Eurotel Hotel

A Service Plan presented to the College of Business

In partial fulfillment of the requirements in

Presented by:
Abaya, Catalina T.
Ang, Jonathan T.
Ravelo, Jermaine Alexis S.
Tan, Patrick Joseph D.
K31

Submitted to:
Mr. Jose Luis Liongson

December 9, 2014

Table of Contents

page
1
Executive Summary 4
Scope and Limitation of the Study 6
1. Industry Analysis 7
1.1 History 7
1.2 Evolution
8
1.3 Trends 8
2. Current Company & Brand Situation 9
2.1 History 9
2.2 Existing 4P’s 11
2.2.1. Product 11
2.2.2. Price 12
2.2.3. Placement 13
2.2.4. Promotion 14
3. Competitive Analysis 14
3.1 Basis for Competition 14
3.2. Direct Competitors 15
3.3. Indirect Competitors 19
4. TOWS Analysis 20
4.1 Threats 20
4.2 Opportunities 21
4.3 Weaknesses 21
4.4 Strengths 22
5. TOWS Matrix 23
6. Porter’s Five Forces of Competitors 25
6.1 Threats of Potential New Entrants 25
6.2 Threats of Substitute Products 25
6.3 Threat of Rivalry 26
6.4 Bargaining Power of Buyers 26
6.5 Bargaining Power of Suppliers 26
7. Fishbone Diagram 27
7.1 Information 28
7.2 Procedure 28
7.3 Frontstage Personnel 29
7.4 Backstage Personnel 29
7.5 Facilities and Equipment 30
7.6 Materials and Supplies 30
7.7 Other Customers 31
7.8 Other Causes 31
8. Goals and Objectives 32
8.1 Short Term 32
8.2 Medium Term 32
8.3 Long Term 33
9. Target Market 33
10. Target Person 36
10.1 Profile #1 36

2
 10.2 Profile #2 37
11. 8P’s 38
11.1 Product Elements 38
11.2 Price and Other Cost Considerations 39
11.3 Place, Time and Cyberspace 41
11.4 Promotions and Education 42
11.5 Process 43
11.6 Productivity and Quality 44
11.7 People 45
12. Flower of Service 46
12.1 Information 46
12.2 Order Taking 48
12.3 Billing 49
12.4 Payment 49
12.5 Consultation 50
12.6 Security and Safety 51
12.7 Hospitality 52
12.8 Exceptions 53
13. Investment Plans 54
14. Estimates of Profitability 56
15. Evaluation of Results 57
Appendix 59
A. Research Findings 58
B. Creative Materials 70
References 71

3
Executive Summary

Tourism in the Philippines today has become one of the country’s most

dependable source of steady income. Based on last year’s total revenue, the inbound

visitors increased 15.1 percent, to P185.15 billion which came as a shocker to officials

considering the streak of natural tragedies that had just struck the nation. The increased

inhabitancy may have been the product of the country’s prosperous economy and

reliable political environment. The rise of the tourism is linked with the hospitality

industry since they are responsible for providing tourists with proper lodging units as

well as memorable experiences during their visit in our beloved country. This connotes

that there is an upswing towards the number of hotel establishments in the city and the

only way for one to survive is through proper and effective differentiation.

The different types of hotels are classified against their competition based on

their size, level of service, ownership and affiliations and most importantly, their target

market. The Philippines has been noted for its economy’s progress which calls for more

business to take place here. This is why business hotels have become a very popular

enterprise within our metropolitan. They make up the biggest group in terms of number

amongst other types in the hotel industry. They’re usually located in the busiest parts of

the city (being the business districts) and their primary market are business travelers,

followed by tour groups, conference groups and sole tourists. For the most part, their

prices are set to be reasonable so that they may shelter more travelers. Although in

other parts of the world such as Japan, business hotels are defined to be motels which

is unflattering on the part of business hotels considering that their purpose of lodging

are unlike.

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 In the case of Eurotel Hotel, this plays as a current issue for the company. This

awareness was contributed by the release of the 12-hour rate, which is most frequently

used by motels for those couples whose main concern for lodging is to pull a “quickie”.

Also, the poor reviews found in the online feedback systems concerning the cleanliness

and customer service of the company plays a big role against the hotel’s standards and

principles.

There are other ways that the Eurotel Hotel can attract their primary target

market without assuming such misinterpretation. The best approach would be by first

addressing the different issues within the different hotel committees by creating proper

training seminars so that the staff would be properly prepared and educated in

performing their duties to match the standards of the hospitality industry. Also, by

installing suggestion boxes in each room, they develop a more personal relationship

with the customers which can result to loyalty. Likewise, they will be able to resolve their

problems first-hand before their reputation gets tainted by online criticism which could

either make or break a company due to the intense competition present in the industry.

Scope and Limitation of the Study

This study will focus solely on the service provided by Eurotel Hotels and all the

hotel has to offer. The paper will consist of proposals on how to fix problems that

5
customers are experiencing with the service provided by the hotel. With the help of our

study, the group suggested ways on how to increase possible guests the

accommodations and boost the rentals of the business centers while increasing the

price range for both amenities. Researches conducted about this paper will also show

possible behavioural and psychographic changes of people due to trends and change in

lifestyle and the direct effects when it comes to increasing the price for our hotel. By the

help of our usage, attitude and image survey, the group, through online surveys, asked

30 people who have already checked in or rented out the business centers to answer 20

short and direct questions regarding the service rendered by Eurotel. Through this

survey, we would get more knowledge about our topic and more ideas on how to

resolve the problems presented all throughout this paper. Through all the knowledge the

group gathered while researching, observing and interviewing everything single detail

about Eurotel like the background of the company, the quality of the hotel’s performance

and the service. These will all be presented for a better understanding of for our readers

since it will show all the strengths and the weaknesses, the opportunities and threats of

this company. Due to all the knowledge, the group would know what to suggest to the

business owners for them to be able to fix the problems presented in this paper.

The limitation came when the info provided to us by one of the officers said that

they cannot disclose some of the information due to security reasons. The group

understood the said situation. Rest assured, the group assures that all the information

presented in this paper are concrete, legitimate and substantial.

I. Industry Analysis

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 According to the Philippine Standard Industrial Classification (PSIC), the industry

is divided into two sub-categories: hotel and restaurant. The hotel sub-category includes

the various lodging units of different sizes and standards located both in urban and rural

communities. On the other hand, the latter includes places that serve food and drinks.

This encompasses a wide range of services including quick service restaurants, fast

casual, casual dining, and fine dining.

HISTORY

In the Philippines, tourism is one of the major industries that global travel and

tourism growth and development revolve around. According to Edralin and Castillo

(2001), tourism contributed to up to 8.7% of the country’s GDP, generating over 2.3

million jobs, and accounting for some 10.5% of Philippine investments.

Since hotel and restaurant services relies tourism, increase in visitor traffic over

the past ten years resulted to a corresponding success in the hotel and restaurant

industry. During the last decade, the hotel and restaurant industry has flourished,

overcoming struggles to cope with difficult challenges. Old hotels upgrading their

interiors and services while new hotels sprouted in the metropolis. Accordingly, the

restaurant sub-category notably grew having an increase in the number of players and

the variety of services offered.

