e-commerce strategy intercontinental bali resort

Journal of Business and Economics, ISSN 2155-7950, USA October 2015, Volume 6, No. 10, pp. 1775-1784 DOI: 10.15341/jbe(2155-7950)/10.06.2015/012 © Academic Star Publishing Company, 2015 http://www.academicstar.us

1775

E-commerce Strategy InterContinental Bali Resort

I Gusti Putu Ngurah Budiasa, I Wayan Yudi Suriyasa

(Bali Hotel Tourism Institute, Indonesia)

Abstract: Global and dynamic competition is one of the challenges for hospitality industry. Internet is a

global network of interconnected networks. In 2012, the approximately 2.4 billion users connected to the internet

worldwide represent just 34.3% of the global population. In these conditions, the usage of internet technology in

business strategy plays an important role to assure service quality optimization, provide ultimate customer value

and/or increase company profitability. E-commerce is the subset of e-business focused on transaction. The average

contribution of e-commerce business in Inter Continental Bali Resort (ICBR) showed 18.39% in the last five years.

However, data 2012 showed negative performance whereby from 19.17% in 2011 down to 17.72% or decrease

1.45% or 2.586 room nights, below average market performance area which range between 20-25%. This study

wants to analyze and discuss the e-commerce strategies of ICBR. The research concluded some strategies, such as;

managing hotel website, maintaining reservation access and security transactions of credit cards were runned very

well. Other strategies need to be further improved and developed, such as; offering the best availability rates and

customer loyalty program. In contrast, the speed of customer response and attractive promotion packages need

much improved.

Key words: hotel; competition; internet; e-commerce; strategy

JBE codes: M31

1. Background of the Study

The development of internet technology today leads to changes in the way we communicate with customers

and run the business. In today’s highly dynamic market situation, the utilization of technology plays a very

important in ensuring the smoothness and optimization of services as well as improvement on the company

performance (Ministry of Research and Technology, Republic of Indonesia, 2013).

The bigger of opportunities owned by each company would make the challenge harder. Therefore, companies

need the right model of business and technology management solutions that can use all the assets and help

companies responsive to the needs of the business and the market. Website has radically changed the customer

expectations on the convenience and speed of transactions, price, service quality, and the ability to compare with

other products, services, and include suppliers.

The increased intensity of competition requires every business owner and practitioner always pay attention to

the dynamics of consumer needs, wants, and preferences, as well as trying to fulfill those with a more effective

and efficient approach compared with its competitors. The use of internet technology is expected to provide great

I Gusti Putu Ngurah Budiasa, MA, CHA, Bali Tourism Institute; research area: marketing in lodging industry. E-mail:

[email protected], [email protected].

1776

benefits to t

implement i

e-commerce

The gro

internet, and

life style of

continue to

population. T

This m

selling good

new global

strategy to im

For im

efficiency, im

have to be

distribution.

traditional c

with other c

great advant

marketing is

Hotel c

the marketin

and market

Through the

accessible b

e-commerce

the business.

internet techn

e.

owth of e-com

d even some i

modern socie

increase from

This also des

means that com

ds and service

marketing st

mprove and o

mproving bus

mproving the

put in place

The use of

companies. If

companies tha

tages offered

s a revolution

competition in

ng approache

their produc

e internet, inf

y potential gu

e potential to

E-co

. Companies

nology in tra

mmerce is lik

information t

ety in the futu

m year to ye

cribes a great

Figur

mmunities ar

es. Similarly,

trategy. In ot

optimize the c

siness positi

e quality of p

at the whol

the internet

f the compan

at are able to

d by e-comm

n of the hotel

n Bali is very

s to respond

ts and servic

formation ab

uests around

o increase the

ommerce Strat

will win the

ading of thei

kely growing

technology ex

ure. In Figure

ear. In 2012,

t potential ma

re 1 History a

Source: ww

re more frequ

, companies a

ther words th

company perf

on, every c

products and

le business fu

can reduce l

ny does not c

o offer the sam

merce, many c

and booking

y tight. Hospi

the changes

ces are not on

bout the avail

the world w

e hotel perfo

tegy InterCont

e competition

ir products a

steadily in lin

xperts predict

e 1, it shows

the internet

arket for com

and Growth of

ww.internetworld

uent dealing

are seeking w

he e-commer

formance.

