and by year 2020, it is expected that GO Hotels will have

55
at least thirty (30) branches throughout the country. This is a business model that

is relevant to what certain clients need and this works for the company as well.

Nevertheless, the level of service shown by the employees is maintained while

still showing a fun vibe that guests will enjoy (especially for the younger guests).

This is GO Hotels A place for every Juan

56
 COMPANY DIAGRAM

UNIVERSAL ROBINA
CORPORATION
(URC) ROBINSONS LAND
CORPORATION
(RLC)
ROBINSONS ROBINSONS JG SUMMIT
RETAIL INC. BANK PETROCHEMICAL
CORPORATION
UNITED CEBU
INDUSTRIAL PACIFIC JG SUMMIT
CORPORATION AIR OLEFINS
CORPORATION

SUMMIT
PHILIPPINE MANILA MEDIA
LONG ELECTRIC
OFFICE RESIDENTIAL COMMERCIAL
DISTANCE COMPANY
BUILDINGS BUILDINGS CENTERS
TELEPHONE (MERALCO)
DIVISION DIVISION DIVISION
COMPANY
(OBD) (RBD) (CCD) ROBINSONS (PLDT)
HOTELS AND
RESORTS (RHR)

INTERCONTINENTAL
SUMMIT HOTELS GROUP (TIE-UP)
HOTELS

HOLIDAY CROWNE
INN PLAZA
MANILA MANILA
GALLERIA GALLERIA
57

GO HOTELS
 ORGANIZATIONAL DIAGRAM GO HOTELS

ELIZABETH D. GREGORIO
(GENERAL MANAGER ROBINSONS
HOTELS AND RESORTS)

SALES MARKETING

CREATIVES REVENUE TREASURY ACCOUNTING

OPERATIONS BUSINESS
LEASING
DEVELOPMENT
HUMAN RESOURCES
INFORMATION SYSTEMS

58
 C. Competition

Competitive Analysis

Competitor Product Place, Time and Price and Other Cost Promotions and Education
Elements Cyberspace Considerations
Tune Hotels 7-Eleven Aseana City-200 Aseana City Facebook
Gloria Jeans Rooms Double/Twin Room https://www.facebook.com/tunehotels
Coffee Cebu-150 Rooms PHP 1,556.61 Like Count: 161,975
Subway Angeles-165 Rooms Cebu
Cagayan De Oro- Double/Twin Room Twitter
159 Rooms PHP 1,188.00 @tunehotels
Ermita-167 Rooms Angeles Follower Count: 26.8K
Makati-213 Rooms Double/Twin Room
Ortigas-182 Rooms PHP 909.84 Instagram
Quezon City-150 Cagayan De Oro tunehotels
Rooms Double/Twin Room Follower Count: 556
Davao-158 Rooms PHP 788.00
Family Room A Youtube
PHP 1,088.00 Htt[://www.youtube.com/user/tunehotel
Ermita
Double Room Hotel Website
PHP 1,227.70 http://tunehotels.com/ph/en/
Makati
Double/Twin Room
PHP 1,330.00
Ortigas
Double/Twin Room
PHP 1,369.20
Quezon City
PHP 888.00
Davao
Double/Twin Room

59
 PHP 888.00
Family Room A
PHP 1,088.00

Competitor Product Elements Place, Time and Price and Other Cost Promotions and Education
Cyberspace Considerations
Eurotel Restaurant Las Pinas-50 Rooms Las Pinas Facebook
Coffee Shops Pedro Gil-116 Rooms Studio PHP 2,050.00 http://www.facebook.com/myeurotel
Smoking Area Makati-83 Rooms Standard 1 PHP Like Count: 4,983
Function Rooms North EDSA-59 2,440.00
Spa Rooms Euro Suite 1 PHP Twitter
Baguio-66 Rooms 2,790.00 @myeurotel
Angeles-96 Rooms Euro Suite 2 PHP Follower Count: 1,130
Boracay-104 Rooms 3,150.00
Naga-83 Rooms Pedro Gil Instagram
Araneta-70 Rooms Studio PHP 2,150.00 n/a
Standard 1 PHP
2,530.00 Youtube
Euro Suite 1 PHP n/a
2,850.00
Euro Suite 2 PHP Hotel Website
3,350.00 http://www.eurotel-hotel.com/
Makati
Studio PHP 2,150.00
Standard 1 PHP
2,620.00
Standard 2 PHP
2,720.00
Euro Suite 1 PHP
2,970.00
Euro Suite 2 PHP
3,595.00

60
 North EDSA
Studio PHP 1,995.00
Standard 1 PHP
2,410.00
Standard 2 PHP
2,605.00
Euro Suite 1 PHP
2,565.00
Euro Suite 2 PHP
2,995.00
Baguio
Studio PHP 2,100.00
Standard 1 PHP
2,500.00
Standard 2 PHP
3,000.00
Euro Suite 1 PHP
2,900.00
Euro Suite 2 PHP
3,300.00
Angeles
Studio PHP 2,150.00
Standard 1 PHP
2,620.00
Standard 2 PHP
2,720.00
Euro Suite 1 PHP
2,970.00
Euro Suite 2 PHP
3,595.00
Boracay
Studio PHP 2,600.00
Standard 1 PHP

61
 2,900.00
Standard 2 PHP
3,100.00
Euro Suite 1 PHP
3,600.00
Naga
Studio PHP 1,500.00
Standard 1 PHP
1,800.00
Standard 2 PHP
1,900.00
Euro Suite 1 PHP
2,350.00
Euro Suite 2 PHP
2,850.00
Araneta
Studio PHP 1,895.00
Standard 1 PHP
2,220.00
Euro Suite 1 PHP
2,520.00
Euro Suite 2 PHP
3,045.00