EVOLUTION

Since the introduction of the Internet, travelers have become more

knowledgeable and consequently, more demanding. Industry professionals suggest that

the online world increased trends, making travelers more difficult to please as they are

able to freely publish their travel experiences through social networks and blogs,

7
whether true or faulty, This underlying complication of falsehood lead to stiff

competition and price reduction strategies where small players may not be able to

survive.

TRENDS

Implicating the Philippine economy, causing an alarmingly high death toll, and

devastating cities, it is evident that the Philippines has suffered from threatening

typhoons such as Ondoy and Yolanda. This is one of the main reasons why of the

various changes in trends in the hotel industry, greening has gained an issue of great

importance, thus the continuing rise in demand for Green hotels.

Both the hoteliers and the hotel industry market leaning towards Green and Eco

lodgings lead to the evolution of the industry. Recognizing how a hotel’s operations can

impact the environment, hotels have recently prioritized their commitment to the planet

through environmentally friendly principles and practices. Efforts are seen as changes

have been made particularly with the consumption of water and electricity. The

adjustment in pipeline plans to harness rainwater is an example. The system will

harvest rainwater and store it in tanks that will be connected to the hotel’s toilet flush

systems. The rainwater is also used for cleaning, gardening, and landscaping purposes.

Recent surveys made by trade associations such as Partnership Travel Industry

Association and online retailers like Yahoo revealed that nearly seventy percent of the

tourists are willing to pay extra when it comes to environmental friendly lodgings. These

surveys further showed that these guests are willing to pay anywhere from nine to ten

percent premium on the already advertised prices.

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 On the other hand, the increasing cost of construction and a struggling real

estate recently posed problems to hoteliers. As an alternative, they use pre-fabricated

and cost effective solutions in the construction of new hotels. This also lead to hoteliers

producing highly efficient designs that utilize a greater proportion of space for revenue

generating purposes. They seek to lower costs and increase revenues by maximizing

the use of building areas through facilities such as Casinos, shopping outlets, and

theatres. In effect, hotels will be constructed as a mixed use of development to provide

guests with facilities such as churches, hospitals, and theme parks, vanishing the stand

alone hotel concept. Such variety will ensure that guests remain in the hotel, which will

help generate sales.

II. Current Company & Brand Situation

HISTORY

Mr. William Go, the managing Director of Eurotel Hotel started out with a vision of

having a place to stay for people where business and pleasure blend well without

having the need to spend a lot of money. Doing this, he kept in mind the core of this

venture which was to have passion for guest satisfaction. Slowly, as progression came

to the business, not only does Eurotel Hotel prioritize guest satisfaction, but also service

excellence.

Eurotel Hotel boasts their impeccably designed and well appointed rooms at a

very affordable rate. Also, having well equipped function rooms will suit its clients’

budget for any occasion, trainings or seminars. Having a wide range of services

possibly offered to its clients, Eurotel will always be there to fully serve its customers

with quality and excellence in mind and heart.

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 Pioneers of Eurotel Hotel first set out a plan to start in the Luzon. Currently,

Eurotel Hotel has seven branches open, and soon, two more branches will be opening

by the end of the year. The location of the nine branches they currently have are found

in Araneta Cubao, Las Pinas, Pedro Gil, Makati, North Edsa, Baguio, Angeles, Boracay

and Naga. Eurotel Hotel believes that the location which they had opened their current

branches at have been strategically placed. Its hotels being found near shopping malls,

restaurants, churches, public transportation systems, including its position being found

in business district areas offer comfort and convenience to its customers.

With further development and plans of expansion, they have focused on the

vision of becoming the leading businessman’s hotel in all key cities in the Philippines

and in Asia. With this at hand, the next step that Eurotel Hotel is planning to take would

be to open more branches in other key cities found in the Visayas and Mindanao

regions. As soon as the right opportunities are presented, it is highly possible for Eurotel

Hotel to expand to other Asian countries as well.

At the recently concluded 2014 Philippine Quality Challenge Awarding

Ceremonies and Forum, Eurotel Hotel has been said to be among the fastest growing

chains of Businessman’s Hotel in the Philippines, offering elegant, yet affordable

lodging facilities for individuals, couples, groups and many other client personas.

Specially mentioned was one of its branches found at Makati having a unique and

classy lobby and receiving area, Eurotel Hotel boasts the theme of European with a

touch of modernity to showcase the hotel’s elegance along with its traditional Filipino

hospitality. With this great news coming from a highly reputable entity, the pioneers of

10
Eurotel Hotel believe that they are on the right track, being one step closer to reaching

their goals and achieving Eurotel Hotel’s vision.

EXISTING 4P’s

A. Product

Eurotel Hotel offers a variety of rooms that would cater to the needs

of its target market. Aside from having regular rooms which have different

sizes to accommodate a number of people, Eurotel Hotel also boasts the

style and theme they have applied to the rooms they offer. Following a

european theme, it brings out a unique vibe that would make customers

feel like being someplace else.

The current rooms types Other amenities and inclusives

offered by Eurotel Hotel: offered along with the rooms:

● Euro Suite 1 (Queen) ● 1 hair dryer

● Euro Suite 2 (Queen + ● Hot / cold water / shower

Single) / Bathtub / shower

● Standard 1 (Queen) ● 24 hrs. cable TV / In-

● Studio (Queen) house movie channels

● Mini refrigerator / Air-

conditioned rooms

● Safety deposit box

● Free Breakfast

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 Eurotel Hotel, claiming to be the 1st in the league of the

businessman’s hotel, also offers function rooms where meetings and

discussions can be hosted. With projectors, sound system and table set-

up at bay in each of the function rooms available, Eurotel Hotel enhances

the productivity and the efficiency of the hotel in catering to the needs of

their primary target market which are the businessmen.

B. Price

The prices set by Eurotel Hotel for the accommodations they offer

range from Php 1,400.00 to Php 3,500.00. The hotel offers flexible rates

that suit its clients’ needs accordingly. Offering very low rates, not only

does it serve as an advantage for Eurotel when dealing with its

competitors, but also benefit its clients for its affordability.

One of the unique pricing strategies that Eurotel Hotel takes

advantage of is the 12 hour rate that they offer for the rooms available.

Each room has a standardized 12 hour rate which they offer to customers

who would only want to stay for shorter period for different reasons.

Part of what Eurotel offers is its function rooms, which is mostly

beneficial to businessmen meant for corporate meetings, and the like.

With the prices ranging from Php 10,500.00 to Php 56,375.00, the hotel is

able to offer its clients a wide range of selection for what is needed in such

functions. With the prices inclusive of food (buffet or lauriat), basic set-up,

four hours use of the room, sound system, LCD projector and on-site

12
 assistance, all these potentially attract the market for the function rooms

offered by Eurotel Hotel.

C. Placement

Eurotel Hotel makes it a point to situate its branches in the busy

parts of the key cities in the Philippines where human traffic is high. Also,

it has been a big consideration for Eurotel to choose a location that would

have an accessible commute for its potential clients to avail. It is part of

Eurotel Hotel’s placement strategy to factor in the location of the different

business districts and potential areas that would have high potential in

gaining a lot of consumer traffic. All these affect the positioning of its

branches, and is reflected in the current locations of the nine branches

that Eurotel Hotel has. With all these put into consideration, it does not

only attract a market for accommodation, but also for leasing its function

rooms. Offering convenience in terms of locations and efficiency with

regard to the inclusions in the function rooms provided in the packages

they set for such corporate functions, press conferences and the like.