ompany req

d services as

functions, fro

labor costs, i

change the w

me goods an

companies ar

online that h

itality busine

of market co

nly targeted

lability of ho

ith very easy

rmance whic

tinental Bali R

n, produce m

and services

ne with the re

t that the inte

the internet u

users had re

mpanies to foc

f Internet, 1997

dstats.com (201

with the inte

widening its m

rce will tran

uires continu

well as creat

m planning,

infrastructure

way of their b

nd services w

re bringing th

as a very imp

ss owners an

onditions. The

to the local

otel rooms as

y, fast, and ch

ch is represen

Resort

more sales an

or known as

ecognition of

ernet will beco

users was onl

eached 2.4 b

cus on.

7-2012

12)

ernet in all th

market share

sform into a

uous approa

ting innovatio

production p

e, and other c

business then

ith cheaper p

heir business

portant role in

nd managers n

e marketers a

market but a

s well as a v

heap. When it

nted by the i

nd profits if

s electronic c

f the global ne

ome part of e

y 75 millions

billion or 34.3

hings includin

e through the

a very import

aches for ac

ons. Efficien

processes, m

costs are usu

it is difficul

price. Due to

s towards on

n the hotel bu

need to rethin

are encourage

also to the gl

variety of inf

t is optimally

increase of m

they able to

commerce or

etwork of the

everyday or a

s in 1997 and

3% of world

ng buying or

internet as a

tant business

hieving cost

cy principles

marketing and

ually paid by

lt to compete

the ease and

line. Internet

usiness.

nk and renew

ed to develop

lobal market.

formation are

y utilized, the

market share,

o

r

e

a

d

d

r

a

s

t

s

d

y

e

d

t

w

p

.

e

e

,

business mix

InterCo

hotel with th

Germany. T

of ICBR are

(http://bali.in

corresponde

travelocity,

revenues can

No Years T

1 2008 9

2 2009 9

3 2010 9

4 2011 9

5 2012 8

Total

Source: Reven

In Tabl

addition, it s

other source

decrease of

with 2,586

contribution

x, occupancy

ontinental Ba

he concept o

he hotel also

e carried out

ntercontinent

ence with gue

expedia, gull

n be seen in T

T

Travel Agent

92,139

91,300

91,501

90,187

87,627

nue Analyst, Int

le 1, it descr

shows that e-

es of hotel re

e-commerce

decreased in

n range betwe

Fig

18000

20000

22000

24000

E-co

y rates, revenu

ali Resort (IC

of the resort,

o focus on de

among other

tal.com/), and

ests via email

livers, and m

Table 1 below

Table 1 E-com

Non

Direct bookin

8,861

9,712

7,066

5,466

5,640

terContinental B

ribes the com

-commerce re

evenue were

performance

n room nigh

een 20-25% an

gure 2 E-com

Source:

2008 2

225

ommerce Strat

ues and profit

CBR) started

located in Ji

velop some p

rs; working w

d in cooperat

l. The compan

many others.

w.

mmerce Reven

n e-commerce

ng Corpora

1,149

1,450

1,306

1,310

1,600

499,625

Bali Resorts, 20

mparison of e

evenue is deri

generated fro

e over 2011 p

hts. Meanwh

nd while in T

mmerce Produc(

e-commerce re

2009 201

534 22854

tegy InterCont

tability.

