Casa de Piedra 精品旅館 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. Casa de Piedra 精品旅館 n. al. er. io. Casa de Piedra Boutique Hotel in San Salvador, El Salvador. Ch. engchi. i n U. v. Student: Johanna Colocho Call Advisor: Professor Glen Brodowsky. 中華民國一〇五年五月 May 2016.

(2) Casa de Piedra 精品旅館 Casa de Piedra Boutique Hotel in San Salvador, El Salvador. 研究生：可茉莉. Student: Johanna Colocho Call. 指導教授：白德傑. 政治大國立政治大學. 學. ‧ 國. 立. Advisor: Professor Glen Brodowsky. ‧. 商學院國際經營管理英語碩士學位學程碩士論文. er. io. sit. y. Nat. A Thesis. n. a to International MBA Program Submitted iv l C n U NationalhChengchi University engchi. in partial fulfilment of the Requirements for the degree of Master in Business Administration. 中華民國一〇五年五月 May 2016.

(3) Acknowledgements Special thanks to Taiwan’s ICDF Higher Education Program for the educational support they provide to countries like El Salvador which allows students like me to embark on highly distinguished study abroad programs. In addition, I will like to acknowledge IMBA’s excellent faculty and staff for their encouragement and guidance throughout this two year program. My deepest gratitude to my parents, for the opportunities they gave me to strive for greatness and constant support in every decision I’ve made. To my sister and brothers, for always being. 治政 there in the best and worst of times, and always helping 大 me to get back on track when needed. 立 Most of all, thanks to God for his blessing with opportunities and giving me strength when ‧ 國. 學. needed and wisdom to make right decision.. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. i. i n U. v.

(4) Abstract Casa de Piedra Boutique Hotel By Johanna Colocho Call The constant growth of hotels worldwide is due to the increase of tourists every year. The hospitality industry is one of the most stable industries. Boutique Hotels, however, are starting. 政治大. to emerge more and more in every country and is a somewhat new concept in developing. 立. countries. In El Salvador the hospitality industry has a steady economic growth. Therefore,. ‧ 國. 學. service and hospitality companies are born every year. With the concept of “Boutique Hotel” relatively new in El Salvador and occupancy rates increasing every year, it is the right time to. ‧. open a Boutique Hotel with personalized services and unique features to attract customers,. Nat. er. io. sit. y. locals and foreigners. This is how the idea of Casa de Piedra Boutique Hotel was born.. It is located in the capital of El Salvador, with a colonial style and offering a variety of services. n. al. Ch. i n U. v. that will be relevant to our customers. It will rely on personalized customer services, unique. engchi. features, décor and design, and trained personnel as key success factors. The target market will be mostly business people, conference and meeting attendees, and private companies outbound employees. The owner’s knowledge of the hospitality industry in El Salvador and the know how to run a company will play key parts in the success of the company. The financial plans and a five year expansion plan demonstrates the venture’s profit potential.. Keywords: (Boutique Hotel), (Hospitality Industry), (El Salvador Hospitality Industry). ii.

(5) TABLE OF CONTENTS 1. Company Overview .............................................................................................................. 1 1.1. Mission ............................................................................................................................ 1 1.2. Vision ............................................................................................................................... 2 1.3. Values ............................................................................................................................... 2 1.4. Corporate Principles ....................................................................................................... 2 1.5. Objectives ........................................................................................................................ 3 1.5.1. General.................................................................................................................... 3 1.5.2. Specific ................................................................................................................... 3 1.6. Key Success Factors ........................................................................................................ 4 1.7. Brand and Product Overview .......................................................................................... 5 1.8. Logo ................................................................................................................................. 7 1.9. Company Ownership ....................................................................................................... 8. 立. 政治大. ‧. ‧ 國. 學. 2. Business Environment .......................................................................................................... 9. Nat. y. sit. n. al. er. io. 2.1. Industry Overview ........................................................................................................... 9 2.1.1.1. Hospitality Industry Positioning Map........................................................... 10 2.2. Boutique Hotels ............................................................................................................. 10 2.3. El Salvador Hospitality Industry ................................................................................... 14 2.4. The Market..................................................................................................................... 16 2.4.1. Target Market........................................................................................................ 17 2.5. Competitor Analysis ...................................................................................................... 18 2.5.1. The Competition ................................................................................................... 18 2.5.2. Casa de Piedra Competitors Positioning Map ...................................................... 19 2.5.3. Competitive advantage ......................................................................................... 20. Ch. engchi. i n U. v. 2.5.3.1. Restaurant and Bar........................................................................................ 20 2.6. Service Business Analysis .............................................................................................. 23 2.6.1. Importance of Image, Name, and Word-of-mouth ............................................... 24 3. Strategic Plan ...................................................................................................................... 25 3.1. External Analysis (Opportunities and Threats) ............................................................. 25 3.1.1. Porter’s Five Forces Analysis ............................................................................... 25. iii.

(6) 3.1.1.1.. Risk of Entry by Potential Competitors........................................................ 26 3.1.1.2. Rivalry among Establish Business ............................................................... 26 3.1.1.3. Bargaining power of buyers ......................................................................... 27 3.1.1.4. Bargaining Power of Suppliers ..................................................................... 27 3.1.1.5. Substitute of Products ................................................................................... 28 3.1.2. Industry Life Cycle Analysis ................................................................................ 28 3.1.3. Macro Environment .............................................................................................. 29 3.2. Internal Analysis (Competences and Competitive Advantage) ..................................... 30 3.3. SWOT MAP.................................................................................................................... 31 3.4. Business Level Strategy ................................................................................................. 32. 政治大. 4. Business Model.................................................................................................................... 33. 立. 4.1. Value Proposition .......................................................................................................... 33. ‧. ‧ 國. 學. 4.2. Customer Segment ......................................................................................................... 33 4.3. Communication Channels ............................................................................................. 34 4.4. Customer Relationships ................................................................................................. 34 4.5. Revenue Stream ............................................................................................................. 35 4.6. Key Partners .................................................................................................................. 36. y. Nat. sit. n. al. er. io. 4.7. Key Activities ................................................................................................................. 36 4.8. Key Resources ................................................................................................................ 37 4.9. Cost Structure ................................................................................................................ 37. Ch. engchi. i n U. v. 5. Marketing Strategy............................................................................................................. 39 5.1. Product .......................................................................................................................... 39 5.2. Placement ...................................................................................................................... 40 5.3. Pricing (customer cost) ................................................................................................. 40 5.4. Promotion ...................................................................................................................... 41 5.5. Operations Plan............................................................................................................. 43 6. Financial Plan ..................................................................................................................... 46 6.1. Start-up Summary .......................................................................................................... 47 6.2. Projected Starting Balance Sheet .................................................................................. 48 6.3. Projected Profit and Loss Statement ............................................................................. 48 6.4. Projected Cash Flow ..................................................................................................... 50. iv.

