Budget Hotels Research Articles

Application of Customer Relationship Management in Maintaining Customer Loyalty (Case Study Hotel Melati)

This research aims to address the challenges and implement Customer Relationship Management (CRM) in a web-based budget hotel, Hotel Melati, for online bookings, accessing the latest promotional information, and providing online feedback. The study focuses on exploring the novel aspects of implementing CRM in the context of a budget hotel and its impact on maintaining customer loyalty. The research adopts a mixed-methods approach, utilizing interviews and observations for data collection. The development methodology follows the Waterfall method, encompassing sequential steps of analysis, design, implementation, testing, and maintenance. SWOT analysis is employed to identify strengths, weaknesses, opportunities, and threats. UML is used for the design phase, PHP for coding, and MYSQL as the database. Black box testing is conducted to evaluate the application's performance. The results of the black box testing demonstrate that the implemented application functions effectively. The questionnaire results show a satisfaction rate of 82.17%. Based on the feasibility assessment, the findings suggest that the implemented solution is highly suitable for addressing the identified challenges and maintaining customer loyalty.

A reinforcement learning approach for hotel revenue management with evidence from field experiments

AbstractWe consider a budget hotel chain's revenue management problem of deciding how to dynamically allocate capacity to multiple segments of customers. Our work solves an industrial‐sized problem faced by practitioners, with the reality of implementation motivating us to develop a tailored reinforcement learning approach. Our approach proceeds in two steps. First, a recommended average discount is computed with a reinforcement learning algorithm. Then, the recommended average discount is turned into a capacity allocation through a linear program. This approach overcomes the challenges of characterizing demand and estimating cancellations, and it facilitates hotel managers' acceptance of the revenue management system. We implement this approach in the hotel chain in a pilot study and assess its effectiveness using synthetic control methods. Our approach improves the key operational performance measure—revenue per available room—by 11.80%. There is heterogeneity in how the pilot hotels improve their revenue per available room. Some mainly increase their occupancy rate, some mainly increase the average daily room rate, while others experience significant increases in both. Further analysis shows that our approach uncovers the individual sources of suboptimal performance in pilot hotels and correspondingly improves decision‐making. Our work demonstrates that a reinforcement learning approach for hotel revenue management is promising.

Analysis of temperature preference of guests from various countries/regions during summer and winter in a budget hotel in Kyoto, Japan

Energy consumption by air conditioning in hotels is significant and continues to be an important topic in the building energy sector, although hotels do require a high level of thermal comfort. This study focuses on the temperatures that people prefer in Japanese hotels after traveling long distances across countries or regions. We measured room temperature and surveyed 299 Japanese guests, and measured room temperatures on 7,435 nights by Japanese and foreigners. We investigated the transient responses when guests entered a room while resting, sleeping, and waking. Zero heating and cooling costs were directly paid by guests, who were allowed to freely set their preferred temperature. Five interesting findings have emerged from this study. First, there were no significant differences in the temperatures preferred in hotel guest rooms by the Japanese respondents who lived in different regions. Second, Japanese respondents preferred a “cool” environment in summer and a “warm” environment in winter. Third, Japanese respondents tended to prefer “dry” to “moist” in both summer and winter. Fourth, the preferred temperatures differed between summer and winter. Fifth, the preferred temperatures in the same hotel varied depending on the country or region of origin of the respondent, and were not necessarily higher in summer than in winter.

Difference Strategy Analysis Which Influences On Competitive Advantage In The Hotel Industry Around Danau Toba

This study examines the relationship between the Differentiation Strategy that has been implemented by the Melati Ш Hotel industry around Danau Toba and Competitive Advantage. The researcher proposes a conceptual framework in which the sources of Differentiation consisting of Price, Service, Size Promotion and Location are linked to Competitive Advantage. The Competitive Advantage gained by the Budget Hotel industry Ш Around Danau Toba is measured based on the occupancy rate. The empirical test uses the Multiple Regression Analysis method which is supported by an analysis of the competitive environment. The results of the study show that the variables of price, service, promotion and location have a significant effect on Competitive Advantage. While the size variable has no significant effect. Based on the analysis of Partial Determination, the results show that the factor that most influences competitive advantage is price with a coefficient of determination of 0.922. By understanding the importance of a Differentiation Strategy, Hotel Melati Ш can create a difference with its competitors, so that it is able to compete in a more competitive market. The results of the analysis show that in the Budget Hotel industry Ш there are several hotels that apply the Differentiation strategy. With this research, Hotel Melati Ш, which has differentiated itself from competitors, can further emphasize and communicate its differences