launching e-

imbaran-Bali

potential mar

with the comp

tion with one

ny used web

The contribu

nue InterConti(in room nights

ate Complim

1,100

720

643

461

387

012

e-commerce r

ived from po

om travel age

performance,

ile, other fiv

Tuban-Kuta ar

ction InterCon(in room nights

port, InterCont

0 2011

235712

tinental Bali R

-commerce st

, wherein ha

rkets like Chi

pany web por

e of the bigg

portals like b

ution of e-co

inental Bali Res)

mentary Port

9,1

9,3

10,6

11,9

10,4

revenue and

ortal agent we

ents and dire

, from 19.17%

ve-star hotels

reas claim 25

ntinental Bali Rs)

inental Bali Re

2012

23101

205

Resort

trategies in 1

as the major m

ina and Russ

rtals, creating

gest corporate

booking.com,

mmerce activ

esort, 2008-201

e-com

tal website

112

378

680

994

418

112,

non e-comm

ebsites and ho

ct bookings.

% down to 1

s in the area

5-30% of the

Resort, 2008-20

sort 2012

515 Roo

1993, which

markets from

ia. E-comme

g the indepen

e email serve

, agoda.com,

vities to tota

12

mmerce

Home website

13,422

13,476

12,891

11,107

10,097

,575

merce revenue

ome or hotel

The year 20

17.72%, or th

a claim the

total room re

012

om Nights

1777

is a five-star

m France and

erce activities

ndent website

er to process

wotif group,

al hotel room

Total

125,783

126,036

124,087

120,525

115,769

e appears. In

website, and

12 showed a

he equivalent

e-commerce

evenue.

7

r

d

s

e

s

,

m

n

d

a

t

e


1778

Table 2 E-commerce Revenue InterContinental Bali Resort, Year 2012 (in Rp.)

2012 RNS Revenue (RP) ADR (RP)

Month e-commerce All market %Mix e-commerce All market %Mix e-commerce All market %Mix

Jan 1,734 10,580 16.5% 4,152,009,935 18,957,390,459 21.9% 2,382,106 1,791,814 32.9%

Feb 1,475 7,415 19.9% 2,224,876,273 10,106,071,237 22.0% 1,508,391 1,362,923 10.7%

Mar 1,594 8,759 18.2% 2,555,430,013 12,157,735,521 21.0% 1,728,626 1,388,028 24.5%

Apr 1,675 8,605 19.5% 3,564,537,933 14,639,593,199 24.3% 2,128,082 1,701,289 25.1%

May 1,401 9,593 14.6% 2,757,782,241 14,827,704,894 18.6% 1,968,438 1,545,680 27.4%

Jun 2,178 10,253 21.2% 4,294,990,901 17,130,281,560 25.1% 1,971,988 1,670,758 18.0%

Jul 1,914 11,593 16.5% 4,590,246,062 23,036,983,112 19.9% 2,554,987 1,987,146 28.6%

Aug 1,871 11,454 16.3% 5,254,309,684 25,130,541,775 20.9% 2,808,290 2,194,041 28.0%

Sep 1,510 10,971 13.8% 3,529,118,146 18,727,561,910 18.8% 2,403,390 1,707,006 40.8%

Oct 1,807 11,051 16.4% 4,263,254,602 18,757,021,179 22.7% 2,359,300 1,699,848 38.8%

Nov 1,279 8,240 15.5% 2,419,042,671 12,576,620,446 19.2% 1,868,641 1,526,289 22.4%

Dec 2,068 7,255 28.5% 5,561,087,169 15,453,014,721 36.0% 2,737,470 2,129,981 28.5%

Total 20,515 115,769 17.7% 45,166,685,630 201,528,521,013 22.4% 26,419,709 20,704,802 27.6%

Average 1,710 9,647 17.7% 3,763,890,469 16,794,043,418 22.4% 2,201,642 1,725,400 27.6%

Source: Revenue Report, InterContinental Bali Resorts 2012 (data diolah)

In Table 2, it shows the contribution of e-commerce 22.4%, equivalent to Rp. 45,166,685,630 of total hotel

room revenue of Rp. 201,528,521,013.

