dditional details: Our Cover: Seda Hotels rising Seda is the Filipino word for silk, and its luster and strength are the two words that embody the homegrown hotel brand’s emergence in the Philippines. “Five years have gone fast and gone well, too. The group expanded quickly while delivering the brand promises that we envisioned, from service excellence to our hotels’ central locations and value-for-money proposition,” states Andrea Mastellone, Senior Group General Manager of Seda Hotels, owned and operated by Ayala Land Hotels and Resorts. Now on its fifth year, Seda Hotels will be expanding in the next two years to fifteen hotels around the Philippines. “We opened our hotels in BGC, Cagayan de Oro, and Davao in quick succession, only within three months of each other. This was followed by Nuvali the following year and Iloilo in 2016,” recalls Mastellone. “Seda BGC was our first property. Our hotel format filled the opportunity gap between luxury and budget hotels and offered a modern facility with swift and efficient service at competitive rates,” he relates. The concept was a success and received enthusiastically by business travelers who were excited at this smart new option that offered quality at a good price. Since then, there has been a solid demand which has grown steadily up to the present. Location is always an advantage of Seda. It is designed to be part of an Ayala Land mixed-use development which inevitably becomes an emerging CBD because of the extraordinary reputation of the brand as a high-end real-estate developer. Where Ayala builds, the market follows. In Seda’s 4th year, all its hotels had become the market leader in their respective destinations, reinforcing the brand reputation and making Seda among the top choices when traveling around the country. In addition, the efficient and linear operations style combined with re-engineered facilities, gave it a competitive advantage, allowing the company to achieve a satisfactory bottom line. “It was a challenge in some provinces where we were first to market because we confidently went in armed with the latest technology, then discovered that the method of booking, distribution channels and most of all, market segments and customer behavior were quite different from that of major international cities. In some provinces, we learned that more than the technology, understanding the market gave you the advantage. And so we did extensive research, analyzed their habits, patterns and preferences and made the necessary adjustments until we nailed the appropriate strategies for each,” Mastellone states. “The market has also evolved and it is heartwarming to see how our customers have embraced the modern practices we introduced and are now enjoying the technology in our hotels. Riding high on its consistent growth, Seda was ready to take on new challenges and started developing plans for new formats – bigger hotels putting its radar at the MICE market (Seda’s previous average was 150 rooms), serviced apartments and resorts. It then opened Seda Vertis North, 438 rooms with a ballroom fit for 700 persons in Quezon City in April this year, the first in a series of hotel launches in various locations in the country in the next two years. QUESTION: What are the risksthreats, and opportunities that can come along with Seda's bold expansion?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Additional details: Our Cover: Seda Hotels rising Seda is the Filipino word for silk, and its luster and strength are the two words that embody the homegrown hotel brand’s emergence in the Philippines. “Five years have gone fast and gone well, too. The group expanded quickly while delivering the brand promises that we envisioned, from service excellence to our hotels’ central locations and value-for-money proposition,” states Andrea Mastellone, Senior Group General Manager of Seda Hotels, owned and operated by Ayala Land Hotels and Resorts. Now on its fifth year, Seda Hotels will be expanding in the next two years to fifteen hotels around the Philippines. “We opened our hotels in BGC, Cagayan de Oro, and Davao in quick succession, only within three months of each other. This was followed by Nuvali the following year and Iloilo in 2016,” recalls Mastellone. “Seda BGC was our first property. Our hotel format filled the opportunity gap between luxury and budget hotels and offered a modern facility with swift and efficient service at competitive rates,” he relates. The concept was a success and received enthusiastically by business travelers who were excited at this smart new option that offered quality at a good price. Since then, there has been a solid demand which has grown steadily up to the present. Location is always an advantage of Seda. It is designed to be part of an Ayala Land mixed-use development which inevitably becomes an emerging CBD because of the extraordinary reputation of the brand as a high-end real-estate developer. Where Ayala builds, the market follows. In Seda’s 4th year, all its hotels had become the market leader in their respective destinations, reinforcing the brand reputation and making Seda among the top choices when traveling around the country. In addition, the efficient and linear operations style combined with re-engineered facilities, gave it a competitive advantage, allowing the company to achieve a satisfactory bottom line. “It was a challenge in some provinces where we were first to market because we confidently went in armed with the latest technology, then discovered that the method of booking, distribution channels and most of all, market segments and customer behavior were quite different from that of major international cities. In some provinces, we learned that more than the technology, understanding the market gave you the advantage. And so we did extensive research, analyzed their habits, patterns and preferences and made the necessary adjustments until we nailed the appropriate strategies for each,” Mastellone states. “The market has also evolved and it is heartwarming to see how our customers have embraced the modern practices we introduced and are now enjoying the technology in our hotels. Riding high on its consistent growth, Seda was ready to take on new challenges and started developing plans for new formats – bigger hotels putting its radar at the MICE market (Seda’s previous average was 150 rooms), serviced apartments and resorts. It then opened Seda Vertis North, 438 rooms with a ballroom fit for 700 persons in Quezon City in April this year, the first in a series of hotel launches in various locations in the country in the next two years. QUESTION: What are the risksthreats, and opportunities that can come along with Seda's bold expansion?
Title: Filipino as
its Finest: The
Case of Ayala
Land Hotels and
Resorts
Corporation's
Hotel Chain Seda
Case Background:
As emphasized by Hospitality
News Philippines (2018),
training with Filipino Values is
a winning combination. It
elaborated that the
benchmark borne of Filipino
values and the service
culture of taking care of the
people's need, together with
Seda Hotels' corporate
training proves to be the
cutting edge.
Given this a mantra for an
emerging true Filipino brand
of hospitality and considering
the socioeconomic, and
political landscape of the
Philippines, including the
tourism performance vis-à-
vis with the worldwide and
Asia-Pacific positive trends of
tourism arrivals and
revenues.
Transcribed Image Text:Title: Filipino as its Finest: The Case of Ayala Land Hotels and Resorts Corporation's Hotel Chain Seda Case Background: As emphasized by Hospitality News Philippines (2018), training with Filipino Values is a winning combination. It elaborated that the benchmark borne of Filipino values and the service culture of taking care of the people's need, together with Seda Hotels' corporate training proves to be the cutting edge. Given this a mantra for an emerging true Filipino brand of hospitality and considering the socioeconomic, and political landscape of the Philippines, including the tourism performance vis-à- vis with the worldwide and Asia-Pacific positive trends of tourism arrivals and revenues.
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