why do small resorts in Laguna Philippines survive despite of tight competition?

Question

What do they do to compensate with the maintenance of the resort?

Answer 1

Small resorts have very low operating costs. They are usually run by the owners themselves, and their relatives. They do not have a fat payroll for staff salaries. In fact, some of the small ones I have seen are staffed by relatives who are probably not paid at all, but are allowed to sell food, cigarettes, or something in exchange for keeping watch.

Even their electricity bill will be low, compared with the big classy ones. And of course when there are not so many guests, the lights and the switches are turned off. No bill for water in the pool, the water in Laguna resorts are from natural hot springs.

The rent in smaller resorts are lower, so those on a tight budget prefer these smaller but cheaper ones.

And you will be surprised that some "rich" customers also patronize these resorts. Why? They will most likely NOT be seen by their equally "rich" friends in such nondescript resort, especially when they do not want to be seen with their companion at the moment. Or they could rent the whole small resort for their family or friends on an exclusive basis - - something they can not do with the big resorts.

Answer 2

The smaller resorts fill in a demand (or need). Not everyone has money to burn to afford the classy ones. With good steady profits, the business thrives.

Answer 3

Mariang Makiling, the Diwata of the Mountains, blesses their clay pots to fill up with rice without end, their trees to bear fruit aplenty, their livestock to multiply in abudance, their ATM cards never to be posted with minus amounts.

And she taught them to crop-rotate, and engage in other business activities, like making "pulboron" and other delicacies.