Stakeholders doubt hotel shortage, but hike in room rates ‘inevitable’
STAKEHOLDERS in the hotel industry doubt a shortage of properties in their industry and believe more investors are confident in opening up new accommodation establishments.
In an interview with the BUSINESSMIRROR, Hotel Sales and Management Association (HSMA) president Loleth So said,“we believe there will be no shortage in hotel room inventory as there are properties opening this year and the next five years ahead. Hotel development is now happening as investors and owners are now more confident as inbound and domestic travels continue to increase.”
She acknowledged there have been delays in the openings of new properties due to the pandemic, “but now that airline frequencies are increasing, it signals a very positive outlook for tourism arrivals increasing. Thus, investors are showing more confidence to proceed with hotel developments in the country.”
For her part, SM Hotels and Conventions Corp. Executive Vice President Peggy Angeles said, “I think there could be more hotels that will be built, it’s just of course probably not being reported. I’ms not sure about the [hotel] shortage, because we want to reach like 90-percent [occupancy levels] all year round.”
Leechiu Property Consultants, in a recent media briefing, predicted a shortage in rooms with only some 308,000 keys available by 2028, thus imperiling the country’s efforts to attract some 12 million inbound arrivals by that year. This room shortage will increase room rates and likely turn off foreign and domestic tourists. (See, “‘KEYS MUNA’: Imminent hotel room shortage—and resulting higher room rates—could derail PHL’S ambition to lure more visitors,” in the BUSINESSMIRROR, April 20, 2024.)
Virtus Awards launched
ON the uptick in average daily rates of hotels due to the projected room shortage, Angeles underscored, “Price increase is inevitable, especially because there are costs also that are rising, inflation—all
personalnd of us are feeling it even from a perspective. I don’t think it is driving the tourists away because really, we’re not as expensive as Hong Kong or Singapore…. To me, the price increases, as long as it’s not a major jump as it is to cover the cost, or of labor, it all adds up, right?”
The HSMA on Thursday launched its annual Virtus Awards, now in its 10th year, with Philippine Airlines President and COO Capt. Stanley Ng as keynote speaker.
The pilot and PAL chief extolled the hotel sales and marketing professionals “to care how the products and the services are being delivered by your frontliners because it’s going to be easier for you to sell next time if your operations team will do their job better. It’s really a collaboration and constant communication to really help each other focus on the bigger purpose.”
PAL signs up for CRM system
NG also revealed that PAL has followed the lead of the hospitality industry and has “recently signed up for a CRM (customer relationship management) system so we will get to know each of our customers better. We’re catching up and we continue to learn and try to innnovate as well to make our product even better.”
Meanwhile, the Virtus Awards will recognize the Outstanding Sales and Marketing Associate, Outstanding Sales and Marketing Manager, and Outstanding Sales and Marketing Leader, and the some group category, the Institutional Award for Most Outstanding Marketing Campaign of the Year.
“This is a momentous event because it is happening also on HSMA’S 45th anniversary, and having reached its 10th year, the Virtus has earned the high regard and respect of the travel industry because of the way it has always been conducted,” said Virtus Awards chair Rose Libongco.
Nominations remain open until August 2, with the awards night happening on October 11 at the Grand Hyatt Manila. The 10th Virtus
Awards is co-presented by the Department of Tourism and Tourism Promotions Board, with the support of Atlantis, Crimson Hotel Filinvest City Manila, and Lanson Place Mall of Asia, Manila. For more information, visit hsma.org.ph or HSMA’S social media pages.