LAGKAW Bed and Breakfast STUDY

LAGKAW BED & BREAKFAST
A PROPOSED ACCOMMODATION FACILITY IN MOALBOAL, CEBU

Panagsama Beach, Basdiot, Moalboal, Cebu
A Feasibility Study
Presented to the Faculty of University of Cebu-Banilad
College of Business and Accountancy
Cebu City, Philippines
In Partial Fulfilment
Of the Requirements for the
Degree Bachelor of Science in
Business Administration
By:
Alfeche, Mary Elaine G.
Wagas, Leilen D.
Wagas, Rhea B.
Ching, Brian Patrick B.
Sumalinog, Riza Mae M.
Cepris, Jorica Nicole Q.
March 2019
AKNOWLEDGEMENT
The successful completion of this feasibility study would not never have been
possible without the utmost support and help of certain individuals amidst their busy lives.
We, the proponents of this study, would like to extend our utmost gratitude to these
respective individuals.
First and foremost, the Almighty God for giving the researchers the opportunity to
have and fulfill this experience.
To Dr. Christopher C. Biore, Chairperson of the College of Business and
Accountancy, we would like to give our sincerest thanks whose support and positivity we
will forever value.
To our adviser, Mr. Marvin Naraja, who gave us his full trust and confidence all
throughout the completion of this feasibility study.
To Mr. Erik Legaspi, who shared his expertise in accounting with par willingness,
enabling us to complete this study accurately, enveloped with full justification in our
financial plans.
The researchers also acknowledge the Budomo Family for the accommodation in
every overnight preparation, and to our beloved family and friends, who have greatly
extended their support and patience to us all throughout this journey.
Strong Power! Thank you!

Table of Contents
Page no.
Executive Summary
A. Type of business 1
1. Nature 1
2. Name 1
3. Service 1
B. Management, Marketing and Financial Highlights 2
Part 1. Preliminary Feasibility Study
I. Background of Feasibility study 5
II. The Research 6
a. Selection of Service 6
b. Theoretical Background 6
c. Survey 8
d. General Statement on Viability 14
e. Statement of Risks and Mitigants 15
Part 2. Marketing Plan
A. Services to Render 17
B. Justification on Market Viability 17
C. Target Market 18
D. Demand and Supply Analysis 22
E. Existing Competitors 23
F. Marketing Program/Strategies 24
G. Marketing Expense 27
Part 3. Technical Plan
A. Technical Service Description 29
B. Service / Operations Process 29
C. Operations Schedule 31
D. Labor Requirement 31
E. Equipment Requirement 32
Table of Contents
Page no.
F. Direct Materials Requirement 40
G. Cost Tracing 40
H. Location 41
I. Layout 42
J. Waste Management and Disposal System 44
K. Quality Control System 45
Part 4. Organizational Plan
A. Legal Form of Business 47
B. Organizational Structure 47
C. Qualification of Officers 48
D. Office Supplies and Equipment 49
E. Gantt Chart of Activities 50
F. Administrative Expense 52
Part 5. Financial Plan
A. Total Project Cost 54
B. Project Cost Allocation 55
C. Statement of Financial Assumptions 56
D. Projected Financial Statements 57
E. Schedules 60
F. Financial Ratios and Profitability Indices 72
Part 6. Taxation Plan and Socio – Economic Contribution
A. Permits and Licenses 75
B. Tax Incentive and Distinctive 75
C. Project Benefit Analysis 76
D. Social Impact of the Project 76
REFERENCES
APPENDICES
CURICULUM VITAE
Executive Summary
1
A. TYPE OF BUSINESS
The business is a Bed & Breakfast service located in Panagsama Beach,
Basdiot, Moalboal, Cebu.
1. Nature of the Business
LAGKAW Bed & Breakfast is a sole proprietorship business. It is a small
lodging establishment which offers overnight accommodation that comes with
breakfast. It provides our customers who are in a budget the comfortable stay while
they are on vacation in Moalboal, Cebu.
2. Name of the Business
The name of the business is “LAGKAW Bed & Breakfast.” LAGKAW is
a Visayan word which roughly translates to “a makeshift shelter for staying in
temporarily.” It also represents a place where people hang out and rest; or where
two lovers meet.
3. Services
LAGKAW Bed & Breakfast is designed to meet the needs of the modern
travelers, which combines comfort, convenience, and the renowned Filipino
hospitality and service. Located in the southwest of Cebu, it is two kilometers away
from Gaisano Grand Moalboal and Town Center Mall, and approximately 86
kilometers from Cebu City and along the coastline of Panagsama beach road.
Executive Summary | LAGKAW BED & BREAKFAST

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The proponents prioritized the most important factors the travelers mostly
needed: privacy, comfort, affordability, and cleanliness. All rooms have all the
standard amenities: clean and comfy beds with fresh linens, private bathrooms,
good lighting, and air-conditioning. Also, they are provided with free breakfast the
following morning before they go along their day. The common area of the facility
is a place where travelers can mingle to fellow travelers and a suitable place to meet
new friends and even make better memories.
B. HIGHLIGHTS OF THE PROJECT
Management
The proposed business will be in the form of sole proprietorship and
operates 24/7 with (3) guests’ attendants, (2) housekeeper, and (2) kitchen staff. It
is registered in the different government requirements like DTI (Department of
Trade and Industry) permit, business permit and barangay clearance, Mayor’s
permit and BIR registration for it to be legal. It is also registered to the BMBE
(Barangay Micro Business Enterprise).
Marketing
The proponents are engaging different marketing and promotional strategies
like using social media sites such as Facebook, Instagram, and Twitter. These
techniques are accompanied by competitive marketing analysis conducted by the
proponents.

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Financial
The proponents’ initial capital is P 5,000,000; with this capital requirement,
the business can run and generate profit from the first twelve months of operation.
The return on the capital investment is projected to be thirty-nine percent on its first
year. The payback period is within two years and seven months.
Socio-Economic Contributions
The proposed business contributes socio-economically as it employs local
towns people. Also, by bringing in guests, it could help with the town’s tourism
economy. It is paying government taxes which is used for the different public
projects and programs. The business is not only for generating profit but is also
aimed to render services and products to the public.
Figure 1. Logo of the enterprise

Part 1. Preliminary
Feasibility Study
5
I. BACKGROUND OF THE FEASIBILITY STUDY
Due to the same hobbies which are traveling and staying in different places
that are shared by the proponents among themselves, it became the existence of this
study. As they happened to visit and enjoyed the beach coastlines in the Southwest
side of Cebu, they have benchmarked and observed the need for the travelers as to
accommodation aspects. They have thought of a business to meet such demand and
came up with bed & breakfast services.
A bed & breakfast, typically shortened to B&B, is a small lodging
establishment that offers sleeping accommodation for the night and a morning meal
by the next day. Often, they renovate family homes that convert it to have between
four and eight rooms, with 6 being the average. As it supplies what the name
suggests, the bed is usually very comfortable, and the meal is the equivalent of a
homemade breakfast in contrast to what are supplied in a large hotel. These
facilities are often run by local town’s people who contribute to the friendly
atmosphere for travelers who are away from their own homes.
There several established B&Bs in neighborhoods rather than the business
or shopping district of a town, so the guests can experience firsthand the typical life
in the area as opposed to what is frequently seen by tourists. Still, there are B&Bs
offered in large cities, in popular destinations and even in unexpected places.
Overall, a bed & breakfast is generally aimed to create an atmosphere of
romance, coziness, relaxation, and appeal – aspiring for a memorable guest
experience as it provides the essentials of a traveler.
Part 1. Preliminary Feasibility Study | LAGKAW BED & BREAKFAST

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II. THE RESEARCH
A. Selection of Product or Service
Every time we travel; we look for a place to stay in somewhere that we feel
is still at the comfort of our own home while experiencing new things in an
unfamiliar town. And booking a hotel room cost quite a lot of money which you
could instead use on your other travel expenses. What use is your luxurious hotel
room when you are paying for all its amenities which you cannot all exhaust by the
end of the day? Hotels will also charge you for a lot of extra services, even for a
bottle of water, meaning you’ll end up paying a lot more than the sticker price in
the end.
However, there is an answer for those seeking out to journey and cross-out
travel goals off their bucket list, and it doesn’t mean paying more. The concept of
a bed & breakfast provides the necessities of a traveler; a roof over his head, a bed
to relax in, and food for his stomach. You’re likely to save money by choosing a
B&B near tourist spots and popular destinations.
B. Theoretical Backings of the Service Selected
In the Philippines, staying in Bed & Breakfast facilities while traveling has
been prevalent for the past decades, but the term is not widely used. They are
usually as any other accommodation facilities that offer breakfast as a
complimentary service. The term Bed & Breakfast is just newly introduced to the
growing market due to the popular demand for affordable stay-in places which are
recently houses that offer room accommodations to travelers. Also due to the rising

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popularity of Airbnb which is inspired by the concept of bed & breakfast. (Talavera,
2016)
With the flourishing travel and tourism sector, it is presently driving the
growth of many industries, among them is real estate as the influx of foreign and
domestic travelers looking for new hotels and resorts projects. There is a continuous
growing market that is primarily driven by millennial travelers. (Remo, 2018)
The age range that mainly composes of millennials and closes to their ages
are found out to be fond of traveling. In a survey conducted by the Philippine
Statistics Authority, three out five Filipinos aged 15 years and above, or 60% of the
population, have already traveled within the country. More than half of the
domestic travelers were in the ages 15 – 34 years old (Household Survey on
Domestic Visitors, 2016).
Filipinos as always love to travel and an electronic travel survey conducted
by Agoda revealed that among Asia-Pacific’s (APAC) domestic travelers, Filipinos
were found out to be the region’s most avid backyard explorers. It suggests that
Filipinos prefer to visit and explore the countless untouched natural wonders of the
country in addition to its already revered tourist spots, especially the country’s top
three travel destinations being Manila, Boracay, and Cebu. (Agoda’s Travel and
Tech Study, 2017)
Colliers International Philippines believes that Cebu is one of the most
attractive locations, as they encourage investors to build budget hotels to cater to
the growing demand in the market (Remo, 2018).