Research on Cost Management and Control in China's Budget Hotels

Research on Cost Management and Control in China's Budget Hotels

Analysis of Influencing Factors and Distribution Simulation of Budget Hotel Room Pricing Based on Big Data and Machine Learning from a Spatial Perspective

The goal of investors in the hotel business is to maximize profits, and the price is an important means of achieving this goal. This has attracted many scholars to study the spatiotemporal relationship between hotel room prices and their possible influencing factors from different perspectives. However, most existing studies adopt the linear assumption of the hedonic model, with limited features and a lack of feature selection procedures. Additionally, there are few forecasts of hotel pricing from a spatial perspective. To overcome these gaps, this study adopts linear and nonlinear machine learning methods based on the “big data” of Sanya City to explore the influencing factors of budget hotel pricing. Based on the spatial perspective, 81 potential factors were considered. They are further selected using a feature extraction model called recursive feature elimination. Six machine-learning algorithms were evaluated and compared: random forest, extreme gradient boosting, multi-linear regression, support vector regression, multilayer perceptron regression, and K-nearest neighbor regression. The optimal value was used to further calculate the feature importance. They disclosed 40 important impact characteristics and predicted the spatial distribution of hotel pricing.

Did technology Outshined Personal Sales techniques; PR tools and how do they relate to guest choice of budget hotels in Egypt

Did technology Outshined Personal Sales techniques; PR tools and how do they relate to guest choice of budget hotels in Egypt

Effects of inertia and switching costs on customer retention: a study of budget hotels in China

PurposeThis paper aims to examine the effect of consumer inertia – a tendency to adhere to prior purchase decisions despite the existence of preferable alternatives – on the relationships between switching costs and customer retention, and explain the controversy within them in the context of budget hotels.Design/methodology/approachAn empirical test was conducted via structural equation modelling based on 337 self-administered questionnaires from customers at six of Chinese popular budget hotels.FindingsConsumer inertia was a significant mediator between switching costs and customer retention. Specifically, consumer inertia completely mediated the effects of financial switching costs on customer retention, but partially did between procedural switching costs and customer retention. By introducing consumer inertia, the explanatory power of customer retention improved significantly by 19%.Originality/valueThis paper clarifies the effects of multiple dimensions of switching costs on customer retention via the mediating role of consumer inertia and partly addresses the inconsistency in the prior studies from an inertia perspective.

Price Risk Strategy Analysis for Budget Hotels in the Post-Pandemic Era

The supply chain of the tourism industry, including air transportation, travel agencies, souvenirs, and hotel services, is almost at a breaking point, causing a rise in unemployment with huge losses during the COVID-19 pandemic period. In order to overcome these losses, we propose that luxury hotels should consider offering budget hotels at a lower cost but with satisfactory accommodation in order to create some turn-arounds in the post-pandemic era. However, budget hotels that branch off from luxury hotels cannot post the same room rates because there are some uncertain factors that affect the traveler experience when staying in budget hotels. In this study, we define four types of risk factors for the self-selection of the consumer model, and then find that the optimal room price appears to be independent of the performance risk for the service quality, brand image, and shuttle buses, but is dependent on physical risk in terms of priority number risk, the financial risk of refund rates, and the privacy risk of investment in the system. Finally, we discuss how government subsidies can encourage branched budget hotels by describing three sensitivity scenarios. The results show that subsidies that go towards staff training and higher-frequency shuttle buses will cause consumers to book more stays in budget hotels and, thereby, contribute to a higher profit. By lobbying the policy on government subsidies, budget hotels that branch off from luxury hotels are a profitable business model for a reduction in the huge losses occurred during the period of the spread of COVID-19.