Table 3 Contributions Survey E-commerce at Hotel Competitors in 2012

No List of hotel Inventory Occ% Hotel RNS (ADR) E-commerce Mix internet

E-commerce RNS E-commerce Revenue (IDR)2012 (IDR) Percentage (%)

1 Westin 369 73.3% 98,724 2,356,000 24.7% 24,339 57,342,684,000

2 Ayana 368 78.0% 104,770 2,460,500 23.2% 25,529 62,814,104,500

3 Grand Hyatt 636 70.5% 163,659 1,757,500 20.0% 34,627 60,856,952,500

4 ICBR 417 75.8% 115,371 2,201,642 17.8% 20,515 45,166,685,630

Note: * Rate (Best flex w/b fast)

Tabel 4 E-commerce Revenue of Hotel Competitors, 2012

No List of hotel Inventory Occ% Hotel RNS (ADR) E-commerce Mix internet

E-commerce RNS E-commerce Revenue (IDR)2012 (IDR) Percentage (%)

1 Westin 369 73.3% 98,724 2,356,000 24.7% 24,339 57,342,684,000

2 Ayana 368 78.0% 104,770 2,460,500 23.2% 25,529 62,814,104,500

3 Grand Hyatt 636 70.5% 163,659 1,757,500 20.0% 34,627 60,856,952,500

4 ICBR 417 75.8% 115,371 2,201,642 17.8% 20,515 45,166,685,630

Note: * Rate (Best flex w/b fast) Source: e-commerce report, InterContinental Bali Resorts 2012

2. Res

Based o

strategies im

implemented

documentati

website or p

using the S

Furthermore

several stag

based on rel

3. Lit

3.1 Def

Accord

important pl

fundamental

Alex D. Tri

segmentatio

plans to achi

E-comm

275) defined

through com

expand comm

products and

There are thr

search Que

on the backg

mplemented b

d by ICBR.

ion. The pop

portal agent w

Slovin formul

e, the data w

es, such as:

evant theory

teratures R

finition of St

ding to Andre

lans for achie

l plans to ach

iyana (1985,

n, marketing

ieve company

merce defined

d e-commerce

mputer netwo

mercial links

d services th

ree main elem

E-co

Figure 3

Source: e

estion and M

ground of the

by ICBR?”

Data were

pulation was

website in 20

la cited in S

were discusse

reporting dat

(Burgin, 200

Review

trategy and E

ew cited from

eving objectiv

hieve objectiv

p. 17) stated

mix, marketi

y objectives.

d as any form

e as a proces

orks, include

online. Adi N

hrough interne

ments of e-com

ommerce Strat

E-commerce

e-commerce rep

Methodolo

study, it is f

This study a

collected th

guests who

13 with 1,710

Sedarmayanti

ed and critiz

ta obtained f

01, p. 130).

E-commerce

m Craig (200

ves. Lesser R

ves. Asri (200

d there four

ing budget, a

ms of trade tra

ss of purchas

internet. Kie

Nugroho (200

et which invo

mmerce, such

tegy InterCont

e Revenue of H

port, InterConti

ogy

formulated th

aimed at rev

hrough quest

have stayed

0 guests in to

and Syarifu

ed using des

from the field

02, p. 5) def

Robert Bittel i

02, p. 30), str

key controll

and timing. It

ansaction of g

se, trade, mov

enan (2001, p

06, p. 5) deine

olved purcha

h as; purchase

tinental Bali R

Hotel Competit

inental Bali Res

he research qu

iewing and d

tionnaires, se

d and made

otal. The sam

udin (2002, p

scriptive qua

d as what it

fined strategy

in Buchari A

rategy as wel

lable variable

is concluded

oods and serv

ve or exchan

p. 4) defined

ed e-commerc

ase transactio

, trade, and fu

Resort

tors, 2012

sorts 2012

uestion is “H

discussing th

emi structure

reservations

mple size was

p. 143) with

alitative techn

is, processing

y is goals, ob

Alma (1978, p

ll thought pla

es related to

d that strategy

vices using el

ge of produc

e-commerce

ce as a metho

ns and fund

und transfer th

How were the

he e-commer

ed interviews

either throu

94 guests an

h a 10% deg

niques which

g the data, th

bjectives, and

p. 972) define

ans for optim

strategy, suc

y is important

lectronic. Turb

cts/services or

e is creating,

od for selling

transfer thro

hrough the int

1779

e-commerce

rce strategies

s, and study

ugh the hotel

nd was drawn

gree of error.