Competitor Product Place, Time and Price and Other Promotions and Education
Elements Cyberspace Cost
Considerations
Islands Stay Spa Cebu: Uptown Cebu: Uptown Facebook
Hotel Parking Cebu: Mactan Small PHP 950.00 http://www.facebook.com/islandsstay
Smoking Area Palawan: Puerto Medium PHP Like Count: 1,901
Princesa 1,450.00
Large PHP 1,950.00 Twitter

62
 Extra Large PHP @islandsstay
2,150.00 Follower Count: 235
Cebu: Mactan
Small PHP 950.00 Instagram
Medium PHP n/a
1,450.00
Large PHP 1,650.00 Youtube
Extra Large PHP http://www.youtube.com/watch?v=8Krlute9w7s
1,950.00
Hotel Website
http://www.islandsstay.com/

Competitor Product Place, Time and Price and Other Promotions and Education
Elements Cyberspace Cost
Considerations
Microtel Massage Acropolis-84 Acropolis Facebook
Services Rooms 2 Queen Beds http://www.facebook.com/microtel
Bar Baguio-60- Room Like Count: 65,484
Restaurant Rooms PHP 2,777.78
Parking Batangas-78 1 Queen Bed Suite Twitter
Smoking Area Rooms PHP 4,059.83 n/a
Function Boracay-50 Baguio
Room Rooms 1 Queen Bed Instagram
Cabanatuan-50 Room n/a
Rooms PHP 2,179.49
Cavite-57 Rooms 2 Queen Beds Youtube
Davao-51 Room http://www.youtube.com/watch?v=6zXaMcB6wkc
Rooms PHP 2,435.90
General Santos- 1 Queen Bed Suite Hotel Website
66 Rooms PHP 2,820.51 http://www.microtelphilippines.com
Manila-150 Batangas

63
 Rooms 1 Queen Bed
Palawan-50 Room
Rooms PHP 2,802.51
South Forbes-61 2 Queen Beds
Rooms Room
Tarlac-50 Rooms PHP 2,666.67
UP Technohub- 1 Queen Bed Suite
120 Rooms PHP 3,025.64
Boracay
2 Queen Beds
Room
PHP 3,846.15
2 Queen Beds
Room (Beach
View)
PHP 4,444.44
1 Queen Bed Suite
PHP 4,188.03
Cabanatuan
2 Queen Beds
Room
PHP 2,393.16

Cavite
1 Queen Bed
Room
PHP 2,147.69
2 Queen Beds
Room
PHP 2,564.10
1 Queen Bed Suite
PHP 3,118.97
Davao

64
 2 Queen Beds
Room
PHP 2,991.45
General Santos
2 Queen Beds
Room
PHP 2,735.04
1 Queen Bed Suite
PHP 3,589.74
Manila
2 Queen Beds
Room
PHP 3,589.74
Palawan
2 Queen Beds
Room (Lagoon
View)
PHP 2,564.10
2 Queen Beds
Room (Beach
View)
PHP 2,991.45
South Forbes
2 Queen Beds
Room
PHP 2,136.72
1 Queen Bed Suite
PHP 2,493.68
Tarlac
1 Queen Bed
Room
PHP 1,436.75
2 Queen Beds

65
 Room
PHP 1,997.44
1 Queen Bed Suite
PHP 2,800.85

Competitor Product Elements Place, Time and Price and Other Cost Promotions and
Cyberspace Considerations Education
Fersal Hotel Wi-Fi Puerto Princesa-85 Puerto Princesa Facebook
Reserved Parking Rooms Deluxe Single Many Facebook pages.
Restaurant Bel-Air Makati-33 Rooms PHP 2,100.00 Uncertain because of
Coffee Shop Diliman QC-49 Rooms Deluxe Double few likers
Kalayaan QC-49 Rooms PHP 2,100.00
Cubao QC-68 Rooms Deluxe Triple Twitter
Sta. Cruz Manila-48 PHP 2,460.00 @fersalhotel
Rooms Deluxe Quadruple Follower Count: 405
Annapolis-62 Rooms PHP 2,450.00
Makati Avenue-20 Bel-Air Makati Instagram
Rooms Deluxe Single n/a
PHP 2,450.00
Deluxe Double Youtube
PHP 2,450.00 n/a
Premium Deluxe
PHP 2,950.00 Hotel Website
Diliman QC http://fersal.com.ph
Deluxe Single
PHP 2,750.00
Deluxe Double
PHP 2,750.00
Executive Room
PHP 3,550.00
Kalayaan QC

66
 Deluxe Single
PHP 2,750.00
Deluxe Double
PHP 2,750.00
Deluxe Triple
PHP 3,600.00
Cubao QC
Deluxe Single
PHP 2,200.00
Deluxe Double
PHP 2,200.00
Executive Suite
PHP 3,200.00
Sta. Cruz Manila
Deluxe Single
PHP 1,487.50
Deluxe Double
PHP 1,487.50
Junior Suite
PHP 1,870.00
Annapolis
Deluxe Single
PHP 1,650.00
Deluxe Double
PHP 1,650.00
Makati Avenue
Standard Room
PHP 1,900.00
Deluxe Room
PHP 2,500.00
Junior Suite
PHP 3,500.00

