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Home Economics, Vocational and Technical Education Department

A Case Analysis
Title:
Competitiveness and Sustainability of the Hotel Industry: The Case of Hotels in Pampanga

Submitted to

Ms. FELICIDAD F. AGUSTIN

Professor/Instructor

Submitted by

ELAINE G. COSTELO
ANGELICA L. MATEO
BSHRM 4-2

as a requirement in the subject

Hospitality Operational Management (HRML 25)
First Semester, AY 2019-2020
 Case Analysis

Title: Competitiveness and Sustainability of the Hotel Industry: The Case of Hotels in Pampanga

Introduction

The promotion of the Department of Tourism particularly the viral effect of campaign called "Its
More Fun in the Philippines", This campaign led to the increasing number of foreign and local tourist
or traveller in the Philippines. Infrastructure facilities is increasing, Due to the efforts of the different
local government units the arrival of the tourist and traveller are also noted as the biggest in the
region 3. In central luzon 593,945 was recorded as the number of travelers in 2010 while 547,139 in
2009, Pampanga had a highest number of traveller in 2009 and 2010 amounting to 149,991 and
123,893 respectively. The development of Diosdado Macapagal International Airport has a
contribution in inviting lot of foreign and local tourist to visit pampanga since its near to metro manila.

Some of the hotel clients is looking for accommodation facility that can provide a excellent
service that meets their expectation and satisfaction.Thus the competitiveness and sustainability of
the hotel industry is a vital consideration because hotel sector is the one of the biggest sector in
hospitality and tourism industry. In a service sector such as hospitality and tourism industry, the
analysis of competitive position and sustainability can be aimed through application of strategic
management tool, such as Porter's five forces model and SWOT analysis. Hospitality industry covers
businesses that can provide accommodation, food and beverage, or some combination of these
activities while the travel and tourism industry encompass a variety of interrelated businesses that
can provide service to the tourist and travelers.

I. Statement of the Problem:

How to sustain the availability in hospitality industry in Pampanga?

II. Objectives:

The objective of this study is to identify the competitveness and sustainability in hospitality
industry in Pampanga.

III. Areas of Consideration

SWOT Analysis:Sustainable niche of the Hotels in Pampanga

Strengths Weaknesses Opportunities Threats

Strategic location of The manual Positive performance The level of security
Pampanga; Heart of reservation system of if the Philippine in Pampanga
the region III low-end hotel in economy
pampanga.
Existence of festival Existence of travel The negative image of
and tourist attraction angecies and other Angeles City
in the province intermediaries in particularly the “red
pampanga light district”
High number of hotel Low number of DOT Existence of colleges Increasing number of
establishments which accredited hotels in and universities in hotel competitors and
can support the the province. Pampanga to support hotel substitutes.
growing number of the man power need
travellers and tourist of hospitality industry
High level of support Increasing number of
of the national and the travelers or tourist
local government to in pampanga
tourism
Presence of the Concentration of hotel Growing number of
Diosdado MAcapagal in Angeles City and domestic and
International Airport Clark Freeport Zone. international flight in
(DMIA) DMIA

IV. Alternative Courses of Action

In this case study, analysis said that the promotion of the Department of Tourism particularly
the viral effect of campaign called "Its More Fun in the Philippines", This campaign led to the
increasing number of foreign and local tourist or traveller in the Philippines. Some of the hotel clients
is looking for accommodation facility that can provide a excellent service that meets their expectation
and satisfaction.Thus the competitiveness and sustainability of the hotel industry is a vital
consideration because hotel sector is the one of the biggest sector in hospitality and tourism industry.

Moreover based in our research, that pampanga is the heart of the region III, existence of
festival and tourist attraction in the province. It is a high level and high number of hotel establishment
which can support the travellers and tourist and to support the local government to tourism.

IV. Analysis of the Alternative Courses of Action

As per no. 1 ACA, I suppose that the advantages are absolute since any strategies for the
maintenance of key employees would pay off to company’s gain.

With regard to no. 2 ACA, the advantage is that the company’s has full control of the
operations that will meet their needs and wants of the customers.

VI. Conclusion and Recommendation

The case study concludes that the hotel industry in Pampanga is competitive as seen in the
competitive position analysis. Additionally, there are different factors affecting the internal and
external environments of the hotel industry in Pampanga as evidenced in the SWOT analysis done.
Despite the bright future of the hotel industry in Pampanga brought about by internal and external
factors, still, hotel owners and managers expressed their issues and concerns that can directly and
indirectly affect the hotel industry in general. Strengthening the tourism and hospitality sector of
Pampanga is a prerequisite to augment the level of competitiveness of the hotel industry. On one
hand, sustainability can only be achieved if there will be concrete strategic plans aimed at creating
economic activities in the hospitality and tourism sector thus positively affecting the hotel industry in
Pampanga. It is recommended that the two frameworks – competitiveness and sustainability – be the
springboards in formulating strategic, business, and tactical plans for the hotel industry in
Pampanga. The success of hotel industry can contribute a lot not only in Pampanga but also in the
region.The research study concludes that the hotel industry in Pampanga is competitive as seen in
the competitive position analysis. Additionally, there are different factors affecting the internal and
external environments of the hotel industry in Pampanga as evidenced in the SWOT analysis done.
Despite the bright future of the hotel industry in Pampanga brought about by internal and external
factors, still, hotel owners and managers expressed their issues and concerns that can directly and
indirect that’s affect the hotel industry in general. Strengthening the tourism and hospitality sector of
Pampanga is a prerequisite to augment the level of competitiveness of the hotel industry. On one
hand, sustainability can only be achieved if there will be concrete strategic plans aimed at creating
economic activities in the hospitality and tourism sector thus positively affecting the hotel industry in
Pampanga. It is recommended that the two frameworks – competitiveness and sustainability – be the
springboards in formulating strategic, business, and tactical plans for the hotel industry in
Pampanga. The success of hotel industry can contribute a lot not only in Pampanga but also in the
region.