D. Promotion

Eurotel Hotel’s strategies in promoting varies from general promos

to specialized promotions for the different branches of the hotel. Some of

the promos which is offered by all the branches of Eurotel are the “4 plus 1

free night” promo. Aside from this, the hotel also offers discounts for those

who avail of the room service therapeutic massage. The reason why they

offer such general promos is to allow bonus/incentives for the clients.

13
 Eurotel Hotel also allows specialized promotions for each of the

branches they offer. An example of this promo would be Eurotel Naga

offering a free tour around the famed tourist spots for those who avail a

stay of 3 days 2 nights. Another promo for a different branch would be the

free parking promo. Eurotel Angeles offers a traveler's rate for a 12 hour

stay with double occupancy for only Php 799.00 with free wifi. The main

reason why they do such promos for the different branches is one way of

addressing the different problems and concerns that not only the hotel, but

also the clients experience. At the same time, it also provides an avenue

to market and attract more customers. This encourages a higher

consumer traffic with the targeted potential clients.

III. Competitive Analysis

BASIS FOR COMPETITION

Eurotel Hotel is one of the few businessman’s hotel in the Philippines. This

means that their main target market are businessmen doing business in the Philippines

who are also in a tight budget. Eurotel Hotel stands out from its competitors since it is

the only businessman’s hotel wherein the interior and exterior give a European

ambience. Though there are a lot of cheap hotels here in Manila, most of them do not

reach the standards set by Eurotel Hotel. Eurotel Hotel is a perfect location for business

meetings as well, since all their hotels are equipped with facilities that permit

businessmen to conduct meetings. Also, most of the other competitors here only have

one branch while Eurotel Hotel has a total of nine branches all throughout the

Philippines.

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 COMPETITORS

1. Direct

A. Copa Businessman Hotel Makati - Copa Hotel usually caters to

businessmen who usually stay in the Central Business District of Makati

City. Its main target market are those people who need to attend a

convention in Makati, but cannot afford living in luxurious hotels near the

vicinity. The hotel is situated along Ayala Avenue, which is near the

Central Business District along with shopping malls like Greenbelt and

Glorietta.

i. Product

Their main product are hotel rooms catering businessmen.

They usually target foreigners who conduct business in the

Philippines. They have three kinds of rooms, the standard room,

the junior suite, and the suite.

ii. Placement

The hotel is located along Ayala Avenue in Makati. It is near

the Central Business District and malls, which is good for

businessmen since they need to be around that area most of the

time. After business, they could go unwind in Greenbelt or Glorietta

malls. These people could also go there to have lunch or dinner

since it is walking distance from where they are.

iii. Price

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 They have the Standard room which costs P2,760 per night,

the Junior Suite at 3,550 per night, and the Suite for 4,100 per

night.

iv. Promotion

Unfortunately, Copa Businessman’s Hotel does not have any

promotions at the moment.

B. Tune Hotel - Tune hotel is another direct competitor of Eurotel Hotel since

they both position themselves as ‘a businessman’s hotel’. Basically, both

hotels are the same except where they came from. Eurotel Hotel comes

from Europe, while Tune Hotel comes from Malaysia. Both hotels also

opened numerous branches all throughout the Philippines.

i. Product

Cheap hotel accommodation for five-star service and

amenities. They have two kinds of rooms, the Double room and the

Twin room.

ii. Placement

Tune Hotel has ten prime locations in the Philippines, five of

which are located around Metro Manila. These hotels are

strategically placed in the busy areas of Manila like Aseana, Ermita,

and Tomas Morato, while other locations targeting businessmen

primarily are located in business populated areas like Ortigas and

Makati.

iii. Price

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 Php 1,885.00 on the Double room which consists of a single

Queen sized bed, and also Php 1,885.00 for the twin room which

consists of two single beds.

iv. Promotion

Discount is given in every Tune Hotel all over Asia given you

avail of their membership.

C. The B Hotel by The Bellevue Hotel and Resorts (BH&R) - BH&R is a direct

competitor of Eurotel because they target the same people. They have

three hotels at the moment, but they are planning to expand soon. One of

their hotels, the B Hotel, is the direct competitor of Eurotel since it is also a

three-star businessman’s hotel.

i. Product

The B hotel offers 2 kinds of rooms, the Standard room and the

Penthouse room.

ii. Placement

It is located along Madrigal Avenue, a known business district in

Alabang. This gives convenience to its customers working or having

business in Alabang as it only requires a short distance to the area.

iii. Price

The standard room starts at Php 3,200.00 while the penthouse

room starts at Php 5,500.00 without taxes and service charge. They also

require people to stay for at least two nights. This includes free wifi and

free breakfast buffet.

17
 iv. Promotions

Rainy Day Stay - the management gives out discounted hotel

rooms during the months of August to September. The Standard room is

reduced to Php 3,000.00 nett, while the Penthouse is reduced to Php

5,000.00 nett. Freebies such as fruit platters and an umbrellas are also

given away for the rainy season.

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2. Indirect

A. Remington Hotel - Remington Hotel is located beside Resorts World

Manila--a famous casino, mall, and hotel in the Philippines.

a. Product - Remington Hotel offers two kinds of rooms, which are the

Premier room and the Standard room.

b. Place - Remington Hotel is located across Ninoy Aquino

International Airport 3 and is beside Resorts World Manila. They

also have easy access to the south via Skyway and to the north via

EDSA. It is along Newport Boulevard, which has a shortcut going to

one of the biggest business districts in the Philippines, the Fort

Bonifacio Global City.

c. Price - The standard room price is at Php 3,416.00, while the

Premier room is priced at Php 4,026.00 including taxes.

d. Promotions - They offer free room accommodations for their top

members of Resorts World Manila.

B. Microtel Inn and Suites by Wyndham - Like Eurotel, Microtel also built

numerous hotels all throughout the Philippines. They also offer cheap

rates for quality service, the difference being is their target market. While

Eurotel attracts businessmen, Microtel tries to get families or adventurous

people. As observed from the location of their branches, some are still

situated at the heart of Metro Manila, while others are located in tourist

spots catering anyone fond of the outdoors, like white water rafting in

Davao, or playing golf in Cavite.

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 i. Product

Microtel offers queen bed rooms with queen-sized beds, and bed

suites with two queen-sized beds.

ii. Placement

They have many locations nationwide. Most of them are in Metro

Manila, while others are strategically placed throughout the country.

iii. Price

Prices start at Php 4,700.00++, with its rate depending on the view,

while Php 6,500.00++ is priced for the suite.

iv. Promotions

Microtel offers a weekend promo where if people check in during

the weekend, the price for the room will be discounted to Php 2,800.00 as

compared to its original price of Php 4,700.00.

IV. TOWS Analysis

THREATS

There are a few hotels in the same category as Eurotel Hotel which offer

similar rates, and these competitors pose a big threat. With the rise of

modernized hotels that have newer concepts, such hotels also have great

capacity to attract the same market with those that offer similar rates. Also,

motels come into picture, being relative to the 12 hour rates that Eurotel offers to

its clients. The motel industry has been known to offer short time stays for

minimal amount when compared to the rates offered by Eurotel. Considering that

20
some motels also locate themselves in places similar to the current branches of

Eurotel Hotel.