67
 D. Porters Five Forces of Competition

Porters Five Forces Model

68
III. TOWS MATRIX

Strengths Weakness
1. Part of JG Summit 1. Customer
2. Within a Robinsons Dissatisfaction
3. Fast Expansion -Wi-Fi Problems
4. Accessibility -No eating inside the
room
-No Free Breakfast
-Limited Toiletries
2. Customer Retention
can Further be
Improved
3. Budget Constraints

Opportunities Maximization Minimize

1. Mindanao Presence Recommendations Recommendations
2. Dominance in -Brand Prestige (S1, O3) -More branches lead to
Visayas -Go South (S3, O1, O2) more loyal customers (W2,
3. Placement of future -Convenience is King, now O3)
hotels in every and Forever (S2, S4, O3) -Optimal resource allotment
Robinsons Complex -Riding the Robinsons for new and upcoming hotel
or future Robinsons Wave (S1, S2, S3, S4, O3) branches (W1, O3)
Complex
Threats Watch Out Avoidance
1. Existing Competitors Recommendations Recommendations
2. New Entrants -Continue Building on -Develop organized and
3. Exclusivity of Hotels existing brand equity (S1, immediate response
with Certain Travel T1) solutions (W1, W2, T1, T2)
Agencies and -Expansion with exclusivity -Exclusivity must be done
Relevant Institutions is excellent Triple E properly and effectively
strategy (S3, T2, T3) (W3, T3)
-Fast defense to counter -Learn and leverage from
new offense (S3, T2) existing experience (W1,
T1, T2)

69
 IV. TARGET MARKET DESCRIPTION

Demographics

Go Hotels caters to both male and females. Go Hotels provides accommodations

to travellers, transients, expats and balikbayans. Since our target market are the adults

in the working force, our target age is between 25-30 years old who belong in the socio-

economic class of lower B and broad C. These are the individuals who travel a lot

because of their work, vacation to visit other people or for fun and needs a place to stay

for their trip. These are the individuals who have the means of travelling domestically or

internationally and have the capacity to give up a certain amount of money to travel and

avail hotel accommodations. As we observed from our visit in one of the Go Hotels

branch in Mandaluyong, there were only a few people we saw but those we saw inside

the hotel are mostly young adults who dressed corporately and its safe to assume that

they were working in the corporate world. We also saw two families in the hotel having

their leisure time. As we roamed around the hotel, we noticed that most of the rooms

were empty and only a few had some people inside. During our visit in the hotel, the

people that we noticed were mostly working and it looked very busy with lots of people

busy with their work because this branch is adjacent to office buildings.

Psychographics

Go Hotels psychographics include those of the Gen X, meaning these are the

people who have value for money and Gen Y, meaning these are the people who are in

their 20s. The buying patterns of these people are that they are willing to avail hotel

accommodations when they travel in a price that is affordable and they can get the most

70
services out of their money in hotel accommodations without spending an expensive

price for it. Go Hotels sets off a warm, fun and comforting vibe which the customers can

enjoy without spending a high amount of money.

Target Person

Male

Name: Michael Virgil Coronel

Birthdate: February 23, 1986

Age: 28

Gender: Male

Educational Background: College Graduate

University Attended: San Beda College

Degree Attained: B.S. Marketing

Occupation: Marketing Executive

Company: Boardwalk

Income Range: PHP20,000 - PHP25,000

Personality: Laid-back; hardworking; determined; adventurous

Favorite Food: Filipino Cuisine, Japanese Cuisine

Favorite Color(s): Orange, Red, Silver, Charcoal Grey

Favorite Music: Rap music; Rock Music; Sentimental Music

Favorite Movie Genre(s): Comedy, Drama, Science Fiction

Favorite Places: Fort Bonifacio, Makati, Eastwood, Greenhills

Hobbies: Hanging out with friends, Extreme Sports, Soccer, Watching Movies, Billiards,

71
Karaoke, Eating Out

Female

Name: Janine Quintana

Birthdate: April 19, 1988

Age: 26

Gender: Female

Educational Background: College/University Graduate

University Attended: De La Salle University Manila

Degree Attained: A.B. Communication Arts

Occupation: Imagineer (Advertising Creatives)

Company: Migo

Income Range: PHP25,000 PHP30,000

Personality: Dedicated, Goal-Oriented; Cheerful, Optimistic

Favorite Food: Mexican Cuisine, Filipino Street Food

Favorite Color(s): Teal, Turquoise, Fuchsia, Green

Favorite Music: Pop, Mainstream, Classical

Favorite Movie Genre(s): Romance, Chick-Flick

Favorite Places: Cavite, Nuvali (Laguna), Tagaytay, Makati, Fort Bonifacio

Hobbies: Watching TV Series, Eating (Food-Trip), Long Drives, Yoga, Partying

72
 V. GOALS AND OBJECTIVES

Short Term (1 year)

-Increase awareness by 40%

-Increase of 10% of overall company growth

-Maintain a 25% sales target for the current year

-Sustain the 75% revenue target for the current period and increase it by 15%

Medium Term (2-3 years)

-Increase awareness by 50%

-Increase of 15% of overall company growth

-Increase sales target to at least 35% for the aforementioned period

-Sustain the 75% revenue target for the current period and increase it by 25%

Long Term (4-5 years)

-Increase awareness by 60%

-Increase of 20% of overall company growth

-Increase sales target to at least 45% for the aforementioned period

-Sustain the 75% revenue target for the current period and increase it by 20%

73
 VI. TACTICS, STRATEGIES, AND PROGRAMS

A. 8Ps

Existing

1. Product Elements

The hotels are strategically located near or beside a Robinsons Mall. They have an

available spa for the customers which are separate from the payment of the rooms.

