group 2 marketing plan the premiere business hotel new

MARKETING PLAN

Submitted by:

Mary Cris B. Sotic

Jaana G. Tamayo

Kristian V. Peralta

Ramcez John A. Honrado

Hannibal Zenon D. Ong

with the special participation of:

Marcelo Augusto A. Cosgayon

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INTRODUCTION ........................................................................................................ 4 KALIBO, AKLAN ......................................................................................................................................................... 4

Background ............................................................................................................................................. 4 PHILIPPINE ECONOMY .......................................................................................................................................... 4 PHILIPPINE TOURISM ............................................................................................................................................. 4 HOTEL INDUSTRY .................................................................................................................................................... 5 AKLAN: KALIBO AND BORACAY ....................................................................................................................... 5

REGIONAL DISTRIBUTION OF ARRIVALS ............................................................................................................ 6 The premiere business hotel ................................................................................................................. 6

MISSION ......................................................................................................................................................................... 7 VISION ............................................................................................................................................................................ 7

EXECUTIVE SUMMARY ............................................................................................ 8

SITUATIONAL ANALYSIS ......................................................................................... 9 Market Summary .................................................................................................................................... 9

MARKET DEMOGRAPHICS ................................................................................................................................... 9 GEOGRAPHIC ...................................................................................................................................................................... 9 DEMOGRAPHIC ................................................................................................................................................................ 10 BEHAVIORAL FACTORS................................................................................................................................................ 10

MARKET TRENDS.................................................................................................................................................... 12 LOCAL BUSINESS TRENDS .......................................................................................................................................... 12 CORPORATE TRAVEL POLICIES............................................................................................................................... 12 ECONOMIC TRENDS ...................................................................................................................................................... 12

MARKET NEEDS ...................................................................................................................................................... 12 MARKET GROWTH ................................................................................................................................................. 12

SWOT ANALYSIS ........................................................................................................ 13

Strengths ................................................................................................................................................ 13 Weaknesses ............................................................................................................................................ 13 Opportunities ........................................................................................................................................ 13 Threats ................................................................................................................................................... 14

PESTLE ANALYSIS .................................................................................................... 16

Political................................................................................................................................................... 16 Economic .............................................................................................................................................. 16 Socio-Cultural ....................................................................................................................................... 16 Technology ............................................................................................................................................ 16 Legal ....................................................................................................................................................... 17 Environment ......................................................................................................................................... 17

SERVICES OFFERED ................................................................................................ 18 Accommodation ................................................................................................................................... 18 integrated food services ....................................................................................................................... 19 Tours ...................................................................................................................................................... 19 Transfer and Transport Services ........................................................................................................ 19 Keys to Success .................................................................................................................................... 20

CUSTOMER LOYALTY AND REPEAT BUSINESS ....................................................................................... 20 CONSISTENCY .......................................................................................................................................................... 20 UPDATES AND IMPROVEMENTS ..................................................................................................................... 21

CHALLENGES IN THE HOSPITALITY INDUSTRY .......................................... 22

COMPANY OBJECTIVES ......................................................................................... 23 Marketing Objectives ........................................................................................................................... 23

STRATEGY: ................................................................................................................................................................. 23

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STRATEGY: ................................................................................................................................................................. 23 STRATEGIES: ............................................................................................................................................................. 24

Financial Objectives ............................................................................................................................. 24

POSITIONING ........................................................................................................... 25 Targeted Segments ............................................................................................................................... 25 Promotions ............................................................................................................................................ 26

DISCOUNTS AND FREEBIES .............................................................................................................................. 26 SERVICES ..................................................................................................................................................................... 26

MARKETING MIX ..................................................................................................... 27 Product................................................................................................................................................... 27 Pricing .................................................................................................................................................... 27 Promotion ............................................................................................................................................. 27 Place ....................................................................................................................................................... 31

FINANCIAL ................................................................................................................ 32 FINANCIAL OBJECTIVES ..................................................................................................................................... 32

Financials ............................................................................................................................................... 33 BREAKEVEN ANALYSIS ....................................................................................................................................... 34 SALES FORECAST .................................................................................................................................................... 34

