Critical Success Factors (CSFs) on Virtual Hotel Operators in Bandung City

Abstract

The advancement of Information and Communication Technology (ICT) has encouraged the beginning of a new form of hospitality business known as a Virtual Hotel Operator (VHO). This hotel concept in recent years succeeded in attracting hotel management and cooperation from various accommodation entrepreneurs. VHO concept is considered a disruption that threatens the existing hotels. Some of the big VHO brands in Bandung include RedDoorz and Oyo. The presence of VHO might be one of the reasons for the decrease in the occupancy rate of star hotels. The other hand, the occupancy of non-star hotels continues to increase. It becomes urgent to understand the Critical Success Factors (CSFs) of the VHO. This study aims to identify the determinants of the success of VHO hotels in Bandung. This research is an exploratory study using primary data through surveys, and secondary data that focuses on hotel guests who have stayed through VHO in Bandung City CSFs are measured using questionnaire using the Likert scale of 5 and processed using SPSS 25. The findings of this study indicate that the choose VHOs is inspired by the variety of promotions offered, ease of access, and extensive hotel networks. Furthermore, the factors that support the success of VHO are components of service quality, core products and control strategies. The ease of booking a room and broadness of the network are keys in increasing VHO sales.