KAJIAN AKADEMIK TENTANG USAHA PENGINAPAN HOTEL MELATI, GUEST HOUSE DAN KOST KOTA SAMARINDA

Academic studies on business arrangements for budget hotels, guest houses and boarding houses are carried out as a form of formulating or identifying legal problems that arise related to the booming business of budget hotels, guest houses and boarding houses in Samarinda City.The stages of the study carried out in a coherent and orderly manner are: (1) Identification of problems related to business arrangements for jasmine hotels, guest houses and boarding houses; (2) Inventory of required legal materials related to business regulations for jasmine hotel lodging, guest houses and boarding houses; (3) Systematization of Legal Materials; and (4) Analysis of legal materials.The number of jasmine hotel lodgings, guest houses and boarding houses in the city of Samarinda is relatively large, in practice jasmine hotel lodgings, guest houses and boarding houses are in some cases used by irresponsible people to support prostitution / online prostitution or free sex, child trafficking minors, drug abuse. Then, the existence of jasmine inns, guest houses and boarding houses also reaped reactions from five-star hotel entrepreneurs who indicated that the existence of jasmine hotel inns, guest houses and boarding houses had an economic impact that threatened hospitality investment.Special arrangements in the form of Regional Regulations regarding Business Arrangements for Budget Hotels, Guest Houses and Boarding Houses need to be established immediately. The urgency of the establishment of a Regional Regulation concerning Business Arrangements for Budget Hotels, Guest Houses and Boarding Houses is to ensure legal certainty and protection, peace and social order for the community as well as a legal umbrella for the implementation of all forms of efforts related to Business Arrangements for Budget Hotels, Guest Houses and Boarding Houses in Indonesia. Samarinda City.

Exploring dimensions of the customer experience at budget hotels during the COVID-19 pandemic: a netnography approach

Purpose In 2020, the world encountered travel restrictions because of pandemic, and the hospitality sector across the globe was one of the most affected industries. The purpose of this study is to further explore real-time experiences of guests who stayed in budget hotels and how pandemic has changed the expectations of its customer segment. Design/methodology/approach The current study uses netnography to examine customer experience of guests who stayed at budget hotels during the COVID-19 pandemic. A thematic analysis was conducted using NVivo 12 plus on 1,391 customer reviews collected from various travel portals. Findings The results suggested personalization and hygiene were the most significant themes that influence customer experience during the COVID-19 pandemic. The authors’ analysis revealed that the use of self-service technologies like contactless services during check-in, checkouts and use of Quick Response codes in restaurants and other services would help reduce the perceived risk of guests and enhance the overall customer experience. Originality/value The branded budget hotel sector has pumped in lot of money envisaging growth just before the COVID crises emerged. Therefore, the fast recovery is of paramount importance for the sector. Additionally, majority of the pandemic-related studies in hospitality sector have focused on luxury hotels and failed to address the real-time experiences of customers with respect to budget hotels of a developing country. The outcome of this study will be relevant for the budget hotels and policymakers because they face the crucial task of reviving and sustaining enterprises and the industry at large.

E-Commerce Platform and Its Disruptive Strategies: A Case On Oyo Rooms - Chain That Connects Budget Hotels

Disruptive idea can bring in a huge change in any industry. Risk taker and innovator are two basic characteristics of an entrepreneur’s personality. Solving the problems of people with some innovative ideas in a much easier way then existing is the aspect that differs an entrepreneur from a normal businessman. This is an exploratory study of travel and tourism industry. A single case can disrupt the whole industry and can provide a contemporary approach to the industry forcing all the rest of the players to chance the perspective of business. This paper discusses the disruptive strategies of Travel and Tourism industry with the help of strategies used by Oyo Rooms who are market pioneers of online facilities for hotel booking. An entrepreneur’s personality counts a lot in the success of any organization hence the journey of Oyo founder from his childhood is also covered so that the reader can also understand the personality behind the great idea. The sense and thorough understanding of recognizing the tourist or traveller’s problem in a much deeper way is the only thing that made Ritesh Agarwal an outstanding entrepreneur of travel and tourism industry.