(7) 6.5. Profitability Analysis ..................................................................................................... 51 6.5.1. Financing .............................................................................................................. 51 6.5.2. Breakeven Analysis .............................................................................................. 51 6.5.3. NPV and IRR ........................................................................................................ 52 7. Conclusion ........................................................................................................................... 53 8. Bibliography ........................................................................................................................ 54 9. Appendix .............................................................................................................................. 56. 政治大. 9.1. Location Map................................................................................................................. 56 9.2. Appendix 1. Boutique Hotel Startup Cost ...................................................................... 57 9.3. Appendix 2. Amortization Table..................................................................................... 60. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. v. i n U. v.

(8) List of Tables Table 1. Casa de Piedra’s direct competitors ......................................................................................................... 18 Table 2. Description of rooms ............................................................................................................................... 39 Table 3. Hours of operations.................................................................................................................................. 45. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. vi. i n U. v.

(9) List of Figures Figure 1. Façade ...................................................................................................................................................... 6 Figure 2. Common Area .......................................................................................................................................... 6 Figure 3. Common area ........................................................................................................................................... 6 Figure 4. Garden and Access to Swimming Pool .................................................................................................... 7 Figure 5. The View .................................................................................................................................................. 7 Figure 6. Casa de Piedra Logo................................................................................................................................. 7 Figure 7. Hospitality Industry Positioning Map .................................................................................................... 10 Figure 8. Weiesegut Boutique Hotel ...................................................................................................................... 12. 政治大. Figure 9. Casa Vitae Boutique Hotel ..................................................................................................................... 12 Figure 10. Coqui Coqui Boutic Hotel .................................................................................................................... 13. 立. Figure 11. Hotel Occupancy in El Salvador .......................................................................................................... 14 Figure 12. Hotel Occupancy in San Salvador, El Salvador ................................................................................... 15. ‧ 國. 學. Figure 13. Type of lodging guests in El Salvador .................................................................................................. 15 Figure 14. Casa de Piedra Positioning Map ........................................................................................................... 19. ‧. Figure 15. Ooh La La façade ................................................................................................................................. 21 Figure 16. Famous pizza and Signature dessert ..................................................................................................... 22. Nat. sit. y. Figure 17. Cachivaches Restaurant and Bar (Mountain Location) ........................................................................ 22 Figure 18. Cachivaches Restaurant and Bar (Beach Location) ............................................................................. 23. er. io. Figure 19. Porter’s Five Forces Analysis ............................................................................................................... 25. al. n. v i n Figure 21. Casa de Piedra SWOT Map C ................................................................................................................. 31 hengchi U Figure 22. Operations Flow ................................................................................................................................... 43 Figure 20. Hospitality Industry in El Salvador ...................................................................................................... 29. vii.

(10) 1. Company Overview Casa de Piedra Boutique Hotel will be a Colonial style, unique and charming boutique hotel overlooking the city of San Salvador, El Salvador’s capital. It is situated near the heart of the city near malls, museums, and restaurants. The facility will have up to 10 rooms; each with its own unique and specific set up and décor. A wonderful centralized living room will be available. 治政大 view, a beautiful garden and a swimming pool. 立 Casa de Piedra Boutique Hotel offers lodging, food and beverage facilities with unique and. for guests to socialize and relax. Other facilities opened to guests include a deck with a great. ‧ 國. 學. quality service, convenient for business people, tourists staying for a couple of days, and locals. ‧. looking for a getaway without having to go far from the city. Thanks to the prime location is it easy to go any place in the city. Customers will enjoy a comfortable and unique experience at. y. Nat. er. io. sit. competitive prices. At every moment the hotel will ensure excellent service so that every guest and customer feels unique and important, and most important, feel at home. The staff and. n. al. Ch. i n U. v. service personnel will receive special training in their area of work as well as in customer service.. engchi. 1.1. Mission The company operates to exceed expectations of local and foreigner guests by providing a unique, high quality experience with exclusive, courteous and friendly services in accommodations along with food and beverages offering modern and unique amenities at competitive prices.. 1.

(11) 1.2. Vision To become the boutique hotel of preference in San Salvador and surroundings; offering excellent services oriented to customer satisfaction by focusing in exclusivity and uniqueness known for providing a family like environment.. 1.3. Values. 政治大. Casa de Piedra will live by these values to guide employee behavior and the company. 立. decisions and actions.. ‧ 國.  Honesty. 學.  Integrity. sit. y. Nat.  Respect. ‧.  Responsibility. al. n.  Positive attitude. io.  Courtesy. er.  Service oriented.  Disposition. Ch. engchi. i n U. v. 1.4. Corporate Principles Additional to the company values, the following corporate principles are the foundation of the vision and strategies of Casa de Piedra.  Ethical: guarantee the integrity of the employees and owners.  Excellence in quality of service: Provide the best value over price in the market  Competitiveness: To always be a step ahead to the good of the business. 2.

(12)  Guarantee security: ensure the safety of guests and employees  Participation and collaboration spirit: people oriented employees to convey a welcome environment.. 1.5. Objectives Casa de Piedra has defined general and specific objectives in order to determine a clear path of how, when, and where the company is headed.. 立. 1.5.1. General. 政治大. ‧ 國. 學. General Objective will provide direction of the company’s efforts and will allows its staff to works towards those objectives.. ‧.  Create an impact among our target market with a new concept and attract them to try it.. y. Nat. n. al. er. io. lines of exceptional hospitality and service standards.. sit.  Create a boutique hotel whose primary goal is to exceed customer’s expectations along the. i n U. v.  Develop a self-sustainable profitable business that pays off its investment in less than five years.. Ch. engchi.  Minimize reliance on paid advertisement to promote services.  Sublease space to local businesses interested in providing bar and culinary services to hotel guests.. 1.5.2. Specific Specific Objective states precise strategies that the company will adhere by to achieve their objectives.. 3.

(13)  Achieve return on investment in five years.  Casa de Piedra Boutique Hotel will increase visitors every month throughout the year.  To increase number of customers by 10% per year and achieve a 50% occupancy in year three.  Implement tools of service innovation.  Customer comment cards (Accommodations) should score 85% or higher.  By the end of year one, be positioned in top 10 boutique hotels in the city.. 政治大.  By the end of year three, be among the top 5 boutiques hotels in San Salvador. 立. ‧ 國. 學. 1.6. Key Success Factors. By adhering to the following factors Casa de Piedra will guarantee its success in the. ‧. hospitality industry in the short and long run.. y. Nat. n. al. er. io. among tourists, travelers, and business travelers.. sit. Positioning. Position Casa de Piedra Boutique Hotel as the best boutique hotel in the city. i n U. v. Marketing Positioning. Build strong market position in El Salvador and Central America. Link. Ch. engchi. into the strongest referral engines of hotels for room bookings. Financial. Minimize fixed costs by subleasing services and renting space as additional revenue sources. Trained Personnel. Guarantee that employees have the finest set of skills to work on their daily tasks, operate effectively, provide excellent customer service and are active salesman, with a low level of turnover. Quality and profitability focus. The overall business strategy will not compromise quality of services to achieve increased profitability. It will ensure that services maintain a consistent. 4.

