Comparative study: International chain and local chain hotel COVID-19 readiness strategies in Indonesia

Main Article Content

Yoanita Alexandra Purnamaningsih Purnamaningsih http://orcid.org/0000-0001-8636-7548 Septi Fahmi Choirisa http://orcid.org/0000-0003-4572-4494

Abstract

The global hospitality and tourism industry has been severely impacted by the spread of COVID-19 and large-scale travel restrictions. Due to the nature of the crisis of COVID-19, Hotel businesses in Indonesia need to adapting many new strategies in response to the evolving circumstances. This study presents a comparative coronavirus readiness strategy at International Chain Hotel and Local Hotel in Indonesia and their impacts on hotel guests’ trust and satisfaction. The study used quantitative approaches by using an online survey to obtain data from a total of 400 participants.  The data were collected from respondents that have been stayed in both the International Chain hotel or Local Chain Hotel in Indonesia during pandemics. The data collected is analyzed using Structural Equation Modeling (SEM) with Smart PLS statistical software. The findings from this dataset show that both local and international hotel readiness had a significant effect on customer trust and satisfaction with COVID-19 readiness in the hotel industry.


 

Article Details

How to Cite
ALEXANDRA, Yoanita; PURNAMANINGSIH, Purnamaningsih; CHOIRISA, Septi Fahmi. Comparative study: International chain and local chain hotel COVID-19 readiness strategies in Indonesia. Economics, Management and Sustainability, [S.l.], v. 6, n. 2, p. 119-131, nov. 2021. ISSN 2520-6303. Available at: <https://jems.sciview.net/index.php/jems/article/view/142>. Date accessed: 21 may 2022. doi: https://doi.org/10.14254/jems.2021.6-2.9.
Section
Articles

