PROPOSED BUSINESS STRATEGY FOR A HOTEL TO INCREASE OCCUPANCY RATE (CASE STUDY: THE LUXTON HOTEL BANDUNG)

• Main Author: Farnesia, Lasana
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/74606
• Institution: Institut Teknologi Bandung

The Luxton Hotel Bandung is a property business owned by PT Dago Paradise. Located in the city of Bandung, this hotel with a modern and minimalist concept began operating in October 2008. Being in a very strategic location makes competition in the hospitality industry quite fierce, considering that the more hotels built are directly proportional to the tighter competition in getting hotel guests. As a local hotel, The Luxton Bandung with its competitive advantage was able to compete with its competitors. However, during the pandemic caused by the SARS-CoV-2 virus in 2020, hotels experienced a significant decrease in room occupancy rates. The objective of this research is to identify the factors that cause the decrease in The Luxton Bandung occupancy rates, analyze the strategies that have been implemented and formulate appropriate strategies to increase the occupancy rate, as well as provide recommendations regarding competitive advantages that must be developed. Data collection methods in this study consist of interview, observation, documentation and literature studies. Business analysis is divided into external analysis and internal analysis, where the results will be mapped into a SWOT analysis along with consumer analysis to then identify the root causes. External analysis includes general environmental analysis using PESTEL analysis, industrial environmental analysis using Porter's Five Forces, and competitor analysis. Internal analysis includes business models as well as business resources, capabilities and competitive advantages. The results of the external analysis will identify opportunities and threats for the company, while the strengths and weaknesses will be identified from the results of the internal analysis which are then included in the SWOT analysis. To find out the journey and experience of consumers, and finding out whether the services owned and provided by the company are in accordance with the customer wants and needs, a consumer analysis is carried out. After conducting the necessary business analyses, the analysis of the root problems is identified using a fishbone diagram. All analysis results are then used as material for formulating alternative solutions using the TOWS matrix. From several alternative solutions generated, the most appropriate solution will be proposed and an implementation plan created through a consumer journey approach. The results obtained in this study indicate that the decline in occupancy rates at The Luxton Bandung was influenced by a number of factors, namely government regulations, a sharp decline in the number of domestic and foreign tourists, industry-specific regulations regarding capacity limits and hotel operating hours, as well as environmental changes that are closely related to Corona virus. Other factors are decreasing in marketing activities, a weak hotel brands and the absence of a loyalty program, as well as many competitors and high consumer bargaining power in the hospitality industry. As for some consumers who argue that the room rate is quite expensive regarding to the poor quality of the room and the facilities. To increase the occupancy rate, The Luxton can implement a strategy with a consumer journey approach. In the travel inspiration stage, The Luxton Bandung needs to optimize its marketing activities on online platforms and seek out partners or influencers. During the research stage, create engaging content on social media and manage the online reputation are required. The hotel may run discount offers and promotions at the stage of booking, add value by creating and promoting special package, and apply dynamic pricing strategy. Subsequently, more investing in guest services and employee training while converting weekend visitors into long weekend visitors can be executed at the service stage, as well as create a loyalty program at the stage of post stay or loyalty. Services owned by The Luxton are a competitive advantage, thus it is necessary to maintain the services that are currently running by continuing to improve its hospitality and service to guests.