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Also, an interview with Cebu Chamber of Commerce and Industry’s
tourism committee chairman Edward Ortiz, he stated that as Cebu is famous for its
natural attractions, people are increasingly coming to visit the countryside.
However, the destination could no longer accommodate them. There is a need for
more hotel rooms. He mentioned Moalboal as the top destination that needs more
accommodation facilities. Based on his discussion with Moalboal Mayor Inocentes
Cabaron, the town at present doesn’t need more tourists, but more rooms. (Cacho,
2018)
C. SURVEY
On the last week of January 2019, the proponents conducted a market
survey. Fifty people were randomly picked to be the respondents. They are
composed mostly of college students, young employees and some professionals
from Cebu City and Mandaue City that belong to different demographics.
Part one of the survey includes personal aspects, e.g., age and gender. The
second part talked about the viability of the accommodation facilities. The third
part revolved around the respondents’ price satisfaction, and the fourth part is the
location preferences. The last part is the respondents’ preference for looking into
accommodation establishment. The data gathered in the study is through using
questionnaires. The tables below show the statistical results of the survey
conducted.

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Table 1
Profile of the Respondents
N = 50
Profile Frequency Percentage

Age
15 – 19 6 12%
20 – 24 23 23% - Highest
25 – 29 10 20%
30 – 34 7 14%
35 – 39 4 8% - Lowest
Gender
Male 12 24% - Lowest
Female 38 76% - Highest
Economic Status
Employed 26 52% - Highest
Unemployed 1 2% - Lowest
Self-employed 3 6%
Student 20 40%
Table 1 shows the demographics’ data out of the fifty respondents. Twenty-three
percent were between ages twenty to twenty-four, and eight percent composes of ages
thirty-five to thirty-nine. As to gender, the females comprised seventy-six percent while
the males are twenty-four percent. As to the respondents’ economic status, fifty-two
percent are employed, followed by 40% that are students. It shows the variations in the
respondents to achieve more wide-ranging results.

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Table 2
Respondents’ Choices
N = 50
Questions Yes % No %
1. Do you consider traveling to 50 100% 0 0%
Moalboal, Cebu?
2. Do you stay in accommodation 42 84% 8 16%
facilities when traveling?
3. Are you a budget traveler? 50 100% 0 0%
4. Are you familiar with Bed & 38 76% 12 24%
Breakfast?
5. Will you recommend or want to try- 46 92% 4 8%
out Bed & Breakfast accommodation?
The data above shows that 100% out of fifty (50) respondents consider going to
Moalboal, Cebu and 42% stay in accommodation facilities while traveling. All respondents
are budget travelers and an equivalent of 76% that are familiar with Bed & Breakfast while
92% are willing to recommend or try it out.
Table 2.1
Respondents’ choice of accommodation rooms
N = 50
What room type of accommodation do you Frequency Percentage

prefer?
Couple 19 38%
Family 14 28%
Barkada/Group 17 34%

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The data in table 2.1 shows that accommodation preference may vary on who’s
with them during their travel. People bringing their special someone usually stay in a
couple room accommodation type while being with the whole family means a bigger room
is needed and going with a group of friends requires a much bigger room.
Table 2.2
Respondents’ choices in the number of days spent in travel
N = 50
How many days do you usually spend Frequency Percentage

traveling?
1-2 days 22 44%
3-4 days 18 36%
5-6 days 8 16%
7-8 days 2 4%
Table 2.2 shows that 44% out of fifty (50) respondents travel within 1-2 days, and
36% travel for 3-4 days. The data indicate that employed people and students may travel
only during the weekends or perhaps when a long holiday is on the calendar.
Table 2.3
Respondents’ choice of service
N = 50
Which accommodation do you prefer? Frequency Percentage

With Breakfast 42 84%
Without Breakfast 8 16%

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Table 2.3 shows that majority of the respondents choose to stay in an
accommodation facility with free breakfast services. It is already a given that people go for
services which offer more complimentary services such a free breakfast on a lodging
establishment. It is understandable that while forty-two percent prefer with free breakfast
that the remaining eight percent doesn’t. Some don’t mind it as a factor in choosing
accommodation.
Table 3.
Respondents’ Price Satisfaction
N = 50
Are you satisfied with the following prices for each Yes % No %
specific accommodation type?
Standard / Couple Room (good for 2) 48 96% 2 4%
- P1,500
- Queen-sized bed, air-condition, private toilet
and hot n’ cold shower, free breakfast for two
Family Room (good for four) 45 90% 5 10%
- P2,500
- Two (2) Queen-sized beds,
air-condition, private toilet and hot n’ cold
shower, free breakfast for four
Group / Barkada Room (good for six) 43 86% 7 14%
- P3,500
- Two (2) Bunk beds (lower bunk: queen-size,
upper bunk: twin size),
air-condition, private toilet and hot n’ cold
shower, free breakfast for six
Table 3 data shows that majority of the respondents are satisfied with the prices
given by the proponents to each specific accommodation type with inclusions of its

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amenities. The room rates that we have provided here are the room rates of the existing
competitors. We offer our rooms at prices that are comparably lower than them while
providing the same services and even offering so much more. For the Couple room, ninety-
six percent are satisfied with P1,500 while for the Family room ninety percent agrees with
the room rate of P2,500. For the Barkada room, eighty-six percent are satisfied with the
price of P3,500.
Table 4
Respondents’ preference in selecting a place to stay in
N = 50
What location do you prefer? Frequency %

- In the city 8 16%
- In the rural areas 6 12%
- Near terminals (airport, bus terminal, or port) 3 6%
- Near business establishments (malls, amusement parks, 3 6%
or recreational areas)
- Near tourist spots (beach or mountain resorts) 30 60%
Table 4 shows that 60% of the respondents prefer locations near tourist spots which
makes it understandable that if they are looking for relaxation then better do it in scenic
places. What better place to stay while on vacation that places located near tourist spots?
Whether you want to wake up with the sound of birds at a lush green environment or the
calming sound of the waves of the ocean through your open window. Well, it is already a
given that people would seek out these places when they are burned out of the busy city
life.

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Table 5
Respondents’ preference in searching for accommodation
N = 50
Where do you search for accommodation services? Frequency %

- Social media (Facebook, Instagram, Twitter) 33 66%
- Booking websites (Airbnb, Booking.com Agoda, 15 30%
Trivago, Expedia, Traveloka)
- Flyers, Brochures, Local Signboards, Tarpaulins 2 4%
Table 5 explains that people nowadays have evolved when it comes to the use of
internet technology, the data itself shows that social media communities namely Facebook,
Instagram, and Twitter have dominated the way people look for accommodation facilities.
With this, internet marketing technology offered the masses lots of options in searching for
their preferred accommodation.
D. General Statements on Viability
➢ Compliance of business requirements and licenses

➢ Efficiency and effectiveness of business operations
➢ Healthy organizational environment
Management
➢ Full responsibility and administration by the
entrepreneur
➢ Increasing demand from customers

Marketing ➢ Full blown advertisement of the services
➢ Social and environmental awareness and engagement

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➢ Proper maintenance of furniture and appliances

Technical ➢ Proper waste disposal management
➢ Quality control from regular inspection
➢ High sales and return every year

Financial ➢ Cash inflow greater than the outflow
➢ Assumptions based through the market survey conducted
E. Statement of Risks and Mitigants
ASPECTS RISKS MITIGANTS
Passive-aggressive Perform routine check on the

behavior of employees performance of employees and meet
their concerns.
Management
Theft Use of security controls like CCTV

cameras
Market might get Continue surprising customers with

Marketing saturated in the location discounts and new promo packages.
Power shortage and or Must have a power generator enough to

Technical blackout keep appliances running to provide
ventilation and lights
Mismanagement of Weigh and analyze decisions on its

Financial funds performance.

Part 2. Marketing Plan
17
Vision
Create an affordable shelter that gives an ambiance of coziness, relaxation,
and appeal – aspiring for a memorable guest experience as it provides the essentials
of a traveler.
Mission
To provide quality services and customer satisfaction
A. Services to Render
LAGKAW Bed & Breakfast offers overnight accommodation and a morning
meal. We house a total of eight (8) air-conditioned rooms. Four of them are
Standard/Couple rooms which are suitable for two people, two Family rooms good for
four people and other two Group/Barkada rooms which can accommodate six people.
All room types have an air-conditioning unit, private toilet, hot n’ cold shower, flat-
screened TV, cabinet, and table. Each room package comes with free breakfast
equivalent to the number of guests the room can accommodate. Kids ages seven years
and below are free of charge. The establishment also has scheduled movie and karaoke
nights in the common area and offers special promo packages for returnee guests.
B. Justification on Market Viability
Moalboal is one of the top travel destinations in Cebu. Hundred percent of the
respondents are considers traveling to Moalboal. Based on the survey conducted, 92%
Part 2. Marketing Plan | LAGKAW BED & BREAKFAST

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of the respondents would recommend or want to try out Bed & Breakfast services as
they’ll look for budget-friendly places to stay. Furthermore, 44% of the respondents
are fond of traveling for 1-2 days, and 36% of the respondents go for 3-4 days.
Therefore, people are more likely fond of overnight staying regarding traveling.
Because of that, the target market will surely avail the service; thus, it makes the
business viable in the market.
C. Target Market
Area Coverage
Panagsama, Basdiot, Moalboal, Cebu is the perfect location for LAGKAW Bed
& Breakfast that aim to offer decent quality accommodation services and breakfast
meal to aid the traveler’s necessities while exploring the wonder and beauty of the
coastal town. The proponents chose this location for it has a good potential of
continuous development as well as it is a place that would never disappoint first-time
travelers.
Moalboal is a more progressive town in comparison to its neighboring
municipalities. Two kilometers from the property, are Gaisano Grand Mall and Town
Center Mall which have famous fast-food chains, department stores and grocery market
which makes it easy for travelers to find what their necessities in just one place. The
layout of Moalboal makes its center, Poblacion accessible to all areas. You can find
their church, marketplace, plaza, municipal hall, and the beachfront by taking a 360°

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turn in this intersection. Also, just by riding or renting out a tricycle for less than a
hundred pesos could get you to famous tourist spots already.
Target Market of the Business
Professionals/Young Employees
5%
25% 40% Students
By-Passers
30%
Others
Figure 2
Pie Chart of Target Market
Consumer/Customer
The primary target of LAGKAW Bed & Breakfast are the young professionals
and employees that look-out for budget-friendly accommodation in a weekend
escapade to Moalboal, Cebu. Students who also want to make out of everything of what
little money that they have for travel goals. Wandering tourists that are on an
adventure, with no specific place in mind, are still welcome to come through our doors
and experience our services. These types of people are generally active on social media
and love to take on challenges that are gaining traction all over the internet community.
Journeying to an unfamiliar place and experiencing its beauty with only a minimal
budget, these people would most likely stay in affordable places which is what
LAGKAW Bed & Breakfast offers.

