Hotel occupany in Metro Manila to drop 10%

ABS-CBN News

Posted at Feb 19 2009 07:09 PM | Updated as of Feb 20 2009 03:11 AM

An online booking solutions provider sees a 10 percent drop in hotel occupancy in Metro Manila this year as companies cut back on expenditures, mainly travel.

Amadeus Philippines said a survey it recently conducted revealed companies in Asia-Pacific plan to reduce their trips and at the same time, scrutinize every expense details of travels made by their officials this year.

According to Amadeus general manager Albert Villadolid, 47 percent of corporate executives they interviewed intend to travel less over the next 12 months while another 28 percent said they will be downgrading their desired hotel accommodations from the usual five- and four-star hotels.

Villadolid said austerity measures will have a backlash on lesser-known hotels or those with short track records as more companies are leaning towards hotel chains that have a uniform service level across all countries where they are located.

"There are now austerity measures being placed by companies with regards to travel. Companies are now more price conscious and are spending more prudently. There is a flight towards the trusted brands and consistency of service. Right now, companies are looking for good internet access and efficient check in and check out when booking hotels," Villadolid said.

Villadolid said the new approach by companies in their travel plans may lower by at least 10 percent hotel occupancy in Metro Manila this year.

In the first 11 months of 2008, the hotel occupancy rate in Metro Manila was down 3.31 percent year-on-year. There are 81 hotels in Metro Manila with a combined capacity of 14,344 rooms.

"There is already a downturn last year among the hotels. As the Philippines begin to feel the impact of the international financial crisis and the cutbacks in corporate travel, we might see a lot of Metro Manila hotels with lower occupancy levels," Villadolid said.

Thus, he added, local hotels should come out with innovative packages to be able to maintain competitive edge during the tough times.

Amadeus Philippines has a global distribution system that allows travellers to access more than 100,000 hotels worldwide and scan for room availabilities.

Aside from its extensive hotel database, Amadeus Philippines also entered into a partnership with Transhotel, a global consolidator of hotels and services.

his allows Amadeus Philippines to provide the lowest possible rates to 5,500 hotels in Asia including the Philippines. Amadeus has been in operations in the country since 1997.