h consists of

hen analyzed

d policy, and

ed strategy as

mizing results.

ch as market

t policies and

rban (2005, p.

r information

manage and

and purchase

ough internet.

ternet.

9

e

s

y

l

n

.

f

d

d

s

.

t

d

.

n

d

e

.


1780

Turban (2005, p. 275) classified e-commerce activities into business-to-business (B2B),

collaborative-commerce (c-commerce), business-to-customer (B2C), consumer-to-business (C2B),

consumer-to-consumer (C2C), business-to-employee (B2E), government-to-citizen (G2C), dan mobile-commerce

(m-commerce)

3.2 E-commerce Benefits

E-commerce benefits are not only for suppliers, such as hotel, but also by customers include public

community (Turban, 2005, p. 279). For organization, e-commerce expand market share, obtain products and

services from suppliers very quick and with low cost, to cut distribution channels, to make product cheaper and

profitable. For customers, product and services are cheaper, to make comparison, to get quick information on the

products and services they are interested in, and can make purchase anytime and anywhere. For community,

e-commerce enable community to make transactions from homes, these resulted in people less travel, decrease

traffic and pollution.

3.3 E-commerce Strategy

Alison and Ashton found in Keller (2003, p. 89) mentioned two main strategies of e-commerce, first

strategies are related to attract customers and second strategies are related to maintain customer loyalty.

Furthermore, they suggested the critical elements of e-commerce strategy, such as; maintain simple, give value

added, easy to purchase, show security transaction, maintain customer privacy, best availability rates, easy access,

customer service number, promptly customer response, use automatic response, low cost of delivery, and give

guarantee service. Nowadays, online customers are not only concerning the value of products and services, but

also speed and convenient of transaction (Nykiel, 2003, p. 23).

Law and Chung (2003, p. 88) stated a quality website has complete, relevant and up to date information on

facilities and services, is easy accessible, is enable to develop direct communication between customers and hotel,

has access to make reservation, has information of surrounding hotel areas, and has website management to assure

the quality standard.

The best availability rates are an important tool for persuading customers to purchase. Kotler (2002, p. 79)

and Nykiel (2003, p. 23) suggested a strategy which considers market demand conditions and competition, such as

selling up, selling down, discount based on time purchase, early bird, and last minute. Selling up is implemented

when forecast show demand increase, on contrary, selling down or discounted rates implemented if forecast show

decrease in demand. Early bird is aimed at generating advance bookings, where in last minute is implemented if

many supply still available. Furthermore, to guarantee a prompt response on customer inquiry, room allotment and

rates are closely monitored.

The customers want to get the best value from their purchase. To assure getting a good quality of hotel

products and services, customers are normally looking at past customer reviews before making room reservation.

Nykiel (2003, p. 36) stated customers evaluate hotel quality using four elements, such as: room cleanliness,

employee attitude, comfort, and value for money.

4. Discussion

In this part, e-commerce strategy ICBR was described, discussed, and analyzed in details using descriptive

qualitative approach.


