shared via CourseHero com This study resource was This study source was downloaded by 100000832652802 from CourseHero com on 09 28 2021 11 32 44 GMT 05 00 https www coursehero com file 98307035 Case Studydocx 2016 46002 Dela Fuente Christopher Alvin B HRIM 112 First Long ExamI What are the major determinants of success in the hotel business One of the primary goals in setting up any business is ensuring that profits are higherthan expenses and the hotel business is no exemption In the context of a hotel business onemust consider that the rooms are a major source of income and expense For one themaintenance of rooms not only requires a large amount of operational expenses considering thefact that they require constant cleaning repairing and labor With that in mind it s of utmostimportance that the revenue management for the rooms is attended to so that said rooms aren tacting as liabilities Considering this a major determinant of success for managers is makingsure to get the rooms to the target market using cost effective marketing and distributionchannels with the best price to be determined by the revenue manager For example themanager has to consider what the best price is since it has to be a good balance between whatthe customer is willing to pay for so that he she feels as if it s worth it while still being profitablefor the company While an important factor in the hotel business no doubt it isn t the only majordeterminant Another major determinant of success that must work hand in hand is effective totalquality management What this basically means is that the product s quality must beconsistently up to standard This is an important determinant of success because it more or lessdetermines the long term success of the hotel business To better illustrate one must imagine thatthe revenue manager has succeeded in finding customers at the right price and has fully bookedthe Hotel Continental What they have succeeded in doing is booking them for that select period However what determines if they return to Hotel Continental and trust it again What determinesif they recommend it to their friends family and acquaintances Total quality management ismostly responsible in ensuring that the customers receive the service that Hotel Continental issupposed to deliver All in all bringing people in isn t the only determinant but rather alsoshowing them that they made the right choice In summary management that ensures profits are maximized through effective customeracquisition coupled with consistent quality service will ensure a successful hotel business In shared via CourseHero com This study resource was This study source was downloaded by 100000832652802 from CourseHero com on 09 28 2021 11 32 44 GMT 05 00 https www coursehero com file 98307035 Case Studydocx other words find a profit maximizing way to bring the customers in for a pleasant experiencethat is well worth their money and the rest will follow II Who are the competitors of Hotel Continental In determining the competitors of Hotel Continental one must take into account the manypossible factors namely the services provided by Hotel Continental along with its price rangedbased on the data given The competitors of Hotel Continental are the Hotels in the Metro Manila Area with asimilar average room rate raging from around the 464 range In addition to that taking theirfacilities into account and food revenues they are also competing with the food establishments inthe area along with any event spaces Aligning with the data given by de los Santos staff MetroManila has 28 total hotels and there are 6 additional hotels to be constructed It is important tonote that a context clue can be found in the case wherein Mr Oscar de Mendoza mentions that heread about 5 star hotels in the newspaper and how they were underutilized This may give insightas to what he perceives the competition to be since he was considering this piece of informationenough to mention it as a concern However care should be given as this is non conclusive sincethere are other possible factors as to why it was mentioned Regardless hotels in the area will pose as competition to Hotel Continental since theyessentially offer services along the same lines such as food lodging and the like For specifics the hotel businesses in the Metro Manila area that are under known hotel group brands should beconsidered since by nature they have more experience considering their wide reach For exampleHoliday Inn and Mandarin Oriental are listed as hotels in the Metro Manila area and they shouldbe considered as major threats due to the brand recognition attached to them However it is alsoimportant to note that while hotels in the Metro Manila area can be considered as competitorssince they are competing for tourists and locals who want to pay for lodging in the area the areaoccupied by these hotels should be duly considered Take for example how a hotel situatedwalking distance to Intramuros would have more value to tourists since it is nearer the knowntourist spot Hotel Continental should then take into account the go to spots near it along with thetransport amenities that may remedy and disadvantages regarding the location shared via CourseHero com This study resource was This study source was downloaded by 100000832652802 from CourseHero com on 09 28 2021 11 32 44 GMT 05 00 https www coursehero com file 98307035 Case Studydocx III What are the three most critical sets of data that you would need to seriously considerpursuing this opportunity The first critical set of data one has to consider is the demand in the area This is essentialbecause of the reality that the customers of whatever product you are trying to sell will end beingyour source of income Whether it s a business to business or a business to consumer typearrangement having no demand for your product means that there will be nothing to provideprofit With that in mind the industry historical background shown in Exhibit B will surely be akey set of data that has to be seriously considered Specifically one has to pay attention to thetrend that the overall exhibited For example it is stated that the late 1980s are a time ofeconomic improvement and that occupancy rates are expected to rise That piece of data isessential as it highlights that there is a demand and it reframes the situation into how the demandcan be tapped and it allows for the business managers to reflect why the demand hasn t beenmaximized by Hotel Continental