Popularity of Budget Hotel

Sites in Indonesia

2016

May – June 2016

Indonesia Budget Hotel Sites

Travel, tourism and leisure industry are considered as the fastest-growing sectors in theglobal economy and is expected to rise in the future. With this, Indonesia has a greatpotential in such hospitality industry as Hotel, considering the increasing number of touristsin Indonesia over time. Thus, the Hotel business player need to know the strategic benefitsof the investment made in Hotel services improvement, that is online Hotel Booking service.

The rapid growth of the internet service on travel & tourism sector has impacted howbusiness connect to the consumer effectively. People now tend to do planning and bookinghotel easily through website or mobile apps. Besides it’s more convenient to search suitableroom and price to stay, it has more wide options of promotion than hotel owner sites orother provider websites.

For hotel provider there are some online service, but more niche business idea is come outto targeting only budget hotel room to increase their occupancy rate. This idea has beenfollowed by some startups in Asia.

Within this report we would like to provide some data on how high people’s awarenesstoward budget hotel sites service and their brand preference. It’s still on growing stage, butit surely can indicate the market growth and to see how the current competition is going inthe market.

2

68.6%

7.9%

13.6%

7.9%

2.1%

Full time worker

Part time worker

Self employed /Entrepreneur

Student

Unemployed

Demography

3

50.7 %

49.3 %

Gender Occupation

n = 140

Detail findings

1. Budget Hotel Sites at First

2. Brand Awareness

3. Consideration of Budget Hotel Sites

4. Future Intention & Recommendation

4

Q: Do you know Budget Hotel Sites?

5

Only of 2000 survey respondents know about Budget Hotel Site7%

There are 140 respondents (7%) who are aware of Budget Hotel Sites in

Indonesia. This indicates that Budget Hotel Sites still needs to improve its

promotion strategy to gain more visitors.

“ ”

Detail findings

1. Budget Hotel Sites at First

2. Brand Awareness

3. Consideration of Budget Hotel Sites

4. Future Intention & Recommendation

6

Q: Budget Hotel Sites at First?

7

The number of brands can be recalled

or mentioned spontaneously by the

respondents helps to determine the

level of competitiveness.

ZENROOMS leads the Top-of-Mind

Awareness among the respondents

who are aware of Budget Hotel Sites

with 17.9%, followed by Red Doorz

(12.9%) and Airy Rooms (9.3%).

n = 140

17.9%

12.9%

9.3%

7.1%

2.9%

Total Awareness Budget Hotel Sites

8

Top 5 Budget Hotel Sites:

58.6 %

45.0 %

39.3 %

37.1 %

30.7 %

ZenRooms leads

as the most popular budget

hotel sites in Indonesia.

The percentage among these 5 sites are

strongly competitive, thus budget hotel

sites could become the best alternative to

stay for any types of traveler.

n = 140

5“

”

Ever Visited Budget Hotel Sites

9

Mostly, respondents has visited:

45.0 %

34.3 %

32.1 %

28.6 %

16.4 %

ZenRooms still dominate as

most visited budget hotel

sites in Indonesia.

There are slight differences in percentage

of ever visited budget hotel sites between

RedDoorz and Airy Rooms.

n = 140

5“

”

10

Ever Used

Total Awareness

High

Lower

Lower High

Zenrooms

Reddoorz

Airyrooms

Nidarooms

OYO rooms

Ratio Ever Used vs Brand Awareness

The scatter shows, Zenroomslead the market of budget hotel

sites high awareness gain and the biggest user. Reddoorz, Airyrooms and Nidarooms,

compete to catchup the market leader. Meanhwile OYOroomsstill fall behind because they

haven’t entered yet Indonesian market. Size of Bubble indicate ratio between Ever Used and

Brand Awareness. If the size is getting bigger, indicate the user

increased.

Expansive Budget Hotel Sites

11

The main expansive budget hotel sites are

Surprisingly, AiryRooms wins at

its competitor, RedDoorz, in

terms of expansive

budget hotel sites in Indonesia.

AiryRooms reach the top 2 budget hotel

sites in terms of Expansive Budget Hotel

Sites in Indonesia. A good start in

expanding their brand to be one of the

popular budget hotel sites.

n = 140

42.9 %

27.9 %

25.0 %

22.9 %

15.7 %

5“

”

Expansive Budget Hotel Sites

12

n = 140

People

recommendations

Article on the

internetArticle on social media

42.9%39.7%

7.9%

35.4%39.6%

14.6%

28.9%

37.8%

24.4%

ZenRooms is mostly known from people recommendations, with

42.9%.

Furthermore, RedDoorz & AiryRooms are mostly recognized from

article on the internet.

Detail findings

1. Budget Hotel Sites at First

2. Brand Awareness

3. Consideration of Budget Hotel Sites

4. Future Intention & Recommendation

13

40.7% of the respondents prefer to look for affordable hotels in Budget

Hotel Sites since the sites are attractive as well as guaranteed.

14

Consideration of Visiting Budget Hotel Sites

In accordance to 140 respondents, complete information make people would

like to book a room in those options of Budget Hotel.

n = 140

Detail findings

1. Budget Hotel Sites at First

2. Brand Awareness

3. Consideration of Budget Hotel Sites

4. Future Intention & Recommendation

15

Future Intention Budget Hotel Sites

16

The future intention of budget hotel sites are

36.4 %

20.7 %

19.3 %

14.3 %

9.3 %

ZenRooms, become the

main budget hotel sites in

terms of Future Intention.

ZenRooms still dominates as the future

intention of budget hotel sites in

Indonesia. Followed by AiryRooms and

RedDoorz with percentage of 20.7% and

19.3% respectively.

n = 140

“

”

5

“”

Recommendation of Budget Hotel Sites

17

The most recommended budget hotel sites are

32.9 %

21.4 %

19.3 %

17.9 %

7.9 %

AiryRooms and RedDoorz

are strongly competing

each other to be

competitor of ZenRooms.

ZenRooms, RedDoor and AiryRooms placed at

the top 3 of budget hotel sites in terms of

people recommendations.

n = 140

5

- Bali- Batam- Bogor- Bandung- Jakarta- Makasar- Surabaya- Yogyakarta- P. Bintan

- International

Area Coverage

18

n = 140

- Jakarta- Bali- Bandung

- Jakarta- Bandung- Bogor- Bali- Surabaya- Solo- Yogyakarta

- Jakarta- Bali- Medan- Yogyakarta- Bandung

- Malaysia- Thailand- Philippines

- India- Malaysia

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