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Table 6
Traveler’s Data in Moalboal, Cebu
Travelers 2016 Growth 2017 Growth 2018

rate rate
Foreign 17,164 21.71 % 20,891 27.42 % 26,620
Local 29,062 18.59 % 34,465 20.73 % 41,613
Total 46,226 19.75 % 55,356 23.26 % 68,233
Table 6 shows the traveler’s statistics data reported by the Department of
Tourism, categorized as Foreign Travelers, and Local Travelers absolutely from the
years 2016- 2018.
For the year 2018, the proponents found that 11.13% or approximately 7,595
travelers cannot be accommodated by the existing competitors. This figure is expected
to be the proponents’ existing demand. The total number of travelers consumed by the
twenty-six direct competitors comprises of 88.87%. The proponents, therefore,
concluded that given the numbers above, there is indeed a very high demand for lodging
accommodation in the area wherein a bed & breakfast can fit to provide such services
to the increasing number of travelers.

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10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Figure 3
Estimated Monthly Travelers Arrival to Moalboal Data
The peak months for travelers’ arrival to Moalboal are January, April, May,
November, and December. Given the summer season and the number of fiestas, April
and May have the highest peak of traveler’s arrival. They are followed by the months
from November to January which is frequented by tourists due to the holiday season.
The months from June to August are the least months with travelers’ arrival due to the
rainy season however foreigners are still most likely to travel during these months
because these are usually during summer in their countries.

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D. Demand and Supply Analysis
Table 7
Demand and Supply Analysis
Standard/Couple Family Room Group/Barkada Room

Room (2 pax) (4 pax) (6 pax)
Months Demand Supply Demand Supply Demand Supply
Jan 96 120 48 60 45 60
Feb 89 120 45 60 42 60
Mar 88 120 44 60 41 60
Apr 98 120 49 60 46 60
May 100 120 50 60 47 60
Jun 78 120 39 60 36 60
Jul 74 120 37 60 34 60
Aug 72 120 36 60 33 60
Sept 86 120 43 60 40 60
Oct 90 120 45 60 42 60
Nov 92 120 46 60 43 60
Dec 94 120 47 60 44 60
TOTAL 1057 1440 529 720 493 720
The table above shows the projected demand and supply where the business has
good potential because of the lacking room accommodations even with the presence of
competitors. Also, having a monthly supply of 120 in a Couple/Standard room because it
has four available rooms daily, 60 in the number of supplies on Family rooms because it
has two available daily, as well as the number of supplies for Barkada rooms.

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E. Existing Competitors
There are some establishments that offer food and lodging accommodation in
Panagsama, Basdiot, Moalboal; however, none of them provide enough amenities that give
the customer comfortability and enough security with such affordable prices that we offer.
Shown below are the two of the business’ direct competitors located near the proposed
place.
Table 8
Competitive Analysis
Krismark Dive Lodge Herbs Guest House

Location Basdiot, Moalboal Basdiot, Moalboal
Accommodation Couple Rooms (8) Couple Rooms (10)
Family Rooms (6) Family Rooms (6)
Barkada Rooms (6) Barkada Rooms (6)
Target Market Double, Family, Group of Double, Family, Group of
Friends Friends
Amenities With Bathroom, With Bathroom, Free Wifi
& Fan
Free Wifi, Fan
Room Rates P1,500 - P 3,550 P1,450 - P 3,870

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F. MARKETING PROGRAM/STRATEGIES
Our strategy is to gain a competitive edge against our competitors. The
proponent provides above and beyond services in the business. For our soft opening to
the business, the proponent will provide free breakfast for the first 50 customers that
will avail our services. Our prices are very affordable for our target market that will
make them come back to our business giving us a financial advantage.
Competitive Edge
The competitive advantage of our business would be a combination of a hotel
and the comfort of your own home. The proponent makes sure that our valued
customers will make themselves feel at home. The proponent priorities our customer’s
satisfaction; the proponents also added a lot of promos that will even make it affordable
for everyone.
Pricing Strategy
The business use market penetration pricing strategy. The proponents believed
that this kind of pricing strategy would be able to keep the competition as the room
rates are at a comparably lower and reasonable price.

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Table 9
LAGKAW Bed & Breakfast Price List
Couple / Standard Family Room Group / Barkada

Room Room
Price P 1,390 P 2,580 P2,970
Type 2 Pax w/ Breakfast 4 Pax w/ Breakfast 6 Pax w/ Breakfast
Services - 1 queen bed, - 2 queen beds, - 2 bunk beds,
- hot & cold shower, - hot & cold shower, (lower bunk: queen
- private toilet and - private toilet and size
shower area, shower area,
- flat-screened TV - flat-screened TV Upper bunk:
- balcony - balcony twin size)
overlooking the overlooking the
- hot & cold shower,
beach beach
- flat-screened TV
- cabinet and a table - cabinet and tables
- private toilet and
- free parking - free parking
shower area,
- cabinet and tables
- free parking
There are two types of breakfast that we offer that they could choose from the night
before so that our kitchen staff can prepare it early in the morning right away, so the guest
will wake up with their selected meal ready to serve.
Pamahaw Pamainit
- 1 cup of Rice - 2 pcs. Puto Maya

- Fried Egg - two pcs. Pan de Leche / Egg Bread
- Tocino / Hotdog / Special Longganisa / - Sikwate / Hot Choco / Coffee
Luncheon Meat / Chorizo - Mango
- Banana
- Hot Choco / Coffee

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Marketing Strategy
Local Advertising – Advertising locally means that you’ll get more local clients. In this
strategy, we use flyers in giving information to our customer that we exist. It cost less to
advertise in a small local publication than in a larger national one.
Internet – In this generation, social media is very rampant to teenagers and even to target
customers who are students and professionals. With this strategy, we are capable enough
to deliver the information about the business and updates of promos. Thus, our customers
can easily visit our Facebook page.
Loyalty Card – The customers receive a loyalty card at their first visit when they avail of
any of our services offered. The loyalty card has five blank boxes that will be stamped
every time they book our services. A customer with 5-stars stamp-filled card automatically
receives a 20% discount in any room package they want to avail next.
Figure 3. LAGKAW Bed & Breakfast Facebook Page

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Figure 4. Tarpaulins and Flyers
Figure 5. Loyalty Card
G. Marketing/Selling Expenses
Marketing and Selling Expense

Flyers ₱ 4,680.00
Local Advertisement 18,168.00
Loyalty Card 2,352.00
Total ₱ 25,200.00

Part 3. Technical Plan
29
A. TECHNICAL SERVICE DESCRIPTION
LAGKAW Bed & Breakfast offers an affordable overnight accommodation. Its
services give comfortability and relaxation to target market by providing good quality
services with a low price. It is located at Moalboal, Cebu.
B. SERVICE/OPERATIONS PROCESS
The operation is the heart of any accommodation services. Efforts to improve
operations can focus on a single department or address the entire organization. Operations
personnel bear the considerable task of fulfilling all the promises that the facilities’
merchandising effort has made while enticing guest to book a room in the establishment.
Without a doubt, well-administered operational functions are the chief determinant of
whether the guest’s experience is satisfactory. The ability to deliver on promises and
satisfy the needs of the guest results in the repeat business that makes a bed & breakfast
facility profitable in the long term.
1. HOSPITALITY PROPERTY MANAGEMENT SYSTEM
LAGKAW Bed & Breakfast uses the standard Hospitality Property Management
System. It installed professional hostel management software that manages the entire front
desk-related-operations easy, organized and efficient. Its integrated solution includes
property management, channel management, booking engine, and revenue management
systems, all in place.
Part 3. Technical Plan | LAGKAW BED & BREAKFAST

30
DASHBOARD. The dashboard shows an overview of the hotel’s occupancy, room
availability and room rates for each room type.
ROOM CHART. Easily display, manage, and move reservations on the room chart.
Besides, front desk personnel can monitor reservations status by color.
QUICK CHECK-IN AND CHECK-OUT. An easy way of checking in and out multiple
guests to save the guest’s and staff’s time.
REPORTS. It easily generates reports such as Registration Form, Invoices, Rooms
Availability to be exported and print them.
2. MAINTENANCE AND HOUSEKEEPING MANAGEMENT
LAGKAW Bed & Breakfast wants to substantially reduce guest-reported
maintenance problems. To accomplish this goal, managers gain control over maintenance-
related-tasks of the housekeeping personnel to determine specific time requirements for
each maintenance task performed on every fixture and piece of equipment or furniture.
The time-and-motion study examined setup, breakdown, and clean-up activities, as well
as allowing for break periods where maintenance personnel categorizes which jobs are to
be completed for specific guest room and the period needed.

31
3. BED & BREAKFAST
BREAKFAST MENU
Pamahaw Pamainit
- I cup of Rice - 2 pcs. Puto Maya

- Fried Egg - two pcs. Pan de Leche /
- Tocino / Hotdog / Special Longganisa / Luncheon Egg Bread
Meat / Chorizo - Sikwate / Hot Choco /
- Banana Coffee
- Hot Choco / Coffee - Mango
The guests can choose from the varieties of choices shown above. Entitled to each
guest is one free breakfast set meal; Pamahaw or Pamainit.
C. Operation Schedule
The operation schedule of LAGKAW Bed & Breakfast would be twenty-four
hours a day, and seven days a week.
D. Labour Requirement
Manpower Heads Salary Number Monthly TOTAL

per day of days Salary SALARY
General 1 - Monthly P 20,000 P 20,000
Manager
Guest Attendant 4 350 26 9,100 36,400
Kitchen Staff 2 350 26 9,100 18,200
Housekeeper 2 350 26 9,100 18,200
Total P 92,800

32
E. EQUIPMENT REQUIREMENT
MACHINERY AND EQUIPMENT BRAND USEFU PRICE QTY.

L LIFE
American Star 5 years ₱ 2,500 3 units
Decorative Ceiling
Fan 52"
Samsung Full HD 5 years ₱ 21,500 1 unit

TV 52”
Fukuda 16" Stand 5 years ₱ 1,500 3 units

Fan
Omni Wall 5 years ₱ 990 1 unit

Mounted Exhaust
Fan

33
CCTV Camera 5 years ₱ 10,000 1 set

Security Set
Fujidenzo Window 5 years ₱ 9,100 8 units

Type Aircon
Manual Remote
Inverter
Platinum Karaoke 5 years ₱ 6,500 1set

Set
Fukuda Flat 5 years ₱ 5,500 8 units

Screen TV 22”

34
Power Generator 5 years ₱ 30,000 1 unit
washing machine 5 years ₱ 10,000 1 unit

with dryer
PANASONIC 2- 5 years ₱ 15,000 1 unit

DOOR
REFRIGERATOR
Shower Heater 5 years ₱ 4,000 6 units

35
Water Dispenser 5 years ₱ 2,500 1 unit
Shop-Vac Micro 5 years ₱ 5,000 1 unit

10L Wet and Dry
Vacuum Cleaner
FURNITURE & FIXTURES BRAND USEFU PRICE QTY.

