Budget-friendly lodging in Cebu

By Cris Evert Lato
Cebu Daily News
First Posted 02:42pm (Mla time) 12/24/2008

Filed Under: Hotels & accommodation, Tourism & Leisure,
Tourism, Economy and Business and Finance

Part 1

CEBU CITY, Philippines - Gone are the days when domestic travelers preferred posh five-star hotel
accommodations to make a Cebu visit complete.

Today’s business and leisure travelers want a place where they can securely leave their luggage while
enjoying the country's oldest city, where they can roam the malls, meet clients, or for the more adventurous,
explore dive sites and beaches.

“There is really a market for this (affordable) type of accommodation especially among domestic tourists. Our
tourists have learned to stay in bed-and-breakfast types of accommodation as long as they are clean and
secure,” said Jennifer Franco, chairperson of the National Association of Independent Travel Agencies
(Naitas) Cebu chapter.

Franco said these accommodations come just in time as the economic crisis is expected to slowdown both
domestic and international travel especially in the first two quarters of 2009.

Two new budget-friendly establishments — Grand Prix Econotels and Resort on corner F. Ramos St. and Gen.
Maxilom Avenue, and Sugbutel Bed and Bath on S. Osmeña Boulevard corner Road East at the North
Reclamation Area — opened between August and December of this year to cater to this growing market.

The principle is basic: provide tourists with high quality accommodation and amenities minus the high room
rates of deluxe hotels and resorts.

Cebu opening

Earlier, Tourism Secretary Joseph “Ace” Durano said domestic and inter-regional tourism would fuel the
conservative four to seven percent annual growth rate of the industry.

This trend is evident in Cebu where local tourists from Cagayan De Oro, Davao, Bacolod and Manila among
others, come to Cebu for business and leisure activities.

“Staying in a good place does not need to be expensive. The challenge, however, is to make the people aware
that this accommodation type is available,” said Jo Ann Castillo, corporate sales and marketing director for
Visayas and Mindanao of Grand Prix.

Grand Prix Econotel, which is owned by the Victory Liner Group, was first established in Edsa Cubao and Pasay
in Metro Manila as lodgings for bus passengers to use after long hours of travel.

Castillo said they decided to bring the econotel concept to Cebu on August 2008 to address the need of
provincial travelers.

An econotel, short for economic hotel, carries the basic amenities of hotels with room rates comparable to
pension houses.

Development plans started on August 2007 after seeing the strategic location of the Coast Pacific Business
Center on corner F. Ramos St. and General Maxilom Avenue.

“Cebu is the destination of choice for both business and leisure. We believe there is a potential for this
accommodation in Cebu especially with the economic crisis,” Castillo told Cebu Daily News.

Since the econotel opened in August, Castillo said it has enjoyed a monthly occupancy rate of 70 percent to 80
percent monthly.

Overnight room rates for standard to suite rooms range from P899 to P1,999 while executive rooms of superior
and family suite types are priced between P999 to P2,500.

“Our guests have been a mixture of provincial travelers from Cagayan De Oro, Davao, Manila. We also have
business people, lawyers and medical representatives. It's really a good mix.”

To generate corporate accounts, a meeting room, which can be divided into two smaller units, is being built. This
will be completed next year.

Grand Prix Cebu has 12 standard rooms, seven superior rooms, four deluxe rooms, eight deluxe premium rooms,
two family rooms, two junior suites, two suites, and two family suites. These make up the econotel's total of 39 rooms. The rooms are located in the third and fourth floors of the buildingAll rooms have flat-screen television units with cable connection, a hot and cold shower, mini-double bed with plated breakfast service.

Executive rooms are furnished with a dresser and working table. Junior and family suites are furnished with a wide television screen, a mini-refrigerator, microwave oven, coffeemaking facilities and bath tubs in the comfort rooms.

Other amenities include electronic door lock system, elevator, automatic fire alarm and sprinkler system and Wi-Fi
(wireless fidelity) Internet access in all rooms.

Value for money

“It's really value for money for our guests. Let's face it, guests do not stay in the hotel a long time because they go
out, shop or have other activities. They come back at around 10 in the evening to rest. What they really need is just
a place to sleep and relax,” said Castillo.

“The market is wiser now. They do not seek expensive accommodation. So what we are doing is address that
need. We're giving them an alternative.”

While business is not robust this month, Castillo said they expect near full-occupancy in the first two quarters of
next year brought about by the Sinulog festival and the longer vacation period.
Noting the good public response with the first Grand Prix Econotel outside of Manila, the company plans to open
another econotel in the Cebu Business Park.

Plans are not yet final, Castillo said.

“But the general movement of the econotel concept is to really locate in city centers to get the business and leisure
markets. We need the visibility to generate these guests.”
The price may be affordable but Castillo said the management ensures that quality service is still a priority of
econotel staff.

“The kind of service may not be as personalized as that of five-star hotels but we know the importance of good
service. We value regular guests and clients and we see to it that complaints are attended to immediately,” she
said.

Laying the groundwork in raising awareness of the econotel concept has been challenging for the management.
Castillo said, they are putting up a good fight to get the public's attention.

“We're getting there. We've done most of our advertisements through direct marketing. Go directly to
companies...printed advertisements. We also have set up standards for econotel types (of accommodation).”
With many consumers saving money for primary needs such as food, clothing and shelter as the effects of an
economic crisis deepens, some economists say travel may be a priority set aside for now.

However, with the existence of alternative accommodation types, those in the travel industry believe otherwise.
Domestic travel will continue, they said, as most market suppliers adjust to the travelers’ demand. (To be continued.)