Comparative Analysis for Strategy Implementation in Indonesia's Hotel Business Sector During Covid-19

Abstract

This paper examines the performance of differentiation strategies employed by two prominent holding hotel companies, Intercontinental Group, and ACCOR Group, within different hotel categories. This research objective is to compare the revenue performance of 3-star and 4-star hotels, specifically Holiday Inn and Holiday Inn Express (from Intercontinental Group) also Ibis and Novotel (from ACCOR Group). The data analysis involves the calculation of revenue percentages for each hotel category over seven years, from 2016 to 2022. This research adopts descriptive and comparative approaches by contrasting the performance metrics of RevPAR, Occupancy Rate, and Average Room Rate (ARR). In conclusion, in 2016-2019, both the 4-star hotels of ACCOR Group and InterContinental Group tended to experience a downward trend in performance on all metrics. However, on the metrics of ARR and RevPAR, Novotel looks to dominate Holiday Inns. Even though the Occupancy Rate (OCC) metrics, the two hotel brands are balanced. In the 3-star hotels, both hotels also experienced a downward trend in 2016-2019. Both Holiday Inn Express and Ibis were unable to withstand in 2020, so the decline in their performance plummeted. On the positive side in 2021-2022, both hotels seemed to be back on their feet with significant increases and Ibis from ACCOR Group tends to excel in all three metrics. In terms of revenue percentage, it can be concluded that the 3-star hotel strategy is successful even in uncertain conditions. Meanwhile, the 4-star hotel strategy needs to be evaluated whether it is resilient enough to deal with unexpected situations