OPPORTUNITIES

At present, Eurotel Hotel has been achieving the goals they have set for

the franchise here in the country. As long as they are able to be consistent in

complying with standards in all the branches that they have, acknowledgements

will follow. Such awards and recognitions are important in this industry mainly

because such acknowledgements can be considered as a mark for them to look

into further expanding and adding more branches to the franchise. If they are

able to keep up with the improvements and enhancements needed, as well as

listening to feedback that are most crucial for the betterment of the hotel, they

can soon follow through with the goals which they have set to expand across

asian countries. Keeping good relationships with the different government

agencies, improving their image and stabilizing their position in the country would

allow a successful transition to the goals they have set for the future.

WEAKNESSES

Consistency has been the main problem of Eurotel Hotel. With customer

feedbacks stating that they had the potential of becoming a great hotel only if

they had been consistent with their service. Potential has always been present

and with a few branches winning awards due to an outstanding performance. By

learning from what the branches like Makati, which had earned an award from

PQC, could possibly help the other branches and push Eurotel Hotel to achieve

their goals faster.

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 Eurotel Hotel has been suffering from an image of being a motel. One

reason for this is due to the pricing strategy which they had from the beginning

which is called the 12 hour rate. In the terms of motels, it is called as a “short-

time stay”. Although it does not directly affect the sales and earning of the hotel,

it has given individuals a pre-impression on what Eurotel Hotel is.

STRENGTHS

One of the basic reasons why Eurotel has been thriving and expanding is

because of the strategic locations that they have chosen. The locations they

have chosen aid the primary market they have chosen to target as customers of

their hotels. Choosing hot spots which are prime for the business and private

sectors allow an efficiency in terms of convenience and accessibility. This

encourages high customer traffic increasing sales in terms of bookings with

regard to leasing their function rooms and accommodations. Due to this, a

diversified market of travelers and businessmen has turned out to be the main

markets of the hotel. Affordability has been a big part of the success of Eurotel

since the beginning. Now with the focus on overall customer satisfaction, Eurotel

Hotel believes that they will be able to achieve their goals and objectives faster.

V. TOWS Matrix

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TOWS MATRIX STRENGTHS WEAKNESSES

1. Strategic Location 1. Lacks presence of

(business district) primary target market

2. High amount of (businessmen)

customer traffic 2. Non-existent

3. Diversified market of employee benefits

customers 3. Misconception on

4. Affordable room nature of business

rates 4. Low Security and

5. Affordable food and safety measures

beverages 5. Inconsistency of

6. Customer standard amongst all

Satisfaction branches

7. Customer Loyalty 6. Anachronous

Program (privilege conference equipment

and reward cards) 7. Inconsistency in

8. Standard approved efficiency of room

overall hotel service.

condition

9. CSR (BayaniJuan)

10. Informative website

OPPORTUNITIES SO Strategies WO Strategies

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1. Awards Eurotel could build more Eurotel should work on their

2. National hotels since they are one service. They must undergo

expansion of the pioneers in the their staff through extensive

3. International industry. They are already training so that they would

expansion (Asia) well known in the market be able to accommodate

and if they expand more customers accordingly.

now, they could gain a

good grasp of the market.

THREATS ST Strategies WT Strategies

1. Competitive For them to be able to Since one of their problems

pressure (motels) repel threats to the is service and along with

2. New entrants business, they should the strong competitors, all

(hostels) establish that they are the they should do is to make

3. Risk of banking best in businessman hotel sure that they are on top of

on Niche Markets industry. For us to be able their enemies. Opening

to achieve that, Eurotel more branches means that

should work on their they could get a larger

service towards its grasp of the market shares

customers. and they could do that by

improving their service and

amenities.

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VI. Porter’s 5 Forces of Competitors

A. Threats of Potential New Entrants

The hotel industry is consisted with high entry barriers which inhibits new

entrants. Globally, the standards of the hotel industry is comprised of high capital

requirements and high fixed costs in relation to total costs. After construction is a

complete hotel operator which has two options. One is to put the hotel project for sale

before its perfection, while another is to obtain experts at hotel management by a

management agreement or some form of procurement. Also, the metropolis is already

highly congested with the presence of buildings, villages and slum areas which limits

the amount of available space for suitable prospect locations to be built on.

B. Threats of Substitute Products

Being located in prime areas of the major cities in Luzon, Eurotel Hotel is not

threatened by substitute products. However, this might not be the case during times of

the recession wherein domestic travel would replace overseas travel and that people

would rather go to more affordable travel destinations. Having a target market who are

either low-income or cost-conscious replaces the option for consumers to settle for even

cheaper hotels. As Porter (2008) stated, “In theory, substitute products perform same

function, reduce costs, and/or provide higher quality performance with better service

due to technological advancement.”

C. Threat of Rivalry

There is an extremely high competition in the industry of hotels targeted for

businessmen due to the presence of equally balanced competitors. As stated above,

Eurotel Hotel and Tune Hotel both target the same market and offer the same products

25
and services, with the only difference being the place of origin. However, Tune Hotel

exceeds Eurotel Hotel when it comes to the number of branches open in the country.

With plans of further expansion, Eurotel Hotel will still be in the game, but still has to

compete with other strong pressures to sell such as price-cutting during regular

business weekdays.

D. Bargaining Power of Buyers

Differentiation in the hotel industry is of little importance for those catering to

budget leisure travelers and groups when juxtaposed to certain divisions of independent

leisure travelers and business travelers. The latter serves as Eurotel Hotel’s target

market which is composed of middle-pocket in the lower age category. This connotes

that the purchase of hotel rooms are important to business travelers in conjunction with

how it is unlikely for the buyers to be price-sensitive since the hotel room is regarded as

insignificant with respect to the actual business transaction they are travelling for.

E. Bargaining Power of Suppliers

The demand of labor in terms of well-trained and experienced personnel is very

high in terms of the hotel industry. Last September 17, 2014, the Philippine Quality

Challenge Awarding Ceremonies and Forum (PCQ) was conducted in Traders Hotel

Manila in Roxas Boulevard, Pasay City. This award engages public and private

organizations to strive and attain performance excellence in order to have their

achievements recognized. During this event, the 2014 PCQ awardees showcased the

process behind their progress to be able to develop and preserve the quality of service

they are offering to their customers. Eurotel Hotel was one of the two organizations from

26
the private sector to receive a PCQ award which is an honor and a privilege to add to

the company’s profile.

VII. FISHBONE DIAGRAM

The researchers identified Eurotel’s problem as operational inconsistency, with

information as the most critical spike. This applies to their inconsistency as to the quality

of service per branch, Eurotel’s desired image in contrast to their actual image, and the

supposed businessman’s hotel environment to the existing environment. These are

further explained below:

27
INFORMATION

Information posted in Eurotel’s promotions aren’t consistent with the quality of

service they offer. This is based on the actual experience of the researchers and on the

reviews found on the Internet. The company keeps pressing for the hotel to be “The No.

1 Businessman’s Hotel”, but based on research and survey findings, the audience think

otherwise. 80% of the audience did not identify Eurotel being a businessman’s hotel,

rather they associated it with being a motel or anything “cheap”. Their intended image

isn’t in-line with their actual brand perception. This proves the inability of the Eurotel’s

marketing team on being effective.