1781

4.1 E-commerce Strategy InterContinental Bali Resort

ICBR started e-commerce in 2009 with worldwide web for featuring hotel information, room availability and

making room reservation. Visitors are also allowed to give their reviews through tripadvisor.com. This strategy is

aimed at building and communicating hotel image to targeted markets, maximizing room reservations and room

revenue particularly from online market segment. For achieving this goal sales and marketing department add

position in organization chart with e-commerce division under Director of Revenue (DoR). All direct reservations,

either from telephone, fax, email, and website are monitored daily by DoR. Furthermore, based on internal and

external analysis are carried out by DoR then deciding effective selling strategies. The e-commerce strategies are

described in an E-commerce Manager (EM) job description as of as listed below;

(1) to develop good relationship with third party, particularly key accounts of OTA

(2) to prepare and implement marketing plan for online market segments

(3) to monitor room allotment utilization from OTA and hotel competition for determining a proper

e-commerce strategy for maximing reservations and room sales

(4) to assure website content and pictures are always up to date, either hotel website nor third party websites

(5) to supervise and ascertain e-commerce strategies are right in place

(6) to desain and promote promotion packages for online market segments

(7) to select key words in website and develop links with other related websites for increasing website

popularity or doing Search Engine Optimitization (SEO)

(8) to develop programs for maintaining customer loyalty

Based on jobs description above, it is found that the job description has been properly designed because the

jobs have covered website and OTA management, market analysis, and developing marketing and selling strategy

as suggested by Alison and Ashton theory. However, marketing activities through social media are not clearly

stated

4.2 E-commerce Strategy InterContinental Bali Resort

As previously described in research methodology, data in this study were collected by questionnaire and

semi-structured interview. Questionnaires were distributed to customers who have stayed and booked through

hotel website and OTA in 2013, from 1-23 August 2013, and 94 respondents were participated. Samples were

drawn using stratified random sampling methods. To complete data, semi-structured interview with EM and DoR

were also conducted on September 5, 2013.

4.2.1 Respondents Based on Continent

Online market segment in ICBR are dominated by Europe (46.8%) or 44 respondents (46.8%), then Asia

(29.7%) or 28 respondents, Australia (14.9%) or 14 respondents (14.9%), and America (8.5%) or 8 respondents.

These data are similar with data were released by www.internetworldstats.com which mentioning that the internet

users are in America, Asia, Europe, and Australia. ICBR has reached the right market segments.

4.2.2 Respondents Based on Reservation Sources

Based on online room reservation sources, it is discovered that there were 33 respondents (35.1%) making

reservation through hotel website, then followed by booking.com was 17 respondents (18%), agoda.com was 14

respondents (14.9%), expedia.com was 12 respondents (12.8%), gullivers.com was 10 respondents (10.6%), and

other sources were 8 respondents (8.5%). In addition, this describes that ICBR has a good online business mix

because most share were generated from hotel website so that makes better yield. Hotel does not need provide

commission to OTA. But, less production compare other same hotel category. Resort Manager Grand Nikko Bali

1782

claimed prod

4.2.3 C

Review

Ashton theo

first attracti

broken-dow

providing pr

card, mainta

customers. S

From T

of website, e

Chung (2003

facilities and

access to ma

quality stand

ducing averag

Customers Rev

wing and disc

ory found in K

ing custome

n into more s

rompt respon

aining best a

Summary of c

Tabel 5 was s

except gulliv

3, p. 88) reco

d services, ea

ake reservatio

dard. In webs

E-co

ge 54.54% of

Figu

Figure 5

view on E-co

cussing on e

Keller (2003,

r interest an

specific strate

nse on custom

availability ra

customers rev

shown that al

er.com (2.70)

ommend a we

asy accessible

on, has inform

site ICBR has

ommerce Strat

f the total onl

ure 4 Respon

Source

Respondents

Sumber: Da

Source

ommerce Stra

e-commerce

, p. 89), and

nd second m

egies which c

mer inquiries,

ates (BAR), a

view were de

lmost all port

) was satisfac

ebsite should

e, enable to d

mation of surr

s been divorc

tegy InterCont

line room rev

dents Based on

e: Questionnair

s Based on Res

ata olahan pene

e: Questionnair

ategy of ICBR

strategy of I

Nykiel (2003

maintaining

consist of sev

, convenient o

attractiveness

scribed in Ta

tal agents wh

ctory. Websit

has complete

develop direct

rounding hot

ced all those e

tinental Bali R

venue was fro

n Continent, N

re, 2013

ervation Sourc

elitian, 2013.