Break Even Point ................................................................................................................................. 35 EXPENSE FORECAST ............................................................................................................................................. 36

MILESTONES ............................................................................................................ 38

MARKETING ORGANIZATION ............................................................................. 39

CONTROLS ................................................................................................................ 40 Implementation .................................................................................................................................... 40

CONTINGENCY PLANS ........................................................................................... 41

STRATEGIC ALLIANCE ........................................................................................... 42

CORPORATE SOCIAL RESPONSIBILITY ............................................................. 43

PERSONS WITH DISABILITIES ............................................................................. 44

SIGNAGE FOR DIRECTION ................................................................................... 45

ELITE CARD .............................................................................................................. 46

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INTRODUCTION

KALIBO, AKLAN

The municipality of Kalibo is the capital and commercial center of the Province of Aklan. Located on the northwest portion of Panay Island, it is a first class municipality and serves as the main transportation hub for the Island of Boracay, known worldwide as one of the best tourist destinations of all time.

Kalibo, Aklan is also known for its annual Ati Atihan Festival and boasts an international airport and another one in the making.

BACKGROUND

PHILIPPINE ECONOMY

The economy of the Philippines expanded by 6.1% in 2014, fuelled by sustained increases in private consumption, higher fixed investment, and recovery in exports. The pace of growth decelerated by almost 1 percentage point from the average of the previous 2 years, largely on a slowdown in government expenditure.

Private consumption generated more than 60% of the growth in gross domestic product last year. Consumer spending grew by 5.4%, benefitting from a 2.8% rise in employment, modest inflation, and higher remittances from overseas Filipinos, which reached $27.0B after climbing in 2014 by 6.3% or by 10.9% in Philippine peso terms.

Strong GDP growth is projected for 2015 and 2016 based on buoyant private consumption, a solid outlook for investment and exports, and recovery in government expenditure. GDP is projected to increase by 6.4% in 2015 and 6.3% in 2016.

PHILIPPINE TOURISM

Earnings generated from tourism activities in the first five months of 2015 grew 2.74%, aggregating to P93.907B from the P91.404B recorded in 2014. For May alone, visitor receipts amounted to P16.77B, which is 2.40% higher than the previous year’s earnings of P16.38B.

The Department of Tourism reported a consistent growth in arrivals for the first five (5) months of the year with a total of 2,229,139 visitors from January to May of 2015, posting an 8.15% increase over the same months in 2014 which had 2,061,135 arrivals.

Visitor arrivals in May 2015 were 413,937 which is 13.53% higher than the same month in 2014 with total visitor arrivals of 364,598. Within the first five month period, the month of January recorded the biggest arrivals at 479,149 while the biggest growth was

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registered in May 2015 with a double-digit increase of 13.53%. The average growth for South East Asia is 6%.1

HOTEL INDUSTRY

Colliers International Philippines Research projects that more than 12,000 hotel rooms will be opening in the next four years. Moreover, the industry is expected to enjoy more than 70% occupancy rates due to the “aggressive overseas promotions” of the Department of Tourism.

With the steady increase in visitor arrivals, there is a corresponding increase in demand for hotel rooms.

AKLAN: KALIBO AND BORACAY

Air arrivals to the country for May 2015 was recorded at 410,694 visitors while those who entered the country by sea was registered at 3,243 visitors. Manila received the biggest arrivals at 297,987 or 72.56% of the total air arrivals. Cebu shared 15.09%, hosting 61,970 visitors for May 2015. Kalibo received the third biggest arrivals of 34,933 visitors which constituted 8.51% of the total.

1 www.tourism.gov.ph

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Regional Distribution of Arrivals

THE PREMIERE BUSINESS HOTEL

The Premiere Business Hotel is the first and only business hotel in Kalibo in the province of Aklan, primarily providing high quality hospitality services for tourists and business travellers.

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MISSION

To exceed the expectations of our guests by providing high quality service and an enjoyable experience. To inspire and motivate our employees by imparting outstanding practices and by sharing our triumphs.

VISION

To be known as the premier provider of high quality hospitality services for tourists and business travellers. To build a home-grown company into a first rate key player in the hotel industry.