PROCEDURE

Although basic procedure when checking in a hotel only requires minimal effort,

same does not apply in Eurotel. As per usual hotel procedure, the standard booking

process is simply booking via online then going straight to check-in. Although Eurotel

has a website where a client can book, it isn’t always functional. At most times, their

server is down. The client, therefore, is now compelled to book via telephone calls,

which usually hassles the customer as it requires more time, effort and money (when

calling from outside of the country or the province). This already devalues Eurotel as a

hotel, even more as a businessman’s hotel. It is already known that businessmen live a

fast paced life, and that time is always of the essence especially for this group of

people.

28
FRONTSTAGE PERSONNEL

Front stage personnel are expected to be approachable and helpful as one is to

refer to them when concerned with business operations. For Eurotel’s case in particular,

front stage personnel seemed to be unqualified for their job. For being the ones to come

face-to-face with the customers, they are unapproachable, not to mention the

employees assigned at the concierge. Constant complaints made through social media

and travel blogs have been posted by dissatisfied guests. Based on these complaints,

security guards weren’t accommodating as well. A specific complaint described how

they were extorted by beggars right outside the hotel. This is detrimental to the

company whether true or not. The Internet, particularly social media, is intensely viral,

most especially when the post is crucial. Information is easily accessed by many and

are usually unfiltered.

BACKSTAGE PERSONNEL

The incapability of Eurotel to be effective in promoting their desired image

supports the idea that their marketing team isn’t functioning effectively. It was

mentioned that the researchers regard information as Eurotel’s most critical spike. This

assertion stems from the said problem. Eurotel being associated with motels proves that

there is a lot of work that needs to be done in the marketing department. Being effective

communicators would largely help Eurotel in achieving their desired image.

Sharp curb appeal and public space cleanliness are usually determinants of a

good hotel. Good housekeeping usually follow a good first impression. In Eurotel’s case,

cleanliness, or the lack of it, is the number one complaint concerning the hotel’s rooms.

29
These shortcomings are signs of management’s poor organizational skills and lack of

focus on orderliness and cleanliness, therefore, setting a poor standard for the hotel as

a whole.

FACILITIES & EQUIPMENT

Although Eurotel provides a complete set of equipment, they are either outdated

or dysfunctional, which makes them useless. Furthermore, inconsistency persists as not

all branches have function rooms. These contradict Eurotel’s tagline of being the No. 1

Businessman’s hotel as these functions are necessary especially to a businessman.

Therefore, having updated equipment and existing function rooms is critical to every

Eurotel branch.

MATERIALS & SUPPLIES

More than producing low-quality supplies, having non-existent basic hotel

necessities (shampoo, soap, towels, etc.) is even worse. Apparently, both situations

exist in Eurotel. It is assumed that this is the easiest of the duties the hotel has to carry

out. If the hotel is already having troubles with keeping an adequate supply of basic

hotel necessities, intuitively, customers are most likely to believe that there are more

things wrong than having insufficient supplies.

OTHER CUSTOMERS

30
 Customers associating Eurotel to SoGo could be rooted from the management’s

incapability of disseminating information that would publicize Eurotel being a

businessman’s hotel. This follows the failure in achieving their desired brand image.

OTHER CAUSES

Earlier in the study, it was discussed that Eurotel strategically placed their

branches in busy areas. In effect, noises from the outside (buses and traffic) escape

through the hotel’s walls. While it serves its purpose, this is also becomes

disadvantageous to the customers. It turns into a nuisance especially to those who are

on tight schedules, as sleep becomes limited to almost none at all. Additionally, some

branches are subject to flood, paralyzing business operations as well as customer

needs.

31
 VIII. GOALS AND OBJECTIVES

SHORT TERM GOALS

● Create collaterals that emphasize on Eurotel being a businessman’s hotel.

● Improve and implement a consistent online booking system.

● To upgrade equipment and facilities.

● To gain regular corporate clients.

● To centralize the telephone booking system.

● Establish packages in promoting the leasing of business facilities.

■ This includes scheduling and terms of payment

■ In effect, this strategy would encourage the clients to avail of

leasing facilities in bulk, gaining regular clients and ultimately

resulting to an increase in sales.

MEDIUM TERM GOALS

● In effect of rebranding, a 40% increase in brand awareness among its

target market.

● To be persistent on publicizing the new campaign but with the emphasis

on the nature of the hotel

● To divert the process of booking from telephone to server based booking

without the aid of travel and booking sites

● Given that Eurotel has already established a consistent corporate client

network, an increase in booking sales on the leasing of business facilities

is expected by at least 30%.

LONG TERM GOALS

32
 ● To increase booking sales for accommodation by 60%

● To increase booking sales for leasing business facilities by 50%

● To improve overall quality of hotel service.

● To be a top-of-mind business venue preferred by most corporate clients.

● To ultimately change consumer perception from a motel to hotel. This can

be supported by the UAI survey conducted by the researchers. (See

results at the appendix)

● Finally, as a whole, to be the number one businessman’s hotel.

IX. TARGET MARKET

Primary Target Market Corporate Employees

Self-Employed Individuals

Secondary Target Market Budget Leisure Travelers (couples)

Geographic ● Inhabitant of the Philippines

● Visiting from the different provinces

● Foreigners passing by Manila

Demographic ● Gender: Men and Women

● Social Class: Lower and upper Class C

● Age: 24-35

● Occupation: Businessmen

● Income: ₱15000 - 30000/month

33
 Psychographic ● Working class

● Attends business conferences and

seminars

● Always on-the-go

● Cost-conscious

● Non discriminating

Behavioral ● Occasions: Attending/organizing

business meetings, product launches,

and visiting relatives

● Application: Once or Twice in 1 year

● Benefits: Affordable accommodation

Eurotel Hotel’s primary target market are secretaries who are tasked by their

bosses to book for business meetings being held outside of the office. They are

responsible for the venue and the flow of the meeting. Our main target market are

secretaries since with their power to choose from lots of hotels and other venues around

the metro, we need to make sure that Eurotel becomes top of mind. Then because of

that, we would be able to acquire more rentals of our business venues. The secondary

target market are budget leisure travelers. These individuals are composed of young

people from out-of-town who are budget conscious and would only avail of their

accommodation for short term. The purpose of their trips are to do business, visit

families, friends, shopping and attending events.

34
 Through the use of marketing segmentation, the consumers were classified into

four different divisions being demographic, geographic, psychographic, and behavioral.

The typical type of budget hotels would have market age ranging from 18-35 years old.

This range can be broken down into two categories which are the newbies in the

workforce (18-24 years old) and the young urban professionals also referred to as

‘yuppies’ (25-34 years old) who earn a monthly single income of ₱15,000 - ₱30, 000, no

kids, and reside in the social class of lower and upper C which makes them middle-

class. In terms of experience and maturity, companies would prefer to send those

classified in the latter age bracket to deal with their business ventures elsewhere. Also,

these individuals are more budget-conscious and less discriminating with concerns to

their accommodation which makes them a profitable target for the company. Their main

priority is getting the job done whilst incurring the least expense and convenience which

is exactly what Eurotel offers.

As mentioned above, Eurotel already has nine branches which are spread all

over the urbanized areas in the nation. These are strategically placed to being located

near shopping malls, restaurants, churches, public transportation systems as to provide

comfort and convenience to the customers at the hotel. This factor is ideal for the

company’s target market so that they would have easy accessibility in terms of getting

to the places they need to be in as well as being on time to furthermore fulfil their

purpose of being assigned there.