References

Alonso, A. D., Kok, S. K., Bressan, A., O’Shea, M., Sakellarios, N., Koresis, A., ... & Santoni, L. J. (2020). COVID-19, aftermath, impacts, and hospitality firms: An international perspective. International journal of hospitality management, 91, 102654., https://doi.org/10.1016/j.ijhm.2020.102654
Alshibly, H. H. (2015). Customer perceived value in social commerce: An exploration of its antecedents and consequences. Journal of Management Research, 7(1), 17-37. https://doi.org/doi:10.5296/jmr.v7i1.6800
Anderson, E. W., & Mittal, V. (2000). Strengthening the satisfaction-profit chain. Journal of Service research, 3(2), 107-120. https://doi.org/10.1177%2F109467050032001
Anderson, R. E., & Srinivasan, S. S. (2003). E‐satisfaction and e‐loyalty: A contingency framework. Psychology & marketing, 20(2), 123-138. https://doi.org/10.1002/mar.10063
Ardani, E. G., & Harianto, A. (2021). Surviving strategy of hospitality sector in pandemic situation. E-Journal of Tourism, 8(1), 77-86; https://doi.org/10.24922/eot.v8i1.71449
Awan, M. I., & Shamim, A. (2020). Implementing ‘cleanliness is half of faith’ in re-designing tourists, experiences and salvaging the hotel industry in Malaysia during COVID-19 pandemic. Journal of Islamic Marketing, 12(3), 543-557. https://doi.org/10.1108/JIMA-08-2020-0229
Aydin, S., & Ãzer, G. (2005). The analysis of antecedents of customer loyalty in the Turkish mobile telecommunication market. European Journal of Marketing, 39(7-8), 910-925. https://doi.org/10.1108/03090560510601833
Azanella, L. A. (2020, September 26). Saat Pandemi Covid-19 Berdampak pada Bisnis Perhotelan Saat Ini. Retrieved from Kompas.com: https://www.kompas.com/tren/read/2020/09/26/102900465/saat-pandemi-covid-19-berdampak-pada-bisnis-perhotelan-saat-ini?page=all
Baum, T., Mooney, S. K. K., Robinson, R. N. S., & Solnet, D. (2020). COVID-19's impact on the hospitality workforce-new crisis or amplification of the norm?. International Journal of Contemporary Hospitality Management, 32(9), 2813-2829. https://doi.org/10.1108/IJCHM-04-2020-0314
Bremser, K., del Mar Alonso-Almeida, M., & Llach, J. (2018). Strategic alternatives for tourism companies to overcome times of crisis. Service Business, 12(2), 229-251. https://doi.org/10.1007/s11628-017-0344-7
Fadel, M., Salomon, J., & Descatha, A. (2020). Coronavirus outbreak: the role of companies in preparedness and responses. The Lancet Public Health, 5(4), e193. https://doi.org/10.1016/S2468-2667(20)30051-7
Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18(1), 39-50.
Gefen, D., & Straub, D. (2005). A practical guide to factorial validity using PLSGraph: Tutorial and annotated example. Communications of the Association for Information Systems, 16, 91-109.
Gefen, D., Straub, D., & Boudreau, M.-C. (2000). Structural equation modeling and regression: guidelines for research practice. Communications of the Association for Information Systems, 7(7), 1-78.
Ghaderi, Z., Mat Som, A. P., & Wang, J. (2014). Organizational learning in tourism crisis management: An experience from Malaysia. Journal of Travel & Tourism Marketing, 31(5), 627-648. https://doi.org/10.1080/10548408.2014.883951
Hair Jr, J. H., Hult, G. T., Ringle, C. M., & Sarstedt, M. (2016). A Primer on partial least squares structural equation modeling (PLS-SEM). London: Sage Publications.
Hao, F., Xiao, Q., & Chon, K. (2020). COVID-19 and China’s hotel industry: Impacts, a disaster management framework, and post-pandemic agenda. International journal of hospitality management, 90, 102636. https://doi.org/10.1016/j.ijhm.2020.102636
Hotel Business. (2020, March 19). Hotel Companies Implement Changes to Reduce COVID-19 Impact. Retrieved from hotelbusiness.com: https://www.hotelbusiness.com/hotel-companies-implement-changes-to-reduce-covid-19-impact/
Japutra, A., & Situmorang, R. (2021). The repercussions and challenges of COVID-19 in the hotel industry: Potential strategies from a case study of Indonesia. International Journal of Hospitality Management, 95, 102890. https://doi.org/10.1016/j.ijhm.2021.102890
Kamis, A., Saibon, R. A., Yunus, F. N., Rahim, M. B., Herrera, L. M., & Montenegro, P. Y. (2020). The SmartPLS Analyzes Approach in Validity and Reliability of Graduate Marketability Instrument. Socia Psychology & Education, 57(8), 987-1001.
Kim, S., & Park, H. (2013). Effects of various characteristics of social commerce (s-commerce) on consumers’ trust and trust performance. International Journal of Information Management, 33(2), 318-332, https://doi.org/10.1016/j.ijinfomgt.2012.11.006
Nunkoo, R., Teeroovengadum, V., Ringle, C. M., & Sunnassee, V. (2020). Service quality and customer satisfaction: The moderating effects of hotel star rating. International Journal of Hospitality Management, 91, 102414. https://doi.org/10.1016/j.ijhm.2019.102414
Nunnally, J., & Bernstein, I. (1994). Psychometric Theory (3rd ed.). New York: McGraw-Hill.
Okumus, F., & Karamustafa, K. (2005). Impact of an economic crisis evidence from Turkey. Annals of tourism research, 32(4), 942-961. https://doi.org/10.1016/j.annals.2005.04.001
Ratten, V. (2020). Coronavirus (covid-19) and social value co-creation. International Journal of Sociology and Social Policy, https://doi.org/10.1108/IJSSP-06-2020-0237
Ribaudo, G., Moccia, S., Orero-Blat, M., & Palacios-Marqués, D. (2020). Comparing chains versus independent hotels based on international sales: an exploratory study. Economic research-Ekonomska istraživanja, 33(1), 2286-2304. https://doi.org/10.1080/1331677X.2019.1710719
Ritchie, B. (2008). Tourism disaster planning and management: From response and recovery to reduction and readiness. Current issues in Tourism, 11(4), 315-348. https://doi.org/10.1080/13683500802140372
Ritchie, B. W., & Jiang, Y. (2019). A review of research on tourism risk, crisis and disaster management: Launching the annals of tourism research curated collection on tourism risk, crisis and disaster management. Annals of Tourism Research, 79, 102812. https://doi.org/10.1016/j.annals.2019.102812
Roldán, J. L., & Sánchez-Franco, M. J. (2012). Variance-based structural equation modeling: Guidelines for using partial least squares in information systems research. In Research methodologies, innovations and philosophies in software systems engineering and information systems (pp. 193-221). IGI Global. https://doi.org/10.4018/978-1-4666-0179-6.ch010
Rukuni, T. F., & Maziriri, E. T. (2020). Data on corona-virus readiness strategies influencing customer satisfaction and customer behavioural intentions in South African retail stores. Data in brief, 31, 105818. https://doi.org/10.1016/j.dib.2020.105818
Sarwar, M. Z., Abbasi, K. S., & Pervaiz, S. (2012). The effect of customer trust on customer loyalty and customer retention: A moderating role of cause related marketing. Global Journal of Management and Business Research, 12(6), 26–36.
Sigala, M. (2020). Tourism and COVID-19: Impacts and implications for advancing and resetting industry and research. Journal of Business Research, 312-321, https://doi.org/10.1016/j.jbusres.2020.06.015
Song, H., Wang, J., & Han, H. (2019). Effect of image, satisfaction, trust, love, and respect on loyalty formation for name-brand coffee shops. International Journal of Hospitality Management, 79, 50-59. https://doi.org/10.1016/j.ijhm.2018.12.011
Tarki, A., Levy, P., & Weiss, J. (2020). The coronavirus crisis doesn’t have to lead to layoffs. Harvard Business Review Digital. Retrieved, 4. https://hbr.org/2020/03/the-coronavirus-crisis-doesnt-have-to-lead-to-layoffs
Veronica, V., Prabowo, H., Manurung, A. H., & Hamsal, M. (2020). The influence of food & beverage retail store COVID-19 readiness strategies on customer satisfaction and trust. Advances in Transportation and Logistics Research, 3, 836-843. https://doi.org/10.25292/atlr.v3i0.342
Wang, Y., & Lo, H. P. (2003). Customer‐focused performance and the dynamic model for competence building and leveraging: A resource‐based view. Journal of Management Development, 22(6), 483-526.