Pamantasan ng Lungsod ng Maynila

(University of the City of Manila)

Gen. Luna Corner Muralla St., Intramuros, Manila

PLM Business School

A SERVICE PLAN FOR:

In Partial Fulfillment for the Subject: Service Management

Submitted To:

Prof. Anna Miranda

Submitted By:

Occupado, Paulino S.
 I. EXECUTIVE SUMMARY

2GO Travel is one of the largest premier sea travel providers in the Philippines that was
established in 2012. It continually aspires to push the boundaries by offering visitors a large
variety of affordably cost hotel accommodations, tours, and event packages to create truly
remarkable domestic journeys. In this service plan, the objective is to gain a 15% increase in
sales for the year 2023 which can be achieved by undertaking the strategies provided in the
proposal. This includes enhancing the servicescapes at the 2GO Travel outlet in SM City North
EDSA, executing the advertisement and promotion, and launching the new 2GO Travel mobile
application. The total budget for this plan is 306,300 pesos.

II. CURRENT INDUSTRY SITUATION ANALYSIS

A. The Industry

The passenger shipping line industry in the Philippines is composed of companies from
different regions that have different ways and strategies on how they deliver their services with
regards to their extent. From small companies to the largest ones, each has their own differences
and similarities in catering the preferences of their target passengers with respect to the location
and their capabilities such as the provision of sea crafts.

Most of the prevalent service providers in the cargo-passenger shipping industry use
Ropax vessels, a type of ferry transport. This ship can accommodate numerous passengers and
act as liner primarily on principal, long-distance routes connecting the major cities in the Luzon,
Visayas, and Mindanao regions. The most prevalent and numerous banca vessels are those with
wooden hulls. This type can be found in rural places that primarily serve the short-distance
tertiary connections, linking distant tiny islands with major islands. Fast craft and tourism boats
are examples of services that are only focused on transporting people, which are commonly used
by the small sea travel providers.
 Moreover, due to the ongoing changes in the market brought on by globalization over the
past several years, passenger-shipping businesses now differentiate themselves by the ways in
which they provide their services to clients. Companies compete to accommodate more travelers
by providing hotel rooms at competitive prices, as well as by supplying travel lodgings and tours.
Some businesses consider including event packages as part of their offerings based on the
preferences of their clients. To make it more appealing, they offer irresistible discounts to attract
even the young travelers in the country. These are the factors that have an impact on the
passenger-shipping sector.

To further analyze the passenger shipping industry here in the Philippines, data provided
from the Philippine Ports Authority regarding the number of maritime passengers in the
Philippines from 2016-2

020 is provided below:

The data shows the number of passengers in the past five years, from the year 2016 to the
year 2020. As you can see from the data above, the number of passengers from 2016 to 2019
increases every year. It has an average increase of five million maritime passengers per year.
However, the numbers dropped drastically after it reached the year 2020. From eighty three
million seven hundred and twenty thousand maritime passengers in 2019, it dropped to twenty
four million nine hundred thousand in just a year. The declines in numbers were attributed to the
travel bans implemented in response to the COVID-19 pandemic. This only demonstrates how
the pandemic significantly impacted Philippine transportation, especially maritime travel.

B. The Service Business

History

2GO Travel is the only remaining significant inter island passenger ferry operator
situated in Manila, Philippines. The company was established in 2012 as a result of a massive
realignment of ferry transportation in the Philippines, in which Negros Navigation paid US$105
million to acquire the SuperFerry, Cebu Ferries, and SuperCat brands from the Aboitiz Transport
System. At the same time, the China-Asean Investment Cooperation Fund, a private equity fund
wholly owned by the government of the People's Republic of China through an equity infusion,
gained a controlling interest in Negros Navigation and subsequently changed the company into
the 2GO Group with 2GO Travel, its shipping-company subsidiary.

In 2021 the SM Investment Corporation announced that it has completed the acquisition
of a controlling stake in the transportation firm of the 2GO Group.The shares are equivalent to a
total of 52.85% and worth 4.68 billion pesos. Following this transaction, 2GO Travel is now a
subsidiary of the SM Investment Corporation. Furthermore, as of the middle of 2021, 2GO
Travel has a total of 10 active vessels. In order to provide comfortable and affordable travel to
some of the must-see locations in the Philippines, such as the sunny beaches of Boracay, the
gastronomic wonderland that is Cebu, or the alluring pockets of paradise in Palawan, the
company is present in more than 2,000 outlets nationwide and operates in 18 ports of call in
Luzon, Visayas, and Mindanao.