L LIFE
Dining Set 5 years ₱ 6,000 4 set
Queen size Steel 5 years ₱ 4,000 8 pc

Bed Frame with
Solid Wood

36
Bamboo Double 5 years ₱ 4,500 4 pc

Deck Bed Frame
Reception Desk 5 years ₱ 15,000 1 pc
Sala Set 5 years ₱ 8,000 2 set
Bedside Table 5 years ₱ 500 12 pcs
Wooden Cabinet 5 years ₱ 3,000 8 pcs

37
KITCHEN EQUIPMENT BRAND USEFU PRICE QTY.

L LIFE
Pots and Pans 5 years ₱2,500 2 sets
Gas Stove 5 years ₱,3000 2 units
Rice Cooker 5 years ₱2,000 I unit
Enamel Plates 5 years ₱50 60 pcs
Spoon & Fork 5 years ₱250 5 doz.

38
Soup Bowls 5 years ₱30 40 pcs
Serving Bowls 5 years ₱ 250 4 sets
Knife Set 5 years ₱1,000 1 set
Mugs 5 years ₱ 50 40 pcs
Drinking Glass 5 years ₱30 60 pcs

39
Chopping Board 5 years ₱200 1 pc
Microwave Oven 5 years ₱3,500 1 unit
OFFICE EQUIPMENT BRAND USEFU PRICE QTY.

L LIFE
ACER Desktop 5 years ₱ 29,990 1 unit
HP Deskjet Copy/ 5 years ₱ 3,000 I unit

Scan/ Print
POS 5 years ₱ 15,000 I unit

40
F. Direct Materials Requirement
LAGKAW Bed & Breakfast

Direct Material Costing
Pamahaw
Items Qty. UMS Cost
Rice 175g grams 7.75
Fried Egg 1 pcs 5.25
Tocino/Hotdog/Longganisa/Luncheon Meat/Chorizo 20
Banana 1 pcs 10
Hot Choco / Coffee 250 mL __ 7
TOTAL P 50
Pamainit
Items Qty. UMS Cost
Puto Maya 2 pcs 10
Pan de Leche/Egg Bread 2 pcs 10
Sikwate 250 ml 10
Mango 1 pcs _ 20
TOTAL P 50
G. Cost Tracing
Couple Room Family Room Barkada Room

Annual Annual Annual
Direct Material ₱ 105,700.00 ₱ 98,600.00 ₱ 158,700.00
Direct Labor 317,672.73 238,254.55 317,672.73
Overhead
Depreciation 120,011.88 90,008.91 120,011.88
Electricity 52,363.64 39,272.73 52,363.64
Water 22,285.71 22,285.71 33,428.57
Gas (LPG) 5,485.71 5,485.71 8,228.57
Internet (Wi-Fi) 8,571.43 8,571.43 12,857.14
Cost of Service ₱ 632,091.10 ₱ 502,479.04 ₱ 703,262.53
Number of Bookings 1,057 493 529

Cost per Service ₱ 598.00 ₱ 1,019.23 ₱ 1,329.42
Mark-up 149.16% 133.51% 123.41%
Room Rate ₱ 1,490.00 ₱ 2,380.00 ₱ 2,970.00

41
H. Location
Panagsama Beach, Basdiot, Moalboal
LAGKAW Bed & Breakfast Building

42
I. Layout
Kitchen and Dining Area
Reception and Living Room Area

43
Standard / Couple Room (2nd Floor)
Family Room (2nd Floor)

44
Group / Barkada Room (1st Floor)
J. WASTE MANAGEMENT AND DISPOSAL SYSTEM
Wastes have a harmful effect to our environment, and if not properly disposed
and treated, it can cause further damage. Solid waste management (SWM) plays a
pivotal role in urban development and sustainable environment to ensure public health
and economic growth. The municipality of Moalboal practice two waste collection
methods; segregation and putting common waste receptacles that are strategically
located in public places. The garbage collections are carried out by garbage trucks
based on the following schedule:
*Biodegradable: Mondays, Wednesdays, Fridays, Sundays
*Non-biodegradable: Tuesdays, Thursdays, Saturdays

45
The LAGKAW Bed & Breakfast complies with rules, standards, and laws in
waste and disposal system. As an environmental – friendly Bed and breakfast, the
establishment promotes a total proper waste collection waste management and
recycling programs, which helps in protecting the environment and the health of the
community.
Below is the process flow of LAGKAW Bed & Breakfast Waste Management
and Disposal System.
DISPOSING OF WASTE TO GARBAGE BIN PROPERLY
SEGREGATION OF WASTE ACCORDING TO THEIR TYPE
COLLECTION OF WASTE BY THE MUNICIPAL GARBAGE TRUCK
K. QUALITY CONTROL SYSTEM
To provide decent quality services and ensure customer satisfaction,
LAGKAW Bed & Breakfast established a quality control system which facilitates
customer’s need. The management provides a lounge area for the customers where
they can sit and relax.

Part 4. Organizational Plan
47
A. Legal Form of Business
The business is a sole proprietorship. The top management is
knowledgeable and equipped to handle the operations. The proprietor will also be
the manager, and he will be responsible for all losses and debts incurred within.
LAGKAW Bed & Breakfast legal, is registered in the Department of Trade
and Industry. It will also acquire mayor’s permit, business permit, Barangay
clearance, and BIR registration.
The organization will have an effective and efficient manager and crews.
The employee will undergo orientation and training before they deploying to their
designated jobs. During the hiring process, the applicants are screened carefully so
that the hired personnel are suitable for the organization. All the mandatory benefits
required by law are provided to the employees. The organization will provide
training, seminars, and promotions for the betterment of the employees as well as
to the business.
B. Organizational Structure
GENERAL MANAGER
OWNER
Housekeeping Guests’ Attendant Kitchen Staff

(2) (4) (2)
Part 4. Organizational Plan | LAGKAW BED & BREAKFAST

48
C. Qualification of Officers
POSITIONS QUALIFICATIONS DUTIES and RESPONSIBILITIES
General ✓ Have high ➢ Oversee the entire operation.

Manager/Owner entrepreneurial skills. ➢ Responsible for planning to
✓ Have excellent achieve business goals and
communication and objectives.
technical skills. ➢ Resolving customer complaints
✓ Know about lodging by giving customer guidance.
business. ➢ Directing the company’s
✓ Have good managerial planning activities to workers.
and leadership skills. ➢ Provide leadership to workers.
➢ Ensures that supplies of
materials are always available.
➢ Hire potential workers
✓ Ages 20-25 years old. ➢ Maintains security by following

Guests’ Attendants ✓ Good communication procedures, monitoring
skills. logbook, and issuing visitor
✓ Outstanding work ethic badges.
and integrity ➢ Responsible for answering
✓ Able to protect telephone calls and inquires of
company assets using customers.
sound judgment and ➢ Provided office support services
vigilant eye to ensure efficiency
✓ Attention to detail and
➢ Perform cash and
mathematical skills credit/debit/gift card
transactions and giving and
✓ Management Graduate receiving change.
➢ Verify guest reservation.
✓ Knows how to do clean

Housekeeping ➢ Maintain working area clean
the rooms properly.
and orderly.
✓ Have interpersonal
➢ Wash bedding, towels, replace
skills to get along well
toiletries that were used, and
with the supervisor and
clean other parts of the area.
the guest they serve.
➢ Ensure the rooms’ cleanliness
✓ Ability to read and
before the guests arrive.
comprehend simple
instructions.
✓ Open for any training.
✓ With ages 20-25 years
old.

49
➢ The kitchen staff will cook,

✓ Sociable and have a
Kitchen Staff washing dishes, preparing
good rapport with
salads, ordering supplies,
customers.
planning menus.
✓ Have training from a
➢ Can work well with others.
vocational institute.
✓ Graduate in Cookery
D. Office Supplies and Equipment
Office Equipment
Items Price Qty. Total Cost

Desktop Computer 29,990.00 1 P 29,990.00
Printer 3,000.00 1 3,000.00
POS 15,000 1 15,000
Total ₱ 47,990.00
Office Supplies
Items Price Qty. Total Cost

Ink Cartridge ₱ 450.00 24 ₱ 10,800.00
Record book 89.00 1 89.00
Ball pen 5.00 24 120.00
Stapler 85.00 1 85.00
Staple wire 32.00 1 32.00
Puncher 125.00 1 125.00
Scotch tape 12.00 24 288.00
Paper clip 50.00 4 200.00
Folder 8.00 24 192.00
Bond Paper ream 250.00 1 250.00
Total ₱ 1,106.00 ₱ 12,181.00

50
E. Gantt Chart of Activities
TABLE 10. Gantt Chart of Activities
ACTIVITIES OCTOBER 2018 NOVEMBER DECEMBER JANUARY

2018 2018 2019
Office/Site Location
Renovation
Permits & Licenses
Purchase of Equipment
& Furniture
Buying of Materials
Installation of Internet
Connection
Hiring of personnel
Staff Training
Marketing
Business Test-Run
Start-up &
Soft Opening
1. Site Location – Finding the right location is essential to the business. Choosing the
perfect place is done in the first two weeks of October.
2. Auxiliary Suppliers – Bed and Breakfast finds potential with good quality of
materials and furniture products. It also enables partnership among suppliers to
acquire discounts on a large number of purchases and is done in the third and fourth
week of November.

51
3. Renovation – The proponent decided to renovate the building in the site on the 3rd
week of October until 3rd week of November.
4. Permits & Licenses – This is the processing of legal documents such as permits and
licenses from the Department of Trade and Industry (DTI), Bureau of Internal
Revenue (BIR), Mayor's permit, Barangay permit, and others to ensure the legal
venture of the business. Filing and processing of legal documents will be on the last
week of October and in the first three weeks of November.
5. Purchase of Furniture and Fixtures – Furniture such as beds, tables, chairs, and
cabinets that will complement the overall design of the accommodation. Equipment
such as air-conditioning units, TVs, computer set, and other things also be purchased
from one supplier to ensure good quality and efficiency. These purchases are made
in the last two weeks of November.
6. Purchase of Materials – Materials are needed for the business and purchasing is
done in the last two weeks of November.
7. Installation of Internet Connection – This step is essential for additional marketing
of the business. It enables a wide range of connection to link customers. This step is
done in the first week of December.
8. The Hiring of Personnel – Potential staffs has a big role in business operations that
would help the success of the business. It includes recruitment and selection of
qualified persons. They are scouted in the first two weeks of December.
9. Staff Training –This is the part where selected personnel are trained according to
their respective responsibilities. It is accomplished in the third week of December.

