Philippine Christian University

HOTEL SOGO:
BREAKING THROUGH PANDEMIC

APRIL JEELEANE C. RECIO

 HOTEL SOGO

The Global Comfort Group Corporation is the owner and manager of the Hotel

Sogo (ホテル ソウゴ, Hoteru Sougo) hotel chain in the Philippines. This corporation is

also the owner of the Icon Hotel and Eurotel hotel chains in the Philippines. According

to Galang (2020), the hotel group currently operates 34 hotels in the Metro Manila area

in addition to 8 hotels located in various provinces. The lobby of the hotel is decorated

in the style of a traditional Japanese inn.

COMPANY PROFILE

In the year 1992, two individuals established Hotel Sogo. The first was a hotel

professional who worked in the hospitality industry, and the second was a commercial

developer and contractor who held a "AAA" license, “About Us” Hotel Sogo (2017). The

word "sogo," which can be translated to mean "harmony," is incorporated into the name

of the hotel chain, which is typically presented as being of Japanese ancestry. The

SOGO Training Academy is where employees of hotels go to receive training and

further their education in order to ensure that the educational and experiential aspects

of their jobs are maintained. According to Panay News (2019), Hotel Sogo in the

Philippines was a pioneer in many aspects of the hospitality industry, including the

introduction of free wifi, the provision of skateboards to floor personnel, and the

establishment of a call center that is open around the clock.

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 It's possible to learn more about the Hotel Sogo by visiting the site dedicated to

the establishment. The website provides information about the company's origins,

locations, menu items, available beverages, available jobs, and training facilities.

Guests can choose from a variety of room types at the budget-friendly Hotel Sogo,

which offers perks like free Wi-Fi, a house movie channel with a free movie, and 24-

hour F&B service to ensure they have a pleasant stay. Hotel Sogo has opened

numerous locations across the metro and in some provinces in an effort to become well-

known on a national scale by providing the public with better and more convenient low-

cost lodging facilities to expand into a successful chain of hotels across the country by

providing outstanding service and rooms that consistently impress guests.

As of March 2021, the hotel has 4,397,000 Facebook likes and 789,00 Twitter

followers. The company keeps posting catchy ads and campaigns that have netizens

talking nationwide. Tripadvisor.com lists Hotel Sogo. It ranks 24th out of 89 Manila Bed

& Breakfast Inns and scores 26%. Agoda.com, a fast-growing online hotel platform,

offers services of the Ho. Hotel Sogo branches have different booking and review pages

on the website. Most Hotel Sogo branches are near bus and train stations. They're in

and around Manila.

According to Lowe (2013), Hotel Sogo’s busiest times are generally between 3

pm and 11 pm, with the highest number of guests in their Pasay, Cubao, Caloocan,

Guadalupe branches. The company also states a 30% normal increase in volume of

guests during Valentine's season which warrants longer shifts and no days off for the

employees. December is the company's busiest month being that it is a month-long

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holiday celebration and there exists an influx of Christmas bonuses.

The rate indicated below is the minimum price of the room according to Hotel

Sogo Website. There will be extra charges to be added to the customer's payment

based on the expenses of their desired theme and the number of hours they occupy

the room. An additional 8% will be charge for every one hour of extension.

Furthermore, if their guests stay for three days, they will receive a 5% of discount.

Room Hours Amount

Special Family Room 12 P700.00

Special Customized 12 P2,100.00

Room

Special Couple Room 12 P850.00

Special Room for 12 P980.00

Travelers

SWOT ANALYSIS

The SWOT analysis illustrates the Hotel Sogo’s vulnerabilities and threats. To

gain an understanding of whether the company is contributing to the achievement of its

goals by analyzing the company's strengths and opportunities for success. This service

will become the hotel's competitive advantage. As the company finalizes its plans for

the new service management, it will also have to guard against imitation attempts by

competitors.

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 SWOT ANALYSIS
STRENGTH WEAKNESS
• Easy to access locations • Not good hotel image based from
the feedback of the guests
• Low Room Rates
• Low maintenance of the facilities
• Expansion to other to provincial
area • Insufficient numbers of rooms

• Rude attendants
• High security and safety
parameter

• Offers different themes per room

• Daily promotion rates

• Promoted by well-known artists

OPPORTUNITY THREAT
• Increasing use of social media • Rebranding of competitors

• Changes in season can increase • Prone to accident such as theft

demand ( valentine day ) and robbery
• Growth of domestic tourism • Intense Competition with
Hotels offering low rates
• Corporate Social Responsibility
• Typhoons
• Collaboration with vloggers • Earthquake

IMPACT OF PANDEMIC IN MARKETING STRATEGY

As a result of the global spread of the COVID-19 pandemic, the hotel industry

has been severely disrupted. Local lockdowns and travel restrictions have resulted in

many hotels temporarily closing or operating at reduced capacity. One such

establishment is the Hotel Sogo, which is still open for business.