(14) quality level and ensure that personnel adhere to the standard operating procedures establish by the company. Customer relationships. Exceeding customers’ expectations and providing a unique experience will result in returning customers as well as word-of-mouth effect. Casa de Piedra is the traveler’s home away from home in San Salvador. It is a moderately priced boutique hotel offering an authentic Salvadoran experience coupled with modern amenities.. 政治大 1.7. Brand and Product Overview 立. ‧ 國. 學. The project of a Boutique Hotel in San Salvador arises from identified necessities for certain tourists and business people who visit the city. Casa de Piedra Boutique Hotel will provide. ‧. lodging services, which will include personalized attention, unique service, food and beverage. y. Nat. sit. facilities, pool and recreational facility rooms.. n. al. er. io. The name “Casa de Piedra” represents the façade of the infrastructure. It is a unique name to. i n U. v. represent the installations and the colonial atmosphere. The name will have an appeal to. Ch. engchi. Salvadorians as well as tourists and business people being targeted. In Spanish, Casa de Piedra literally means House of Stone, the infrastructure of the hotel is mainly wood and marmol, volcanic stone, and therefore it describes the façade and the colonial theme. The association with “house of” it denotes a sense of home and personalized touch.. 5.

(15) 立. 政治大 Figure 1. Façade. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. Figure 2. Common Area. Figure 3. Common area. 6. v.

(16) 政治大. Figure 4. Garden and Access to Swimming Pool. 立. ‧. ‧ 國. 學. n. 1.8. Logo. i n U. Figure 5. The View. Ch. engchi. er. io. sit. y. Nat. al. v. Figure 6. Casa de Piedra Logo. 7.

(17) 1.9. Company Ownership Casa de Piedra Boutique Hotel will be a family owned business.  Johanna Colocho: IMBA graduate, with a Bachelor’s Degree in Hotel, Restaurant, and Tourism Administration. She previously spent four years working in the hotel industry as a banquet sales event coordinator. In addition, she has experience in securing many contacts from key companies for their clients and employees to stay overnight at hotels that require. 政治大 Lorena Call de Colocho: Co-owner of Bistro and Bakery Ooh La La in El Salvador. She 立. high amount of room night a year.. 學. has fifteen years of working experience in the food and beverage industry and additional 15. ‧ 國. years of working experience in the tourism industry as representative in El Salvador for a. ‧. Brazilian airline. Her entrepreneurial expertise in starting and operating a business will be. io. sit. y. Nat. a key asset to the success of the company.. n. al. er. . Ch. engchi. 8. i n U. v.

(18) 2. Business Environment 2.1. Industry Overview The hotel industry is one of the major sectors in hospitality. The boom in travel and tourism drives the growth of the hotel market (PRNewswire, 2015). Hotel facilities vary in function, size, and cost. The industry includes all types of lodging, from upscale hotels to RV parks. Motels, B&B, resorts, casino hotels, hostels, luxury hotels and boutique hotels are some of the. 政治大. types of lodging. Establishments vary greatly in size and in the services they provide. Hotels. 立. and motels comprise the majority of establishments and tend to provide more services than. ‧ 國. 學. other lodging places. Some of these amenities include swimming pools, conference facilities, business centers, social functions, gift store among others (PRNewswire, 2015).. ‧. The hotel industry boosts economic growth in an area by constantly creating job opportunities.. Nat. sit. y. The hotel industry is booming at a steady pace, and it provides billions of dollars to. n. al. er. io. communities across the world.. i n U. v. Across the globe, there are roughly 187,000 hotels (including bed & breakfast) offering. Ch. engchi. approximately 17.5 million guest rooms (Bart Van Poll, 2012). Total revenue of the global hotel industry is 457 billion US dollars (Stadista, 2016). Moreover, travelers are willing to spend more and there is an increase in percentage of spending each year. Growth in competition and in the sophistication of travelers has forced hotels to provide accommodations to serve a variety of customer budgets and preferences. These lodging places may be grouped intro properties that offer luxury, all-suite, moderate priced, and economy accommodations. Also, increased competition among establishments in the industry has spurred many independently owned and operated hotels. Due to the high demand of lodging facilitates and no-to-little entry barriers for. 9.

(19) competitors it has created an increment of establishments such as: B&B, boutique hotels, hostels, and small own lodging properties.. 2.1.1.1.. Hospitality Industry Positioning Map. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 7. Hospitality Industry Positioning Map. 2.2. Boutique Hotels The term Boutique Hotel refers to a lodging facility known for being intimate, with ultrapersonalized services and accommodations; but more than that, there’s a unique set of characteristics that define a boutique hotel (Aliukeviciute, 2013). First of all, it gains its uniqueness through artistic taste, atmosphere, and personalized service that can’t be found in. 10.

(20) larger establishments as chain hotels. Therefore, size is a key factor that characterizes boutique hotels, bigger is not necessarily better (Aliukeviciute, 2013). Another major key factor is the décor, by adding the right amount of individuality and ambience a boutique hotel can add value for its guests. High quality materials and designer furnishing are often used to create a memorable visual experience. Boutique hotels are all about creating a pleasant and unique experience. A boutique hotel also offers privacy to its customers and enables it to offer services tailored to the customers’ needs and preferences due to the small size of the hotels. Boutique. 政治大. hotels should be characterized with three common features: contemporary, sophisticated and. 立. unique design (Accommodations, 2016). Moreover, another relevant feature is a unique level. ‧ 國. 學. of services.. Boutique hotels began appearing in the 1980s in big cities such as New York, London, and San. ‧. Francisco. The two entrepreneurs and hoteliers responsible for creating the concept of. Nat. sit. y. “Boutique Hotel” are the American Entrepreneur and hotelier Ian Schrager and Steve Rubell,. n. al. er. io. who together opened in 1984 Morgan Hotel in New York (Accommodations, 2016). They. i n U. v. describe their hotel as being different from every other hotel, their hotel was a like a “boutique”. Ch. engchi. (Accommodations, 2016). Even though they were the first to describe their hotel as a boutique, it is hard to believe that their hotel was the first Boutique Hotel to exist in the world. Even if Boutique Hotels are commonly known for their level of sophistication and décor there are various styles and levels of affordability. However, no matter the differentiation factors all share common characteristics of modern, historic, or a mix of both. Modern Boutique hotels have uniquely themed rooms, idiosyncratic décor, and extraordinary designs. Some examples are drift up beds, bathtubs suspended in the air, and glowing skies.. 11.

(21) Figure 8. Weiesegut Boutique Hotel. 政治大 distinctive period with modern features but maintaining the antique essence. Usually when 立. On the other hand, Historic Boutique hotels has a combination of old-world charm and. ‧. ‧ 國. 學. entering their rooms it is like a journey through history, combined with warmth and comfort.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 9. Casa Vitae Boutique Hotel A recent new styles of boutique hotels are Rustic boutique hotels; changing completely the concept of rustic. The characteristics and special designs are key to every single type of boutique hotels.. 12.