re, 2013

R

ICBR were m

3) wherein st

customer loy

ven elements

on reservatio

s of promotio

able 5.

hich were coo

te is a critical

e, relevant and

t communica

el areas, and

elements. Mo

Resort

om hotel webs

N = 94

ces, N = 94

mainly based

tated two mai

yalty. These

, such as; ma

on process, se

on packages,

operated with

l marketing a

d up to date i

ation between

has website m

oreover, the w

site.

d on Alison

in e-commer

e strategies w

aintaining we

ecure transact

, and mainta

h ICBR have

and selling to

information o

n customers a

management

website is ava

and Richard

ce strategies,

were further

ebsite quality,

tion of credit

ining loyalty

good quality

ols. Law and

on company’s

and hotel, has

to assure the

ailable on the

d

,

r

,

t

y

y

d

s

s

e

e


1783

mobile app store, Android app on Google pay, socializes through social medias such as facebook, twitter, you tube,

and Google plus, has customer care, travel advisory, and tool free.

Table 5 Customer Review on E-commerce Strategy of ICBR, Year 2013

No Type of Strategy Customer Perception

Hotel booking.com agoda.com expedia.com gullivers.com Others

1 Website quality 4.18 3.47 3.36 3.42 2.70 3.42

2 Response on customer’s inquiries 2.58 3.65 3.35 3.41 2.20 3.00

3 Easy reservation access 3.97 3.41 3.14 3.16 3.40 2.75

4 Secure transaction 3.91 3.82 3.42 3.50 3.00 2.75

5 Best availability rates 3.12 3.47 3.14 3.25 2.20 3.00

6 Attractive promotion packages 2.61 2.70 2.78 2.79 2.40 2.38

7 Customer loyalty programmes 3.12 3.29 3.85 2.91 3.00 3.25

Source: Questionnaire, 2013

The speed in responding customer inquiries are critical variables to convince and build professional image.

Customers tend to continue with a booking room if the website provides all required information and all inquires

are being responded efficiently and professionally. It is discovered almost all portal agents provided prompt

response on customer’s inquiries, except gulliver.com was poor (2.20) and hotel’s website (2.38). Furthermore, 16

out of 33 respondents reviewed poor and very poor on the speed of responding customer inquiries. This may

resulted in many potential hotel guests turned way to competitors.

Hotel website and almost all portal agents have provided an easy access to make booking, except other online

booking sources was satisfactory (2.75). Each portal agent has its own booking engine which enables customers

obtain an instant or real time confirmation. ICBR using a booking engine which is called IHG reservation system.

This system provides access to create a new reservation, modify, and cancel existing reservation.

In e-commerce business, most of the transactions uses by credit cards. To avoid credit card frauds, customers

need to be ascertained by the credit card security system. It is found that hotel website and almost all portal agents

have put secure online transaction over credit cards, except other online booking sources was satisfactory (2.75).

ICBR uses TRUSTe to guarantee the privacy of personal data from customers, include credit card data. In addition,

others credit card security systems are install in the hotel website, such as: PayPal and VeriSign.

Customers want to get the best value from the purchased products or services. Therefore, the best availability

rates are important selling tools. Nykiel (2003) suggested hotel requires undertaking both competition analysis

and forecasting demand before setting room rates. Hotel may implement selling up or selling down depending on

market conditions. It is found booking.com gave the best availability rates (3.47) among other portal agents

include hotel website (3.16)

Hotel demand fluctuates depending on season. For boosting demand, hotel creates variety of promotion

packages, such as early bird and last minute booking. Early bird promotion is aimed at encouraging bookings

from customer who preferable to make booking far in advance. Meantime, last minute promotions are targeted to

those customers who want to make booking close to arrival. To communicate promotion packages, hotel and OTA

send an email blast (e-blast) to customers in the data base. It is found that the promotion packages, either offered

by hotel and OTA are satisfactory (2.61) mean that the promotion package were less attractive. Alison and Ashton

reminded to put value added for customer in the packages.