Mission
 To create memorable, fun filled, and safe travel for passengers.

Vision

To be the best and biggest company in the transportation industry

Past Performance

● Market Share

2GO Travel is one of the largest sea travel providers in the Philippines that provides
comfortable and secured transport between major destinations across the archipelago. Its ability
to guarantee convenient and affordable sea travel experience has helped 2GO be the preferred
means of sea travel by Filipinos. Mr. Parco, the 2GO Chief Operating Officer stated that in 2017,
2GO Travel moved a total of 4.5 million passengers, which comprised 90% of the total market
share.

Services Offered

● Vessels

The company uses the following vessels to convey customers from Manila. The names of
the vessels were taken from saints of the Roman Catholic saints, while the names of the more
recent vessels speak to the positive attitudes of being a Filipino.

MV 2GO Maligaya
 Is the newest fleet addition of the company. It has a passenger capacity of 800 with 225
rooms. The vessel’s destination from Manila is Cebu.

MV 2GO Masagana

Is the company’s most modern vessel and is the Philippine’s one of the largest and fastest
vessels. The vessel’s destinations from Manila are Iloilo and Bacolod.

Therese of The Child Jesus

It has the capacity of 1,856 passengers which serves Butuan City, Cebu, and Ozamiz
City.

Francis Xavier

It has the capacity of 1,910 passengers and serves Batangas, Cagayan de Oro, Tagbilaran,
Coron, and Puerto Princesa

Saint Michael The Archangel

This vessel has the capacity of 1,929 passengers and serves Dumaguete, Dipolog,
Bacolod, Iloilo, and Zamboanga.

Accommodations
 There are six different types of lodging available from 2GO Travel, with prices ranging
from 700 to 7,500 pesos per night and includes a 50kg baggage allowance. Anything beyond 50
kg will be charged accordingly. However, the options for lodging depend on the vessels.

Super Value Class

The super value class is the cheapest type of accommodation. It offers double deck beds,
no Aircon, and with common restrooms and showers.

Mega Value

Consists of double bunk beds and a TV in air conditioned parts of the vessel. Guests
staying in this room may share a common bath exclusive only for Mega Value passengers.
Tourist Room

Is an upgraded version of the Mega Value. The number of the double bunk beds may
vary per vessel but it usually accommodates 6-14 pax.

Cabin Room

Is a private air conditioned room that could accommodate 2-4 persons, which gives a
hotel vibes for their travelers.

State Room

Accommodate 2-4 passengers which offers air conditioned room, a private toilet, and a
complete bed linen.

Suite Room

The suite room is the most expensive room. It offers the same as the state room but with a
sitting area and plenty of space to walk around. It also comes with a TV, a fridge, and its own
private bathroom.

● Where To Book

Online Booking
 To provide convenience of bookings for travelers, 2GO Travel offers online booking.
Travelers can schedule their wanted trip anytime and anywhere with its online booking through
their official website: travel.2go.com.ph. They can comfortably choose their preferred schedule
and destinations as well as the type of services that they want to avail.

Outlet Booking
 2GO Travel has more than 2,000 outlets nationwide, accessible for all. And one of them
is in SM North EDSA. People can book with the company’s friendly employees. The store offers
twelve destinations for their passengers traveling from manila. The destinations are, Bacolod,
Butuan, Cebu, Cagayan de oro, Coron, Dumaguete, Dipolog, Iloilo, Ozamiz, Puerto Princesa,
Tagbilaran, and Zamboanga.

C. Competition

Direct Competitors

Since 2GO Travel is the only major interisland ferry operator still operating out of Manila
that provides this kind of services, it currently has no direct rivals in Metro Manila. Cokaliong
Shipping Lines and Fast Cat, who have their headquarters in the Visayas and Mindanao, are their
main rivals. Based on the services they offer, such as the type of lodging and the quantity of the
same ports they operate in Luzon, Visayas, and Mindanao, these two companies are competitors.