(22) 治政 These boutique hotels are not necessarily luxury hotels,大 they can be mid-range and low-cost. 立 Low-cost boutique hotel also provide unique services, themes, and interesting design. Figure 10. Coqui Coqui Boutic Hotel. ‧ 國. 學. In recent years there has been a rise of boutique hotels mainly due to cultural tourism. ‧. intensification (Aliukeviciute, 2013). Essentially, this type of hotel is designed to the increase people’s interest in art, culture and history. These changes influenced the choice of the. y. Nat. er. io. sit. hospitality products as a factor of the guest’s cultural experience.. Parallel to this rise, chain hotels were starting to be viewed as a too standardized with no. n. al. Ch. i n U. v. differentiation of product within hotels, this term was known as “McDonaldisation” of the. engchi. global hotel industry (Aliukeviciute, 2013). As a result, it inspired customers to search for hotels with unique or sophisticated and innovative features. The majority of Boutique Hotels’ designs replicate specific times or places (historic cities or period). Overall, the five key differentiator factors between a boutique hotel and a chain hotels are: exclusive character, personalized touch, homey feel of the accommodation, high quality standards offered, and the value added.. 13.

(23) 2.3. El Salvador Hospitality Industry Tourism is one of the sectors in the Salvadorian economy that is constantly growing. Every year there are new options for accommodations, transportation, malls, restaurants, tour operators, museums, theaters, among others. Moreover hospitality has shown the most solid growth in the tourism industry (CORSATUR, 2015). There are a wide variety of hotels that can be found in El Salvador, from three to five star hotels (international chains), Bed and Breakfast, hostels,. 政治大 mountains, lakes, and colonial towns. 立. motels, Air b & B, and Boutique Hotels. These hotels are usually located in the city, beach,. ‧ 國. 學. In 2015, El Salvador welcomed a total of 1,972,854 tourists, representing an increase of 4.6% from to 2014. On average tourists are spending roughly $112.9 per day in accommodations and. ‧. travel expenses which represent a 6.81% increase in comparison to last years (CORSATUR,. sit. y. Nat. 2015). The following figures show the hotel occupancy for 2014 and 2015 in El Salvador. Moreover, Figure 5, represents hotel occupancy in the city of San Salvador for 2014.. er. io. 53.47% 55.72%. 54.10% 57.41%. 59.46% 58.92%. MAY. JUNE. JULY. AUG. SEPT. OCT. Figure 11. Hotel Occupancy in El Salvador Source: CORSATUR. 14. NOV. 48.31% 52.28%. 52.38% 64.65%. APR IL. 68.12% 65.68%. 53.01% 63.21%. MAR. 53.64% 59.65%. FEB. i l C n 2014 2015 hengchi U. 56.50% 54.23%. 56.83% 62.42%. JAN. 63.19% 63.90%. 54.40% 54.80%. n. HOTEL OCCUPANCY IN EL SALVADOR a v. DIC.

(24) MAR. APR IL. 48.07% 50.28%. 71.60% 74.89%. 66.15% 69.19%. 59.23% 61.95%. 53.50% 55.72%. 52.40% 64.65%. 政治大 MAY. JUN. JUL. AUG. SEPT. OCT. NOV. DIC. 學. ‧ 國. FEB. Serie 2. 53.00% 63.21%. 50.23% 52.54%. 66.50% 69.56%. 立 JAN. 65.94% 68.97%. 2014. 69.57% 72.77%. 57.69% 60.34%. HOTEL OCCUPANCY IN SAN SALVADOR. Figure 12. Hotel Occupancy in San Salvador, El Salvador Source: CORSATUR. ‧ sit. y. Nat. As shown in the graphs, tourism in El Salvador is growing in the countryside as well as in the. io. al. er. city of San Salvador, which is the main destination for these tourists. There are four main types. v. n. of lodging guests in El Salvador. The following graph illustrates the percentage of each type.. Ch. engchi. i n U. Typical Lodging Guests in El Salvador 22%. Transient Business Traveler. 29%. Conference/ Group meetings Vacation Travelers 24% 25%. Other Reasons (Personal, family, special event). Figure 13. Type of lodging guests in El Salvador Source: CORSATUR. 15.

(25) The majority of the tourists stay in San Salvador, due to business, meetings and/or conferences with 54% of all the market. Therefore there is a greater area of opportunity in hotels in the city than other locations in the country. The department of tourism of El Salvador has projected that the numbers of tourists will keep growing, resulting in an increase in hotel occupancy each year.. 2.4. The Market. 政治大 factor that has to be taken into 立consideration when doing business in the country. That factor is. Even though the tourism industry in El Salvador is in constant growth, there is one important. ‧ 國. 學. safety. Most of the countries in Central America tend to have a high rate of criminal activity. Due to El Salvador’s gangsters called “maras”, in recent years there has been an increase in the. ‧. crime rate. As of 2016 the crime rate is 72.04 (Numbeo, 2016). Therefore, companies have to. sit. y. Nat. take serious precautions to guarantee a safe environment for their employees and customers;. io. er. especially service oriented companies. These precautions involve: Location, security, privacy,. al. v i n C h where crime rates Location: Selecting prime locations e n g c h i U are low and there is a high number n. and employee background check. . of service companies or commerce is key to guarantee a safe environment for customers. For instance, companies near the US embassy in El Salvador are considered extremely safe. Other key locations are near World Trade Center, embassies, chain hotels, and malls.  Security: companies hire security personnel from well know companies to ensure safety 24 hours a day.  Privacy: all personal information involving customers or employees such as name, address, credit card, bank account, job, etc., will remain private and only accessible to the right person.. 16.

(26)  Employees background checks: every employee goes through a background check to ensure proper selection in the recruiting process. Casa de Piedra will be located in one of the safest areas of the city, Colonia Escalon, which is near the World Trade Center, malls, chain hotels, schools, super markets, banks, and restaurants. However, this means that many hotels, big and small, are attracted to the same location, making it highly competitive. Consequently, Casa de Piedra will be competing with other boutique hotels, small hotels, and chain hotels in the city. The majority of the hotels are fairly standard. 政治大. chain hotels, and only a few boutique hotels are innovative enough and capture the true essence. 立. of a boutique hotel. Casa de Piedra, will be a beautiful, elegant home style, with a colonial. ‧ 國. 學. design, located on a quiet street, in the capital of El Salvador. Refer to appendix 1 for location map for Casa de Piedra BH and facilities nearby.. ‧ sit. y. Nat. io. n. al. er. 2.4.1. Target Market. i n U. v. Casa de Piedra Boutique Hotel will successfully attract different target groups. The main group. Ch. engchi. will be business travelers (long and short stay) that are looking for more home-style accommodations. The second group will be people attending conferences or group meetings, who are not only for business but also interested in leisure. Another group will be people who are traveling for special occasions, including family visits, health, personal, world travel. At a 4% growth rate, the number of tourists expected for 2016 will be of 2,051768 (CORSATUR, 2015). Of these tourists, 28.7% are transient business travelers and 25.3% are in the country for conferences or meetings (CORSATUR, 2015). Therefore, 54% of all tourists in El Salvador (1,107,954) are potential customers due to their business involvement (CORSATUR, 2015). Casa de Piedra will try to gain less than .3% of the business travelers to El Salvador. 17.