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EXECUTIVE SUMMARY

The Premiere Business Hotel is a sole proprietorship business hotel, the first and only of its kind in Kalibo. It opened its doors on the 18th day of October 2013 with eighteen (18) rooms and started expanding the following year, when revenues became sufficient to support growth. It has now expanded to thirty (30) rooms and has plans of building six (6) more rooms this year. Eventually, it intends to expand to fifty (50) rooms.

Accommodation rates range from P1,500.00 for its Economy Room to P2,500.00 for its Premiere Suite.

Aside from its hotel, it has two (2) restaurants, the Emerald Dragon Chinese Restaurant and the Emerald Dragon Seafood and Grill, both located in near proximity to the hotel. It also provides other services and amenities such as function rooms, catering services, transportation and touring services, as well as wellness and fitness facilities.

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SITUATIONAL ANALYSIS

MARKET SUMMARY

The Premiere Business Hotel specializes in servicing business and corporate clients. It serves the airline industry and business travellers in the Panay and national areas.

Studies have shown that by 2015, 9 out of 10 consumers will have a mobile phone, 30% of travelers would have found hotel deals through mobile apps, and 46% will check in to a location while on vacation using services like Facebook and Foursquare.

MARKET DEMOGRAPHICS

Geographic

Domestic Market

International Market

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Demographic

Airline Crew

Business Travellers

Non-Government Organizations (NGO)

Tourists

Behavioral Factors

Convenient Location

Safety and Security

Comfort and Convenience

Services and Facilities

Price

Clannish

Online Customer Reviews:

92% of global consumers trust their friends and family’s recommendations and word of mouth

70% of consumers around the world say online customer reviews are the second most trusted form of advertisement

47% of consumers trust paid television, magazine and newspaper ads.

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Travel planning is dominated by online resources:

69% - travel review websites

57% - online travel agencies

56% - travel operator sites

43% - family & friends

30% - magazines & brochures

24% - social media

18% - store front travel agency

Price matters – The companies’ bottomline is to get the best services at the lowest cost.

Reviews matter – Companies consider the reviews to initially assess suitability.

Loyalty matters – Business travelers will put up with “good enough” or “OK” if they can get their points

Travel Market Report

50% of business travelers will be Millennials by 2020 – millennials have higher expectations for services and perks, perform more research online before booking, and are more likely to splurge on the company dime.

Factors that influence a booking decision:

86% - free inroom wifi

80% - free breakfast

70% - free parking

23% - business center

20% - minibar

19% - spa

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MARKET TRENDS

Local business trends

Tourists and business travellers are now demanding more amenities and conveniences from hotels. Balikbayans tend to stay in hotels rather than staying at their relative’s houses during vacation.

Corporate travel policies

“Bleisure” trend (business plus leisure) combines productivity, opportunity and new experience. Business travel is now a lifestyle. Hotel travel costs projected to increase by 2.2% globally.

Economic trends

As the economy brightens, travellers resume their travel plans. Even smaller cities and towns benefit as travellers visit friends and families more frequently. International travel is also increasing, with China leading the way with average stay of seven days.

MARKET NEEDS

The locality’s booming economy spurred the entry of bigger companies that require accommodation for its employees.

A booming economy and burgeoning tourism equate to more flights which necessitates accommodations for airline staff.

MARKET GROWTH

The local economy is seen to grow exponentially in the coming years as it pushes for cityhood.

Tourism growth is pegged at 18% annually for the entire country. Boracay Island accounts for 12% of the total tourist arrivals in the Philippines.

“Balikbayans” or returning residents have started to recognize the convenience of staying in hotels. This segment will contribute in the growth of the local hotel industry.

The market is expected to grow by 30% in 2016.

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SWOT ANALYSIS

STRENGTHS

Family owned business, easier decision making process.

Hands-on management style.

Owner’s personal touch to the clients.

Good location, close to the airport and other essential institutions such as hospitals, churches, malls, etc.

Complete in-room amenities such as wifi connectivity, room service, mini-bar, HD cable television, etc.

24-hour In-house transfer and transportation services.

