Underpromise, overdeliver

Throughout its six years of existence, Herald Suites has successfully marketed itself to a loyal clientele of Japanese. As a result, the 60-room boutique hotel on Pasong Tamo in Makati City has an average occupancy rate of between 70% and 84% and annual revenues of over P35 million.

"Underpromise, overdeliver. That’s what we do," said sales and marketing director Elaine Mercado. "We’ve learned that our customers appreciate small things like being personally handed a wet towel or oshiburi upon checking into their room. Or having the general manager chat with them over breakfast to find out what they want or need. There is always that personalized touch that they remember us for."

To further enhance its services, the 42-man hotel staff go through Nippongo language training. A culture around highly regarded values of loyalty, honesty, and caring has also been developed.

"Handling Japanese accounts requires some finesse. They like Herald Suites because we are able to show our sincerity in helping them get the service they want. The business relationships become friendships and we are able to meet their expectations," she said.

Challenge

Owned and operated by Nipad Inc., Herald’s current challenge is how to recover business lost due to the SARS (severe acute respiratory syndrome) advisories against the Philippines. A travel ban against the Philippines early in the year drove down occupancy in the first half to 65%.

"Because of our niche market, we became vulnerable when the travel ban was imposed," said Mercado.

To cope with the temporary decline in Japanese guests, Herald has enhanced its relationship with neighboring business establishments, especially pharmaceutical companies and non-government organizations.

The hotel has also used the first half downtime to refurbish its rooms, further train hotel staff, and pursue its quarterly sales blitzes.

Planning ahead, Nipad owner Nicanor Padilla III is all set to build the second Herald Suites in Eastwood City in Quezon City. The new hotel, which is set to break ground within the year and will be finished in 18 months, will have 100 rooms and banquet facilities, in response to the demand of current customers for bigger meeting rooms.

"Due to our limited capacity, some guests get bumped off during peak season. With a second hotel, we have somewhere to place them," Mercado said.