(27) 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. 政治大. businesses possess when offering lodging services, in terms of quality, value of price, and. 立. 學. ‧ 國. profitability.. 2.5.1. The Competition. ‧. Direct competitors for Casa de Piedra will be not only boutique hotels but small hotels or. y. Nat. sit. lodging facilities with high customer service standards and quality facilities in the city of San. n. al. er. io. Salvador. Indirect competitors are Air B&B, people renting a room for long stays, and chain hotels.. Ch. engchi. i n U. v. Table 1. Casa de Piedra’s direct competitors Characteristic Price Range. Casa de Piedra. Hotel Valverde. Hotel Fortherhouse. Casa ILB. $60-$100. $70-$110. $70-$80. $100-$150. $70-$90. $90-$130. 2.4 KM. 4.0 KM. 4.0 KM. 4.2 KM. 5.5 KM. √ √. √. √ √. √ √. √ √. √. √. Distance from Casa de Piedra Restaurant Bar. √ √. Pool. √. √. Breakfast A/C. √ √. √ √. √. √ √. Wifi. √. √. √. √. Gym Airport Transportation. √. √. √ √. √. √. √. Shuttle Bus Mini fridge. Las Magnolias Novo Apart Hotel. √. √. √. √ √. Kitchenette. 18.

(28) 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. 政治大. and better installations, and/or better reviews. Consequently, Casa de Piedra has to ensure the. 立. 2.5.2. Casa de Piedra Competitors Positioning Map. 學. ‧ 國. best quality in service and exploit the services it provides.. ‧. Nat. y. The positioning map is based on pricing and amount of services provided.. n. er. io. al. sit. Price (High). Ch. engchi. i n U. v. Services Offered (Few). Services Offered (Many). Price (low) Figure 14. Casa de Piedra Positioning Map. 19.

(29) 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. 政治大. room will have either one king bed or two queen beds. Also, each room will include A/C, mini. 立. fridge, bathroom, nightstand, desk, television LCD, wireless internet, telephone, hairdryer, and. ‧ 國. 學. 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. y. Nat. sit. airport transportation (optional with additional cost). Moreover the hotel will offer services such. n. al. er. io. as itinerary arrangement. The hotel will be an intermediary with travel agencies in order to. i n U. v. facilitate itinerary arrangement with guests. The hotel will be offering more services than most. Ch. engchi. 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. 20.

(30) 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. 政治大. refined environment for their clients to enjoy. Their social media has over 15,000 followers. 立. and likes. Casa de Piedra will benefit from their followers by subleasing a space for their. ‧ 國. 學. 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. y. Nat. n. al. er. io. sit. image of the hotel.. Ch. engchi. i n U. v. Figure 15. Ooh La La façade. 21.

(31) Figure 16. Famous pizza and Signature dessert. 學. ‧ 國. 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. y. Nat. io. sit. will enjoy from the new location in the city. Cachivaches has been planning an expansion. er. . 治政 Cachivaches Bar. Cachivaches is a Restaurant/Bar 大located on the beach and in the 立 mountains. They don’t have a shop in the city, which will be great for attracting customers.. in the city and the strategic partnership with Casa de Piedra will allow them to synergize. n. al. Ch. with the setting offered by the Boutique Hotel.. engchi. i n U. v. Figure 17. Cachivaches Restaurant and Bar (Mountain Location). 22.

(32) Figure 18. Cachivaches Restaurant and Bar (Beach Location). 政治大. 2.6. Service Business Analysis. 立. Although Boutique Hotels have been established in Europe and United States for years, they. ‧ 國. 學. are just beginning to emerge in El Salvador, since they are in the developing stages in Central America. In the past 10 years, there has been an increase of small and independent hotels all. ‧. throughout the country, due to the increase of tourism. However, just a few of them are. y. Nat. sit. considered Boutique Hotels, most lack the personal touch, details, designs and services that. n. al. er. io. qualifies them as boutique. Nevertheless, there are a couple of luxury Boutique Hotels, that are. i n U. v. located in the city and outside the city where there is a high number of local and foreigner. Ch. engchi. tourists. A sign of a developing or starting to be a maturing industry is when all of the following increases: average number per property, occupancy rates, and number of associations and support services. Some of the rewards of being a Boutique Hotel owner are that of meeting people, adding income, gaining independence and an enjoyable way of life, and giving life to an idea and restore a meaningful building. It can be of great satisfaction as it grows into a valuable investment. Personality, distinctive and personalized hospitality, standards of excellence, and creative marketing are key personality traits in a host.. 23.

(33) 2.6.1. Importance of Image, Name, and Word-of-mouth The reputation of a Boutique Hotel and personal image of their staff can make the difference between success and failure. Casa de Piedra will not only need to promote to the public but also its excellence that its personnel and staff give. It will be judged on how people dress, walk, speak, and interact. The attitude of caring and ability to make guests feel special will produce repeat and referral business. A good, lasting impression can be created by:. 政治大 The name of the BH, logo, Slogan, and sign 立. 1. Front desk personal and telephone contact with guests 2.. ‧ 國. 學. 3. Design of the business card and stationaries 4. Eye-catching brochures and confirmation card. ‧. 5. Thank letter after a guest stayed. n. er. io. sit. y. Nat. al. Ch. engchi. 24. i n U. v.

(34) 3. Strategic Plan 3.1. External Analysis (Opportunities and Threats) Although it is a Boutique hotel a relatively new concept in El Salvador, Casa de Piedra will be competing in a growing hospitality industry that includes hostels, bed and breakfast, Air B&B, hostels, Chain hotels, and boutique hotels. The target segments are explained in the Marketing Plan (see Target Segment). The lodging industry in El Salvador is not new, however in recent. 政治大. years is has been growing considerably. Smaller and charismatic hotels have emerged and are. 立. taking market share from chain hotels. Boutique hotels can be considered a new concept, there. ‧ 國. Porter’s Five Forces Analysis. n. Barganning power of supppliers. Ch. engchi Rivalry among established companies. y. sit. io. Risk of entry by potential competitors. er. Nat. al. ‧. 3.1.1.. 學. are only a few in the city and many have only been in the market a few years.. i n U. v. Barganing power of buyers. Threat of substitute products. Figure 19. Porter’s Five Forces Analysis. 25.

(35) 3.1.1.1.. Risk of Entry by Potential Competitors. The hospitality industry is a highly competitive industry, mainly because there are no entry barriers regarding economies of scope and scale. As mentioned before, the hospitality industry has shown a steady growth as the demand increases with the increase of coming tourist to the country every year. In recent years, the government is trying to boost and strongly support small and medium enterprises. Many of these SMEs are service oriented. With the government. 政治大 However, customers for the hospitality industry are very demanding because they have a wide 立 support, the time and cost of entry is relatively low.. ‧ 國. 學. range of choices. This makes it quite difficult for newcomers to remain open after the first year or two. In addition, when business in the hotel industry realize new competitors will be. ‧. entering the market that might threaten their market share, they are likely to respond in order to. sit. y. al. er. Rivalry among Establish Business. io. 3.1.1.2.. Nat. not to lose current costumers and in the process win some the other competitor’s clients.. n. v i n Cishsomewhat consolidated The hotel industry in El Salvador e n g c h i U with less than a dozen big chain hotels in the market. However, some of these chain hotels have been in the city for over 50 years. These hotels have the majority of the market share and rely on heavy advertisement. Nevertheless, chain hotels have been losing market share in recent years to smaller hotels in the area who offer better rates, quality in service, unique amenities, and similarities in services offered. When dealing directly with smaller competitors it goes down to key factors such as price, value, location, safety, and customer rewards program. In some instances, there have been price wars between big chains and smaller hotels. However, this is often common only in similar companies.. So there have been price wars among chain hotels and price wars among. 26.