These are located in specific floors outside the rooms of the hotel. There is also a caf

or restaurant located in the ground floor of the hotel. There is also a convenience store

near the branch. Function rooms are available upon reservation.

2. Place and Time

Branch Address Rooms

Dumaguete Calindagan cor. South Road, 102
Dumaguete Central Business
District, Dumaguete City
Iloilo Ledesma Street cor. Quezon 160
Street, Roxas Village, Iloilo
City
Tacloban Tabuan National Highway, 98
Marasbaras, Leyte
Mandaluyong Robinsons Cybergate Plaza, 223
EDSA, cor. Pioneer Street,
Mandaluyong City
Puerto Princesa North Road, Brgy. San 108
Manuel, Puerto Princesa
City, Palawan
Bacolod Lacson Street, Mandalagan, 108
Bacolod City
Otis-Manila 1536 Paz Guazon Street, 118
831 Zone 90, Paco Manila
Oritgas Cyberscape Alpha, Garnet 198
Road, Ortigas Center Pasig

74
 3. Price and Other Cost Considerations

Branch Rates
Dumaguete Twin Room PHP 994.56
Queen Room PHP 994.56
Iloilo Twin Room PHP 994.56
Queen Room PHP 994.56
Tacloban Twin Room PHP 1,442.46
Queen Room PHP 1,442.46
Mandaluyong Twin Room PHP 1,778.56
Queen Room PHP 1,778.56
Puerto Princesa Twin Room PHP 1,442.56
Queen Room PHP 1,442.56
Bacolod Twin Room PHP 1,218.56
Queen Room PHP 1,218.56
Otis-Manila Twin Room PHP 1,218.56
Queen Room PHP 1,218.56

4. Promotion and Education

Facebook: https://www.facebook.com/gohotels.ph (Like count: 47,983)

Twitter: @gohotels.ph (Follower count: 2,031)

Instagram: gohotels_ph (Follower count: 704)

Youtube: http://www.youtube.com/channel/UCqI0zl1yZqAOL8kpdMandsg

Hotel Website: www.gohotels.ph

5. Process

The basic way of checking in a hotel is through walk in. When checking in via

walk in, you go directly to your desired hotel and talk to the attendant in the front desk.

You tell them your preferred type, how many nights you are staying and how many

persons are checking in with you. Then you can decide whether to pay upon checking in

75
or pay upon check out. Another way of checking in is through the website of the hotel

and is called website booking or online booking where you will have to create an

account for your personal information. The website of the hotel contains an option

where you can check in. You have to place in the date of check in and the date of check

out. You will also choose the branch of the hotel where you want to stay. After that the

link will lead you to the kinds of room available on your check in date together with the

prices. Another way of checking in is through your travel agent. You will contact your

travel agent and give the agent your specific destination, length of stay, budget and the

travel agent will be the one responsible in finding a perfect hotel for your stay depending

on your budget. But the travel agent will set the price of your booking a little bit higher

and the excess would be the travel agents commission. You can also choose an online

travel agency as your mode of booking a hotel. The customer will book online in the

travel agency site then the travel agency will receive a booking request from the

customer then the travel agency will send the booking request to the hotel. Same with

the travel agent, this online travel agency also has a commission in the prices given in

their website. The other method used by Go Hotels is called LOA. The company that

wants to book in the hotel will ma ether representative create and LOA or Letter of

Authorization. After creating an LOA the representative from that company that wants to

book will send the LOA via email to sales associates of the hotel. The sales associates

will make a contract about the length of stay, rooms, rate and number of people

checking in. after the contract has been made, their booking will be made. After the

contract has been made by the sales associate, it will be sent back to the representative

of the company.

76
 6. Physical Evidence

When we arrived in the hotel we checked in. After getting our rooms we paid for the

room rate, breakfast and parking and good thing that they gave out receipts for that.

Then when we went in the room the only essentials that were there were soap and

shampoo. So we decided to purchase a toiletry kit so that our bathroom essentials

would be complete. The next day when the breakfast arrived, we were very happy with

what we saw. The breakfast set was big and it was good for two and everything was

plenty. We even had some left over condiments.

7. People

In the hotel there are divisions of the staff. The highest position in the hotel is the

General Manager where everyone reports to that person. Next in line are the executives

of the hotel. The executive committee consists of the top people of their division. These

people are the Executive Housekeeper, Executive Chef, Food and Beverage Manager,

Room Division Manager, Marketing Manager, Sales Manager, Front Office Manager,

Chief Engineer Controller and the Personnel Manager. The next in line of staff are the

managers up to the middle managers of the hotel. In this division you have the Cashier,

Laundry Manager, Room Service Manager, Restaurant Manager, Banquet Manager,

Maintenance Engineer, Security, Bar Manager and the Reservation Manager.

8. Productivity and Quality

77
 Service Room Features
Spa In-Room Safebox
Restaurant Private Bathroom Super Shower
Wi-Fi In-room Phone
Parking LCD Cable TV
Non-Smoking Smoking Rooms 100% Cotton Sheets w/ Duvet Covers
Air Conditioning Chiropractic & High Quality Non-allergenic
Car Rental Pillow
Shuttle Service
Daily Housekeeping
Laundry
Baggage Storage

Proposed

1. Product Elements

Upon our check in Go Hotels Ortigas Center, the hotel was inside a Robinsons

building which is Cyberscape Alpha. The staffs were very accommodating and guided

us in checking in. After checking in we went to the room. While on our way to the room

there was spa services provided by Venus Touch Spa in the 4 th floor of the hotel. When

we got inside the room, the only things in the room were the queen size bed, TV, a

small table and the shower. We noticed that the sink, shower and the toilet were

separated from each other. It would be better if all of these are inside a separate bath

area. Inside the shower were only a small bar of soap and shampoo. We propose that

they should provide the guests with a complete set of essentials like a pen, paper and

other needs like a complete set and toiletries for the comfort of the guests. The dining

area for the breakfast is located outside of the room since eating inside the room is

prohibited.