24-hour Front Desk Service.

Function Room with Audio Visual equipment.

In-house restaurants with different cuisines.

WEAKNESSES

Limited capital infusion for expansion.

Limited area for future expansion.

Limited number of rooms, cannot accommodate large groups.

Small function room, can only accommodate up to 120 guests.

Cannot dictate prevailing rates due to competition.

OPPORTUNITIES

• Booming local economy, already established in time for the locality’s push for cityhood.

• Expected increase of domestic and international tourism.

• Expected increase of domestic and international flights

• New trend among “Balikbayans,” staying in hotels instead of at a relative’s house.

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THREATS

• Minimal barrier for competition, other hotels under construction.

• Availability of other low cost types of lodging: Inns, pension houses, apartelles, motels

• Caticlan Airport, some guests prefer to fly direct instead of staying overnight in Kalibo.

• Competition: Marzon Hotel, Sampaguita Gardens, Basa Hotel, Royal Suites – offer similar facilities although somewhat focused on business needs.

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PESTLE ANALYSIS

POLITICAL

Sustainable economy is dependent on the political stability.

Increasing taxes.

Increasing minimum employee wages and benefits.

Businesses are at subjected to political issues.

Tourism is highly dependent on the country’s foreign relations with other nations.

ECONOMIC

Economic developments must be sustained.

Businesses are highly dependent on the economic conditions.

Success of the business creates employment opportunities.

Success of the business generates revenue for the state thru taxes.

Creates a secondary industry: Suppliers for hotel and restaurant.

SOCIO-CULTURAL

Boracay Island is consistently in the list of the World’s Best Destinations.

The push for cityhood will elevate the social status of the locality and its residents.

TECHNOLOGY

New technology makes travelling an enjoyable and hassle-free experience.

You can remain connected with work and family even when out of town or country.

Personal preferences can now be easily accommodated thru “Special Requests” during the flight or at the hotels.

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LEGAL

Hotels are subjected to local laws.

Hotels must orient foreign guests on the local policies to avoid legal entanglements

Hotels must respect the various cultural and personal preferences of foreign guests without compromising legal responsibilities.

Hotels are liable for any untoward events that might befall on its guests while in the hotel premises.

ENVIRONMENT

Travellers are now more concerned with the environment that service providers must show the same in order to be patronized.

In order to sustain the dynamic tourism of the locality, the environment must be protected and preserved.

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SERVICES OFFERED

ACCOMMODATION

Accommodation for tourists and business travelers.

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INTEGRATED FOOD SERVICES

EMERALD DRAGON CHINESE RESTAURANT

EMERALD DRAGON SEAFOOD AND GRILL

TOURS

The hotel must offer local tours to keep the guests entertained.

TRANSFER AND TRANSPORT SERVICES

Transfer Services:

o Airport to Hotel and vice versa.

o Hotel to Caticlan Jetty Port and vice versa

Transport Services:

o Shuttle Rental from the Hotel to any point in Panay Island

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KEYS TO SUCCESS

CUSTOMER LOYALTY AND REPEAT BUSINESS

Clients must be satisfied with the kind of services provided to foster loyalty to the company and continue returning.

CONSISTENCY

The hotel must be able to consistently provide high quality services to its guests to keep the satisfaction at the optimum level.

All amenities and facilities must perform at its best at all times.

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UPDATES AND IMPROVEMENTS

Amenities and facilities must be updated periodically to keep up with the rapidly changing technology.

Structural and aesthetic improvements must be done to pattern with the current trends in the society.

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CHALLENGES IN THE HOSPITALITY INDUSTRY

Seasonality

Guest profiling

Demanding customer

Shortage of qualified manpower.

Rising local construction costs hindering expansion opportunities.

Consistent delivery of supplies to ensure smooth rendering of services.

Stiff competition driving prices down.

Maintaining level of quality and efficiency at a lower cost.

Complex interaction with customers due to plethora of communications media available.

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COMPANY OBJECTIVES

MARKETING OBJECTIVES

To secure top of mind/primary choice of business travellers based on corporate accounts preference.

