Hotel Continental Case Analysis
A Case Analysis of
Hotel Continental
Submitted by:
Michael F. Cui
I. Perspective Held by the Student
I assume the point of view of Mr. Oscar Mendoza, the owner of Triumph Tours, who has been seriously thinking about operating a hotel to complement his travel agency business.
II. Case Facts
Mr. Oscar Mendoza has been considering opening a hotel to complement his travel agency business, Triumph Tours, because he has been experiencing difficulties in finding hotel accommodations for his tour groups since the previous year most especially during the peak travel months of December, January, July, and August.
He has considered utilizing a 27-room hotel located in Diliman, Quezon City called the Hotel Continental. This hotel has incurred a total loss of P2 to 3 million pesos in the last 2 years which led the management of such hotel to have it leased out. Mr. Mendoza has already determined that his current travel agency tour groups could utilize only 40% of the hotel facilities annually and has requested his Marketing Manager, Mr. Ernesto de los Santos, to come up with some information regarding the hotel and lodging industry that could help and assist him in making a decision as to biding for Hotel Continental or not.
The marketing team of Mr. de los Santos then came up a report citing some important information on the hotel industry. The first part of the report included a breakdown of the number of current competitors in the industry specifically the current number of hotels, inns, resorts, apartels, pension houses, lodges, motels and other unclassified establishments. The second part of the report showed a list of 28 hotels located in the Metro Manila area and to name a few are Hotel Continental, Manila Hotel, Ambassador Hotel, Aloha Hotel, Boulevard Mansion, Hotel Las Palmas, Royal Palm Hotel, and Solanie Hotel. Along that list was a shorter list of
Hotel Continental
Submitted by:
Michael F. Cui
I. Perspective Held by the Student
I assume the point of view of Mr. Oscar Mendoza, the owner of Triumph Tours, who has been seriously thinking about operating a hotel to complement his travel agency business.
II. Case Facts
Mr. Oscar Mendoza has been considering opening a hotel to complement his travel agency business, Triumph Tours, because he has been experiencing difficulties in finding hotel accommodations for his tour groups since the previous year most especially during the peak travel months of December, January, July, and August.
He has considered utilizing a 27-room hotel located in Diliman, Quezon City called the Hotel Continental. This hotel has incurred a total loss of P2 to 3 million pesos in the last 2 years which led the management of such hotel to have it leased out. Mr. Mendoza has already determined that his current travel agency tour groups could utilize only 40% of the hotel facilities annually and has requested his Marketing Manager, Mr. Ernesto de los Santos, to come up with some information regarding the hotel and lodging industry that could help and assist him in making a decision as to biding for Hotel Continental or not.
The marketing team of Mr. de los Santos then came up a report citing some important information on the hotel industry. The first part of the report included a breakdown of the number of current competitors in the industry specifically the current number of hotels, inns, resorts, apartels, pension houses, lodges, motels and other unclassified establishments. The second part of the report showed a list of 28 hotels located in the Metro Manila area and to name a few are Hotel Continental, Manila Hotel, Ambassador Hotel, Aloha Hotel, Boulevard Mansion, Hotel Las Palmas, Royal Palm Hotel, and Solanie Hotel. Along that list was a shorter list of