Quantum sees a bright 2013

MANILA, Philippines - “All the signs show it is going to be a good year.”

Thus declared Quantum Hotels & Resorts (QHR) president John Cole when asked how the company is faring in 2013. The statement comes with good reason, and it is more than just increases in revenue. For starters, there is the addition of a new property to its portfolio, Hotel Stotsenberg & Casino in Clark. Quantum is on a full sales and marketing arrangement with Hotel Stotsenberg, and although this latest agreement is just a couple of weeks young, Cole says they are confident that Quantum will be able to hit the hotel’s target revenues in the quickest time possible.

“The prospects for this property are looking very good,” Cole says. “We have completely redesigned their website and bolstered their online marketing component. The hotel’s selling points are already there: a great property with 200 rooms, a huge swimming pool, a modern casino, convention space and much more. It is just a matter of making their online presence more visible and informative.”

“This is a great opportunity for a non-managed property and Quantum to work together,” he adds.

Indeed, Quantum has gone full-on with online services as a means to improve occupancy and revenue among its properties, added onto its Makati-based traditional direct sales support. Before anyone mistakenly thinks that it is simply a matter of setting up “just another website,” it has to be made clear that Quantum’s approach is more comprehensive and thorough.

Cole says that, in terms of online sales and marketing, Quantum has full international online marketing services in coordination with reservation platforms and the necessary face-to-face contact by the sales staff.

“Putting these elements in place has greatly helped us in terms of occupancy and room rates, and expanded market awareness of our managed properties. All our Makati properties — BSA Suites, BSA Tower, One Pacific Place, and our Ortigas Center Malayan Plaza — are exceeding our targets.”

With the online factor, Quantum made its miniature version of a full-service hotel management and marketing company. Through this component, the company is able to measure and gauge the improvement in its rates, yields and occupancies. The approach has, happily, worked in their favor. Cole gushes, “We are adding significant revenues to our hotels well beyond what we had hoped.”

The new services were developed over a span of three years. Quantum has expanded its online division team, which does online marketing, reservations, search engine optimization, social networking, online newsletters, e-mail campaigns and more. This early, the effort is paying off in terms of improved revenue production.

“It is a significant change in direction mainly because it is needed more in the market by independently owned and managed hotels; those that usually do not have the marketing tools or the ability to market internationally like the larger brand or franchised hotels. This also adds the ability to purchase discounted advertising for our members and clients,” Cole says.

Cole adds: “We are going beyond the standard management model for independently owned or operated hotels. We give them more of what they need, added room revenues. In addition, we are also able to give them expanded exposure in the marketplace in terms of all the whistles and bells that the bigger management companies offer. Quantum is now going out into the marketplace to promote our online and direct sales program to independently owned properties. A one-stop sales and marketing shop, for independents, that represent the majority of Philippine hotels.”

The strategies have thus placed QHR in a good position. The group is able to use its sales and marketing tools more effectively without relying on third-party companies. Cole says that unlike what the bigger and more established online travel agents do, QHR focuses on the comprehensive marketing of its hotels, using the hotel’s name. The focus is on a limited number of hotels’ using only their brand name and facilities at all times.

“With us, we give a great deal of information on the individual property. We do more than just show pictures. We distribute the brochures of the hotel, market the hotel name online and off, and build the hotels name, not ours. In terms of ownership, the individual owners want awareness of their hotel. So that is what we do. If I were an owner, I would appreciate these types of services.”

Cole affirms that keeping their market midrange works to their advantage. “The rising middle class market in Asia stays in the three- or four-star range hotels. That is where the market is growing exponentially, what with all the budget airlines, with all the people in Asia entering the middle class with the extra money to travel. This middle class watches their money, while corporate travelers are watching their budgets. I think the real growth is in the midrange.”

Quantum is expecting to expand its portfolio more with both management and marketing services in the future, with properties in Manila and Cebu waiting in the wings.