1784

Kotler (1998) suggest concept of marketing relationship in post purchase stage which hotel focus on building

relationship with a company’s profitable customers. To put into practice this concept, hotel and OTA offer loyalty

programmes, send a thank letter, birthday card, and send an email (e-blast) informing new developed products to

customers. ICBR offer a loyalty programme which is named InterContinental® Ambassador: a recognition

programme offers members a full range of first-class services and exclusive benefits to enhance their stay. It is

found agoda.com has very good customer relation programs to maintain their loyalty, such as offering a bonus

program, frequent email blasts informing special offers of holiday packages.

5. Conclusions and Research Implications

The ICBR has assigned a special division in sales and marketing department for handling e-commerce

activities and properly designed job description. The target market target has been clearly defined and as well as

online market segments mix have been achieved. Some e-commerce strategies, such as; managing hotel website,

maintaining reservation access and security transactions of credit cards were runned very well. Other strategies

need to be further improved, such as; offering the best availability rates and customer loyalty program. However,

the speed of customer response and attractive promotion packages need much improved. The implication of these

findings are the ICBR need to review procedure of setting rates, selling strategy of customer loyalty programme,

standard of customer response, and promotion package components. It is suggested to undertake further research

on the same topic with more sample size using quantitative approach, online market segment characteristics and

behaviors.

References: Alex D. Triyana (1985). Menerapkan Strategi Marketing Indonesia, Marketing Seminar Jakarta. Alma B. (1998). Manajemen Pemasaran dan Pemasaran Jasa, CV, Alvabeta, Bandung. Chandra G., Tjiptono F. and Chandra Y. (2004). Pemasaran Global: Internasionalisasi dan Internetisasi, Penerbit Andi.

Yogyakakarta. Craig J. C. Craig and Grant R. M. (2003). Strategic Management, PT. Elex Media Komputindo, Jakarta. Craven D. W. (1998). Pemasaran Strategi, Erlangga, Jakarta. Fandy Tjiptono (2000). Manajemen Jasa, Penerbit Andi, Yogyakarta. Internet World Stats (2012). Internet Growth Statistic, available online at: http://www.internetworldstats.com. Kienan B. (2001). Small Business Solutions E-commerce, Alex Media Komputindo, Jakarta. Kotler P., Bowen J. T. and Makens J. C. (2009). Marketing for Hospitality and Tourism (6th ed.), Printice Hall Inc. Engewood Cliffs.

New Jersey, USA. Kotler P. (2002). Marketing Management, Pearson Education Asia Pte. Ltd dan PT. Prehallindo, Jakarta. Kotler P. and Garry A. (1998), Dasar-dasar Pemasaran, Princiles of Marketing (7th ed.), terjemahan Pursyadin, Printice Hall

Inc.Engewood Cliffs, New Jersey, USA. Lupiyoadi R. (2001). Manajemen Pemasaran Jasa, Salemba Empat, Jakarta. Law R. and Chung (2003). “Developing a performance indicator for hotel websites”, International Journal of Hospitality

Management, Hong Kong. Nugroho A. (2006). E-commerce: Memahami Perdagangan Modern di Dunia Maya, Informatika Bandung, Bandung. Nykiel R. A. (2003). Marketing in the Hospitality Industry (4th ed.), The Educational Institute (AHLA), Michigan, USA. Smith P. R. (1993). Marketing Communications, Books Unlimited (Nottm), London. Zeithaml V. A. and Bitner M. J. (1996). Service Marketing, Mc Graw-Hill Companies Inc, Singapore.

e-commerce strategy intercontinental bali resort

Documents