2Go Travel Cokaliong Shipping Lines FastCat

PORTS SERVING

1. Cebu 1. Cebu 1. Banago

2. Iloilo 2. Iloilo 2. Batangas
3. Caticlan 3. Cagayan de Oro 3. Bredco
4. Puerto Princesa 4. Calbayog 4. Bulalacao
5. Batangas 5. Dapitan 5. Calapan
6. Ozamiz 6. Dumaguete 6. Caluya
7. Manila 7. Iligan 7. Caticlan
8. Roxas 8. Jagna 8. Cebu
9. Zamboanga 9. Maasin 9. Dapdap
10. Odiongan 10. Masao 10. Dapitan
11. Butuan 11. Masbate 11. Tubigan
12. Tagbilaran 12. Surigao 12. Dumangas
13. Cagayan de Oro 13. Ozamiz 13. Iloilo
14. Coron 14. Palompon 14. Liloan
15. Dipolog 15. Nasipit 15. Lipata
16. Bacolod 16. Matinog
17. Dumaguete 17. San Carlos
18. San Isidro
19. Toledo
20. Dumaguete

PROMOTIONS

1. Utilizing Social Media 1. Utilizing Social Media 1. Utilizing Social Media

Platforms Platforms Platforms
2. Website 2. Website 2. Website
3. Social Media 3. Social Media 3. Social Media
Advertisements Advertisements Advertisements
4. Discounts 4. Discounts 4. Discounts
5. Mobile Application 5. Mobile Application

ACCOMMODATIONS

1. Suite Room 1. Economy 1. Business Class

2. State Room 2. Lounge 2. Premium Economy
3. Cabin Room 3. Tourist 3. Economy
4. Tourist Class 4. Business Class
5. Mega Value 5. Cabin
6. Super Value 6. Suite Room
Indirect Competitor

For 2GO Travel’s indirect competitor, Philippine airlines is to be considered since it is an

alternative mode for long distance transportation.

Philippine Airlines

1. Manila
2. Cebu
3. Davao
4. Iloilo
5. Zamboanga
6. Cotabato
7. Bacolod
8. Batanes
9. Coron
10. Butuan
11. Cagayan de Oro
12. Calbayog
PORTS SERVING 13. Catarman
14. Caticlan
15. Siargao
16. Dipolog
17. Dumaguete
18. General Santos
19. Kalibo
20. Laoag
21. Legazpi
22. Ozamiz
23. Pagadian
24. Puerto Princesa
25. Roxas
 26. San Jose
27. Tacloban
28. Tagbilaran
29. Tawi Tawi

1. Utilizing Social Media Platforms

2. Website
PROMOTIONS 3. Social Media Advertisements
4. Discounts
5. Mobile Application

1. Business Class
ACCOMMODATIONS 2. Premium Economy
3. Regular Economy

III. SWOT ANALYSIS

HELPFUL HARMFUL

Strengths Weaknesses

● Accessible ticket store ● Booking information

● Onboard Entertainment ● Delayed and canceled
INTERNAL ● Affordable package deals travels
ENVIRONMENT ● Advanced Technology ● Limited routes

● Capability to offer new ● Unpredictable weather

routes and destinations ● Additional tax fees for
● Can increase target market clients
 ● Holidays and festivals ● Promotions of competitors
EXTERNAL ● Other alternative modes of
ENVIRONMENT transportations

Opportunities Threats

Strengths

2Go Travel has a number of strengths since it is one of the renowned passenger-shipping
companies in the Philippines. First is its accessible ticketing stores nationwide, offering
convenient ways for their passengers in booking for their travel. Their services such as its on-
board entertainment and ship’s advanced technology partnered with their affordable package
deals is a one of a kind offering providing the travelers a memorable experience on their sail.

In order to maintain its advantages in the industry, 2Go Travel should continuously
develop the services and promos that they provide to their target clients in order to gain an
advantage in the growing market. The company should wisely use its resources to research
further improvements which the company needs in the present, and in future events. It should
also take advantage of its ticketing store since it is the only sea travel company who have its very
own outlet in SMs Metro Manila

Weaknesses

Weaknesses of 2GO Travel should be one of the main priorities of the company since it is
an internal fault. Analyzing reviews from its passengers, 2GO Travel sometimes has a delay
announcement for their canceled travels resulting in an inconvenience for its passengers. Some
people also find it hard to book in the ticketing store since they cannot see the available
schedules for trips. They also have 18 limited ports of serving.
Opportunities

2Go Travel should take advantage of the holidays and events here in the Philippines,
since it is the time when most of the people go home to their families and have their vacation.
The business can offer special offers and activities to get customers to participate. Additionally,
the business is able to provide additional routes and locations. To meet consumer demand for
opulent travel experiences at reasonable prices, they should invest in opening new routes in
popular locations. As a result, 2Go Travel will have access to a larger market.

