Here are five tips to make house packing quicker and faster.pptx
140506_Bali Technology Conference 2014_Technology & social integration in Indonesia's hospitality sector
1. 1
Technology and social integration
in Indonesia’s hospitality sector
The importance of responding to online reviews
Jeffrey Bahar
Deputy Chief Executive Officer
Spire Research and Consulting
6 May 2014
2. 2
8.8 million foreign visitors
245 million domestic trips
Most foreign inbound trips are short
and medium term (average 7.5 days),
spending 13.13 million IDR per visit
Top 5 destinations:
Bali, Jakarta, Batam & Riau Islands,
East Java, North Sumatera
Major growth in arrivals from China,
Philippines, Malaysia, India and
Germany
Foreign revenue: 321.57 trillion IDR
Domestic revenue: 171.50 trillion IDR
Domestic trips and spending
increased due to a stronger middle
income class
Number of inbound tourists to Indonesia
Top 4 countries
No. Country 2012 2013 Increase
1 Singapore 1,271,443 1,400,000 10.11 %
2 Malaysia 1,133,430 1,200,000 5.87 %
3 Australia 909,176 928,279 2.10 %
4 China 618,223 747,921 20.98 %
Total 8,044,462 8,802,129 9.42 %
Sources: Indonesia tourism performance report, Jakarta Globe and BPS.go.id
Indonesia and Tourism
Facts and Figures
Number of visits to Indonesia (2009 – 2013)
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
2009 2010 2011 2012 2013
3. 3
Indonesia Singapore Thailand China Australia
Hong
Kong
Japan Vietnam
Tourist arrivals
(in millions, 2012)
8.0 14.5 22.4 57.7 6.1 23.7 8.4 6.8
#Star Hotels 1,623 310 7,660 16,780 890 200 63,390 7,470
Average length
of stay (days)
2.85 3.81 2.13 3.42 2.21 3.68 4.2 2.1
Number of rooms 155,740 50,260 391,970 2,977,000 89,330 65,770 1,467,000 69,250
Occupancy Rate 51.55% 83.23% 39.96% 52.49% 72.43% 83.49% 81.54% 63.93%
Tourism
(Risk/Reward)
Rating
40.86 69.87 71.39 51.30 69.40 76.07 51.00 59.30
Indonesia and Hospitality
Facts and Figures
Source: BMI Tourism Q3 2013, WEF_TT 2013, Spire secondary research and UNTWO tourist highlights 2013 edition.
4. 4
Indonesia and Hospitality
Facts and Figures
Indonesia has the lowest tourism rating in Asia (17th in Asia,
70th worldwide).
Indonesia has the lowest number of star hotels when compared to other
countries, as there is a relatively high number of other alternative
accommodations available (hostels / guesthouses).
Higher hotel occupancy rate can be observed in Singapore, Hong Kong
and Japan. These countries host more transit and business trips vis-à-vis
leisure in Indonesia, Thailand, China and Vietnam.
5. 5
Indonesia and Hospitality
Facts and Figures
5 star
hotel
165
10%
4 star
hotel
245
15%
3 star
hotel
503
31%
2 star
hotel
316
20%
1 star
hotel
393
24%
Division of star hotels
Star hotels
1,623
10%
Non-star
hotel
8,766
55%
Youth
hostel
446
3%
Lodgings
2,474
15%
Others
2,690
17%
Accommodation type
Source: BPS and Spire Research & Consulting
Total number of star hotels: 1,623
Total number of accommodations: 15,998 (as of 2012)
44% of star hotels are in Java, 21% of them in Sumatera, and 13% in Bali
There are more hotels in 2013, but occupancy rate has dropped (50% average)
Tourists are switching to low budget star hotels over the more expensive star hotels.
6. 6
Indonesia and Hospitality
Facts and Figures
103 118 129
165
227 232
252 245
340
363
457
503
253 267
290
316317
326
361
393
5 star 4 star 3 star 2 star 1 star
Division of star hotels (2009 – 2012)
2009 2010 2011 2012
Source: BPS and Spire Research & Consulting
Total number of star hotels: 1,623
Total number of accommodations: 15,998 (as of 2012)
44% of star hotels are in Java, 21% of them in Sumatera, and 13% in Bali
There are more hotels in 2013, but occupancy rate has dropped (50% average)
Tourists are switching to low budget star hotels over the more expensive star hotels.