(36) independent operators, in the end, entering the price war is not convenient for any of the parties involved because it is a raise to the bottom, therefore companies focus in other factors other than price to keep current customers and attract competitor’s clientele.. 3.1.1.3.. Bargaining power of buyers. Customers in the hospitality industry have a high bargaining power. This also applies in El Salvador with the increase in options available in the market. Brand Loyalty plays a key part in. 政治大. customers’ hotel preferences. Therefore, most of the hotels have rewards programs to attract. 立. and maintain their customers. Some even offer additional benefits and focus of customer service. ‧ 國. 學. and value for money to avoid losing market share. Since customer’s switching cost are nonexisting, customers preference will be based on value added and benefits that the hotels offer.. ‧. Frequent customers, mostly in the corporate world, know the power they have in the industry. y. Nat. sit. so they find ways to get better deals and packages because if not they will go a other hotel that. n. al. er. io. will offer them what they want.. 3.1.1.4.. Bargaining Power C of h Suppliers. engchi. i n U. v. Suppliers have low bargaining power in the hospitality industry. Hotels will choose the best option available in terms of price, location, and additional benefits. Some suppliers agree to annual contracts in order to maintain their clients. Hotels usually benefit from these contracts because they ensure steady prices all year round. Suppliers know there is a high competition and therefore offer additional benefits to companies willing to sign contracts and offer special deals to new companies in order to win competitors clientele.. 27.

(37) 3.1.1.5.. Substitute of Products. There is a low to middle threat of customers switching to substitute products, the switching will depend on the customer’s preference, circumstance and way of living. Due to the increase in demand of lodging facilities, options such as room rents, motel, and apartments (with short lease) have increased and are available to the customer. However, most business travelers are looking for and services that can’t be offered in these facilities. As a result, clients are resistant. 政治大. to switching from a hotel to a room rental. Nonetheless, chain hotels can substitute for. 立. 學. ‧ 國. Boutiques and vice versa.. 3.1.2. Industry Life Cycle Analysis. ‧. The hospitality industry as a whole in El Salvador, even though is still growing, is reaching the. sit. y. Nat. shakeout stage, mostly when talking about big chain hotels. However, referring to boutique. io. er. hotels in El Salvador, this is a fairly new concept and it can be identified in the growing stage. More lodging facilities are adapting the “boutique hotel” concept. Even though there are main. al. n. v i n players that will join later on to C theh market, Casa de Piedra e n g c h i U once it enters will take advantage of their modern and colonial concept and will keep a high customer service and price over value so that when new members enter, it will not lose customers. Casa de Piedra is still an early mover in this sector and has an opportunity to set standards for the industry.. 28.

(38) 學 Figure 20. Hospitality Industry in El Salvador. ‧. ‧ 國. 立. 政治大. 3.1.3. Macro Environment. sit. y. Nat. io. er.  Macroeconomic forces. One of the industries with constant economic growth in El Salvador. al. v i n C (CORSATUR, 2015). Among thehservices one sector that has a constant growth is e n gindustry, chi U n. is the service industry with a GDP of 14.8% in 2015 with an average growth rate of .87%. the Tourism industry with a GDP of 4.4% at a growth rate of 1%. Tourism industry alone represent a 7.7% of new employees in the country in 2015 with a growth of .7% compared to 2014 (CORSATUR, 2015). Since 2001 the local currency in the country is the US Dollar which attracts investors to the country. The average inflation rate over the last five years is 2.16% (CORSATUR, 2015).  Demographic forces. The population growth rate by 2014 was .27% per year, with 58% of the population between 15 and 54 years old (World Bank, 2016).. 29.

(39)  Social Forces. As it occurs in many developing countries, trends developed in developed country take a while to boom, even though due to technology the time gap has decreased considerably. In the last five years there has been an increase in how much companies and people are willing to invest in their events. It is a projection of wealth, stability, and profitability. Companies like to impress their foreign clients or coworkers by hosting them in nice and modern hotels. Middle and upper class in El Salvador like to project their status and uses social media as a way to express themselves.. 政治大.  Political and Legal Forces. Over the last six years El Salvador faced a change of. 立. government from democrat to socialist. This created uncertainty for many local and foreign. ‧ 國. 學. companies as well as investors. However, the current government has made emphasis that existing companies and new investors are more than welcome and will facilitate regulations. ‧. for these companies. Moreover, the government is interested in boosting local businesses. y. Nat. er. io. sit. and has created an easier and economical path for new entrepreneurs to start their business.. 3.2. Internal Analysis a(Competences and Competitive Advantage). n. iv l C n h e n gis ctheh knowledge i U of the service and hospitality The main competences of Casa de Piedra industry due to work experience in the field. This will enable the company to establish standards of customer service and execute them. Moreover, there is the know-how of starting a company and running it; mainly dealing with personnel, suppliers, and customers. For the competitive advantages see section 2.5.2. Competitive Advantage.. 30.

(40) 3.3. SWOT MAP. Strenghts. Weaknesses. •Knowledge and practice in service and hospitality industry •Food and Beverage parterns will help building brand recognition •Contacts in key companies with lodging requets. •Start from zero creating brand awareness •Low advetisement budget •Relys heavy on social media and word-of-mouth. 政治大 Opportunitites Threats 立. ‧. ‧ 國. •Highly Competitive industry •Compete with big chain hotels •low entry barriers •Possible Price war •High buyer bargaining power. 學. •"Boutique Hotel" concept relatively new in El Salvador •Due to growth stage of the industry, can achieve differentiation and early brand recognition •Focus on value, location, and rewards program •Los supplier bargaining power •Low number of substitutes. er. io. sit. y. Nat. Figure 21. Casa de Piedra SWOT Map. n. al. Ch. i n U. v. The previous SWOT map has been constructed based on the external and internal analysis in. engchi. the business plan. For detailed information, please refer to the sections above. It can be determined that even though the industry is in the growing stage, an aggressive and accurate approach is necessary to create brand awareness and capture the target market. Once brand presences is establish it is necessary to capture customer loyalty in order to word-ofmouth advertisement starts flowing and in that way to counter the threats Casa de Piedra faces. Additionally, key suppliers will be identified and year contracts will be establish in order to obtain low prices. Key partners will also be identified to establish relationships and connections. 31.

(41) to co-promote each other’s services. Casa de Piedra will aim to create consciousness in quality of services and infrastructure as well as in distinctive and sophisticated options for customers.. 3.4. Business Level Strategy At the growth stage, the task the hotel faces is to strengthen the business model and marketing plan to survive the entry of competitors and the challenges the hospitality industry implies. Casa de Piedra’s goal is to gain positioning in the corporate segment and rapidly create brand. 政治大. awareness. For the hotel to never lose value it will invest is constant renovations to maintain a. 立. fresh sophisticated look with a Colonial style. Rewards and loyalty programs will be promoted. ‧ 國. 學. to increase clientele and to have returning customers. The hotel will rely primarily on social media, travel agencies, tourism companies, key partners and community for market penetration;. ‧. afterwards it will work on market development.. n. er. io. sit. y. Nat. al. Ch. engchi. 32. i n U. v.

