FOOD FOR THOUGHTS

P2P Gets New Bus for QC-Makati Route

Reported by: Jan Padlan, Emerson Patricio, Mark Jansen Ver

Trends in Business:
Due to the increasing number of commuters in the country, our public transportation
is becoming inefficient. People are weary from the constant extensive travel time.
With that, Froehlich Tours Inc., a premium Point-to-Point bus operator decided to set
up a new trend in business here in the Philippines, which is P2P bus travel service.
• Economic Conditions
1. Price of Gasoline
The Philippines’ annual inflation rate has increased to 6.4 percent in August of 2018.
With that, one of the economic conditions of Froehlich Tours is the price of gasoline
that has drastically escalated.
2. Premium Ticket Prices
The P2P bus operator has to compensate the high cost of their service due to the
increased prices in gasoline. This results to the premium price of this P2P bus which is
P100 for regular passengers and P80 for senior citizens, PWDs, pregnant women, and
students.
3. Ridership
In relation to the ticket prices, another economic condition for this type of service is
ridership. Froehlich needs to know what type of riders they are accommodating to
determine whether or not they should adjust the prices of their service.
• Competing in a Global Economy
1. Philippines now has a premium P2P bus like other countries in the world.
2. Established bus stops to help decongest traffic.
3. Premium Service

• Decision Making Approach

1. Design of Service. Froehlich Tours decided that they wanted to target the
masses who are constantly experiencing the inefficiency of the public
transportation of the Philippines.
2. Location Strategy. They made sure that the destinations of the Point-to-
Point buses are located at places where many people are usually going,
whether it be to go to school or to go to work, to ensure that many
commuters will patronize the service and will benefit from this.
3. Quality Management. They wanted their service to become consistent so
they made sure that the operation of their business is functional and in
proper control and maintenance to prevent inefficiency and delays in
their services and operations.

• Learned Lesson/Insight
1. Fixed monthly salary with incentives of P2P drivers improved the operation
of their service.
2. Froehlich tours brought in a premium bus service that could be an example
of a quality mode of transportation that can be turned as the norm in
the future.
3. Having a systematic operation of public transportation can be the solution
to the commuters’ everyday problem which is traffic.
• Economic Impact
1. Customers now have an alternate mode of transportation.
2. Improved travel time.
3. Convenience.
• Recommendations
1. Increase the number of buses that are available to lessen the waiting time
of passengers.
2. They should enable the use of beep cards for faster transactions.
3. Instead of having only 4 departure times in Quezon City and Makati, they
should have buses ready to depart every 2 hours.
4. Have at least a few buses available during Sundays.