140506_Bali Technology Conference 2014_Technology & social integration in Indonesia's hospitality sector
•
6 likes•1,470 views
Technology and social integration in Indonesia's hospitality sector. The importance of responding to online reviews.
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Similar to 140506_Bali Technology Conference 2014_Technology & social integration in Indonesia's hospitality sector
Similar to 140506_Bali Technology Conference 2014_Technology & social integration in Indonesia's hospitality sector (20)
More from Spire Research and Consulting
More from Spire Research and Consulting (20)
Recently uploaded
Recently uploaded (20)
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)
- 20. 20 Hospitality Survey: Websites and Reviews
- 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
Editor's Notes
- 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