THE ANALYSIS OF COMPETITIVE STRATEGY: THE IMPACT OF NONALCOHOL POLICY TOWARDS HOTEL PERFORMANCE. CASE OF HOTELS IN JAMBI- LAMPUNG AND PALEMBANG

Abstract

The hotel industry in Indonesia has been rapidly growing. As the industry grows, competitive
becomes more intense. In order to survive, hotels need to develop strategies to create
competitive advantage. In this case, Aston Hotel Palembang adopts product differentiation
strategy by being a halal-certified hotel. This strategy was adopted to optimize the market
potential. The Hotel also manages to save a considerable amount of capital and operating cost
from this strategy that further leads to their prime performance. The objective of this research
is to analyze the variables that make the Hotel’s strategy to be successful and to further analyze
how Aston Palembang’s strategy can be replicated to other hotels to maximize profit and to
achieve Hotel Sustainable Performance (HSP). This research used qualitative approach by
conducting interviews with the General Managers and the Head of Departments of the
representative hotels and analyzed using content analysis method. The findings of this research
shows that by adopting the strategy of non-alcoholic policy and being halal-certified, Aston
Palembang has achieved a prime performance which lead to the achievement of firm
performance and competitive advantage.