52
10. Marketing – This step helps the business entice more customers in a strategic way
of advertising such as giving out flyers, publish the establishment on social media
and the like. It is done in the third week of December.
11. Start-up & Opening – This step is the full and official opening of LAGKAW Bed
& Breakfast that 24/7. The soft opening will start on January 1.
F. Administrative Expense
Administrative Cost
Permits and Licenses P 19,921.00
Repair and Maintenance 15,150.00
Miscellaneous Expense 105,804.00
Depreciation 9,598.00
Salaries 240,000.00
TOTAL P 390,473.00

Part 5. Financial Plan
54
A. Total Project Cost
Particulars Note Total Cost

Pre-operating Cost
Permits and Licenses 6 ₱ 19,921.00
total 19,921.00
Fixed Capital
Land 3 600,000.00
Building 4.1 2,130,000.00
Leasehold Improvement 4.2 1,420,000.00
Machinery & Equipment 4.3 254,290.00
Furniture and Fixtures 4.4 132,800.00
Office equipment 4.5 47,990.00
Kitchen Equipment 4.6 31,750.00
total 4,616,830.00
Working Capital
Salaries Expense 7 47,300.00
SSS, PhilHealth, HDMI 14 9,948.70
Hotel Equipment 13 103,600.00
Office Supplies 15 12,181.00
Miscellaneous 11 105,804.00
Repair and Maintenance 8 15,150.00
Utilities Expense 9 24,100.00
Advertising Expense 10 25,200.00
total 343,283.70
Total Project Cost ₱ 4,980,034.70
Part 5. Financial Plan | LAGKAW BED & BREAKFAST

55
B. Project Cost Allocation
Project Cost Allocation

0%
7%
Pre-operating Cost
Fixed Capital
93%
Working Capital
Source of Fund
The capital investment of the business will be coming from the
owner.
The initial investment is ₱ 5,000,000.00

56
C. Statement of Financial Assumptions
• The business is a Sole Proprietorship
• January 2019 is the start of operation
• In computing depreciation, Straight-line Method is used.
• There is a 10% increase in Sales yearly
• Accommodation will start from 2 PM to 12 noon
• The total monthly salary and wages, and fringe benefit contribution are included
in the working capital.
• The annual expenses on hotel equipment, office supplies, miscellaneous, repair
and maintenance, and marketing are included in the working capital
• There is a10% increase in Expenses yearly
• Percentage Tax Rate is 3% of the sales in December

57
D. Projected Financial Statements
1. Projected Income Statement

Projected Income Statement
For the Years Ended
Note 2019 2020 2021

Sales 1 ₱ 4,319,400.00 ₱ 4,751,340.00 ₱ 5,226,474.00
Less: Cost of Sales 2 1,837,832.67 1,899,332.67 1,971,014.67
Gross Sales 2,481,567.33 2,852,007.33 3,255,459.33
Less: Operating
Marketing 10 25,200.00 27,720.00 30,492.00
Administrative 5 390,473.00 394,818.40 408,123.34
Hotel Equipment 13 103,600.00 113,960.00 125,356.00
Total Expenses 519,273.00 536,498.40 563,971.34
Net Income ₱ 1,962,294.33 ₱ 2,315,508.93 ₱ 2,691,487.99
Table 11. Projected Income Statement

58
2. Projected Cash Flow

Projected Cash Flows Statement
For the Years Ended
Note 2019 2020 2021
Cash Flow from Operating Activities
Net income (refer to income statement) ₱ 1,962,294.33 ₱ 2,315,508.93 ₱ 2,691,487.99
Add: Depreciation 330,032.67 330,032.67 ___330,032.67
Net Cash Provided by Operating Expense 2,292,327.00 2,645,541.60 3,021,520.66
Increase/Decrease of Current Asset and

Liabilities
Increase in Office supplies 15 (12,181.00) (1,218.10) (1,339.91)
SSS, PhilHealth, HDMF 14 9,948.70 - -
VAT Payable 16 45,768.00 4,576.80 5,034.48
Increase in Accrued Payable 12 15,900.00 1,590.00 1,749.00
Total 10 59,435.70 4,948.70 5,443.57
Net cash provided by (used in) Operating
Activities 2,351,762.70 2,650,490.30 3,026,964.23
Cash flow from investing activities

Acquisition of Assets 4,616,830.00 - -
Cash used in investing activities (4,616,830.00) - -
Cash flow from financing activities

Initial investment Capital 5,000,000.00
Payment for withdrawal by the Owner (1,900,000.00) (2,300,000.00) (2,600,000.00)
Cash used provided by financing activities 3,100,000.00 (2,300,000.00) (2,600,000.00)
Net increase or decrease in cash equivalents 834,932.70 350,490.30 426,964.23

Add: beginning of the period - 834,932.70 1,185,423.00
End of the period ₱ 834,932.70 ₱ 1,185,423.00 ₱ 1,612,387.23
Table 12. Projected Cash Flows

59
3. Projected Balance Sheet

PROJECTED STATEMENT OF FINANCIAL POSITION
For the Years Ended
Note 2019 2020 2021
ASSET
Current Assets:
Cash (refer to Cash flow) ₱ 834,932.70 ₱ 1,185,423.00 ₱ 1,612,387.23
Office supplies 15 12,181.00 13,399.10 14,739.01
Total Current Asset 847,113.70 1,198,822.10 1,652,080.11
Non-Current Assets
Fixed Capital Investment 4 4,286,797.33 3,956,764.67 3,626,732.00
Total Non-Current Assets 4,286,797.33 3,956,764.67 3,626,732.00
TOTAL ASSETS ₱ 5,133,911.03 ₱ 5,155,586.77 ₱ 5,253,858.24
LIABILITIES AND OWNER'S EQUITY

LIABILITIES
SSS, PhilHealth, HDMF 14 ₱ 9,948.70 ₱ 9,948.70 ₱ 9,948.70
VAT Payable 45,768.00 50,344.80 55,379.28
Accrued Payable 10 15,900.00 17,490.00 19,239.00
Total Liability 71,616.70 77,783.50 84,566.98
OWNER'S EQUITY
Owner's Capital 5,000,000.00 5,062,294.33 5,077,803.27
Add: Net income 1,962,294.33 2,315,508.93 2,691,487.99
Less: Drawings (1,900,000.00) (2,300,000.00) (2,600,000.00)
Total Owner's Equity 5,062,294.33 5,077,803.27 5,169,291.26
TOTAL LIABILITIES AND OWNER'S

EQUITY ₱ 5,133,911.03 ₱ 5,155,586.77 ₱ 5,253,858.24
Table 13. Projected Financial Position

60
E. Schedules
1. Projected Sales and Volume
Note 1
Projected Sales in Peso and Volume
Couple/Standard Room Family Room Barkada/Group Room

Volume Room Rate Total Volume Room Rate Total Volume Room Rate Total TOTAL
Jan 96 1,390.00 143,040.00 45 2,380.00 107,100.00 48 2,970.00 142,560.00 392,700.00
Feb 89 1,390.00 132,610.00 42 2,380.00 99,960.00 45 2,970.00 133,650.00 366,220.00
Mar 88 1,390.00 131,120.00 41 2,380.00 97,580.00 44 2,970.00 130,680.00 359,380.00
Apr 98 1,390.00 146,020.00 46 2,380.00 109,480.00 49 2,970.00 145,530.00 401,030.00
May 100 1,390.00 149,000.00 47 2,380.00 111,860.00 50 2,970.00 148,500.00 409,360.00
Jun 78 1,390.00 116,220.00 36 2,380.00 85,680.00 39 2,970.00 115,830.00 317,730.00
Jul 74 1,390.00 110,260.00 34 2,380.00 80,920.00 37 2,970.00 109,890.00 301,070.00
Aug 72 1,390.00 107,280.00 33 2,380.00 78,540.00 36 2,970.00 106,920.00 292,740.00
Sep 86 1,390.00 128,140.00 40 2,380.00 95,200.00 43 2,970.00 127,710.00 351,050.00
Oct 90 1,390.00 134,100.00 42 2,380.00 99,960.00 45 2,970.00 133,650.00 367,710.00
Nov 92 1,390.00 137,080.00 43 2,380.00 102,340.00 46 2,970.00 136,620.00 376,040.00
Dec 94 1,390.00 140,060.00 44 2,380.00 104,720.00 47 2,970.00 139,590.00 384,370.00
2019 1,057 ₱ 1,574,930.00 493 ₱ 1,173,340.00 529 ₱ 1,571,130.00 ₱ 4,319,400.00
2020 1,163 ₱ 1,732,423.00 542 ₱ 1,290,674.00 582 ₱ 1,728,243.00 ₱ 4,751,340.00
2021 1,279 ₱ 1,905,665.30 597 ₱ 1,419,741.40 640 ₱ 1,901,067.30 ₱ 5,226,474.00
*Projected Sales in Peso and Volume increases 10% annually

61
2. Projected Cost of Service
Note 2
Cost of Service
2019 2020 2021

Direct Material ₱ 363,000.00 ₱ 399,300.00 ₱ 439,230.00
Direct Labor 873,600.00 873,600.00 873,600.00
Overhead
Depreciation 330,032.67 330,032.67 330,032.67
Electricity 144,000.00 158,400.00 174,240.00
Water 78,000.00 85,800.00 94,380.00
Gas (LPG) 19,200.00 19,200.00 23,232.00
Internet (Wi-Fi) 30,000.00 33,000.00 36,300.00
Total Cost of Service ₱ 1,837,832.67 ₱ 1,899,332.67 ₱ 1,971,014.67

62
Table 13. Cost Tracing
Couple Room Family Room Barkada Room

Annual Annual Annual
Direct Material ₱ 105,700.00 ₱ 98,600.00 ₱ 158,700.00
Direct Labor 317,672.73 238,254.55 317,672.73
Overhead
Depreciation 120,011.88 90,008.91 120,011.88
Electricity 52,363.64 39,272.73 52,363.64
Water 22,285.71 22,285.71 33,428.57
Gas (LPG) 5,485.71 5,485.71 8,228.57
Internet (Wi-Fi) 8,571.43 8,571.43 12,857.14
Cost of Service ₱ 632,091.10 ₱ 502,479.04 ₱ 703,262.53
Number of Bookings 1,057 493 529

