Case study 4 - Resort repositioning

Client: a Filipino-Australian joint venture set up in 1982

Background: Boracay Island, with its fine white sandy beaches and azure blue waters, is located on the north-western tip of Panay, Western Visayas in the Philippines. The site was in a premium location, touted as the 'finest beach in the world'. The water surrounding the island is shallow and the sand is powder-fine and brighter than most beaches in the archipelago. Flying time to Boracay is approximately one hour from Manila.

Consultant/s: Katrina Craig

Project date: October 1996 to November 1998

Project objective: to convert an existing 18-room resort that appealed to the local market into a 48-room boutique resort that could command premium prices and appeal to an international clientele.

Project scope

• Complete renovation, re-planning, and expansion of resort rooms (from 18 to 48)
• Renovation of restaurant and reception area
• Installation of stand-alone generators
• Installation of waste-water treatment and recycling system
• Addition of massage hut, resort shop, and dive centre
• Addition of swimming pool and function-room complex
• Upgrade of both front and back office MIS systems
• Overhaul of management and sales teams
• Recruitment and training of staff
• Marketing strategy preparation and re-launch to media, travel agents, and key accounts

Methodology

• A thorough screening of architects, designers and engineers was undertaken to recruit the appropriate project team
• Designs were governed by the prescribed guidelines of the International Hotels Environmental Initiative, an organization founded by the Prince of Wales
• Wherever possible, locally-sourced materials and locally-crafted furniture, fixtures and equipment should be used
• A tender process for the management information systems was carried out and long-term maintenance contracts were negotiated
• In preparing the marketing strategy, field and desk research was undertaken and the new branding and advertising campaign were tested on key influencers

Results

• Since the completion of the project, the client has seen its annual revenues increase by over 250%. Annual occupancy rates have remained above 90% since the year 2000, whilst average room rates are the highest achieved on Boracay Island.
• The resort has won numerous awards and consistently enjoys good reviews in international guidebooks

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