2. Price

78
 Go Hotels prices as well as promotions are competitive and attractive. The price

of the hotel is very affordable. The rates are variable and since it is a budget hotel, you

only get what you paid for.

3. Place

We checked in Go Hotels Ortigas Center in August 8, 2014 (Friday) for an

overnight stay. We arrived in the hotel at 2pm and we were accommodated

immediately. The hotel is surrounded by offices of Robinsons and other companies. The

hotel is walking distance from Robinsons Galleria and Go Hotels head office. We would

like to continue to build Go Hotels inside a Robinsons Complex for the convenience of

the customers because the hotel will be surrounded by establishments.

4. Promotion and Education

A. Social Media Sites Should be Integrated

- Since Go Hotels have the most media impressions in Facebook, it will be a

strong measure to lead the viewer to other social media sites namely Twitter and

Instagram which currently has the lowest impression among the three. What can

happen is that the Twitter or Instagram viewer will be linked to Facebook which

contains the most information about Go Hotels while the Facebook viewer can be

lead to Twitter and Instagram which will result to a higher number of followers.

B. Go Hotels Watermark on Online Post

A number of Go Hotels online posts feature attractions near the hotels.

This is to remind Go Hotels clients that they are still present in social media but a

79
number of posts do not give a Go Hotel vibe. It is important for the client to retain the Go

Hotels image so what can happen is that all posts should contain a Go Hotels logo as

well as information that can lead the clients to check-in or even inquire.

C. Unique Selling Proposition

For the Juan on the GO

We believe that this tagline would be effective because it mentions the name of

the hotel and it also mentions the target market of the hotel which are the backpackers,

corporate travellers, expats and balikbayans.

5. Productivity and Quality

Upon our arrival in the hotel, the staffs were very kind to assist us with our needs

and were able to give us our room in just a few minutes upon arrival. Before we got our

room, the staff even gave us a tour around the hotel and showed us the kinds of room

and other amenities they had. Since the hotel is only in its soft opening, some other

features of the room werent working like the cable in the TV, Wi-Fi and there were still

no landline phones in the rooms. We would also like to improve on or enhance the room

furniture for the guests comfortable use because when we used the tables and chairs

inside the room, we had a hard time reading and writing. Regardless of that, our stay

was very comfortable and we had a very fun stay in this hotel. Upon our check out, we

left some a face towel, pens and an envelope in our room and the staff was quick in

informing us that we left something.

6. Process

Go Hotels Mobile Application

80
 The mobile applications features will be an easy means for the aspiring client to

gain information about what is happening to Go Hotels. The mobile application will

feature a photo gallery displaying the hotels as well as other Go Hotels related content

including photos in Go Hotels social media sites, show the hotels rates as well as

means to check-in in the different branches, frequently asked questions, and users of

the mobile application can also share their ideas and thoughts and feelings about their

experiences with Go Hotels.

7. Physical Evidence

The air-conditioning in the room was very soothing and comfortable. It was a nice

place to relax and rest. It would be nice if there would be lounges far from the rooms

because the guest lounges are outside the rooms of the guests so that people in the

lounge having conversations or doing personal things wont disturb guests whose rooms

are close to the lounge. We also propose the provision or URC products such as

candies or refreshments in the lobby while the customers are waiting or relaxing.

8. People

Upon our check in, the first person we got to talk to was the lobby staff to ask where

the parking is. After that when we got to the parking, the guard assisted us where to

park our cars in the hotel. Since the parking was at the back of the building we propose

that they provide valet service which the customer can pay or include in their billing..

The front desk staff was very kind to give us a tour around the hotel. After checking in

and making the payment, she accompanied us in getting our things from the car and

81
bringing it to the room. Then upon our check out, we went to the front desk to surrender

the key and the service was very quick and convenient.

82
B. Fishbone Diagram

EXISTING

83
C. Flower of Service

Existing

Proposed

84
 VII. INVESTMENT PLANS AND PROFITABILITY ESTIMATES

1. Advertising

ADVERTISEMENT PROGRAM
MEDIA OBJECTIVE SCHEDULE COST OF TOTAL COST
ADVERTISEME
NT
YouTube To be able to 1 year of worth PHP4.3 per bid PHP1,548,000
TrueView In- reach the of YouTube at a target of
Stream Ads desired target advertisement maximum 1000
audience via starting October viewers for a
pre-video 2014 to total cost of
advertisements September PHP4, 300 per
through 2015. day.
YouTube.
Cost per month
is at PHP129,
000.
Posters To be able to 30 posters per PHP90 for a PHP21,600
reach the branch of GO standard sized
desired target Hotels, good for poster of 2ft x
audience via 1 year from 3.5ft, gloss
posters within October 2014 to finish at a total
the branch September of PHP21, 600.
vicinity. 2015.
30 posters per
branch of GO
Hotels for a
total of 8
branches all
over Philippines
as well as the
Robinsons
complex
surrounding GO
Hotel.
Train Inserts To be able to 20 Train Inserts PHP65 for a PHP10,400 for
reach the for generation 1 standard sized train insert cost
desired target and generation cardboard of
audience via 3 LRT1 and .85ft x 2.5ft, PHP2, 400,000
train inserts in LRT2 line trains 1.3mm for total cost of
the MRT and total of 4 trains thickness gloss 6months train
LRT trains for per line, for 6 finish, 160 insert

85
 brands months pieces total of advertisements.
exposure to alternating from PHP10, 400.
commuters. October 2014 to
September PHP2, 500 per
2015. train insert
placement
inside a
generation 1 or
generation 3
LRT train, at 20
total train
inserts per train
for a total cost
of PHP50, 000
per train insert
placement.