XI. TARGET PERSON

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Profile #1

Jonathan Patrick Abad is a twenty-six year old business management graduate.

He was raised in a family belonging to upper class C which makes him part of the

middle-class. He grew up in Aklan and always attained small-time jobs to help

contribute to his family’s funds. He currently resides in a condo with roommates in

Bonifacio Global City, Taguig since it is near his office. He has recently acquired his first

job as a secretary to the boss for a utilities company and is satisfied that he has found a

way to generate his own income. He is hardworking and is a very practical person who

does exactly as he is told in order to get a job done. He is usually the person being

tasked to look for possible locations of where to hold meetings for the company. He

chooses to book in Eurotel because it is conveniently located and the prices are

reasonable.

36
Profile #2

Marie Claire Magbanua is a twenty four year old business owner based in Baguio

City. She was born and raised in Baguio City in a family belonging to the lower C

bracket. She was able to finish studying and graduated in marketing management from

St. Louis University in Baguio. She’s currently a small time manufacturer and retailer.

Her main products are strawberry jams being distributed to Manila and to other parts of

the Philippines as well. She usually goes to Manila from time to time to talk to her

retailers but she doesn’t have a permanent place to stay. She would usually check in

cheaper hotels in order to save more money. She is very hardworking and she values

money a lot so she would sacrifice comfort and quality for something cheaper and

reliable.

X. 8P’S

PRODUCT ELEMENTS

Existing:

37
 Eurotel Hotel belongs to the hotel industry that aims to be the number one

businessman’s hotel in the Philippines. The hotel currently has nine branches total and

they are planning to expand to more locations in the near future. Eurotel accommodates

people by renting out hotel rooms to customers. Eurotel also provides an in-house

restaurant that is open from 7am to 9pm for hotel visitors, guests and clients. In

addition, Eurotel also allows leasing of their facilities like the function/meeting rooms to

provide a good business venue for potential clients, but this isn’t consistent to all the

branches. The equipment found in the function rooms are outdated, and may need

replacement. A round-the-clock room service assistant is available to address the

customer’s needs who have booked a room any time of the day, during the duration of

their stay. Parking is provided, but not for all branches.

Proposed:

First would be to address the inadequacy of the housekeeping personnel and

improve on the cleanliness of the hotel as a whole. It would be ideal to improve the

room maintenance, so that it would be pleasing and comfortable for the customers to

stay and book at the hotel, as well as not to have negative feedback which may entail a

negative impact on sales in the future. Also, improvements on the hotel facilities such as

the function rooms and the dining area would be necessary, addressing the problems

and concerns of each branch. Equipment included in the function rooms and actual

rooms need replacement, since almost all are outdated. Security personnel should be

more accommodating and helpful so as to ensure customers’ safety when inside and

outside the premises. A bellboy must also be present at all times to assist customers

38
who may need aid at any time of the day. Additionally, it is best to have signages for an

itemized list of the services they provide their customers to make it convenient for the

customers to avail of the services. A solution to the concern for the availability of

parking area is to have a designated parking area for customers who have vehicles

which require a certain fee.

PRICE AND OTHER COST CONSIDERATIONS

Existing:

Considering that Eurotel is a hotel, the prices set for its accommodations are

cheap. The hotel has been able to set itself apart from other hotels that only a small

number of competitors have been able to compete with them. With extremely low rates,

it has already been comparable to rates of motels such as Hotel SoGo and the like.

With room rates ranging from Php 1,400.00 to Php 3,500.00, it is fair to expect that the

quality of service is not perfect, but bearable and meets the standards; providing basic

services. Booking at this hotel would be more for convenience and affordability, than

quality and top notch services.

There are no prices set for leasing function rooms alone, and instead requires

booking a set menu ranging from Php 10,500.00 to 56,000.00, good for 30 to 50 pax,

then you get the rooms for free along with the functional equipment. Only when

requested, would Eurotel give a special rate for leasing the function rooms, since there

are no set packages. Food alone when bought would have prices ranging from Php

280-400 with different varieties from different cuisines. Quality of the food is good

enough, but not the best.

39
 Proposed:

One of the main reasons why the room rates of Eurotel Hotel are cheap is

because of the 12 hour rates. It would be best to formalize the type of rate offered, so

as to avoid confusion with other terms used in motels like “short time stay”. Formalizing

the name of the rate would remove the connotations attached with the term “short time

stay”, referring to motels and other establishments that offer room leasing

accommodations.

With regard to the function rooms for lease, it would be best to establish

packages and rates for leasing the room alone. Creating packages and rates would lead

to different opportunities that Eurotel Hotel can take advantage of like gaining corporate

clients for pre-booked leases with proper scheduling and terms of payment.

40
PLACE, TIME AND CYBERSPACE

Existing:

Eurotel Hotel is strategically placed in the heart of the urban district areas with

considerations to accessibility in terms of public transport. The location of the branches

they have at present are found at the following areas: Araneta Cubao, Las Pinas,

Makati, North Edsa, Baguio, Angeles, Boracay, Naga. Since Eurotel is a hotel,

operations are 24/7, and they have no exceptions even during holidays. They offer

access through cyberspace by having their own website (http://www.eurotel-hotel.com)

and other social media accounts like Facebook and Twitter. Problems with their website

often happen, causing a down server, and disabling capabilities of online booking.

Proposed:

Eurotel Hotel must reassess its placement strategy, and make sure that the

locations which they plan to situate the upcoming branches are in line with its target

market to attract the target clients and customers which are projected to be more

profitable.

At this time and age, cyberspace is a necessary tool, not only to market an entity

to the world, but also to offer convenience to both the customers and in this case,

Eurotel Hotel. It would be a big improvement to invest on a consistent server that would

allow 24/7 access to the website of Eurotel which provides another means of convenient

booking for the potential customers.

41
PROMOTIONS AND EDUCATION

Existing:

Eurotel uses different promotion strategies all throughout the nine branches that

they currently have. The promotions depend on the current situation of the different

branches, but this type of strategy is not applied to all branches. Having different

promotional schemes are a strategy of the management of each branch to address and

attract more customers. One thing that is lacking would be the information that the

publicity materials have that are supposed educate and market to potential clients.

There are not much tarpaulins and signages available for viewing, and instead, they

make use of their website and travel blogs to market and publicize what the hotel has to

offer.

Proposed:

It would be ideal for Eurotel to partner up with reputable business and travel sites

that would blog and give a rate on their overall stay at the Hotel, after obvious

improvements have been made. It can serve as a dual purpose entailing assessment

and marketing, a consumer-engaged way of promoting a service business. Eurotel

could also make use of social media so as to make themselves more visible and

reachable to the customers. Keeping their website informative and working 24/7 would

be helpful to the hotel, too. It is important to have promotional materials that would

emphasize Eurotel’s nature to its audience and being firm on its stand of being a

businessman’s hotel with a goal of claiming the top spot in its industry. It could use

mediums such as billboards and newspapers to properly reach the target market. Doing

42
this would be a long process. Although it will slowly, but surely educate and make an

impact to its proper audience, if done correctly.

