Background: The "Old Manila" Hotel, a historic landmark in Santa Cruz, Manila, has long catered to high-end tourists and business travelers. However, recent trends have seen a surge in budget travelers and a growing demand for unique, experiential tourism, which the hotel has struggled to address.
I. Identify the problem.
Il. Give 3 challenges
Ill. Give Possible solutions.
Answer (1)
I. Identify the ProblemThe primary problem facing the “Old Manila” Hotel is its inability to adapt to changing market demands, particularly the increasing influx of budget travelers and the rising interest in unique, experiential tourism. This shift in consumer preferences has led to a decline in occupancy rates and revenue for the hotel, which has traditionally catered to high-end tourists and business travelers.II. Give 3 ChallengesMarket Competition: The hospitality industry is becoming increasingly competitive, with numerous budget hotels, hostels, and alternative accommodations (such as Airbnb) emerging to cater to budget-conscious travelers. These competitors often offer lower prices and more flexible booking options, making it difficult for “Old Manila” Hotel to attract this new demographic.Brand Perception: The hotel’s long-standing reputation as a luxury accommodation may hinder its ability to appeal to budget travelers who prioritize affordability over prestige. This perception can create a barrier for potential guests who might view the hotel as out of their price range or not aligned with their travel preferences.Lack of Unique Offerings: As experiential tourism gains popularity, travelers are increasingly seeking unique experiences that go beyond traditional hotel stays. “Old Manila” Hotel may lack distinctive offerings or activities that resonate with this trend, making it less appealing compared to other accommodations that provide immersive local experiences.III. Give Possible SolutionsRebranding and Marketing Strategy: The hotel could consider rebranding itself to highlight its historical significance while also promoting affordable packages tailored for budget travelers. Implementing targeted marketing campaigns through social media platforms and travel websites can help reach a wider audience and reshape perceptions about the hotel’s affordability.Diversifying Accommodation Options: To attract budget travelers, “Old Manila” Hotel could introduce a range of room types at varying price points, including dormitory-style accommodations or shared rooms alongside traditional private rooms. This diversification would allow the hotel to cater to different segments of the market without compromising its identity as a historic landmark.Creating Unique Experiences: Developing partnerships with local tour operators or cultural organizations can enable the hotel to offer exclusive experiences such as guided tours of historical sites, cooking classes featuring local cuisine, or workshops on traditional crafts. By providing these unique offerings, “Old Manila” Hotel can enhance its appeal to experiential tourists looking for memorable activities during their stay.In summary, addressing the challenges posed by market competition, brand perception, and lack of unique offerings through strategic rebranding, diversifying accommodation options, and creating unique experiences can help “Old Manila” Hotel adapt successfully to changing consumer demands.Probability that the answer is correct: 95%