STRATEGY:

o Intensify online presence thru a company website and social networks.

o Solidify business hotel status by offering services suited for conferences, business meetings, and other official functions.

o Offer special corporate rates to companies with business

o presence in the locality.

o To ensure positive hotel experience to all the guests.

STRATEGY:

Designate a Marketing Staff/Guest Liaison Officer with the following functions:

Ensure visibility and active participation of Premier on social media, popular events, Blogs, On-Line Travel Magazines etc

To address and respond to negative reviews and feedbacks;

Act as concierge for regular and special guests to ensure total satisfaction;

To monitor and implement measures for total customer satisfaction;

To reduce if not eliminate areas of complaints

Guest profiling

To accomplish growth targets by given time and budget.

Strategy:

Mobile friendly site, mobile presence thru partnerships with various online travel agencies and travel operator sites (Agoda, Trip Advisor, Booking.com) and social media hubs (Facebook, Twitter, Youtube,)

Position the hotel as an attractive meeting place for non-resident business executive, replace related printed matter in the guest room with automated technology or low energy use communication equipment.

Customer Loyalty Program

Discounts and special

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Strategy:

Augment online presence thru partnerships with various online travel agencies.

Lower cost and increased revenue - position the hotel as an attractive meeting place for non-resident business executive, replace related printed matter in the guest room with automated technology or low energy use communication equipment.

To tap new markets for products and services by increasing awareness about The Premiere Business Hotel

STRATEGIES:

Tap the CAMERA (Capiz-Aklan Medical Representatives Association) market complement the core target segment.

Sponsor events for PCCI Aklan, FilChinese Chamber of Commerce

Email Marketing – selling gift vouchers to mobile audience,

Brand recall.

o Brand recognition. A highly recognizable logo even without the name. Double Diamond = The Premiere Business Hotel

Awareness of the Business Hotel concept.

Establish a seamless transaction portal to make bookings and requests as easy as possible.

Create an experience that will tell a wonderful story worth passing on.

Be blog-able. Invite bloggers to write a review.

Sponsor events.

FINANCIAL OBJECTIVES

Increase annual revenue by increasing occupancy rate to 80% in the next 3 years

Achieve Return of Investment (ROI) and accumulate funds for expansion within ten (10) years

Increase corporate accounts to further solidify Business Hotel status.

Maintain expenditures at a low level without compromising services known to repeat customers.

Expansion from Thirty (30) to Fifty (50) rooms within ten (10) years. Structural and aesthetic improvements must be done to pattern with the current trends in the society.

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POSITIONING

The Premiere Business Hotel is positioned as the primary choice of business travellers.

Provides essential services, either complimentary or for a fee, to ensure that the guests are fully satisfied.

An excellent value-for-money Business Hotel highly beneficial to companies and even tourists or occasional visitors.

TARGETED SEGMENTS

Professional visitors from both local and international companies.

Aid Workers from local and international NGOs.

Airline crew.

Conferences and meetings conducted by Government units and private firms.

Domestic and international tourists.

“Balikbayans” or returning residents.

Airline

Corporate/Local Government Unit

NGO/NPO

Local Travel Agency

International Travel Agency

Walk In

SegmentationAirline

Corporate/Local Government Unit

NGO/NPO

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PROMOTIONS

DISCOUNTS AND FREEBIES

• Corporate Rate Discounts: 10% Corporate Discount for all partner

companies.

• Establish a seamless transaction portal to make bookings and

requests as easy as possible.

• After 7 Promo: 20% discount for all walk-in guests arriving after 7pm

subject to room availability.

• Senior Citizen (SC) Discount: Mandated SC Discount is honored.

• Complimentary room for event organizers.

• Complimentary room for tour guides.

• Referral Reward System: 5 Referrals = Complimentary Overnight Stay

• Intensify online presence thru a company website and social

networks.

• Augment online presence thru partnerships with various online travel

agencies.

• Solidify Business Hotel status by offering services suited for

conferences, business meetings, and other official functions.

SERVICES

• All partner companies also enjoy a 5% discount at the in-house restaurants.

• Complimentary buffet breakfast.

• Complimentary transfer service for all airline crew.