7. 7
Hospitality Trends Worldwide
Technology trends for
hotel efficiency
Cloud technology
Automated services
Social media
The lobby as epicenter
Technology trends as
service for guest
BYOC and room technology
Social media
“Free” Wi-Fi
Remote office
Cloud technology
Low cost
Ease of use
Automated services
91% of the guests are willing to
check in automatically
91% would do it if possible
Social media: Spread
information and gather
valuable insights about the
hotel
Lobby as social and
technological epicenter of the
hotel: ups secondary profits
(bar income, promotion of
services, etc.)
Source: elevenwireless (2014) and SmartBrief.com / Wall Street Journal (2014)
8. 8
Hospitality Trends Worldwide
Source: elevenwireless (2014) and SmartBrief.com / Wall Street Journal (2014)
Technology trends for
hotel efficiency
Cloud technology
Automated services
Social media
The lobby as epicenter
BYOC (Bring Your Own
Content):
99% : 1 device
45% : 2 devices
40% : 3 or more
Guests are increasingly
involved in social media and
online platforms, including
user-rated websites before
booking.
87% of guests expect “free”
Wi-Fi, possibly in exchange for
an e-mail address
The hotel as office away from
office, including all facilities.
Technology trends as
service for guest
BYOC and room technology
Social media
“Free” Wi-Fi
Remote office
9. 9
“Consumers can be reached at all times in almost any place they
go thanks to the proliferation of Internet capable smartphones, and
this means that companies must work hard to keep their brand and
image relevant and on point.”
(Rosman & Stuhura, 2013)
“When a customer has a positive experience, they’ll tell one person.
When a customer has a bad experience, they will tell 10.”
(Sallyu, 2014)
10. 10
Facebook, 95.70%
Youtube, 47.60%
Google+, 37.60%
Twitter, 29.40%
Percentageofrespondents
Social Media Usage
Indonesia and Social Media
Sources: ipra.org, socialmemos.com, eMarketer (2013)
67.2 million social network users (5th world rank)
Main age groups: 15 – 24 (56%) and 25 – 34 (27%)
Internet use: 29% (±80mln people), 77% through mobile penetration
60% of social media access via mobile devices
Engagement: 2.2 social networking hours per day
11. 11
Indonesia and Social Media
48 million users
Ranked 4th in the world
Over 11 million users in Jakarta
(2nd behind Bangkok)
29 million users
15 tweets per second
7.5% of worldwide tweets
Jakarta is Twitter capital
2.4% of worldwide tweets
12. 12
The importance of reviews to consumers
Source: Forrester (2011) online survey
How important are user reviews to you
when determining hotel accomodation?
“I won't book a property unless there are
reviews on it”.
Disagree
(1-3)
21%
Neutral
(4-6), 30%
Agree
(7-10),
49%
Not
important
(1-3)
3%
Neutral
(4-6), 16%
Important
(7-10)
81%
“Seeing a management response to
reviews is important to me”.
Disagree
(1-3)
7%
Neutral
(4-6), 22%
Agree
(7-10)
71%
13. 13
The importance of reviews to consumers
“A management response to a good
review makes me feel better about the
hotel”.
Disagree
(1-3)
2%
Neutral
(4-6)
20%
Agree
(7-10)
78%
“A management response to a bad
review reassures me”.
Disagree
(1-3), 2%
Neutral
(4-6)
19%
Agree
(7-
10), 79%
Source: Forrester (2011) online survey
14. 14
Top result:
42% of total clicks
Top 3: 79% of total clicks
Top 5: 88% of total clicks
Only 3% of searchers look
further than the first page
Response
of Hotels
More (positive)
reviews
Better search
engine ranking
More traffic
on website
More guests
More revenue
Gain consumer insights through
negative reviews
Approach consumers with a
personalized message
Acknowledge and value guests’
opinions through replying their reviews
Generate 6% more positive reviews on
average; leading to more bookings
Keep consumers on the hotel website:
Show reviews Interlink social media
Sources: e-marketingassociates.com (2012) / Tnooz-TripAdvisor (2011)
Why should hotels respond to reviews?