PROCESS

Existing:

The current process for availing Eurotel’s accommodations would entail one to

call or book online (through travelling and booking sites such as agoda.com and

booking.com) and decide on the room that one would prefer, with a choice of staying for

12 hours or a full day’s length depending on availability with the date of check in. If

booking online, one can select the date of check in and out, type of room and payment

through credit card once all the necessary information has been encoded. Upon check

in on the desired date of the customer, a deposit would be required along with contact

details and submission of an id which can be claimed upon checking out. At check out

time, settlement of the bill must be done at the concierge with modes of payment

varying from cash, debit or credit.

Proposed:

In creating a convenient booking process, Eurotel should always keep their

website up and running, as opposed to the existing problem of the website being

unreliable. Phone calls aren’t always as convenient as the Internet. A live feed of the

billing statement should also be made available through their website. In addition to the

existing process for booking accommodations, it would also be ideal to establish a

separate booking process for the leasing of function rooms, since the primary target

43
market for such service would be corporate clients. Having said, pre-determined

packages should be made available to the clients with information such as rates and

inclusions posted through their website.

PRODUCTIVITY AND QUALITY

Existing:

A few branches of Eurotel currently lack in security and safety measures, since

customers usually comment on the extortionists present outside the premises. Another

would be issues on the rooms having a distinct foul odor. Bathroom supplies are also

lacking upon check in, and needed to be requested. Also, not all of the branches have

function rooms. The in-house restaurant has a limited food selection, with a number of

them not available for ordering. The function rooms and equipment available are

outdated, while some are dysfunctional. The concierge personnel and function room

point person are knowledgeable enough to converse and answer queries of potential

clients, although there is an inconsistency when it comes to the use of terms with regard

to the 12 hour rate.

Proposed:

It would be of big help to tighten security measures, as well as to improve the

performance of the security personnel, so as to make sure that things do not get out of

hand. This assures Eurotel’s customers that the hotel is a safe environment, and

possible threats are minimized due to the fact that there are reliable security officers

present around the location of the branch. Also, the rooms need fixing, so housekeeping

44
must be able to address the concern, and remove the distinct foul odor that discourages

potential clients from booking at Eurotel. It is also their job to replenish supplies at the

assigned schedule to avoid situations that call for customers to request for the supplies

that are supposedly already available in their rooms. The in-house restaurant also has

to fix their menu and have a proper schedule for buying ingredients to avoid situations

that would compromise the availability of the food listed. The maintenance team for the

whole hotel must be consistent and persistent in keeping the hotel tidy and presentable

at all times. It is important that they do not miss out on their tasks and fulfill their

checklist of things and responsibilities to keep a good and reputable image that would

attract the right market and potential clients. The equipment available in the function

rooms have to be replaced and updated to attract corporate clients which are up to date

with technology, complementing their needs. Last would be to establish a fixed term of

the 12-hour rate, to formalize and push for consistency all throughout the nine branches

that they have.

PEOPLE

Existing:

The concierge, for instance, did not know how to give proper directions when

asked for by the customers. There are inconsistencies with regard to the terms they use

for the services the hotel offers. The hotel lacks security personnel, giving the feel of an

unsafe atmosphere around the perimeter of the hotel. Although there is a bellboy

present, he was not always available, since he also serves as a runner for the hotel.

45
Housekeeping is a failure because most of the customers complains about unclean

rooms, dirty bathrooms, stained pillows and blankets, lack of bathroom necessities.

Proposed:

The group is proposing to increase the number of security and housekeeping

personnel, so that they can further accommodate and satisfy the needs of the

customers, as well as maintain a secure atmosphere while delivering top quality service.

Also, with the addition to the number of staff, proper training should also be conducted

so that they may be able to perform their job well. With the newly hired professionals,

there would surely be a change within the service rendered by Eurotel.

XI. FLOWER OF SERVICE

INFORMATION

Existing:

46
 ● Basic information (i.e. address, rates) are made available through different

mediums such as tarpaulin, Facebook Page, website, travelling booking sites

and travel blogs.

● A customer reception, made through phone calls, is accessible to customers at

any time of the day.

● Although Eurotel managed to come up with a website complete with all the

details concerning the hotel, it isn’t entirely reliable as their server is usually

down.

● Eurotel’s employees, especially those at the concierge, aren’t consistent in

relaying information.

Proposed:

● Although Eurotel has a 24/7 customer reception, phone calls aren’t as convenient

as the Internet, especially to those who are outside of the country. Phone calls

are more costly and more time consuming. The researchers propose that

Eurotel’s website should be as reliable as their customer reception. This also

means that information in their website should be kept updated. Connectivity

should be consistent so as to provide convenience to their customers.

● New campaigns and publicity materials should be published emphasizing the

nature of Eurotel being a businessman’s hotel. These should be distributed

through various platforms such as billboards, newspapers, social media, and the

Internet. These mediums are chosen as the researchers believe they are fitting in

reaching the target market.

47
 ● Eurotel should train their employees, particularly those who interact with the

customers. This training should equip them to become the knowledgeable and

reliable go-to person of every client. They should be able to provide information

regarding the hotel accurately and effectively.

ORDER TAKING

Existing:

● Bookings are made through phone calls and online booking sites such as

agoda.com and booking.com.

● Poor online booking system due to unreliable website. Customers are therefore

compelled to succumb to phone-call-based bookings.

● Eurotel offers a personalized booking of leasing business facilities wherein a

customer has to book an appointment with a leasing representative before the

latter hands the list of facility packages together with its rates and inclusions. This

can become too time consuming and inconvenient for the customer.

Proposed:

● To start off, Eurotel should impose a centralized call center wherein the company

provides a single hotline for all the (nine) branches. This should lessen the

hassle of searching for a specific branch’s contact number. For the company’s

point of view, it will be simpler for them to monitor calls and address concerns.

The same hotline should also attend to customers’ comments and suggestions.

Additionally, the company could also use this medium as a means for tele-

marketing.

48
 ● On creating a convenient booking system, Eurotel must be able to address

problems with their website. Customers should be able to book through the same

website without having troubles in accessing it.

● Eurotel should maximize the use of their website by providing all information a

customer would need from them without having to call. A detailed list of the

services they offer should be made available through the said website.

● Lastly, Eurotel should provide a Self Check-In counter where customers can

independently check-in. This shall provide convenience and faster transactions,

which properly suits businessmen’s fast-paced lives.

BILLING

Existing:

● Eurotel issues a complete breakdown of the customer’s incurred expenses right

before the customer pays.

Proposed:

● A live feed of the customer’s incurred expenses should be made available to the

customer via Eurotel’s website. The system should be updated and reliable.

PAYMENT

Existing:

● Eurotel offers two handling payment approaches: over-the-counter and online

payments. For online payments, a credit card payment is made available for the

convenience of those who do not bring cash, and for those who favor automatic

deductions. On the other hand, for those who wary online payments, clients can

49
 opt for over-the-counter payments. This requires the customer to hand the

payment in cash to the concierge the moment he/she avails of the service.

Proposed:

● Along with the implementation of booking through Eurotel’s website, the

company should also provide an on-site payment wherein the entire payment

process is done solely through Eurotel’s website, which therefore requires less

time and effort from the customers as they need not to enroll another website’s

accounts. With the use of SSL encryption and up-to-date software, a secured

website should be provided by Eurotel. This would ensure the security of the

payment process.