PHP50, 000 for

each month of
train insert
placement cost,
total of 8 trains
for PHP400,
000.
Flyers To be able to Flyer stands are PHP12 per flyer, PHP48, 000 for
reach desired stationed inside total of 4,000 flyers.
target audience the booth pieces. Flyer
via flyers in any preferably size of .40ft x
Robinsons beside the .75ft, gloss
affiliated booths counter and/or finish for a total
outside the inclusive in of PHP48, 000.
vicinity of GO handouts given
Hotels and the to any passerby.
Robinsons Alternating per
complex month starting
surrounding it. September
2014 to August
2015.
Tarpaulin To be able to Tarpaulins are PHP30 per PHP120,000 for
reach target posted over at square ft. of tarpaulins
market as well street tarpaulin, total
as increase lamps/street of 320 pieces.
awareness of signage and/or Dimensions of
GO Hotels stand-alone 2.5ft. x 5ft, for a
towards tarpaulins in total of PHP375

86
 consumers, Robinsons per tarpaulin,
placement complex streets total of PHP120
within and during ,000.
Robinsons events hosted
complex by GO Hotels or
vicinity. any
sponsorships
GO Hotels may
be affiliated
with.
To be placed
starting from
October 2014 to
September
2015.
Mobile To be able to To be free for Cost of PHP3, 145, 000
Application introduce, download via designing, for total cost of
increase GO Hotels main developing, and a 3 platform
awareness, website, GO testing a 3 complex type of
provide Hotels Facebook platform mobile
interaction and page, GO Hotels complex type of application.
reach target Twitter page, mobile
audience via a GO Hotels application is at
complex type Instagram page PHP3, 145, 000.
mobile as well as GO
application Hotels affiliated
which works on website pages.
3 platforms.

MEDIA SCHEDULE
Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sep
14 14 14 15 15 15 15 15 e 15 15 t
15 15
YouTube
TrueView In-
stream Ads
Posters
LRT Train
Inserts
Flyers
Tarpaulins
Mobile
Application
For the YouTube TrueView In-Stream Ads, Go Hotels posters, Tarpaulins and Mobile
Application, since the advertisements are all year round, it is all blocked in yellow. The LRT

87
train inserts and flyers are alternating and have a total of 6 moths of advertising are blocked
in yellow.

TARGET MARKET MEDIA ITINERARY (MONDAY-FRIDAY) WORKING PROFESSIONALS

ages 25-30 Social Class lower B and Broad C
TIME ACTIVITY MEDIA EXPOSURE
5am-6am Wake up and breakfast Mobile phone
6am-7am Travel time to office Mobile phone, Mobile
internet, LRT Train insert,
Posters, Tarpaulins
7am-8am Arrival in office Mobile phone, Internet,
Posters, Tarpaulins
8am-9am Work Mobile phone, Internet
9am-10am Work Mobile phone, Internet
10am-11am Work Mobile phone, Internet
11am-12noon Work Mobile phone, Internet
12noon-1pm Lunch Break Mobile phone, Internet,
Posters, Tarpaulins
1pm-2pm Lunch Break Mobile phone, Internet,
Posters, Tarpaulins
2pm-3pm Work Mobile phone, Internet
3pm-4pm Work and afternoon snacks Mobile phone, Internet,
Posters, Tarpaulins
4pm-5pm Work Mobile phone, Internet
5pm-6pm Work Mobile phone, Internet
6pm-7pm Travel time going home Mobile phone, Mobile
internet, LRT Train insert,
Posters, Tarpaulin
7pm-8pm Dinner Mobile phone
8pm-9pm Relax and leisure time Mobile phone, Mobile
internet
9pm-10pm Relax and leisure time Mobile phone, Mobile
internet
10pm-onwards Sleep

TARGET MARKET MEDIA ITINERARY (SATURDAY) WORKING PROFESSIONALS ages 25-30

Social Class lower B and Broad C
TIME ACTIVITY MEDIA EXPOSURE
5am-6am Sleep
6am-7am Sleep
7am-8am Sleep
8am-9am Wake up and breakfast Mobile phone
9am-10am Relax and leisure time Mobile phone, Mobile

88
 Internet
10am-11am Relax and leisure time Mobile phone, Mobile
Internet
11am-12noon Relax and leisure time Mobile phone, Mobile
Internet
12noon-1pm Lunch Mobile phone, Mobile
internet, Posters, Tarpaulin,
Flyers
1pm-2pm Personal activities Mobile phone, Mobile
Internet
2pm-3pm Personal activities Mobile phone, Mobile
Internet
3pm-4pm Afternoon snacks Mobile phone, Mobile
internet, Posters, Tarpaulin,
Flyers
4pm-5pm Preparing for a night out Mobile phone, Mobile
with friends or family Internet
5pm-6pm Travel time to the Mobile phone, Mobile
destination with friends or internet, Posters, Tarpaulin,
family Flyers
6pm-7pm Gathering of friends and Mobile phone, Mobile
family Internet
7pm-8pm Dinner Mobile phone, Mobile
Internet
8pm-12am Leisure time with friends or Mobile phone, Mobile
family Internet
12am-1am Travel time going home Mobile phone, Mobile
internet, Posters, Tarpaulin,
Flyers
1am-onwards Sleep