• Very affordable transfer / transport services for other hotel guests.

• Fast internet connectivity for webinars, online meetings, and video streaming.

• Other Services:

o 24-hour Wake-up Call o Spa services o Room service o Bell service o Daily turndown o HD Cable, o Daily Complimentary Bottled Water & Broadsheet Newspaper

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MARKETING MIX

PRODUCT

High quality accommodation facilities.

Differentiated product thru highly specific target segment.

High quality amenities based on target segment requirements.

PRICING

Highly competitive rates .

PROMOTION

• Focused mass communication via print ads in trade publications and on the internet.

- Increased online exposure thru consistent updates and information.

- Increased online exposure via social networks.

- Direct mail via email to online travel agencies.

- Increase search engine ranking thru blogs and reviews

• Personal selling

- Direct selling via invitations and word of mouth.

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- Direct mail via postage service to targeted companies.

• Public relations

o sponsorships of local events, Ati-atihan Festival and Kalibo Food Festival.

o Partnerships with tour groups.

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Direct marketing will be handled by a PR agency. We will select targeted list of corporate companies and send them information about Premiere Business Hotel.

There is no current website, hence, a website is our primary focus. It will have an updated look and feel, as well as secure interactivity. It must have a good content, home page design and navigation, online reservations capability and printable brochure.

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The website must be able to convey our messaging of high quality business accommodations, indexed on major travel websites so that people find us, and be able to take reservations online and make changes to reservations online

PLACE

Service/product information are provided to guests through personal selling, direct marketing, advertising, and internet. Delivery channels include travel agents, tour guides, and local and international reservation systems.

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FINANCIAL

This section will offer a financial overview of the Premiere Business Hotel in relation to the marketing activities. It will address break-even analysis, sales forecasts, expense forecasts, and how they link to the marketing strategy.

FINANCIAL OBJECTIVES

• Increase annual revenue by increasing occupancy rate to 80% in the next 3 years

• Achieve Return of Investment (ROI) and accumulate funds for expansion within ten (10) years

• Increase corporate accounts to further solidify Business Hotel status.

• Maintain expenditures at a low level without compromising services known to repeat customers.

• Expansion from Thirty (30) to Fifty (50) rooms within ten (10) years Structural and aesthetic improvements must be done to pattern with the current trends in the society.

6 MONTH INCOME STATEMENT

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FINANCIALS

Performance Date and Averages

AVE. ANNUAL NO. OF ROOMS SOLD 6,156

AVE. PRICE/ROOM ₱1,758

AVE. ANNUAL GROSS INCOME ₱10,822,248

AVE. ANNUAL VARIABLE EXPENSES (30.18%) ₱3,266,154

AVE. ANNUAL NET SALES ₱7,556,094

AVE. NET SALES/RO0M (6,156 ROOMS) ₱1,227

AVE. ANNUAL FIXED EXPENSES (44.47%) ₱4,812,654

No. OF ROOMS TO BREAK EVEN 3,921

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BREAKEVEN ANALYSIS

OCCUPANCY RATE

SALES FORECAST

Current occupancy rate: 57%

Total rooms available for sale: 3,079 rooms out of 5,400 rooms

Target increase of occupancy rate in three years: 80%

July - December 20146 Month Period

1

2

34

5

6

TOTAL 5,400 3,079 57.02% 5,419,643.00

December 2014 900 619 68.78% 1,079,915.00

October 2014 900 410 45.56% 707,306.00

November 2014 900 588 65.33% 1,055,983.00

August 2014 900 509 56.56% 905,351.00

September 2014 900 440 48.89% 763,473.00

OCCUPIEDJuly 2014 900 513 57.00% 907,615.00

THE PREMIERE BUSINESS HOTELHOTEL PERFORMANCE STATISTICS

ENTRYPERIOD # OF ROOMS # OF ROOMS

OCC GROSS SALESCOVERED AVAILABLE

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Fixed Cost is ___ of the Gross Sales.

