Business as usual for non-star accommodation<\/p>\n
Sudibyo S. Wiradji, Contributor, Jakarta<\/p>\n
While the lull in the number of foreign tourists has
\nsignificantly affected hotel bookings in most of the country's
\nthree to five-star hotels over the past several years, lower star
\naccommodation has managed to maintain a monthly occupancy rate of
\nup to 70 percent.<\/p>\n
Unlike most high star hotels that generate revenue mainly from
\noverseas travelers, many of the non-star, or those classified as
\none or two star hotels, with some exceptions, concentrate their
\nmarketing on domestic customers who pay in rupiah.<\/p>\n
Consequently, the declining number of overseas tourists has no
\nserious effect on their business. "We can do business as usual.
\nNot a single employee has been laid off," Setiabudi Palace
\nHotel's Marketing Executive Wiarti Sumadi said.<\/p>\n
Regular customers of this type of hotel include business and
\nsales people, traders, students and ordinary guests. The hotels
\nset reasonable and competitive room rates based on the purchasing
\npower of the targeted market, ranging from Rp 100,000 (approx.
\nUS$9) to Rp 350,000 per night, compared to between Rp 550,000 and
\nRp3.5 million per night at a four or five star hotel.<\/p>\n
Non-star hotels, commonly classified into 'Melati' type
\nhotels, and low star hotels have a limited number of rooms,
\nranging from 25 to 150, with standard facilities such as
\nindividual air conditioning, a television set, bath room and
\nshower with hot\/cold water and telephone with International
\nDirect Dial (IDD).<\/p>\n
Except for particular two star hotels like Hotel Karya Bahana
\nin Jakarta on Jl. Jaksa, a popular place with overseas travelers,
\nthat provides a coffee shop and a bar, many of the hotels in this
\ncategory do not have such facilities or a sophisticated
\ngymnasium, fitness center, spa, sauna facility or swimming pool
\nlike those found in almost all four or five star hotels. But
\nhotels of this type do boast comfort, security and a cozy
\natmosphere.<\/p>\n
With domestic customers as their target market, the use of
\nthe Internet as a marketing or promotional tool is not an urgent
\nmatter for many of the small hotels. To market their property,
\nthey rely on conventional marketing techniques such as leaflets,
\nbanners and fax machines.<\/p>\n
"At present setting up a homepage for our company profile is
\nnot an urgent matter. Maybe it will become urgent in a few
\nyears," a spokesperson from Menteng Hotel I said, adding that e-
\nmail was used only when the hotel wanted to communicate with a
\ncustomer company outside the capital.<\/p>\n
Certain low star hotels are always fully booked on Fridays
\nthrough Sundays and several of them have guests for short-term
\nstays.<\/p>\n
Hotel Melawai located near Blok M shopping complex is one of
\nthe favorites in town.<\/p>\n
The one star Setiabudi Palace Hotel has a monthly occupancy
\nrate of 70 percent. It manages to maintain a high occupancy rate
\nthanks to its good relations with corporate clients throughout
\nthe country. "We offer a 20 percent discount for our regular
\ncustomers," she said.<\/p>\n
She said that its regular customers were business people from
\nvarious industries, including pharmaceuticals, insurance and
\nbanking. With most of its guests business travelers, Setiabudi
\nPalace Hotel sees its rooms occupied on official working days
\nfrom Monday to Friday. "However, on Saturdays and other holidays,
\nour hotel is quiet," she said.<\/p>\n
As providing lodging for business people from outside Jakarta
\nis the hotel's primary objective, it does not provide sporting or
\nleisure facilities such as a sophisticated gymnasium, bar, pub,
\nmassage spa or sauna, commonly available at high star hotels.<\/p>\n
One of the older hotels in town, the two-star Hotel Metropole,
\nalso sees offering special rates for its regular customers as an
\neffective means of retaining its monthly occupancy rate of over
\n50 percent even in times of crisis. Its regular customers include
\nbusiness people and students who come in groups. "We can
\nguarantee that on school holidays, in July and on Idul Fitri,
\nChristmas and New Year, our hotel occupancy rate will reach
\nnearly 90 percent, with groups of students lodging in the hotel,"
\nsaid the hotel's Marketing Executive Sulaiman Mode.<\/p>\n
The hotel offers competitive room rates of between Rp 100,000
\nand Rp 180,000.<\/p>\n
The hotel is situated in Glodok shopping complex, in the Kota
\nChinese downtown area, just a few minutes away from the Mangga
\nDua shopping complex. The location makes it one of the more
\npopular hotels for traders wishing to shop for electronics items
\nin the capital.<\/p>\n
"The hotel's location also helps students staying at the hotel
\nto strike out on their own, and excursions to every part of
\nJakarta begin here," Sulaiman said, adding that from the hotel,
\nthe students often visited places of interest nearby, including
\nthe Museum of Jakarta History in North Jakarta, Ancol Dreamland
\nin North Jakarta and the National Museum in Central Jakarta.<\/p>\n
With domestic customers as its main market, the sharp drop in
\nthe number of foreign visitors to Indonesia, particularly
\nJakarta, has had no serious impact on the hotel. "Whether there
\nis a crisis or not, one or two foreigners are seen booking a room
\nin our hotel," he said.<\/p>\n
As the hotel does not provide entertainment facilities,
\ncustomers wishing to experience the night life in the capital
\nhave to search for entertainment outside the hotel, he added.<\/p>\n
For government-linked hotels like Sri Wijaya Hotel on Jl.
\nVeteran, finding potential occupants is not a problem as its
\nregular customers are those from government offices. The 100-room
\nhotel boasts an 80 percent occupancy rate. The room rates range
\nfrom Rp 160,000 to Rp 350,000. The hotel is a favorite with
\ngovernment officials seeking accommodation in the capital because
\nit is located close to government buildings, including the
\nPresidential Palace, the Ministry for Home Affairs, and the
\nheadquarters of state-owned oil and gas company Pertamina.<\/p>\n
For several hotels, floods which recently hit the capital
\nproved to be a boon, as rooms were fully booked. The Setiabudi
\nPalace Hotel, for example, was overwhelmed by those seeking
\nshelter from the floods. "Our 41 rooms were all occupied for
\nseveral days. This helped us to meet our sales target. This was a
\nblessing in disguise," she said.<\/p>\n
"Our hotel was also fully booked during the flooding and many
\nflood victims failed to find a room in the hotel," said a
\nspokesperson for Hotel Metropole.<\/p>",
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