2. Business Environment
2.5. Competitor Analysis
Leisure tourists (local and foreign) or people passing by in San Salvador for reasons other than business will be a smaller group the hotel will target. For this special group the hotel will create very attractive packages to incentive them to book their stay with the hotel.
2.5. Competitor Analysis
Competitors are classified by their degree of hotel development, advantages and strengths the businesses possess when offering lodging services, in terms of quality, value of price, and profitability.
2.5.1. The Competition
Direct competitors for Casa de Piedra will be not only boutique hotels but small hotels or lodging facilities with high customer service standards and quality facilities in the city of San Salvador. Indirect competitors are Air B&B, people renting a room for long stays, and chain hotels.
Table 1. Casa de Piedra’s direct competitors
Characteristic Casa de Piedra Hotel Valverde Hotel Fortherhouse Casa ILB Las Magnolias Novo Apart Hotel
Price Range $60-$100 $70-$110 $70-$80 $100-$150 $70-$90 $90-$130
Distance from Casa de Piedra 2.4 KM 4.0 KM 4.0 KM 4.2 KM 5.5 KM
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The competitors shown on the Table 1 are considered direct competition due to their location, price range, and services they provide; similar to Casa de Piedra. Most of these hotels not only offer similar services but quality customer service as well. However, just a few hotels like Hotel Valverde have a clear theme and décor that offer a quality infrastructure. Only one of these hotels is not considered boutique Novo Apart Hotel, the rest are considered boutique even if they do not follow the common characteristics of a Boutique Hotel. Therefore, customers might incline more for price over value. For example, they could choose the one with more services and better installations, and/or better reviews. Consequently, Casa de Piedra has to ensure the best quality in service and exploit the services it provides.
2.5.2. Casa de Piedra Competitors Positioning Map
The positioning map is based on pricing and amount of services provided.
Price (High)
Services Services Offered Offered
(Few) (Many)
Price (low)
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2.5.3. Competitive advantage
Casa de Piedra’s greatest competitive advantages will be the quality of accommodations, services, infrastructure, location, and outsourced of famous restaurant and bar within the hotel.
The hotel will have 10 rooms: double, triple and family rooms. The family room will be available for up to 6 guests but it will have to be set up according to each guests needs. Each room will have either one king bed or two queen beds. Also, each room will include A/C, mini fridge, bathroom, nightstand, desk, television LCD, wireless internet, telephone, hairdryer, and other amenities. It includes breakfast, limited to four options (more options available at additional cost), since the restaurant is being outsourced and subleased to Ooh La La bistro.
Additional amenities include: swimming pool, garden, terrace, living room, restaurant, bar, and airport transportation (optional with additional cost). Moreover the hotel will offer services such as itinerary arrangement. The hotel will be an intermediary with travel agencies in order to facilitate itinerary arrangement with guests. The hotel will be offering more services than most of the competitors in the market already offer and have very similar or lower price range, which will attract customers and will start to gain market share. It will guarantee high customer service as a way to create brand loyalty among new guests.
2.5.3.1. Restaurant and Bar
The restaurant and bar at the hotel will be subleased to well-known businesses, therefore Casa de Piedra will benefit from their already existing clientele and the grand opening will be promoted by 3 different businesses to thousands of existing followers. Moreover, the hotel will
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benefit from these partnerships by obtaining additional income through renting the space. There will be a two-year contract with these two companies, meanwhile the owners of the hotel will evaluate the option of maintaining the partnership or invest in establishing their own restaurant and bar.
Ooh La La Bistro. Opened since 2003, already has 3 restaurants in the city. Famous for their “Brazo Gitano”, their signature dessert and for their delicious pizza and sandwiches.
They offer a product that will ensure customer’s satisfaction. Also, it offers a unique and refined environment for their clients to enjoy. Their social media has over 15,000 followers and likes. Casa de Piedra will benefit from their followers by subleasing a space for their restaurant in the hotel. Moreover, by opening a new shop in Casa de Piedra, their customer reach will increase as well. The restaurant has a 4.7 review out of 5 in TripAdvisor. Their quality in food, services, and good reviews, will create a big and positive impact on the image of the hotel.
Figure 15. Ooh La La façade
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Figure 16. Famous pizza and Signature dessert
Cachivaches Bar. Cachivaches is a Restaurant/Bar located on the beach and in the mountains. They don’t have a shop in the city, which will be great for attracting customers.
Their existing clientele won’t have to drive hours for them to reach the establishment; they can visit any day of the week for a couple of drinks and appetizers. The company has over two thousand followers and likes in social media. They have very loyal customers and they will enjoy from the new location in the city. Cachivaches has been planning an expansion in the city and the strategic partnership with Casa de Piedra will allow them to synergize with the setting offered by the Boutique Hotel.
Figure 17. Cachivaches Restaurant and Bar (Mountain Location)
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Figure 18. Cachivaches Restaurant and Bar (Beach Location)