The number of units or rooms needed to be sold to arrive at a break-even point is 4,044 rooms

Gross – Cost of Services (Variable Cost) = Net Sales

P1,700 – P510 = P1,190

Average monthly fixed expense : P401,701

P401,701 / P1,190 = 338 rooms/month (11 rooms/day)

Marginal revenue: P1,190.00

GROSS SALES/REVENUE – VARIABLE COST = NET SALES

NET SALES – FIXED COST = NET INCOME/LOSS

VARIABLE COST = 30% OF GROSS SALES

FIXED COST = 45% OF GROSS SALES

BREAK EVEN POINT

4,044 Rooms to Break Even

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EXPENSE FORECAST

Marketing expense are projected to be 5%(P45,000 monthly) of over all annual revenue. Breakdown as follows:

Print advertising

Internet advertising

Public relations

Total Sales & Marketing Expense

Sales forecast

Marketing expense are projected to be 5% of over all annual revenue. Breakdown as follows:

TOTAL ROOMS/YEAR YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-10

10,800 6480 7560 8640 8640 8640 43200

GROSS INCOME ₱11,391,840 ₱13290480 ₱15,189,120 ₱15,189,120 ₱15,189,120 ₱75,945,600

MARKETING EXPENSE BUDGET

Allowance and commission ₱180,000 ₱198,000 ₱217,800 ₱217,800 ₱217,800 ₱1,089,000

Print advertising ₱60,000 ₱66,000 ₱72,600 ₱72,600 ₱72,600 ₱363,000

TOTAL ROOMS/YEAR CURRENT PERFORMANCE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6-10

10,800 6,156 6480 7560 8640 8640 8640 43200

OCCUPANCY RATE 57.00% 60.00% 70.00% 80.00% 80.00% 80.00% 80.00%

GROSS INCOME ₱10,822,248 ₱11,391,840 ₱13,290,480 ₱15,189,120 ₱15,189,120 ₱15,189,120 ₱75,945,600

VARIABLE COST ₱3,266,154 ₱3,438,057 ₱4,011,067 ₱4,584,076 ₱4,584,076 ₱4,584,076 ₱22,920,382

NET SALES ₱7,556,094 ₱7,953,783 ₱9,279,413 ₱10,605,044 ₱10,605,044 ₱10,605,044 ₱53,025,218

NET SALES/ROOM ₱1,227 ₱1,227 ₱1,227 ₱1,227 ₱1,227 ₱1,227 ₱1,190.00

FIXED COST ₱4,812,654 ₱4,812,654 ₱4,812,654 ₱4,812,654 ₱4,812,654 ₱4,812,654 ₱24,063,268

No. OF ROOMS, BREAK EVEN 3921 3921 3921 3921 3921 3921 19605

EST. MARKETING BUDGET ₱0 ₱540,000 ₱594,000 ₱653,400 ₱653,400 ₱653,400 ₱3,267,000

ROOMS EXCESS OF BREAK EVEN 2235 2559 3639 4719 4719 4719 23595

NET PROFIT/LOSS ₱2,743,440 ₱2,601,129 ₱3,872,759 ₱5,138,990 ₱5,138,990 ₱5,138,990 ₱25,694,949

ACCUMULATED EARNINGS ₱2,743,440 ₱5,344,569 ₱9,217,328 ₱14,356,318 ₱19,495,308 ₱24,634,298 ₱50,329,248

LOAN PAYMENTS ₱1,000,000 ₱1,000,000 ₱1,000,000 ₱1,000,000 ₱1,000,000 ₱5,000,000

TOTAL EARNINGS 10 YEAR ₱50,329,248 TOTAL INVESTMENT ₱25,000,000

LOAN PAYMENT ₱10,000,000 LOAN PORTION ₱10,000,000

BALANCE ₱40,329,248 PERONAL TRANSFER ₱15,000,000

BUDGET FOR EXPANSION ₱20,000,000

EARNINGS LEFT ₱20,329,248

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Networking/Direct Marketing ₱60,000 ₱66,000 ₱72,600 ₱72,600 ₱72,600 ₱363,000

Public relations ₱60,000 ₱66,000 ₱72,600 ₱72,600 ₱72,600 ₱363,000

Others ₱60,000 ₱66,000 ₱72,600 ₱72,600 ₱72,600 ₱363,000

Internet advertising/web design ₱120,000 ₱132,000 ₱145,200 ₱145,200 ₱145,200 ₱726,000

TOTAL BUDGET ₱540,000 ₱594,000 ₱653,400 ₱653,400 ₱653,400 ₱3,267,000

PERCENTAGE OF GROSS 4.90% 4.60% 4.40% 4.40% 4.40% 4.40%

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MILESTONES

• Quarterly travel trade publications and monthly press ads communicate our message to key corporate clients.