Effect of Performance Appraisal System on Employee Satisfaction in Budget Hotels of Kolkata

There has been unprecedented growth of budget hotels in India. Human resources have been important element for the growth and sustainability of the hotels. HR practices are critical for enhancing job satisfaction and productivity of employees. A fair and transparent performance appraisal process are key for enhancing trust and confidence with the system. Employees who are satisfied with the performance appraisal system will be keen to be committed with the hotels. The present study has been conducted in the budget hotels of Kolkata. 135 employees and 10 employers were taken for the study. Stratified random sampling was employed and SPSS Version 20.0 was used for the data analysis. The results indicated that there was a marked difference between the levels of satisfaction amongst permanent and contractual employees. The performance appraisal was included for all employees, however, the pay and promotion were limited to permanent employees.

Research on the Influence of After-sale Service on Customer Loyalty -- A Case Study of Budget Hotels

Customer loyalty is very important to the hotel’s survival and development, so the hotel will maintain and improve customer loyalty in all aspects. The same is true in budget hotels. In this paper, budget hotels were selected as the research object, and college students as the research object, through the way of a questionnaire survey to study how after-sale service affects customer loyalty. In the survey, additional services are used to refer to after-sales services. According to the service quality model, additional services were divided into five aspects: responsiveness, caring, compensatory, reliability, and assurance. Through regression analysis, only caring and assurance of additional services had a positive impact on customer loyalty. Therefore, based on the characteristics of college students, it was suggested that budget hotels should be customized in the design and arrangement of additional services. Evaluate the quality of customized services and make service corrections. At the same time, the influence of selected variables on customer loyalty can be verified in other groups.

Pengaruh Lokasi, Harga, Fasilitas, dan Kualitas Pelayanan Terhadap Keputusan Pembelian Jasa Kamar di Hotel Ibis Budget Jakarta Daan Mogot

This research started from the researcher's observation of the room occupancy rate at the Ibis Budget Jakarta Daan Mogot Hotel which has decreased from month to month, presumably due to the unstable consumer purchasing decisions for room. The purpose of this research is to determine the effect of location, price, facilities, quality of service with the decision to purchase room services at the Ibis Budget Hotel Jakarta Daan Mogot. This study is a causal associative type, the population in this study are all guests who have stayed at the Ibis Budget Daan Mogot Hotel. The sampling technique is non-probability sampling, using incidental samples, that is, anyone who happens to meet the researcher can be used as a sample. with a suitable category as a data source. The number of samples in this study amounted to 100 people. The data collection technique was carried out using a questionnaire (questionnaire) using a Likert scale that had been tested for validity and reliability. Based on the results of the total respondents' achievements regarding the assessment of Location, Price, Facilities, Quality of Service carried out by Ibis Budget Jakarta Daan Mogot, it is included in the poor category because the TCR value is 66%. Based on the results of the total respondents' achievements on purchasing decisions at the Ibis Budget Hotel Jakarta Daan Mogot, the TCR value of 69% is included in the lower category. The influence of Location, Price, Facilities, Quality of Service on purchasing decisions at Ibis Budget Jakarta Daan Mogot is 65.5% and location, price, facilities, service quality have a positive and significant effect on purchasing decisions, this is because the Sig value 0.000 > 0.05.

Distribution Differentiation and Influencing Factors of the High-Quality Development of the Hotel Industry from the Perspective of Customer Satisfaction: A Case Study of Sanya

Achieving customer satisfaction is an important goal of the high-quality development (HQD) of the hotel industry. The purpose of this study is to summarize the spatial distribution characteristics and influencing factors of the HQD of the hotel industry to better help improve hotel customer satisfaction and realize the HQD of the hotel industry. Taking Sanya as an example, this study applied kernel density analysis, grid analysis and a geographically weighted regression (GWR) model to reveal the distribution characteristics and influencing factors of the HQD of the hotel industry. The research results show that (1) from 2010 to 2020, both budget hotels and luxury hotels showed an increasing trend year by year and the degree of spatial agglomeration was continuously strengthened. (2) The overall HQD of the hotel industry in Sanya is at a medium to high level, but the development between different regions is unbalanced. The HQD level of the hotel industry in the eastern part of the city is better than that in the western region. (3) There are significant differences in the HQD level and its spatial distribution characteristics of budget hotels and luxury hotels. (4) Hardware facilities, price levels, market popularity and traffic conditions have a positive impact on the HQD level of the hotel industry, while hotel scale and business prosperity have a negative impact on the HQD level of the hotel industry. The public service level does not pass the significance test. The conclusions of this study can provide theoretical reference for the decision-making of HQD of urban tourism.