Cost per Service ₱ 598.00 ₱ 1,019.23 ₱ 1,329.42
Mark-up 149.16% 133.51% 123.41%
Room Rate ₱ 1,490.00 ₱ 2,380.00 ₱ 2,970.00

Direct Material Costing
Pamahaw
Items Qty. UMS Cost
Rice 175g grams 7.75
Fried Egg 1 pcs 5.25
Tocino/Hotdog/Longganisa/Luncheon Meat/Chorizo 20
Banana 1 pcs 10
Hot Choco / Coffee 250 mL __ 7
TOTAL P 50
Pamainit
Items Qty. UMS Cost
Puto Maya 2 pcs 10
Pan de Leche/Egg Bread 2 pcs 10
Sikwate 250 ml 10
Mango 1 pcs _ 20
TOTAL P 50

63
3. Fixed Capital Investment
Note 3
Land
Square Meter Cost Total Cost
Land 300.00 2,000 ₱ 600,000.00
Note 4
Fixed Capital Investment
For the Years Ended
Book Value
Note Depreciation
Cost 2019 2020 2021
Land-Net 3 - ₱ 600,000.00 ₱ 600,000.00 ₱ 600,000.00
Building - Net 4.1 142,000.00 1,988,000.00 1,846,000.00 1,704,000.00
Leasehold
Improvement - Net 4.2 94,666.67 1,325,333.33 1,230,666.67 1,136,000.00
Machinery &
Equipment - Net 4.3 50,858.00 203,432.00 152,574.00 101,716.00
Furniture and
Fixtures - Net 4.4 26,560.00 106,240.00 79,680.00 53,120.00
Kitchen Equipment -
Net 4.5 6,350.00 25,400.00 19,050.00 12,700.00
Office Equipment -
Net 4.6 9,598.00 38,392.00 28,794.00 19,196.00
Total ₱ 330,032.67 ₱ 4,286,797.33 ₱ 3,956,764.67 ₱ 3,626,732.00
Assumption:
In computing depreciation, Straight-line Method is used.

64
Note 4.1
Building
Book Value
Items Square Rate Total Cost Useful Depreciation 2019 2020 2021
Meter life Cost
Building 142 P15,000 ₱ 2,130,000.00 15 ₱ 142,000.00 ₱ 1,988,000.00 ₱ 1,846,000.00 ₱1,704,000.00
Note 4.2
Leasehold Improvement
Book Value
Items Square Rate Total Cost Useful Depreciation 2019 2020 2021
Meter life Cost
Renovation 142 P10,000 ₱ 1,420,000.00 15 ₱ 94,666.67 ₱ 1,325,333.33 ₱ 1,230,666.67 ₱1,136,000.00
Note 4.4
Depreciation Expense of Furniture and Fixtures
Book Value
Furniture and Fixtures Price Qty. Total Price Useful Depreciation 2019 2020 2021
Life Cost
Dining Set ₱ 6,000.00 4 ₱ 24,000.00 5 ₱ 4,800.00 ₱ 19,200.00 ₱ 14,400.00 ₱ 9,600.00
Queen Size Steel Bed

Frame 4,000.00 8 32,000.00 5 6,400.00 25,600.00 19,200.00 12,800.00
Bamboo Double Deck

Bed Frame 4,500.00 4 18,000.00 5 3,600.00 14,400.00 10,800.00 7,200.00
Wooden Cabinet 2,500.00 8 20,000.00 5 4,000.00 16,000.00 12,000.00 8,000.00
Sala Set 8,000.00 2 16,000.00 5 3,200.00 12,800.00 9,600.00 6,400.00
Trash Bin 150.00 12 1,800.00 5 360.00 1,440.00 1,080.00 720.00
Bed Side Table 500.00 12 6,000.00 5 1,200.00 4,800.00 3,600.00 2,400.00
Reception Desk 15,000.00 1 15,000.00 5 3,000.00 12,000.00 9,000.00 6,000.00
TOTAL ₱ 132,800.00 ₱ 26,560.00 ₱ 106,240.00 ₱ 79,680.00 ₱ 53,120.00

65
Note 4.3
Depreciation Expense of Machinery and Equipment
Book Value
Equipment/ Price Qty. Total Price Useful Depreciation 2019 2020 2021
Machinery Life Cost
₱
Air-condition inverter 9,100.00 8 ₱ 72,800.00 5 ₱ 14,560.00 ₱ 58,240.00 ₱ 43,680.00 ₱ 29,120.00
Ceiling Fan with Lamp 2,500.00 3 7,500.00 5 1,500.00 6,000.00 4,500.00 3,000.00
Fukuda Flat Screen TV 5,500.00 8 44,000.00 5 8,800.00 35,200.00 26,400.00 17,600.00
Platinum Karaoke Set 6,500.00 1 6,500.00 5 1,300.00 5,200.00 3,900.00 2,600.00
Samsung HD TV 21,500.00 1 21,500.00 5 4,300.00 17,200.00 12,900.00 8,600.00
Stand Fan 1,500.00 3 4,500.00 5 900.00 3,600.00 2,700.00 1,800.00
Exhaust Fan 990.00 1 990.00 5 198.00 792.00 594.00 396.00
CCTV 10,000.00 1 10,000.00 5 2,000.00 8,000.00 6,000.00 4,000.00
Refrigerator 15,000.00 1 15,000.00 5 3,000.00 12,000.00 9,000.00 6,000.00
Power Generator 30,000.00 1 30,000.00 5 6,000.00 24,000.00 18,000.00 12,000.00
Washing Machine 10,000.00 1 10,000.00 5 2,000.00 8,000.00 6,000.00 4,000.00
Shower Heater 4,000.00 6 24,000.00 5 4,800.00 19,200.00 14,400.00 9,600.00
Vacuum Cleaner 5,000.00 1 5,000.00 5 1,000.00 4,000.00 3,000.00 2,000.00
Water Dispenser 2,500.00 1 2,500.00 5 500.00 2,000.00 1,500.00 1,000.00
TOTAL ₱ 254,290.00 ₱ 50,858.00 ₱ 203,432.00 ₱ 152,574.00 ₱ 101,716.00

66
Note 4.5
Kitchen Equipment
Book Value
Items Price Qty. Total Cost Useful Depreciation 2019 2020 2021
life Cost
Gas Stove ₱ 3,000.00 2 ₱ 6,000.00 5 ₱ 1,200.00 ₱ 4,800.00 ₱ 3,600.00 ₱ 2,400.00
Non-stick Pots n
Pans set 4,000.00 2 8,000.00 5 1,600.00 6,400.00 4,800.00 3,200.00
Rice Cooker 2,000.00 1 2,000.00 5 400.00 1,600.00 1,200.00 800.00
Microwave Oven 3,500.00 1 3,500.00 5 700.00 2,800.00 2,100.00 1,400.00
spatula and ladle set 300.00 2 600.00 5 120.00 480.00 360.00 240.00
Chopping Board 200.00 2 400.00 5 80.00 320.00 240.00 160.00
Soup bowls 30.00 40 1,200.00 5 240.00 960.00 720.00 480.00
Enamel Plates 50.00 60 3,000.00 5 600.00 2,400.00 1,800.00 1,200.00
Spoon and Fork

(dozen) 250.00 5 1,250.00 5 250.00 1,000.00 750.00 500.00
Knife set 1000.00 1 1,000.00 5 200.00 800.00 600.00 400.00
Mugs 50.00 40 2,000.00 5 400.00 1,600.00 1,200.00 800.00
Drinking Glass 30.00 60 1,800.00 5 360.00 1,440.00 1,080.00 720.00
Serving bowls set 250.00 4 1,000.00 5 200.00 800.00 600.00 400.00
TOTAL ₱ 31,750.00 ₱ 6,350.00 ₱ 25,400.00 ₱ 9,050.00 ₱ 12,700.00
Note 4.6
Office Equipment
Book Value
Items Price Qty. Total Cost Useful Depreciation 2019 2020 2021
Life Cost
Desktop Computer 29,990.00 1 29,990.00 5 5,998.00 23,992.00 17,994.00 11,996.00
Printer 3,000.00 1 3,000.00 5 600.00 2,400.00 1,800.00 1,200.00
POS 15,000.00 1 15,000.00 5 3,000.00 12,000.00 9,000.00 6,000.00
Total ₱ 47,990.00 ₱ 9,598.00 ₱ 38,392.00 ₱ 28,794.00 ₱ 19,196.00

67
Note 5
Administrative Expense
Administrative Note 2019 2020 2021
Permits and Licenses 6 ₱ 19,921.00 ₱ 12,171.00 ₱ 12,171.00
Repair and Maintenance 8 15,150.00 16,665.00 18,331.50
Miscellaneous Expense 11 105,804.00 116,384.40 128,022.84
Depreciation 4.6 9,598.00 9,598.00 9,598.00
Salaries 7 240,000.00 240,000.00 240,000.00
Total ₱ 390,473.00 ₱ 394,818.40 ₱ 408,123.34
Note 6
Permits and Licenses
2019 2020 2021
DTI ₱ 500.00 ₱ 500.00 ₱ 500.00
Documentary Stamp 100.00 100.00 100.00
Community Tax Certificate 1,356.00 856.00 856.00
Barangay Clearance 800.00 800.00 800.00
Mayor's Permit
Sanitary Permit 900.00 900.00 900.00
Business Permit 2,000.00 2,000.00 2,000.00
Garbage Collection Fee 2,500.00 150.00 150.00
Plumbing Inspection Fee 1,500.00 1,500.00 1,500.00
Fire Inspection fee 650.00 - -
Fire Extinguisher 3,750.00 - -
Electrical Inspection Fee 850.00 850.00 850.00
Signboard Fee 400.00 400.00 400.00
BIR:
Register TIN w/ BIR 500.00 - -
Certification Fee 15.00 15.00 15.00
Receipt accredited by the BIR 4,000.00 4,000.00 4,000.00
Total ₱ 19,921.00 ₱ 12,171.00 ₱ 12,171.00

