Quantum’s leaps & bounds

MANILA, Philippines - Earlier this year, Quantum Hotels & Resorts president John Cole predicted that “2013 will be good.” The announcement proved to be an understatement as Cole happily declares that Quantum’s performance exceeded their company’s expectations.

“Our revenues have been higher than our forecast, same rings true with our gross operating profits,” Cole begins. “We could not be happier.”

He states that the success owes itself to the hotel management company’s year-old online real-time reservation system, and the online sales and marketing services that support it. Both systems, he says, took years to develop and perfect in-house. When the systems were finally launched in December 2012, these ushered in a new level of financial competence for our managed hotels.

“By developing our own booking system, we no longer rely on large third-party online travel agents for all our marketing, technology, or customer awareness. We are now in control. Our expenses in doing so are lower, and rates more flexible than relying exclusively on multinationals portals,” he says.  

The result? “We increased our online revenues almost five-fold through our hotel website and booking engine. It has been very exciting, a new segment of the business that we have always wanted to get into. When we were starting out with these revenue-generating systems, it was quite a challenge in time and resources. It has now been operational for one full year, and it is more of a success than hoped for,” he says.

The online platforms allow Quantum to promote its managed hotels more efficiently and expansively. “In short,” he stresses, “we more than manage hotel operations, we now raise market awareness and drive revenues into them, which completes our full service goal.”

Yield management is employed as well. He explains: “We use it so the client can find better rates by going directly to our websites and booking engine. It makes sense for independent hotel owners and a management company like Quantum. Through it we lower our third-party service fees and control our own room rates and yields, expand revenue flows and marketing of our managed properties.”

The move likewise gave Quantum a more thorough, insightful understanding of the modern traveler. Cole observes: “Most travelers are more technically savvy now. Secondarily, they are very price-conscious. We have noted the days that we receive the bookings and the geographical location from where they come. A slight change in pesos or dollars can cause them to go to a competitor. Yet when demand is high we maximize the rates to improve the hotel yields.”

While it may seem intimidating to face modern-day demands, he reiterates that it is good for both hotels and travelers. “The clients now have far more information when they travel before getting to a hotel or destination. Such freedom offers a better rate to benefit of travelers, while also lowering the service fees that benefit hotel owners.”

“These things have proven to be very educational for us and our hotel management teams. Our sales and marketing staff, through the additional client and market information we gather, now understand online clients even more. We collectively see that the demands of online customers are usually quite different from other sources of business, whether corporate business or wholesale clients. They are more sophisticated and demanding in what they want in the product. By experience, our managers have learned how to coordinate and ensure that these guest expectations are met,” he says.

With this level of confidence, buoyed, of course, by the success of the online components, it is no surprise that Quantum has its eyes set on further expansions in 2014.

“It will be the year of expansion of our online reservation and marketing systems. We will offer our services primarily in the Philippines because this is something that independent hotel owners, without an international management company, need. We offer lower priced online services under the hotel name. We target independent hotels to allow them to compete on a level field with both the franchised hotel groups and the big-brand online travel agents. With improved revenues, independent hotel owners will get a better return on their investment,” he adds.

“Everything is in place now for expansion. With our system 100 percent operational, we are going to allow independent hotels to develop their own brand and market awareness. The new year should be very interesting,” Cole concludes.