TARGET MARKET MEDIA ITINERARY (SUNDAY) WORKING PROFESSIONALS ages 25-30

Social Class lower B and Broad C
TIME ACTIVITY MEDIA EXPOSURE
5am-6am Sleep
6am-7am Sleep
7am-8am Sleep
8am-9am Wake up and breakfast Mobile phone
9am-10am Relax and leisure time with Mobile phone, Internet
family
10am-11am Relax and leisure time with Mobile phone, Internet
family
11am-12noon Relax and leisure time with Mobile phone, Internet
family

89
 12noon-1pm Lunch with family
1pm-2pm Relax and leisure time with
family
2pm-3pm Relax and leisure time with
family
3pm-4pm Afternoon snacks
4pm-5pm Personal activities
5pm-6pm Personal activities
6pm-7pm Personal activities
7pm-8pm Dinner with family
8pm-9pm Relax and leisure time with
family or personal activities
9pm-10pm Relax and leisure time with
family or personal activities
10pm-onwards Sleep
ADVERTISING PROGRAM
ACTIVITY OBJECTIVES
YouTube To be able to reach primary
target market.
To be able to provide the
primary target market with
the necessary information
about the brand.
Train Inserts To be able to reach primary
target market.
To increase awareness and
advertise to the mass about
the services offered by the
brand.
Mobile phone
Mobile phone, Internet
Mobile phone, Internet
Mobile phone, Mobile
Internet
Mobile phone, Mobile
Internet
Mobile phone, Mobile
Internet
Mobile phone, Mobile
Internet
Mobile phone
Mobile phone, Internet
Mobile phone, Internet
EVALUATION TOOLS
Number of viewers.
Number of
calls/reservations received.
Number of clients garnered
in a measured time table.
Number of sales obtained
per certain time in a
measured time table.
Number of people exposed
to the advertisement.
Number of
calls/reservations received.
Number of clients garnered
in a measured time table.
Number of sales obtained
90

Flyers To be able to introduce the
brand to consumers who are
not familiar with the brand.
To provide the consumers
with information about the
brand.
Posters To be able to expose the
mass public as well as
advertise the brand and
services offered to the
consumers.
To ensure that the
consumers will be able to
remember and recall the
brand.
Tarpaulin To be able to expose the
mass public as well as
advertise the brand and
services offered to the
consumers.
To ensure that the
consumers will be able to
remember and recall the
brand.
Mobile Application To be able to provide
information, expose and
advertise the brand to the
consumers.
To provide an interactive
environment for the
consumers with
advertisement and
awareness as the agenda.
per certain time in a
measured time table.
Number of recipients.
Number of
calls/reservations received.
Number of clients garnered
in a measure time table.
Number of sales obtained
per certain time in a
measured time table.
Number of viewers.
Number of
calls/reservations received.
Number of clients garnered
in a measure time table.
Number of sales obtained
per certain time in a
measured time table.
Number of viewers.
Number of
calls/reservations received.
Number of clients garnered
in a measure time table.
Number of sales obtained
per certain time in a
measured time table.
Number of downloads.
Number of people using the
application.
Number of
calls/reservations received.
Number of clients garnered
in a measure time table.
91
 Number of sales obtained
per certain time in a
measured time table.

2. Promotions

SALES PROMOTION PROGRAM

SALES OBJECTIVE SCHEDULE COST OF SALES TOTAL COST
PROMOTION PROMO
Discounts To provide Provision of 20% decrease in PHP1, 350, 000
discounts for 20% discount the average for discounts
loyal clients of for clients who check-in rate given to loyal
GO Hotels for have PHP1, 286 clients.
patronizing the accumulated a which amounts
brand. total of 5 check- now to a total of
ins within any PHP1, 029. For
branch of GO a total discount
Hotel during a of PHP257.
said period of 1
year in the Cost of printing
Philippines, loyalty cards is
stamped on a at PHP13 per
loyalty card. card of standard
card size, at a
total of
5000units, for a
grand total of
PHP65, 000.
Total reduction
in revenue from
the discounts
that GO-Hotels
will provide will
be at
PHP1,285,000
Corporate To provide To give away Cost of a PHP175, 000 for
Giveaways giveaways 5000 units of branded GO Hotels
during events GO Hotel customized ball branded ball
and or branded ball pen is at PHP35, pen.
sponsorships pens to for 5000units,
tied-up with GO attendees of GO with a total of
Hotels. Hotel affiliated PHP175, 000.
events and or

92
 sponsorships.

3. Public Relations

PUBLIC RELATIONS PROGRAM

TYPE OBJECTIVE SCHEDULE COST OF TOTAL COST
PUBLIC
RELATIONS
ITINERARY
Brand Endorser To use a public Photoshoot with Maja Salvador GO Hotels
figure, Maja Maja Salvador will be the provided a total
Salvador, to for the soon-to- brand endorser share
help increase come new for Robinsons amounting to
brand advertisements Land PHP1, 500, 000
awareness of of GO Hotels. Corporation and as their part of
GO Hotels all Robinsons contribution for
over Proactive role of Hotels and Maja Salvador
Philippines. Maja Salvador Resorts. As being the
via Facebook, such, GO Hotel Hotels brand
Twitter and is under endorser.
Instagram to Robinsons
create Hotels and
interaction with Resorts thus
consumers as a Maja Salvador
means of will also be the
promoting GO brand endorser
Hotels. for GO Hotels.