Threat

As for the threats, the company continues to operate in an inconsistent environment, they
should always be prepared to face unwanted threats such as the weather conditions that causes
them to cancel trips which may be an inconvenience for some of their passengers. Another
example of threat is the Covid-19 pandemic. Because during the pandemic, the company has
suffered a great loss due the travel restrictions. Their travelers in 2020 decreased by 78% and
continued to decrease until 2021. For their competitors, 2GO Travel should always analyze their
competitors to help them formulate ways that will help them with their competition.

IV. GOALS AND OBJECTIVES

Goals

To be the preferred domestic long distance transportation business.

Objectives

To gain a 15% increase in sales for the year 2023.

 V. TACTICS, STRATEGIES, AND PROGRAMS

● Festival Discount

Promotion Poster

Target Market

The target market for this promotion will be Filipinos 25-34 years old at age in Metro
Manila. From lower class to upper class. According to the Philippine statistics authority, out of
25.7 million domestic passengers, 25.8 percent of them are in the age group of 25-34 years old.
Furthermore, 36.7% of those domestic passengers have the main purpose for pleasure and
vacation.
Objectives

By putting this promotion into action, 2GO Travel will not only market their services but
also the richness of Filipino cultures and landscapes. They can provide their passengers the
chance to participate in the yearly celebrations of the locals in the specific location. In addition to
the festivals, travelers will be able to explore and take advantage of popular tourist attractions in
their destination for a discounted rate. This campaign will truly provide a completely one of a
kind experience.

Definition

The advertisement will showcase Filipino holidays. The program offers a 50% discount
to people who want to travel to a specific area during the festival month. All booking types are
eligible for the discount. Included are accommodations and a 50 kg weight limit; not included are
auxiliary costs or service fees. Last but not least, the promotion will run in 2023 during the
following months: January, July, August, October, and November.

MONTH FESTIVAL DESTINATION

January 1. Sinulog 1. Manila-Cebu City

2. Dinagyang Festival 2. Manila- Iloilo City

1. Sandugo Festival 1. Manila-Tagbilaran

July 2. Perangat Festival City
2. Manila-Ozamiz City

August 1. Higalaay Festival 1. Manila-Cagayan de

Oro
 1. Masskara Festival 1. Manila-Bacolod City
2. Buglasan Festival 2. Manila-Dumaguete
3. Dahunog Festival City
October 4. Hermosa Festival 3. Manila-Dipolog City
4. Manila-Zamboanga
City

November 1. Subaraw Festival 1. Manila-Coron City

 ● Digital Advertising

Use of Facebook and Instagram will be the medium for the advertisement of the Festival
discount, since it is the most used platform nowadays. The advertisement will take place in the
months of Dec, 2022, and June and August of 2023. It will also be posted to the official accounts
of 2GO Travel, highlighting the discount and event that will take place next year.

● Mobile Application

Launching of the mobile application of 2GO Travel will also be one of the strategies in
this service plan. The mobile application will be available to all android and I-phone users and
will be free to download in app store as well as in play store. The application will be named
“Travel App”.

Travel Icon:
 Through their mobile number and the creation of a unique password, users of this
application can create their own accounts for free. Instead of using their email addresses, users'
mobile numbers will be used so that when 2GO Travel issues a travel advisory, users can
immediately be informed even if they are not online.

The app will feature announcements of the company as well as their available trips
wherein users can easily book their sail through the app. The mode of payment for the booking
will be through Gcash, since the company currently offers this type of payment.

From the launching of the new 2GO Travel mobile application, a pointing system will
also be introduced for the benefits of the users.
 ● Travel Point System

Through this pointing system, travelers can earn points which vary with the type of
accommodation that they will avail. Passengers that will avail the Super Value type of
accommodation will be given 5 points. Mega Value will be given 10 pts. Tourist class will be
given 20 pts. Cabin type will be given 25 pts. State room will be given 30 pts. Lastly, as for the
most expensive type of accommodation, the Suite Room will be given 50 pts.