(42) 4. Business Model 4.1. Value Proposition Casa de Piedra Boutique Hotel is convenient for business people, tourists and locals that look for high personalized service and unique services. The hotel follows a Colonial style which gives it a unique touch and attracts tourists. Casa de Piedra is located in the outskirts of the city which provides an amazing view from the rooms, garden, and swimming pool. Near the hotel. 政治大. customers can find a wide variety of restaurants, bars, supermarkets, banks, malls; which. 立. consequently makes the location one of the safest in the city.. ‧ 國. 學. The staff and service personnel will receive special training in their area of work as well as in customer service. By doing so it will allow them to help customers when they require assistance. ‧. in planning trips or tours around the city or the country. This will be possible due to the. Nat. sit. y. partnerships with travel agencies. At every moment the hotel will ensure excellent service so. n. al. i n U. Casa de Piedra will guarantee the best price over value.. 4.2. Customer Segment. Ch. engchi. er. io. that every guest and customer feels unique and important, and most important, feel at home.. v. Casa de Piedra will target five different group of people to guarantee a high flow of customers. These groups are as follow:  Business People – short stay. People staying for a few days or weeks in San Salvador due to work.  Business People – long stay. Companies bringing employees and clients from other countries for long stays to work for their company.  Conferences and Meetings. People have certain activities in the city.. 33.

(43)  Tourists. People who are traveling and stay in the city for a couple of days and what a high quality service and unique experience.  Medical Reasons. For people and their families who come to El Salvador to do certain health procedures. Overall, customers will be tourists that are interested in getting to know the city and its culture or business people in-transit for meetings. Demanding and busy people who require quality, efficient, and on time services are the main characteristics of guest that the hotel will expect.. 治政 People that no matter if it is for business or pleasure look 大for comfortableness, excellence, and 立 different environments with unique touch. Business people that are looking for hotels that ‧ 國. 學. provide services that support their work in the city, or who are looking for a home away from. ‧. the place of origin.. er. io. sit. y. Nat. 4.3. Communication Channels. Casa de Piedra will use indirect channels. These indirect channels will be through travel. n. al. Ch. i n U. v. agencies, advertisement in newspapers and magazines, social networking sites, references and. engchi. promotions through tourism institutions. Also by digital channels, through hotels webpage in which will be stablish the different facilities, prices and form of payment.. 4.4. Customer Relationships A key to our success will be attracting and maintaining a steady base of loyal customers. Casa de Piedra plans to use the following to build and maintain such relationships:. 34.

(44)  Customer Care Service: training personnel will ensure the optimum level of customer service in order to increase customer ratings, mouth-to-mouth advertising and returning guests.  Loyalty Points: guests will accumulate points for each room night and after certain amount of room night will have a free room night.  Lunch Meetings: key contacts in companies with high demand hotel for services will be invited for lunch as the hotel, so that they can get to know the location and start building. 政治大. and to enter into their options of hotels.. 立.  Offers/Discounts: depending of the seasonality offers and discounts will be available to. ‧ 國. 學. our guests.  Social Media: Through Casa de Piedra Website, Facebook, and Instagram, we will share. ‧. events, deals, and discounts to engage followers and customers to visit and share their. sit. n. al. er. io. 4.5. Revenue Stream. y. Nat. experience.. Ch. engchi. i n U. v. Casa de Piedra will depend upon the following as sources of revenue.  Lodging: room nights  Boarding: Long stays  Bistro and Bar leasing: Food and beverage will be outsourced to Oh La La Bistro and Cachivache Bar. Casa de Piedra will lease the space.. 35.

(45) 4.6. Key Partners Partners are essential to the success of the hotel. Therefore, Casa de Piedra will build strong relationships with the following partners to ensure a greater flow and increase of customers.  Travel Agencies  Airlines  Chain Hotels  Ohh La La Bistro  Cachivache Bar. 立. ‧ 國.  Investors. 學.  Laundry Service. 政治大. ‧.  MITUR: Ministry of Tourism in El Salvador. y. Nat. al. er. io. sit. 4.7. Key Activities. n. Casa de Piedra will defy specific activities to follow in order to provide a personalized customer. Ch. engchi. service and create a strong brand awareness.. i n U. v.  Platform development and maintenance. Create and design website and social media pages and constant modification to keep it up to date and attractive to customer’s eyes.  Community engagement. Take advantage of social media to engage the community to visit and share experience.  Marketing. Develop a strategic marketing plan to position Casa de Piedra in the corporate segment.  Customer Relationship Management. Maintaining constant with key customers, follow up to loyalty point and reward programs.. 36.

(46)  Staff Training. Staff will go through a series of customer service training program to ensure customer satisfaction.. 4.8. Key Resources The most important assets Casa de Piedra has to make the project work are:  Human Resources. Hiring skilled staff is key to the success of the company in building high quality customer relationship.. 政治大.  Infrastructure. The façade of the hotels give Casa de Piedra a historic style: Colonial Style.. 立. Which is necessary in order to classify as a boutique hotel.. ‧ 國. 學.  Capital. A high percentage of initial investment it is required to the stat-up of the hotel.. ‧. 4.9. Cost Structure. y. Nat. sit. Casa de Piedra will leverage its distinctive charm and location that provide a unique experience. n. al. er. io. as well as operational efficiency to ensure that its accommodations can be priced competitively an become the hotel of preference.. Ch. engchi. i n U. v.  Integrated cost leadership and differentiation strategy: it will have competitive prices while offering unique and personalized services, without jeopardizing customer service.  Relevant fixed costs: wages, security, internet, advertisement, insurance.  Relevant variable costs: utilities, inventory (amenities), cleaning supplies, fuel.  Economies of Scale: key suppliers with be contacted to buy the majority of linen equipment, art, and furnishing and guarantee low prices.  Economies of Scope: one additional service the hotel will offer with extra cost is airport transportation.. 37.

(47) 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 38. i n U. v.

(48) 5. Marketing Strategy 5.1. Product Casa de Piedra’s priority is not only to provide high customer service but high quality in infrastructure, trained personal, and a sophisticated environment mixed with a Colonial style. Casa de Piedra will offer three different types of rooms.. They are described in the following. table.. 政治大 Double Room. Table 2. Description of rooms. A/C. A/C. Television. Television. Telephone. Telephone. Nat. io. al. Desk & Chair. n. Desk & Chair Mini Fridge. Ch. Fridge eMini ngchi U. 3 Night Stands A/C. Television. y. 2 Night Stands. ‧ 國. 2 Night Stands. 3 Queen Beds. ‧. 2 Queen Beds. 學. 1 King Bed. Family Room. sit. 立. er. Single Room. v ni. Telephone. Desk & Chair Mini Fridge. Safety box. Safety box. Safety box. Bathroom. Bathroom. Bathroom. Hairdryer. Hairdryer. Hairdryer. Towels. Towels. Towels. 2 bottles of water. 2 bottles of water. 2 bottles of water. Coffee & Tea. Coffee & Tea. Coffee & Tea. Wifi. Wifi. Wifi. Breakfast. Breakfast. Breakfast. 39.

