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Amadeus Philippines warns on drop in hotel occupancy rates

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Amadeus Philippines has warned that hotels in the country’s business districts could post drops in bookings as companies cut back on expenditures this year.

Amadeus Philippines general manager Albert Villadolid said a survey they conducted revealed that companies in the Asia Pacific region will be cutting down on trips this year while at the same time scrutinizing every expense details of travels by corporate officials.

“There are now austerity measures being placed by companies with regards to travel. Companies are now more price conscious and are spending more prudently,” Villadolid said.

Villadolid said the new approach by companies in their travel plans might potentially lower by at least 10 percent hotel occupancy in Metro Manila this year.

“There is already a downturn last year among the hotels. As the Philippines begin to feel the impact of the international financial crisis and the cutbacks in corporate travel, we might see a lot of Metro Manila hotels with lower occupancy levels,” Villadolid said.

For the first 11 months of 2008, hotel occupancy rates in Metro Manila were down 3.31 percent as compared to 2007. There are currently 81 hotels in Metro Manila with a combined occupancy rate of 14,344 rooms.

Villadolid said their survey showed that 47 percent of corporate executives plan to travel less over the next 12 months while another 28 percent said they will be downgrading their desired hotel accommodations from the usual five and four star hotels.

Villadolid said there will also be a backlash on lesser known hotels in the country or those with short track records as more companies are leaning towards hotel chains that have a uniform service level across all countries where they are located.

“There is a flight towards the trusted brands and consistency of service. Right now, companies are looking for good internet access and efficient check in and check out when booking hotels,” Villadolid said.

Villadolid said there is now a need for local hotels to lower their rates and come out with innovative packages to stay relevant during the current tough financial environment.

Amadeus Philippines has a Global Distribution System that allows travelers to access more than 100,000 hotels worldwide and scan for room availabilities.

“Having operations in more than 217 markets worldwide gives us the capability to push traffic to any destination. We believe we can help make the country one of the premiere choices for meetings, incentives, conventions, and exhibitions in the region,” Villadolid said.

Aside from its extensive hotel database, Amadeus Philippines also entered into a partnership with Transhotel – a global consolidator of hotels and services.

This allows Amadeus Philippines to provide the lowest possible rates to 5,500 hotels in Asia including the Philippines .

Amadeus has been in operations in the country since 1997.

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