Continental

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•The Triumph Tours’ accommodation requirements during the peak months were barely met last year.

• Hotel Continental has incurred massive losses in the past two years leading them to lease their facilities which coincide with Triumph Tours’ needs.

•Mr. Oscar Mendoza is thinking about bidding for Hotel Continental but lacks information.

•Mr. Ernesto de los Santos must effectively collect information to come up with a solution and an appropriate bidding price if bidding is to be pushed through.

Strengths

• Excellent customer list

• More profit is experienced during peak seasons. (December, January, July and August.)

• Expertise in handling a travel agency.

• Public Relations skills are good.

• Triumph Tours has a marketing manager/ marketing team which show that they are experienced in this type of business.

Weaknesses

•Triumph Tours have difficulty providing hotel accommodations during the peak season.

•Inefficient subordinates/ employees.

•A challenge to find employees who possess the necessary skills and customer-centric attitude.

•Hotel management abilities or skills are low.

Opportunities

•New set of consumers because of favourable economy.

•Hotel Continental complements the Triumph Tours’ business and would assure accommodations for the clients of their travel agency, assuming that the agency leases Hotel Continental’s facilities.

•Presence of new administration, which thoroughly observes peace and order, makes consumers more likely to express more freedom in purchasing which results to increase in purchasing power.

•Growing market that has yet to be adequately addressed.

•Development of new tourism promotions and related products.

Threats

•Presence of Inflation which equally decreases the rate of purchasing power.

•Competition from other travel agencies.

•Indirect Competition from all the lodging establishments.

•A slump in the economy that will affect the travel industry.

•International/ Terrorism threats that will affect tourism in the country.

VIII. Contingency Plan

If best alternative does not work, the second best alternative to do is to find other hotel to lease. Since the travel business might not have the capacity to establish their own hotel right away, and it needs immediate solution in accommodating their tour groups, they should find another hotel that is most likely to satisfy their lodging requirements. The travel business should look for a hotel that would fill the possible flaws of Hotel Continental that hindered the success of the operation. After critically analyzing the pros and cons of the alternative solutions in solving the problem of Mr. Oscar Mendoza, our group decided to recommend the second alternative which is to have a joint venture with a hotel.

Having a joint venture with a hotel can solve the travel agency’s accommodation problem and at the same time could benefit both sides without investing a huge amount of money as compared to the amount needed when leasing a hotel/Hotel Continental or establishing their own hotel. If they choose to have a joint venture, they could prevent suffering from the hotel’s loss during non-peak season since the agency is only liable to the extent of its interest. Moreover, unlike in establishing its own hotel, it would take a very long time to provide a hotel which could accommodate their customers immediately. Lastly, since a joint venture is a contractual agreement, the travel agency could decide by the end of the period if they still want to renew the agreement; find another hotel or formulate other plans depending on how things work out.

Implementation Plan

1.Mr. Oscar Mendoza, the owner of Triumph Tours, together with his marketing team will find a hotel to have a joint venture with.

2.Mr. Ernesto de los Santos will enhance promotions of the travel agency in order for the business to be introduced to various people from different places and create marketing strategies