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 As reported by Mindanao Time (2021), the Hotel Sogo was the first hotel in the

Philippines to implement innovations of international standards to ensure guest safety in

the face of the COVID-19 threat, after establishing an unmatched standard of

cleanliness in the hospitality industry. When businesses and industries were being

impacted by the pandemic, Hotel Sogo met the challenges by prioritizing the safety of

its guests and even its employees with 11 innovations. In addition to the improved

minimum standard protocols, such as no-contact fixtures and thermal scans, Hotel Sogo

reportedly made a number of other improvements and came up with new ideas that

were implemented at all of its locations.

In addition, Calitoy of Buzzsetter (2021) reported that Hotel Sogo adheres to four

primary goals in order to maintain the security of their hotels. These include the

lessening of contact points, the strengthening of air quality, the practice of disinfection,

and the administration of tests. As a result of this, they implemented UVC disinfection in

rooms, lobbies, and air-conditioning units; increased ventilation in rooms; microbial

testing (a method to indicate the presence and amount of microorganisms); COVID

sniffer dogs; reduced touch points; and the application of anti-microbial coatings on

frequently touched surfaces. As part of their response to the pandemic, Hotel Sogo

extended their commitment to caring for Filipinos by extending their corporate social

responsibility program, Sogo Cares, to provide support and assistance to a variety of

communities across the country.

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STRATEGIES DERIVED FROM SWOT MATRIX

To spread the word about their one-of-a-kind accommodations and

individualized services, Hotel Sogo uses direct marketing that links to popular social

media platforms like Facebook, Instagram, Twitter, and TikTok. To Sogo, the benefit

of using social networking sites is that it presents a more welcoming and attractive

image of the company to a global audience of potential customers who can view the

company from a new angle. Morevoer, in the blog of Pat_talastas (2015) mentioned

that Hotel Sogo welcomes partnerships with popular YouTubers, or "vloggers," who

have considerable sway over the industry as a whole and are held to "legit" standards

when they feature a brand. Commercials starring Robin and Mariel Padilla, two of

Hotel Sogo's target demographic artists, air on television as part of the brand's

marketing strategy. Moreover, in terms of pricing, Hotel Sogo has recently run sales

promotions, such as one offering 10% off to the first five (5) customers who sign up

for a loyalty card (which costs P500.00).

Hotel Sogo also implemented dynamic pricing based on room occupancy to

boost hotel revenue. Hotel rooms, as stated by Espat (2021), are priced according to

supply and demand. When there is more demand than available rooms, Hotel Sogo

raises its prices. If 65 of 70 rooms are booked, for instance, the remaining 5 rooms

will be charged at a higher rate. Utilizing this strategy, they should see an increase in

revenue. On top of that, Hotel Sogo offers discounted rates during off-peak times of

year. Hotel Sogo also employs a length-based pricing strategy. Hotels like the Hotel

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Sogo in Naga City, which promotes a Monday to Sunday stay but charges more for

the Saturday night, are just one example. Weekend prices are naturally higher than

weekday ones, so the math is easy. They use a dynamic pricing system that adjusts

the price per night based on demand. In high-demand times of year when occupancy

rates are expected to be high, enforcing a "no refund cancellation policy" can boost

earnings.

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 References:

 Colitoy, J. (2021, August 14). Hotel Sogo Embraces The New Normal: Long-

Term Innovation - Buzzsetter. Buzzsetter. Retrieved December 24, 2022, from

https://buzzsetter.com/hotel-sogo-new-normal-innovation/

 Espat. (2021, December 4). 3 dynamic hotel pricing strategies to automate to

maximize hotel revenue. Cloudbeds. Retrieved December 23, 2022, from

https://www.cloudbeds.com/articles/hotel-dynamic-pricing/

 Galang, N. (2019, January 31). Hotel Sogo targets to have over 50 branches by

2020 - BusinessWorld Online. BusinessWorld Online. Retrieved December 22,

2022, from https://www.bworldonline.com/corporate/2019/02/01/212020/hotel-

sogo-targets-to-have-over-50-branches-by-2020

 Lowe. (2013, February 14). The economics of “love motels.” RAPPLER.

Retrieved December 23, 2022, from https://www.rappler.com/business/21746-

the-economics-of-sexy-love-motels/

 MindanaoTimes. (2021, November 5). Hotel Sogo | At the Forefront of Safety

Innovations in the New Normal - Mindanao Times. Retrieved December 23,

2022, from https://mindanaotimes.com.ph/2021/11/05/hotel-sogo-at-the-forefront-

of-safety-innovations-in-the-new-normal/

 Panay News. (2019, February 12). A glimpse into largest chain Hotel Sogo’s

future. Retrieved December 23, 2022, from https://www.panaynews.net/a-

glimpse-into-largest-chain-hotel-sogos-future

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 Pat_talastas. (2015, June 1). The Unorthodox Hotel SOGO Marketing Campaign

(That We Can’t Help But Notice). The Unorthodox Hotel SOGO Marketing

Campaign (That We Can’t Help but Notice) | Isa Munang Patalastas. Retrieved

December 24, 2022, from

https://isamunangpatalastas.wordpress.com/2015/06/01/the-unorthodox-hotel-

sogo-marketing-campaign-that-we-cant-help-but-notice/

 SOGO. (2017, March 2). About Us | Sogo. About Us | Sogo. Retrieved December

19, 2022, from https://www.hotelsogo.com/about-us