68
Note 7
Salaries and Wages Expense
Employee Heads Daily Monthly 2019 2020 2021
General Manager 1 ₱ - ₱ 20,000.00 ₱ 240,000.00 ₱ 240,000.00 ₱ 240,000.00
Kitchen Staff 2 350.00 9,100.00 218,400.00 218,400.00 218,400.00
House Keeping 2 350.00 9,100.00 218,400.00 218,400.00 218,400.00
Guest Attendant 4 350.00 9,100.00 436,800.00 436,800.00 436,800.00
Total ₱ 47,300.00 ₱ 1,113,600.00 ₱ 1,113,600.00 ₱1,113,600.00
Note 8
Repair and Maintenance
2019 2020 2021
Yearly Yearly Yearly
Air-Con Cleaning ₱ 14,400.00 ₱ 15,840.00 ₱ 17,424.00
Fire Extinguisher Refill 750.00 825.00 907.502
Total ₱ 15,150.00 ₱ 16,665.00 ₱ 18,331.50
*Repair and maintenance expense will increase 10% annually
Note 9
Utility Expense
2019 2020 2021
Monthly Yearly Yearly Yearly
Water ₱ 6,500.00 ₱ 78,000.00 ₱ 85,800.00 ₱ 94,380.00
Electricity 12,000.00 144,000.00 158,400.00 174,240.00
Internet 2,500.00 30,000.00 33,000.00 36,300.00
Gas (LPG) 1,600.00 19,200.00 21,120.00 23,232.00
Total ₱ 24,100.00 ₱ 289,200.00 ₱ 318,120.00 ₱ 349,932.00
*Utilities expense will increase 10% annually

69
Note 10
Marketing Expense
Items 2019 2020 2021
Flyers ₱ 4,680.00 ₱ 5,148.00 ₱ 5,662.80
Local Advertisement 18,168.00 19,984.80 21,983.28
Loyalty Card 2,352.00 2,587.20 2,845.92
Total ₱ 25,200.00 ₱ 27,720.00 ₱ 30,492.00
*Marketing expense will increase 10% annually
Note 11
Miscellaneous Expenses
Items Price Qty. 2019 2020 2021
Air Freshener ₱ 120.00 36 ₱ 4,320.00 ₱ 4,752.00 ₱ 5,227.20
Cooking Oil 1 gal. 200.00 6 1200.00 1320.00 1452.00
Condiments and Spices 2000.00 12 24000.00 26400.00 29040.00
Dishwashing Liquid
gallon 200.00 12 2400.00 2640.00 2904.00
Alcohol w/ Moisturizer 80.00 48 3840.00 4224.00 4646.40
Garbage Bag 25.00 48 1200.00 1320.00 1452.00
Roll Tissue 99.00 36 3564.00 3920.40 4312.44
Shampoo w/ Conditioner
1L 99.00 250 24750.00 27225.00 29947.50
Liquid Body Soap 1L 99.00 250 24750.00 27225.00 29947.50
Mineral Water 15.00 800 12000.00 13200.00 14520.00
LED bulb 105.00 36 3,780.00 4158.00 4573.80
Total ₱ 105,804.00 ₱ 116,384.40 ₱ 128,022.84
*Miscellaneous Expense will increase 10% annually

70
Note 12
Accrued Payable
Monthly 2019 2020 2021
Water ₱ 4,000.00 ₱ 48,000.00 ₱ 52,800.00 ₱ 58,080.00
Electricity 8,000.00 96,000.00 105,600.00 116,160.00
Cable 1,500.00 18,000.00 19,800.00 21,780.00
Internet 2,400.00 28,800.00 31,680.00 34,848.00
Total ₱ 15,900.00 ₱ 190,800.00 ₱ 209,880.00 ₱ 230,868.00
*Accrued Payable will increase 10% annually
Note 13
Hotel Equipment
Particulars Price Qty. 2019 2020 2021

Queen Size Foam ₱ 6,000.00 10 ₱ 60,000.00 ₱ 66,000.00 ₱ 72,600.00
Twin Size Foam 4,000.00 2 8,000.00 8800.00 9680.00
Queen Size Bed Sheet 600.00 20
Set 12,000.00 13200.00 14520.00
Twin Size Bed Sheet 500.00 4
Set 2,000.00 2200.00 2420.00
Pillows 150.00 36 5,400.00 5940.00 6534.00
Bath Towel 200.00 56 11,200.00 12320.00 13552.00
Door Mat 100.00 10 1,000.00 1100.00 1210.00
Curtains 200.00 20 4,000.00 4400.00 4840.00
TOTAL ₱ 103,600.00 ₱113,960.00 ₱ 125,356.00
*Hotel Equipment will increase 10% annually

71
Note14
SSS, PhilHealth, and PAG-IBIG
SSS PAG-
PhilHealth IBIG
Employee Heads Monthly Contribution Total Monthly
Contribution
Kitchen Staff 2 673.00 137.50 182.00 1,985.00
Housekeeper 2 673.00 137.50 182.00 1,985.00
Guests' Attendants 4 673.00 137.50 182.00 3,970.00
General Manager 1 1,208.70 400.00 400.00 2,008.70
Total ₱ 3,227.70 ₱ 812.50 ₱ 946.00 ₱ 9,948.70
*based on the SSS, PhilHealth, Pag-IBIG Contribution Table Year 2018
Note 15
Office Supplies
2019 2020 2021

Items Price Qty. Total Cost Total Cost Total Cost
Ink Cartridge ₱ 450.00 24 ₱ 10,800.00 ₱ 11,880.00 ₱ 13,068.00
Record book 89.00 1 89.00 97.90 107.69
Ball pen 5.00 24 120.00 132.00 145.20
Stapler 85.00 1 85.00 93.50 102.85
Staple wire 32.00 1 32.00 35.20 38.72
Puncher 125.00 1 125.00 137.50 151.25
Scotch tape 12.00 24 288.00 316.80 348.48
Paper clip 50.00 4 200.00 220.00 242.00
Folder 8.00 24 192.00 211.20 232.32
Bond Paper ream 250.00 1 250.00 275.00 302.50
Total ₱ 1,106.00 ₱ 12,181.00 ₱ 13,399.10 ₱ 14,739.01
*Office Supplies will increase 10% annually

72
Note 16
VAT Payable
2019 2020 2021
Sales ₱ 373,200.00 ₱ 410,520.00 ₱ 451,572.00
Output tax 12% 44,784.00 49,262.40 54,188.64
Purchases 134,173.50 147,590.85 162,349.94

Input tax 12% 16,100.82 17,710.90 19,481.99
Output tax 44,784.00 49,262.40 54,188.64

Input tax (16,100.82) (17,710.90) (19,481.99)
Total ₱ 28,683.18 ₱ 31,551.50 ₱ 34,706.65
F. Financial Ratios and Profitability
2019 2020 2021

ROI (Return of Investment)
Net Income 1,962,294.33 2,315,508.93 2,691,487.99
Investment 5,000,000.00 5,000,000.00 5,000,000.00
0.39 0.46 0.54
The return of investment is 39% in the first year of operation.
PAYBACK PERIOD
Investment 5,000,000.00
Net Cash Flow 1,962,294.33
2.55
The estimated payback period is within two years and seven months.
NET INCOME: SALES

RATIO
Net Income 1,962,294.33 2,315,508.93 2,691,487.99
Net Sales 2,481,567.33 2,852,007.33 3,255,459.33
0.79 0.81 0.83

73
Break-Even Point in Volume 2019 2020 2021
Fixed Cost 632,091.10 695,300.21 764,830.23

Couples Room Unit Contribution Margin 1,240.23 1,255.40 1,265.81
Units 510 554 604
Fixed Cost 502,479.04 542,677.36 586,091.55

Family Room Unit Contribution Margin 2,130.23 2,145.40 2,155.81
Units 236 253 272
Fixed Cost 703,262.53 773,588.78 850,947.66

Barkada Room Unit Contribution Margin 2,720.23 2,735.40 2,745.81
Units 259 283 310
Break-Even Point in Peso 2019 2020 2021

Room Rate 1,490.00 1,490.00 1,490.00
Couples Room x BEP in Unit 510 554 604
Php 759,388.31 825,230.45 900,291.10
Room Rate 2,380.00 2,380.00 2,380.00

Family Room x BEP in Unit 236 253 272
Php 561,394.98 602,018.24 647,041.35
Room Rate 2,970.00 2,970.00 2,970.00

Barkada Room x BEP in Unit 259 283 310
Php 767,835.86 839,934.06 920,426.03

Part 6. Taxation Plan and
Socio-Economic
Contribution
75
A. Permits and Licenses
2019 2020 2021

DTI ₱ 500.00 ₱ 500.00 ₱ 500.00
Community Tax Certificate 1,356.00 856.00 856.00
Barangay Clearance 800.00 800.00 800.00
Mayor's Permit
Sanitary Permit 900.00 900.00 900.00
Business Permit 2,000.00 2,000.00 2,000.00
Garbage Collection Fee 2,500.00 150.00 150.00
Plumbing Inspection Fee 1,500.00 1,500.00 1,500.00
Fire Inspection fee 650.00 - -
Fire Extinguisher 3,750.00 - -
Electrical Inspection Fee 850.00 850.00 850.00
Signboard Fee 400.00 400.00 400.00
BIR:
Register TIN w/ BIR 500.00 - -
Certification Fee 15.00 15.00 15.00
Receipt accredited by the BIR 4,000.00 4,000.00 4,000.00
Total ₱ 19,921.00 ₱ 12,171.00 ₱ 12,171.00
B. Tax Incentive and Distinctive
The advantage that the business can bring to the community is taxes, as the
entrepreneur pay taxes to the government right on schedule and this can further
benefit the public for projects and community development.
Part 6. Taxation Plan and Socio-Economic Contribution | LAGKAW BED & BREAKFAST
76
C. Project Benefit Analysis
The supposed effect of this project proposal if funded will be the
enhancement practically on the phases of operation and allocation. It means that the
long cycle of exasperation of not being able to have easy access to go to different
kinds of accommodation will now mend. This amended and enhanced efficiency
will result in more income and will make the endeavor more fulfilling for the
entrepreneur, his family, relatives and indirectly to the community.
The customers will get the chance to experience the services of “LAGKAW
Bed & Breakfast” seeing the fact that most hotels, pension houses nowadays are
always in demand in every people in the community. It will help the customers to
be more convenient in traveling with their different purposes.
Another benefit this venture will contribute is that it will offer staycation
services which are affordable to students as well as to families and customers with
limited income for their day to day look through the promos and discounts that the
business will be offering. Individuals earning lower income can now afford to go
to our inn at minimal cost.
With the accomplishment of business comes the creation of employment to
individuals without stable jobs as well as the advancement of the quality of their
lives.
D. Social Impact of the Project
The business sets a criterion and governs all phases of the business activity
which provide citizens with the necessities such as services, employment and tax
77
money for public programs. It helps to increase the self-esteem of every person in
the community and income generation.
Employment opportunities provided by society are a big help in the
improvement of their standard of living. People will also generate income from the
livelihood and can lead to purchasing power to increase and demand the other goods
will be greater.
REFERENCES
 Wanted: More rooms in the countryside by KATLENE O. CACHO
https://www.sunstar.com.ph/article/1750857
 The Best Time to Visit Moalboal, the Philippines for Weather, Safety,
& Tourism https://championtraveler.com/dates/best-time-to-visit-
moalboal-ph/
 Hotels vs. bed and breakfasts [INFOGRAPHIC]

https://www.bedandbreakfast.com/info/travelers/travel-inspiration-
guides/hotels-vs-bed-and-breakfasts
 https://www.glotels.com/PH/Moalboal/283485745458748/Krismark-
Dive-Lodge
 https://www.booking.com/hotel/ph/herbs-guest-house.html
APPENDICES
Lagkaw Bed & Breakfast
Survey Questionnaire
Dear Respondents,
The proponents will be conducting a survey to prove the feasibility of the service of Bed
and Breakfast in Moalboal, Cebu. Please answer this survey questionnaire completely and honestly.
Rest assured, information that will be gathered will be treated with utmost confidentiality.
Directions: Please put a mark on the box beside your answer.