Perceived Performance of Budget Hotels from Online Reviews: The Case of Macao

ABSTRACT This paper aims to investigate the current performance of budget hotel hotels in Macao via online reviews from hotel visitors. Both quantitative and qualitative methods were employed to analyze 44,703 budget hotel reviews, which collected from a popular online travel agency platform. The findings show that the budget hotels in Macao are clustered in Macao island, where many historical and cultural attractions are located. Macao budget hotels have the advantages in price and location, which mainly attract tourists in “Family trip,” “Friends outing” and “Business trip” travel modes. The hotels are generally performing well, but with problems in marketing strategies, service quality and hotel hygiene. This paper provides advice and recommendations for the development of budget hotels with reference to the research findings.

Digital marketplace for tourism resilience in the pandemic age: voices from budget hotel customers

PurposeThis paper aims to examine the initiative of low-price hotels, budget hotels, in Malaysia, to restore the financial sustainability through empowering the digital marketplace strategy in the tourism resilience sector. Giving an open accessibility to customers for achieving their venue with a low price and have a friendly service comes from initiating the digital marketplace arrangement.Design/methodology/approachThis study focuses on what is the importance of the digital marketplace strategy for tourism resilience in the pandemic age and how is it important. The data come from qualitative interview from one couple, husband and wife, regarding the budget hotel operation practice in the city of Sri Iskandar, the Perak state of Malaysia.FindingsThe findings revealed the importance of initiating the strategy of digital marketplace in enabling the customers’ personalised decision towards the tourism destination they prefer based on their needs of low-cost and proper service. There are three main points, namely the importance of digital marketplace for tourism market enhancement, readiness of digital marketplace for tourism market enhancement and continued capacity to strategize digital marketplace for tourism market enhancement. The initiative to commit with applying for the resilience for tourism sustainability in the pandemic age is important to ensure they can take a small advantage continually with the frequent customers’ sustainability.Originality/valueThis paper is supposed to contribute in developing the resilience practice through advancing the strategy of digital marketplace in raising the tourism sector, budget hotel operators. The main occupation aims to empower resilience for tourism sustainability in the pandemic age, in order to recover the market in online platform.

Public Relations Strategy of Hotel Budget in Surabaya in Building Brand Loyalty

Purpose: This study aims to determine the efforts made by budget hotel public relations in competing in the hotel industry. The number of budget hotels is increasing.
 Result: Based on the research results, it can be concluded that: most of the public relations strategies in creating brand loyalty for budget hotels in Surabaya have been carried out by internal parties properly but have not been optimal because budget hotels in Surabaya still lack in conducting reviews related to facilities outside the room, for example, ballrooms, or parking lots, meeting places, and others that support multi-functional activities;
 Originality: The process of public relations activities in creating brand loyalty for budget hotels in Surabaya is still focused on room facilities and the services offered, while the budget is not explained in detail. As such, it confuses prospective hotel service users. Budget hotel users in Surabaya are included in the satisfied buyer level, indicating that the budget hotel brands have been well recognized by the customers, although the results are quite satisfying but have not met the expectations of the hotels' public relations in Surabaya.
 Implication: Thus, it is still necessary to develop a public relations strategy to move customers to the committed buyer level, in which customers are loyal and will always return to stay at the hotels offered on the Traveloka website.
 
 Keywords: communications strategy, increase, budget hotel

Characteristics of the international hotel chain OYO Hotels & Homes

OYO Rooms (stylised as OYO), also known as OYO Hotels & Homes, is an Indian multinational OTA, homes and living spaces. Founded in 2013 by Ritesh Agarwal, OYO initially consisted mainly of budget hotels. The startup expanded globally with thousands of hotels, vacation homes and millions of rooms across more than 60 countries including India, Malaysia, UAE, Nepal, China, Brazil, Mexico, UK, Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam, the United States and more.