• Monthly Internet advertising expenses include banner ads, and strategic links with car hire, airline and destination websites to drive business to the hotel.

• Direct mail activity to build targeted customer database, in terms of improving the quality of the data we currently hold and increasing the size of the database with prospective customer information.

• Public relations expenses cover PR events, participation at local functions and sponsorship funds.

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MARKETING ORGANIZATION

Premier’s marketing team, in coordination with the business owners and the staff, will be responsible in all advertising, promotional and public relations activities.

Members of the team will monitor and evaluate the effectiveness of the marketing plan and make the necessary changes in future implementations.

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CONTROLS

IMPLEMENTATION

• Advertising: sending out emails to future present and past guest. Keeping current list.

• Sending mails to the area with coupons

• Personalize letters

• Handing out brochures to local business to give out to their customers.

• Print brochures on high quality paper with high quality photographs to keep high quality message to customers

• Create 3 minute AVP for Premier’s corporate profile for online promotion

• Undergo accreditation to be included in LGU’s city tours

• Increase engagement in social media and offering discounts

• Provide trainings for skills development to ensure highest standard of business

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CONTINGENCY PLANS

• Identify triggers, what action to take and when

• Define time period of implementation of contingencies

• Manage risks to eliminate need for contingency plan

• Identify operational inefficiencies

• Create social media crisis policies

• Include contingency plans in SOP and keep staff up-to-date

• Conduct disaster drills and trainings and assess results to make the necessary changes in contingency plan

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STRATEGIC ALLIANCE

The Premiere Business Hotel has crafted strategic alliances with several large corporations that conduct business in the Kalibo area like Silk Air, Cebu Pacific, Philippine Airlines, Globe Telecom, Smart Communications, Royal Dutch Shell Corporation, Phoenix Petroleum, and non government organizations like The International Federation of the Red Cross and the Red Crescent Societies and CARE Philippines.

These corporate accounts send their personnel to the hotel for accommodation and lodging, and the hotel sends a periodic bill to the corporate head office for payment.

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CORPORATE SOCIAL RESPONSIBILITY

The Premiere Business Hotel believes in caring for the environment. An ordinary toilet uses 9 liters of water for a full flush and 4.5 liters for a half flush.2 The hotel has highly efficient dual flush water saving water closets installed in all its rooms and facilities that only use .65 gallon or less than 2.5 liters per flush,3 resulting in almost 50% savings in water consumption.

It also posts stickers on its bathrooms and lavatories reminding guests to conserve water and to dispose of their waste properly.

2 http://www.waterrating.gov.au/consumers/water-efficiency 3 http://www.niagaracorp.com/water_conservation/products/toilets

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PERSONS WITH DISABILITIES

The Premiere Business Hotel provides facilities for physically disabled persons. In compliance with the National Building Code and local regulations, it has ramps for wheelchair access on all stairs and disabled access comfort rooms and bathrooms in select rooms, that include access level showers, handrails, and bath grab bars.

The hotel also keeps on hand equipment that a person with disability might need, such as wheelchairs, crutches, and a stretcher for emergencies.

All the employees and staff of the hotel are trained to assist persons with disabilities.

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SIGNAGE FOR DIRECTION

The existing signage for the hotel needs room for improvement, located as it is at the side of the road at the corner of the Emerald Dragon Seafood and Grill. Its location is around 50 meters from the entrance to the hotel without any directions showing where the hotel is actually located. Improved signage with clear directions will be installed.

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ELITE CARD

A discount card for repeat customers will be issued to promote loyalty and repeat service. This will be available to customers who have stayed at the hotel at least five (5) times.