Part I. PROFILE
Age: ____________ Economic Status
Gender:  Employed
 Male  Unemployed
 Female  Self-employed
 Student
Part II. PRODUCT
1. Do you consider travelling to Moalboal, Cebu?
 Yes
 No
2. Do you stay in accommodation facilities when travelling?
 Yes
 No
3. Are you an economical/ budget traveler?
 Yes
 No
4. Are you familiar with Bed & Breakfast?
 Yes
 No
5. Will you recommend or want to try out Bed & Breakfast?
 Yes
 No
6. When you travel, what type of accommodation you prefer?
 Couple (2 Pax)
 Family (4 Pax)
 Group / Barkada (6 Pax)
7. How many days do you usually spend in travelling?
 1 – 2 days
 3 – 4 days
 5 – 6 days
 7 – 8 days
8. What accommodation do you prefer?
 With Breakfast
 Without Breakfast
Part IV. PRICE
Are you satisfied with the following prices for each specific
Yes No
accommodation type?
Standard / Couple Room (good for 2)

- P1,500
- Queen-sized bed, air-conditioned, private toilet and hot n’ cold
shower, free breakfast for two
Family Room (good for four)

- P2,500
Two (2) Queen-sized beds, air-conditioned, private toilet and hot n’
cold shower, free breakfast for four
Group / Barkada Room (good for six)

- P3,500
- Two (2) Bunk beds (lower bunk: queen-size, upper bunk: twin size),
air-conditioned, private toilet and hot n’ cold shower, free breakfast
for six
Part IV. PLACE

9. What location do you prefer?
 In the city
 In the rural areas
 Near terminals (airport, bus terminal, port)
 Near business establishments (malls, amusement parks, recreational areas)
 Near school or company
 Near tourist spots (mountain resort, beach resort)
Part V. PROMOTION
10. Where do you search for accommodation services?
 Social Media
 Booking websites (Airbnb, Booking.com, Agoda, Trivago, Expedia, Traveloka)
 Flyers, brochures, Local Signboards, Tarpaulins
 Billboard, Radio, Television, Newspaper
PAGIBIG CONTRIBUTION TABLE
PHILHEALTH PREMIUM CONTRIBUTION TABLE

SSS CONTRIBUTION TABLE
CURICULUM VITAE
CURICULUM VITAE
Mary Elaine G. Alfeche

Contact no: 0977 – 088 – 4530
Address: Sitio Hideaway, Opra Kalunasan,
Cebu City
Email: alfeche.maryelaine@gmail.com
PERSONAL PROFILE
Date of Birth : December 14, 1996

Place of Birth : Cebu City
Sex : Female
Civil Status : Single
EDUCATIONAL ATTAINMENT
Tertiary : University of Cebu – Banilad Campus

Gov. M. Cuenco Avenue, Banilad, Cebu City
Bachelor of Science in Business Administration
June 2017 – Present
: University of the Philippines Cebu

Gorordo Ave., Lahug, Cebu City
Bachelor of Science in Management
June 2013 – May 2015
Secondary : University of the Philippines High School Cebu

Gorordo Ave., Lahug, Cebu City
June 2009 – April 2013
Primary : Banilad Elementary School

Banilad, Cebu City
June 2003 – April 2009
CURRICULUM VITAE
Leilen D. Wagas
Contact no: 0905 – 357 – 8161
Address: Caba-asan Tagba-o Cebu City
Email: leilenwagas9648@gmail.com
PERSONAL PROFILE
Date of Birth : January 11,1996

Age : 23 years old
Sex : Female
EDUCATIONAL BACKGROUND
COLLEGE : University of Cebu- Banilad Campus

Major in Human Resource Development
Management
Present
HIGH SCHOOL : Tagba-o National High School
ELEMENTARY : Tagba-o Elementary School

CURRICULUM VITAE
Rhea B. Wagas
Contact no: 0922 – 479 – 2729
Address: S.E Jayme Street, Zone Monggos
Paknaan, Mandaue City
Email: rheabudomowagas@gmail.com
PERSONAL PROFILE
Date of Birth : September 05, 1998

Age : 20 years old
Sex : Female
COLLEGE : University of Cebu – Banilad Campus

Gov. Cuenco Avenue, Banilad, Cebu City
Major in Management Accounting
June 2016 – Present
HIGH SCHOOL : Paknaan National High School
ELEMENTARY : Paknaan Elementary School

CURICULUM VITAE
Brian Patrick B. Ching

Contact no: 0922 – 680 – 8353
Address: Unit C2 Canduman Enclaves
Mandaue City, Cebu
Email: brianpatrickching@gmail.com
PERSONAL PROFILE
Date of Birth : February 17, 1996

Age : 23 years old
Sex : Male

Gov.Cuenco Avenue, Banilad Cebu City
BS in Business Administration
Major in Financial Management
Present
HIGH SCHOOL : International Christian Academy
ELEMENTARY : International Christian Academy

CURICULUM VITAE
Riza Mae D. Sumalinog

Contact no: 0942 – 002 – 7316
Address: 1237 Leyson St., Talamban, Cebu City
Email: rizamaesumalinog18@gmail.com
PERSONAL PROFILE
Date of Birth : October 18, 1997

Age : 21 years old
Sex : Female

Gov. Cuenco Avenue, Banilad, Cebu City
Major in Financial Management
Present
HIGH SCHOOL : Kabalawan National High School
ELEMENTARY : Mangadlao Elementary School

CURICULUM VITAE
Jorica Nicole Q. Cepris

Contact no: 0945 – 855 – 1599
Address: Ceniza St., Sudlon Maguikay,
Mandaue City, Cebu
Email: joshuagarcia@yahoo.com
PERSONAL PROFILE
Date of Birth : July 19, 1994

Age : 24 years old
Sex : Female
COLLEGE : University of Cebu- Banilad Campus

Major in Marketing Management
Present
HIGH SCHOOL : Saint Louis School of Mandaue
ELEMENTARY : Ormoc City Central School

LAGKAW Bed and Breakfast STUDY

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LAGKAW BED & BREAKFAST

A PROPOSED ACCOMMODATION FACILITY IN MOALBOAL, CEBU

Alfeche, Mary Elaine G.

Ching, Brian Patrick B.

Sumalinog, Riza Mae M.

Cepris, Jorica Nicole Q.

have and fulfill this experience.

To Dr. Christopher C. Biore, Chairperson of the College of Business and

will forever value.

throughout the completion of this feasibility study.

extended their support and patience to us all throughout this journey.

Strong Power! Thank you!

The business is a Bed & Breakfast service located in Panagsama Beach,

Basdiot, Moalboal, Cebu.

1. Nature of the Business

LAGKAW Bed & Breakfast is a sole proprietorship business. It is a small

lodging establishment which offers overnight accommodation that comes with

they are on vacation in Moalboal, Cebu.

2. Name of the Business

The name of the business is “LAGKAW Bed & Breakfast.” LAGKAW is

a Visayan word which roughly translates to “a makeshift shelter for staying in

two lovers meet.

travelers, which combines comfort, convenience, and the renowned Filipino

Executive Summary | LAGKAW BED & BREAKFAST

new friends and even make better memories.

B. HIGHLIGHTS OF THE PROJECT

The proposed business will be in the form of sole proprietorship and

is registered in the different government requirements like DTI (Department of

(Barangay Micro Business Enterprise).

The proponents are engaging different marketing and promotional strategies

techniques are accompanied by competitive marketing analysis conducted by the

Executive Summary | LAGKAW BED & BREAKFAST

The proponents’ initial capital is P 5,000,000; with this capital requirement,

The proposed business contributes socio-economically as it employs local

aimed to render services and products to the public.

Figure 1. Logo of the enterprise

Executive Summary | LAGKAW BED & BREAKFAST

I. BACKGROUND OF THE FEASIBILITY STUDY

came up with bed & breakfast services.

A bed & breakfast, typically shortened to B&B, is a small lodging

homemade breakfast in contrast to what are supplied in a large hotel. These

There several established B&Bs in neighborhoods rather than the business

offered in large cities, in popular destinations and even in unexpected places.

Overall, a bed & breakfast is generally aimed to create an atmosphere of

romance, coziness, relaxation, and appeal – aspiring for a memorable guest

experience as it provides the essentials of a traveler.

Part 1. Preliminary Feasibility Study | LAGKAW BED & BREAKFAST

II. THE RESEARCH

A. Selection of Product or Service

B&B near tourist spots and popular destinations.

B. Theoretical Backings of the Service Selected

usually as any other accommodation facilities that offer breakfast as a

Part 1. Preliminary Feasibility Study | LAGKAW BED & BREAKFAST

growing market that is primarily driven by millennial travelers. (Remo, 2018)

are found out to be fond of traveling. In a survey conducted by the Philippine

domestic travelers were in the ages 15 – 34 years old (Household Survey on

Domestic Visitors, 2016).

Filipinos as always love to travel and an electronic travel survey conducted

by Agoda revealed that among Asia-Pacific’s (APAC) domestic travelers, Filipinos

Tech Study, 2017)

Colliers International Philippines believes that Cebu is one of the most

attractive locations, as they encourage investors to build budget hotels to cater to

the growing demand in the market (Remo, 2018).