(49) Every guest will have access to common areas such as the swimming pool, restaurant, bar, lounge, and free parking. Also, airport transportation is available to those who request it in advance, with additional cost.. 5.2. Placement The location of the hotel plays a key part in attracting customers. It is situated in one of the. 政治大. most prestigious sectors of the capital, it is on the outskirts of a volcano, therefore has a. 立. beautiful view of the entire city. Near the hotel are places such as World Trade Center, Plaza. ‧ 國. 學. Futura, Zona Rosa, Restaurants, banks and malls which makes the location one of the safest in the city. These locations are attractive for tourists, which is a main advantage of the hotel. ‧. location.. sit. y. Nat. io. n. al. er. 5.3. Pricing (customer cost). i n U. v. The hospitality industry is a very seasonal industry. Therefore, there will not be a fixed rate for. Ch. engchi. the three different types of room we offer (Single, Double, Family rooms). Since the main target market are companies and business people, during the week it is expected to have a higher demand than during the weekend. Therefore prices will vary depending of the day of the week. Promotion and packages will be offered for weekend’s getaways. Moreover, some months have higher demand than others, for that reason, November with an occupancy rate of 78% will have higher room rate than December that has 52% occupancy rate (both percentages include the growth rate for 2015). However, for loyal customers or companies. 40.

(50) that will guarantee a minimum of 40 room nights a year a set price will be offered for them throughout the year, these set prices will be revised and renegotiated every year. After a detailed analysis of the room rates of the competition in terms of similar services and amenities, we have decided to set Casa de Piedra’s average room rate s slightly lower. On top of this, it will offer customers package deals, of lower room rates in low seasons or weekends. There will be a constant benchmarking to keep track of competitors price range to set strategic pricing strategies and deals.. 立. 政治大. ‧ 國. 學. 5.4. Promotion. Casa de Piedra promotion will rely mainly in social media and word-of-mouth.. ‧.  Social Media. Through the hotel website, Facebook, twitter, and Instagram it will have. y. Nat. sit. massive advertisement and daily updates. It will start by creating buzz, months before its. n. al. er. io. opening day to start creating awareness. Moreover, Ooh La La and Cachivaches will. i n U. v. promote their new location in Casa de Piedra in their social media as well. These two. Ch. engchi. companies already have thousands of followers in their social media, by promoting through their pages it will boost number of followers and likes in Casa de Piedra pages. In these social media pages, it will display services that the hotel offer, as well as discount and special packages available for our customer.  Word-of-mouth. Since the hotel target market are business people from outside the city or the country and companies in the country it will have to rely on mouth-to-mouth promotion. Casa de Piedra will create networking with travel agencies, ministry of tourism, and key companies as key of its commercial and advertising operations.. 41.

(51)  Lunch events. Key contacts in companies with be invited to lunch meeting in the hotel. The idea of the meeting is for the client to visit the hotel and its facility. The invitation for lunch is an appeal for them to go to the hotel and incentive them to start doing business with the hotel.  Frequent Guests For companies that require a minimum of 40 room nights a year, an annual contract will be establish with rates for the different types of rooms. By doing so it will guarantee that the business to stay in the hotel and build stronger connections with these companies.. 立. 政治大.  Brochures, pamphlets and advertisement. Casa de Piedra has a monthly budget for. ‧ 國. 學. advertisement which will be in form of brochures, pamphlets, online ads, to promote the hotel and its services in key locations like travel agencies, ministry of tourism, and key. ‧. companies.. Nat. sit. y.  Deal packages and discounts. In low seasons, to incentivize companies and tourists in. n. al. er. io. general the hotel will offer special prices, group discount packages, or deals for free night. i n U. v. stays with a minimum number of room nights It is important to determine a discount policy. Ch. engchi. for frequent clients, and each client with be analyzed individually.  Special day / Holidays events. For days such as Valentine’s Day, Mother’s day, and Father Days there will be a special deal that will include: dinner for two, two cocktails, room for two, and breakfast (room service available). All of this for a reasonable price that will create a high flow of customers.  Stay-cation packages: during vacations some families are unable to leave the city for different reasons. For them there will be a special package that will include the family room with breakfast. This package will be attractive even to kids and teenagers since they will have access to a swimming pool, lounge chairs, and restaurant in the hotel. 42.

(52)  Rewards and loyalty program. The hotel will keep a report of number for room nights booked by frequent customers and companies. An individual party that has over 10 room nights a year will receive a free night and as number of room nights increases they will have additional benefits like drinks, dinners, and free room nights in the hotel.  Weekend packages. Since the hotel’s main target market are business people, weekdays are going to be more demanding than weekends. Therefore especial rates for weekend will be available to local and foreign tourists.. 政治大. All of these promotions will be advertised in social media pages, brochures, pamphlets, and. 立. travel agencies to create awareness.. ‧ 國. 學. 5.5. Operations Plan. ‧. The objective of the operations development plan, is to guarantee efficient and effective. y. Nat. sit. customer service, with high productivity, competitiveness, and constant improvement. For these. n. al. er. io. goals to be achieved, manuals for each area will be provided with the required tasks, including administrative, commercial, and technical.. Ch. engchi. The flow of operations will be as follow:. i n U. v. Booking. Thank You Letter. Check-in. Check-out. Stay. Figure 22. Operations Flow. 43.

(53)  Booking: bookings can be made through the hotel’s webpage and by telephone. o Online bookings: provide required date and payment method. The payment can be done with cash, cahiers check, debit and credit card, or money wire. However, a credit or debit card is needed as assurance method. By doing the reservation online, there will be no charges to the credit or debit card until the end day of the stay. A room can be cancelled with 48 hours of notice, if not there will be a penalty fee. o Telephone bookings: the booking will be made with the receptionist or manager.. 政治大. Required data and payment method is required, a credit card number is required as. 立. a guarantee method. Cancelation fees will be the same as the online booking.. ‧ 國. 學.  Check-in: this will be done once the guest arrives at the hotel. Personal data and payment method will be verified. Check-in time will be at 2pm. During this time customer data will. ‧. be collected and used to build relationship with repeat customers.. Nat. sit. y.  Stay: a staff member will take the luggage and guide the guest to the assigned room and. n. al. er. io. the facilities of the hotel will be shown as well as emergency exits.. i n U. v.  Check-out: the check-out time will be 11am. Before the guest leave, a room inspection. Ch. engchi. will be done. Once the inspection is over a receipt is given to the guest.  Follow up: the day after check-out a thank you letter is sent to the guest emails, thanking them for choosing the hotel and hoping they will choose the hotel in the future.. Casa de Piedra will be open every day including weekends and holidays. The food and beverage service will vary according to Ooh La La bistro and Cachivaches Bar. Their services hours will be as follow:. 44.

(54) Table 3. Hours of operations Establishment. Hours of Operations. Ooh La La Bistro. 6am – 9pm. Cachivache Bar*. 7pm – 2am. *Depending on the demand, the bar will operate at different hours or will closed certain days like Sundays or Mondays.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 45. i n U. v.