CONSULTATION

Existing:

● Eurotel arranges one on one meetings through phone calls. These meetings

cover queries for facility rentals, and in some cases, address complaints and/or

suggestions.

Proposed:

● Before the customer arranges a meeting for complaints and/or suggestions, a

Eurotel personnel should already be present and approach the customers first.

This would give the customers the impression that Eurotel deems customer

suggestions as important, and that they give utmost importance in addressing

customer needs.

50
 ● Determined packages for renting facilities should be made available for frequent

leasing. This will target corporate clients and turn them into regular customers.

● Eurotel management should include in their meetings with the clients a viewing

and surveillance of the hotel.

SECURITY AND SAFETY

Existing:

● Recent complaints, particularly at the Pedro Gil branch, described that security

isn’t guaranteed when one is within the perimeter of the hotel. The customer

experienced extortionists harassing him right outside the hotel, to which the

security personnel was not of any help.

Proposed:

● In a usual motel setting, security, more often than not, is overlooked as it isn’t

usually a primary concern. Shortcomings in this department only supports the

idea that Eurotel is a mote. To help revert this image and to improve service,

Eurotel should improve on security issues and focus on training the security

personnel to be more instinctive and responsive to the needs of the customers.

51
HOSPITALITY

Existing:

● Dining areas are not always functional. The hotel sometimes uses makeshift

dining areas to compensate for the lack of supplying a proper dining area.

● Eurotel provides a well-ventilated lobby with presentable waiting areas where

customers can comfortably sit.

● Eurotel’s comfort rooms are not always well-maintained. Complaints and actual

experiences show that this lack of cleanliness remains true to a number of

branches.

● Another common complaint that is found through blogs is the distinct foul smell

(which is associated with cigarettes) that their rooms posses.

● Eurotel’s room accommodation service is prompt, quickly attending to customers’

needs.

Proposed:

● The researchers suggest improvements on in-house facilities, such as availability

of dining areas and the like. Facilities should be consistent all throughout the nine

branches, in terms of availability and quality.

● Cleanliness should be on top of the priorities set by the management. Good

housekeeping always give good first impressions. These first impressions are

important in making regular customers.

52
EXCEPTIONS

Existing:

● As much as Eurotel arranges meetings to address complaints, they also make

themselves reachable through travel blogs such as Trip Advisor, where more

customers opt to make their reviews towards the hotel.

Proposed:

● Aside from bell boys, a client relations officer must be present at the hotel

concierge 24/7 to assist customers’ needs. The said employee could help the

client in making powerpoints and could even go as far as arranging meetings for

the clients. The researchers proposed the need for a client relations officer to

show credibility and sense of urgency from a client’s perspective.

● More than responding to travel blogs, Eurotel should also appear in social media

where more people are present, and are, therefore, reachable. This will provide a

more convenient interaction with the customers, and a higher visibility for the

company.

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 XII. INVESTMENT PLANS

Activity Estimated Cost

A. ADVERTISING

Tarpaulins (7ft. x 8ft.) (10 pcs.) Php 970.00/5 months

Newspaper (¼ page, 2x a week running Php 280,000.00/month

Production Cost (Graphic designer) Php 11,500.00/month

B. HUMAN RESOURCE

Housekeeping personnel Php 14,000.00/month

Bell Boy Php 13,000.00/month

Security personnel Php 16,000.00/month

Client Relations Officer for Leasing Php 25,000.00/month

C. EQUIPMENT AND FACILITIES

Projectors (NEC M362XG) (5 units) Php 54,000.00

Speakers (Philips BTD1180) (5 units) Php 8,000.00

Projector Screens (Tripod Standard) (5 Php 5,000.00

Flatscreen TVs (XENON Full HD LCD) Php 1,000,000.00

D. SUPPLIES

Additional housekeeping materials Php 20,000.00/month

E. OTHERS

Website Developer (w/Online Booking Php 60,000.00 (w/monthly fee of

*Total Investment on 5 year projected forecast per branch: Php 17,574,700.00

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55
XIII. ESTIMATES OF PROFITABILITY

Accommodation

Business Facility Leasing

XIV. EVALUATION OF RESULTS

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 ● Improvements in business facilities and equipment

To correct the current view of the hotel being an alternative to a motel, Eurotel

Hotel should create a fund intended for the renovation of the business facilities as well

as the equipment included with the package. There should hold a regular checkup

regarding the condition of the various equipments available for use in the hotel. This

action would lead to further exposure to the hotel’s intended primary target market

(businessmen) by encouraging them to hold more events such as seminar and

conferences inside the premises of the hotel. The hotel’s increased association with

corporate identities would help it in achieving its vision which is to be the leading

businessman’s hotel in all key cities in the Philippines followed by its future plans of

expansion to the rest of Asia.

● Increase the number staff enhance their training

Being in the hotel industry entails that all the needs of their customers be their

top priority. During their stay, customers should always be relaxed making it a home-

out-of-home for them in order to promote memorable experiences. This can be done by

adding staff in order accommodate the customers present in the hotel. Also, their

training would have to be looked into so that the staff would reach to the standards in

properly dealing and communicating with customers, as well as when it comes to

cleanliness and the other services they are to provide.

● Develop the feedback system

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 A proper feedback system is fundamental in handling a business in the

hospitality industry. This can concretely be done by setting up suggestion boxes in each

one of the rooms across the hotel. The collection of criticism and feedback received can

help the management team of the different hotels in measuring customer experience

and identifying the weaknesses that they may need to address immediately.

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APPENDIX A - RESEARCH FINDINGS

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APPENDIX B - UAI Questionnaire

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 A. CREATIVE MATERIALS

POSTERS

1.) Advertising Goal: Remind

Tagline: No. 1 Businessman’s Hotel

Audience: Business Travellers

2.) Advertising Goal: Informative

Tagline: “Ideal Business Venue”

Audience: Businessmen and secretaries

3.) Advertising goal: Persuade

Tagline: “European Feel for a Filipino Deal”

Audience: Budget Travellers

REFERENCES

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Castillo, P. & Edralin, D. (2001). An In-depth Study on the Hotel and Restaurant

Industry In the Philippines.

Retrieved on October 22, 2014 from

http://www.jgbm.org/page/7%20David%20S.%20Y.pdf

Lea, M. (2014, May 10). Tourism is more fun in the Philippines - The Manila Times

Online. Retrieved December 10, 2014, from http://www.manilatimes.net/tourism-is-

more-fun-in-the-philippines/95946/

Retrieved on October 22, 2014 from http://www.pqa.org.ph/about.php

Retrieved on October 22, 2014 from http://www.dti.gov.ph/dti/index.php/2014-04-02-03-

40-26/news-room/243-embargoed-news-04-please-see-notes-then-paste-title-here-after

Retrieved on October 22, 2014 from http://www.tunehotels.com/ph/en/

Retrieved on October 22, 2014 from http://www.copasuites-

makati.com/accommodations.php

Retrieved on October 22, 2014 from http://www.thebellevue.com/b-hotel/promotions/

Retrieved on October 22, 2014 from http://www.microtelphilippines.com/rooms.php

Retrieved on October 22, 2014 from

http://www.clearwaterphilippines.com/wordpress/2011/10/hospitality-industry-hotel-

business-current-and-future-trends/

Business Hotels. (n.d.). Retrieved December 10, 2014, from http://www.takayama-

guide.com/hotel/business_hotels.html

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