DESCRIPTION POINTS

Sail with a Super Value type accommodation 5

Sail with a Mega Value type accommodation 10

Sail with a Tourist Class type accommodation 20

Sail with a Cabin type accommodation 25

Sail with a State Room type accommodation 30

Sail with a Suite Room accommodation 50

POINT CONVERSION

10 PTS 10% Discount

20 PTS 20% Discount

50 PTS 30% Discount

100 PTS 50% Discount

 150 PTS FREE SAIL

Terms and Conditions

1. Travelers may use their earned discounts independently of any current promotions.
2. Travelers may only gain points from bookings with a regular fare price.
3. All accommodations and destinations are eligible for earned discounts.

● Improving Servicescapes

By analyzing the current store condition, these are the things that the store will need to
further improve their service. It will include utilizing their current LCD TV since it is not put in
use, adding a speaker, an additional monitor, promotion poster, and a QR code.

Current Store Appearance:

Store With The Improved Servicescapes:
Utilizing LCD TV

The company's current advertisements will be shown on the wall-mounted television.

This will highlight the company's offerings (such as events, activities, and other forms of
entertainment that people can take part in) as well as the best locations in the Philippines that
travelers can visit. This will make it easier for customers to picture their enjoyable and exciting
experience with 2GO Travel before they even enter the ship.

Speaker

The speaker will be connected to the television and will be placed at the corner of the
ceiling. It will enhance the sound coming from the playing advertisements.

Additional monitor

All of the bookings that are available for anyone to avail will be shown on the additional
monitor. It will display the ships that are available for them to board, the places they can go to,
and the time and day that the ship will leave the port. This will make it easier for the customer to
choose the reservation that best suits their needs, finances, and availability. The extra monitor
will be set up on top of the counter table so that everyone can view the screen clearly.

QR Code

The QR code will be placed on top of the counter table, left side. So upon scanning this
QR code, people will be directed to download the new 2GO travel mobile application.

Poster
 A poster will also be placed on the window pane of the store to inform and persuade
people into engaging in the Festival Discount in 2023.

VI. INVESTMENT PLAN

● Summary

RESOURCES ESTIMATED COST

TACTICS, STRATEGIES, AND PROGRAMS

IMPROVING STORE AMBIENCE 23,400 PHP

ADVERTISING AND PROMOTION 60,000

MOBILE APPLICATION 222,900

TOTAL COST 306,300 PHP

● Breakdown

RESOURCES ESTIMATED COST QUANTITY TOTAL

IMPROVING STORE AMBIENCE

SONY WIRELESS SPEAKER 11,000 1 11,000 PHP

HP MONITOR 12,000 1 12,000

POSTER (A2) 400 1 400

TOTAL COST 23,400 PHP

 RESOURCES COST TOTAL

ADVERTISING AND PROMOTION

FACEBOOK AD 10,000 30,000 PHP

INSTAGRAM AD 10,000 30,000

TOTAL COST 60,000 PHP

RESOURCES ESTIMATED COST COST

MOBILE APPLICATION

2GO TRAVEL MOBILE APPLICATION 50,000 PHP 50,000 PHP

GOOGLE PLAY ACCOUNT 900 900

APP STORE ACCOUNT 4,000 4,000

2 DEVELOPERS FOR 2 MONTHS 42,000 PER MONTH 168,000

TOTAL COST 222,900 PHP

● Profitability Estimates

According to the staff, the target revenue of their store for this year, 2022, is 850,000
pesos.

YEAR REVENUE

2022 850,000 x 15%

2023 977,500 PHP

VII. EVALUATION AND MONITORING OF RESULTS

MONTHS ACTIVITIES

2022

1. Meeting concerning the proposed strategies for the year

December 2023
2. First half month of the Promotion for the "Festival
Discount"

2023

1. Applying 50% discount for Cebu and Iloilo

2. Executing store ambience improvements
January

February 1. Developing mobile application

1. Launching of 2GO Travel mobile app

2. Start of point system
April 3. Placing a QR code in the store

1. Monitoring customer engagement

May-June 2. Second month of the promotion for the ""Festival
Discount" (June only)
 July 1. Applying 50% discount for Ozamiz and Tagbilaran

1. Applying 50% discount for Cagayan de Oro

2. Third month of the promotion for the "Festival Discount"
August

October 1. Applying 50% discount for Bacolod, Dumaguete,

Dipolog, and Zamboanga

1. Monitoring effectiveness of the strategies undertaken

2. Applying 50% discount for Coron (Dec only)
November-December

2024

1. Evaluating the sales in 2023 and formulating ways to

January further improve strategies

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