15. 15
Has the Indonesia hospitality
sector embraced social media
in their business model?
16. 16
Social media is still
seen as “purely social”
Mainly used for
promotional
purposes, and not to
“WOW” service
Potential information
advantage from such
platforms not grasped
Indonesian
infrastructure and
culture matter
Twitter is the “opinion
wall” of the internet
Hotel experience is a
personal and
subjective experience
Hotels focus more on
complaints rather than
compliments
Much information is
overlooked because it
is not addressed
directly at the hotel
Only international hotel
chains adopted
measures to tackle
such reviews (trackers)
Spire expert interview
Source: expert interview with the director of Indo Web W@tch
17. 17
Hospitality Survey: Social Media
55%
62.5%
7.5%
13.75%
37.5%
23.75%
0% 20% 40% 60% 80% 100%
1
2
Yes Yes, but unused / Others No
All hotels
70%
77.5%
12.5%
12.5%
17.5%
10%
0% 20% 40% 60% 80% 100%
1
2
Yes Yes, but unused / Others No
Hotels with 4 or more stars
Use of social media in Indonesia hospitality sector
Sources: Spire primary and secondary research. * = Five star chain hotels are not questioned about tracking software, expert information revealed they all make use of it.
18. 18
Hospitality Survey: Social Media
Facebook is the preferred social media platform
Twitter: Lower usage but higher level of activity, if used
• 89% of hotels only post promotions and events on their social media pages
• No signs of community building on their social media pages
There is almost no interaction between the hotels and guests
• The hotel has enough bookings as it is, for instance through word-of-mouth and
traditional media
• The targeted demographic does not use social media
• The combination of the website and TripAdvisor is enough to attract visitors, no
added value for social media
Most common reasons of not using social media
Higher social media usage is observed in regions with more international tourists
Only a few hotels use social media tracking software*
Sources: Spire primary and secondary research. * = Five star chain hotels are not questioned about tracking software, expert information revealed they all make use of it.
19. 19
Hospitality Survey: Reviews
Sources: Spire primary and secondary research
Medium responsiveness indicates the hotel
has only responded to selected
messages, or does not respond within a
month.
Responsiveness of hotels
No
response, 40
%
High
responsiveness,
52%
Medium
responsiveness, 8%
High
responsiveness,
62%
Medium
responsiveness,
30%
No
response, 8%
Only
negative
reviews,
10%
Responsiveness to reviews
All reviews, 90%
Responsiveness to reviews
(Hotels with 4 stars and higher)
21. 21
Conclusion
The tourism sector in Indonesia
witnesses steadily increasing
number of tourists each year
Indonesia presents much
opportunities for hotels to
attract guests
Indonesia hotels have rapidly
integrated social media and
mobile technology to their
operations
Hotels can make use of these
increasingly popular platforms
to reach out to potential
customers
The potential of social
media and review
platforms is not fully
realized.
Lower star hotels can
learn from other four
and five star hotels; the
same goes for
independent hotels
and hotel chains
Huge gap in social
media usage between
hotels that draw
international tourists
and those that draw
domestic travelers
Hotels that do not use
trackers have missed
opportunities to
improve their service
Hotels only use
social media as a
promotional
outlet.
Social media only
provides one-way
stream of
information, and
there is low
interaction
between hotels
and guests
There may be
opportunities
waiting to be
uncovered in the
guests’ posts
23. 23
Tel: (62) 5794 5800
Fax: (62) 5794 5808
Wisma 46, Kota BNI 25th Floor,
Unit #07-09
Jakarta 10220
id.info@spireresearch.com
www.spireresearch.com
Notes de l'éditeur
Now that we know this quote, some hotels seem to do better than others in this thing called branding…
Huge increase in number of people that are connected to the internet and social mediaMore connectivity + increase in GDP =Increase of e-commerce (including online bookings)Connectivity through mobile devices means indonesians are very mobile! In other words: they can post a review instantly instead of waiting to get home and get behind the computer