Comparative study on strategies of different motorist hotels in Caloocan

• Main Authors: Boc, Dennis C., Lao, Monica Therese L., Ong, Tiffany N., Tiu, Christian Lawrence T.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Lodging-houses > Philippines; Automobile travel > Philippines; Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/11526
• Institution: De La Salle University

The lodging industry in the Philippines has continued to grow these past years, making it an attractive and interesting industry. The lodging industry includes hotels, motorist hotels, inns, and such. It is normal for an industry to boom however what is interesting with the motorist hotel industry is that these establishments are built literally beside their competitors. With that said, there must be some reasons why certain motorist hotels are more preferred by the customers. Customer preference can be contributed to affordable prices, or room rates for this particular study, or to excellent service. There are customers who are price sensitive, while others pay more importance to the experience. Motorist hotels, then, use different types of strategies to retain current customers and to attract new customers. Thus, applying Michael Porter's three generic strategies in practice, a motorist hotel can choose to pursue a cost-leadership strategy or a differentiation strategy, given that motorist hotels really pursue a focus strategy targeting only the people within the vicinity. Cost-leadership strategy focuses on decreasing the operating expenses to increase the overall profitability and to increase the market share. The said type of strategy is best to pursue when customers are price sensitive. Meanwhile, differentiation strategy focuses on providing customers a different or unique product and/or service. This type of strategy would be best when customers are willing to pay higher price in exchange for superior value or higher quality. One way to analyze the effects of a certain strategy is to compute for financial ratios this would be helpful to know the strengths and weakness of an organization. Furthermore, through financial ratio analysis, an organization could analyze the trend in the industry and know its current standing among competitors, comparing its performance with the industry norm.