Abstract

Virtual Hotel Operator (VHO) trend is growing rapidly, especially in Indonesia. Two of the most popular VHO in Indonesia are OYO and RedDoorz, both have been competing to attain the first position. Both OYO and RedDoorz have their own social media marketing strategies. For example, OYO persuades other conventional hotels to collaborate and use the OYO platform in their businesses. On the other hand, RedDoorz was recorded as the most visited Virtual Hotel Operator Platform in 2019, based on the data of Konsumen Jakpat 2019. OYO and RedDoorz also utilize social media to promote their services such as Instagram and Twitter. For advertising their businesses in social media, OYO and RedDoorz often use some social media influencers or known as influencer social media marketing. Influencers should be able to effectively deliver the messages and influence people’s decisions to use the products or services they advertise. This study aims to further explore the social media marketing strategy employed by OYO and RedDoorz. The results of Social Network Analysis by using “oyoindonesia” and ‘reddoorz’ as keywords in social media Twitter showed that RedDoorz has a bigger social network and more users involved in spreading their information than OYO. On the other hand, OYO's official account on Twitter is more efficient in performing its function as marketing media.

Highlights

  • The Indonesian Central Bureau of Statistics recorded a significant growth of online hotel bookings in 2018, which reached around US$1.986million

  • The growth of Virtual Hotel Operators (VHO) causes a substantial drop in star hotel occupancies as stated by the Indonesian Central Bureau of Statistics

  • Based on the results from the social network analysis, the RedDoorz official account in Indonesia is not selected as the key player

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Summary

Introduction

The Indonesian Central Bureau of Statistics recorded a significant growth of online hotel bookings in 2018, which reached around US$1.986million. This amount has increased by almost US$200million since 2017 and is predicted to keep increasing until US$2.879million in 2023. In 2018, the Indonesian Central Bureau of Statistics stated that there were 24.916 units of accommodation hotels while the star hotels were only 3.314 units. This number of accommodation hotels shows the vast number of demands for these facilities.

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