4. Evaluation and Monitoring of Results

D. ADVERTISING PROGRAM
ACTIVITY OBJECTIVES
YouTube To be able to reach primary
target market.
To be able to provide the
primary target market with
the necessary information
about the brand.
EVALUATION TOOLS
Number of viewers.
Number of
calls/reservations received.
Number of clients garnered
in a measured time table.

Number of sales obtained

per certain time in a
measured time table.

93
Train Inserts To be able to reach primary
target market.
To increase awareness and
advertise to the mass about
the services offered by the
brand.
Flyers To be able to introduce the
brand to consumers who are
not familiar with the brand.
To provide the consumers
with information about the
brand.
Posters To be able to expose the
mass public as well as
advertise the brand and
services offered to the
consumers.
To ensure that the
consumers will be able to
remember and recall the
brand.
Tarpaulin To be able to expose the
mass public as well as
advertise the brand and
services offered to the
consumers.
To ensure that the
consumers will be able to
remember and recall the
brand.
Number of people exposed
to the advertisement.
Number of
calls/reservations received.
Number of clients garnered
in a measured time table.
Number of sales obtained
per certain time in a
measured time table.
Number of recipients.
Number of
calls/reservations received.
Number of clients garnered
in a measure time table.
Number of sales obtained
per certain time in a
measured time table.
Number of viewers.
Number of
calls/reservations received.
Number of clients garnered
in a measure time table.
Number of sales obtained
per certain time in a
measured time table.
Number of viewers.
Number of
calls/reservations received.
Number of clients garnered
in a measure time table.
Number of sales obtained
per certain time in a
measured time table.
94
Mobile Application To be able to provide Number of downloads.
information, expose and
advertise the brand to the Number of people using the
consumers. application.

To provide an interactive Number of

environment for the calls/reservations received.
consumers with
advertisement and Number of clients garnered
awareness as the agenda. in a measure time table.

Number of sales obtained

per certain time in a
measured time table.

SALES PROMOTION
PROGRAM
ACTIVITY OBJECTIVES EVALUATION TOOLS
Discounts Encourages clients to avail of Amount of sales.
the accommodation services
that GO Hotels provides. Number of clients.

Increase the volume of sales Amount of discounts given

and consumer loyalty. to the clients.

Number of loyalty availed by

the clients.
Corporate Giveaways Expose the clients to GO Amount of sales.
Hotels as well as provide a
warm ambiance via Number of clients.
providing giveaways to
attract clients.

Increase overall awareness

via a small means.

PUBLIC RELATIONS
PROGRAM
ACTIVITY OBJECTIVES EVALUATION TOOLS
Brand Endorser To strengthen GO Hotels Number of clients garnered
service and brand image as in a measured time table.
well as create maximum
awareness towards potential
clients as well as clients who

95
 patronizes Go Hotels.

5. Investments Plan Budget

INVESTMENT PLANS AMOUNT
Advertisement Program PHP7,293,000
Sales Promotions Program PHP1,525,000
Public Relations Program PHP1, 500, 000
TOTAL INVESTMENT PLAN COST: PHP10,318,000

96
 VIII. Estimates of Profitability

REVENUE YEAR 0 YEAR 1 YEAR 2-3 YEAR 4-5

Rooms
Room Income 101,575,500 116,811,825 146,014,781.30 175,217,737.50
Breakfast 33,858,500 38,937,275 48,671,593.70 58,405,912.50
Other Income
Toiletries 4,287,000 4,930,050 6,162,562 7,395,074
TOTAL 139,721,000 160,679,150 200,848,937 241,018,724

Rental Income
Tenants 1,213,000 1,394,950 1,743,687 2,092,424
GROSS 140,934,000 162,074,100 202,592,625 243,111,150
REVENUE

Marketing
Expenses
Advertisement (7,293,000) (8,022,300) (9,706,983) (11,745,449.43)
Sales (1,525,000) (1,677,500) (2,029,775) (2,456,027.75)
Promotions
Public (1,500,000) (1,650,000) (1,996,500) (2,415,765.00)
Relations

Cost of Sales
Supplies (16,946,000) (19,366,857) (24,208,571) (29,050,285)
Other
Expenses
Electricity (31,288,800) (35,758,628.40) (44,698,285.20) (53,637,942.00)
Water (10,429,600) (11,919,542.80) (14,899,428.40) (17,879,314.00)
Transport (2,607,400) (2,979,885.70) (3,724,857.10) (4,469,828.50)
Repairs and (7,822,200) (8,939,657.10) (11,174,571.30) (13,409,485.50)
Maintenance
TOTAL COST (79,412,000) (90,314,371) (112,438,971) (135,064,097.18)
AND
EXPENSES

GROSS 61,522,000 71,759,729 90,153,654 108,047,052.82

OPERATING
PROFIT

Fixed and
Financing
Expenses
Salaries and (33,857,460) (38,694,240) (48,367,000) (58,041,360)
Wages

97
 Tenancy (9,549,540) (10,913,760) (13,642,000) (16,370,640)

NET INCOME 18,115,000.00 22,151,729.00 28,144,654.00 33,635,052.82

Note: All units are in Philippine Pesos

98
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