Popularity of Budget Hotel Sites in Indonesia May June 2016

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1 Popularity of Budget Hotel Sites in Indonesia 2016 May June 2016

2 Indonesia Budget Hotel Sites Travel, tourism and leisure industry are considered as the fastest-growing sectors in the global economy and is expected to rise in the future. With this, Indonesia has a great potential in such hospitality industry as Hotel, considering the increasing number of tourists in Indonesia over time. Thus, the Hotel business player need to know the strategic benefits of 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 how business connect to the consumer effectively. People now tend to do planning and booking hotel easily through website or mobile apps. Besides it s more convenient to search suitable room and price to stay, it has more wide options of promotion than hotel owner sites or other provider websites. For hotel provider there are some online service, but more niche business idea is come out to targeting only budget hotel room to increase their occupancy rate. This idea has been followed by some startups in Asia. Within this report we would like to provide some data on how high people s awareness toward budget hotel sites service and their brand preference. It s still on growing stage, but it surely can indicate the market growth and to see how the current competition is going in the market. 2

3 Demography Gender Occupation 50.7 % Full time worker Part time worker 7.9% 68.6% 49.3 % Self employed / Entrepreneur Student 7.9% 13.6% Unemployed 2.1% 3

4 Detail findings 1. Budget Hotel Sites at First 2. Brand Awareness 3. Consideration of Budget Hotel Sites 4. Future Intention & Recommendation 4

5 Q: Do you know Budget Hotel Sites? Only 7% of 2000 survey respondents know about Budget Hotel Site 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. 5

6 Detail findings 1. Budget Hotel Sites at First 2. Brand Awareness 3. Consideration of Budget Hotel Sites 4. Future Intention & Recommendation 6

7 Q: Budget Hotel Sites at First? 17.9% 7.1% 9.3% 12.9% 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%). 2.9% 7

8 Total Awareness Budget Hotel Sites Top 5 Budget Hotel Sites: % 45.0 % 39.3 % ZenRooms leads as the most popular budget hotel sites in Indonesia % 37.1 % 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. 8

9 Ever Visited Budget Hotel Sites Mostly, respondents has visited: % 34.3 % 32.1 % ZenRooms still dominate as most visited budget hotel sites in Indonesia % 28.6 % There are slight differences in percentage of ever visited budget hotel sites between RedDoorz and Airy Rooms. 9

10 Ratio Ever Used vs Brand Awareness Total Awareness High Lower OYO rooms Nidarooms Reddoorz Airyrooms Zenrooms The scatter shows, Zenrooms lead the market of budget hotel sites high awareness gain and the biggest user. Reddoorz, Airyrooms and Nidarooms, compete to catchup the market leader. Meanhwile OYOrooms still 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. Lower Ever Used High 10

11 Expansive Budget Hotel Sites The main expansive budget hotel sites are 42.9 % % 25.0 % Surprisingly, AiryRooms wins at its competitor, RedDoorz, in terms of expansive budget hotel sites in Indonesia % 22.9 % 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. 11

12 Expansive Budget Hotel Sites ZenRooms is mostly known from people recommendations, with 42.9%. Furthermore, RedDoorz & AiryRooms are mostly recognized from article on the internet. People recommendations 42.9% Article on the internet 39.7% Article on social media 7.9% 35.4% 39.6% 14.6% 28.9% 37.8% 24.4% 12

13 Detail findings 1. Budget Hotel Sites at First 2. Brand Awareness 3. Consideration of Budget Hotel Sites 4. Future Intention & Recommendation 13

14 Consideration of Visiting Budget Hotel Sites 40.7% of the respondents prefer to look for affordable hotels in Budget Hotel Sites since the sites are attractive as well as guaranteed. In accordance to 140 respondents, complete information make people would like to book a room in those options of Budget Hotel. 14

15 Detail findings 1. Budget Hotel Sites at First 2. Brand Awareness 3. Consideration of Budget Hotel Sites 4. Future Intention & Recommendation 15

16 Future Intention Budget Hotel Sites The future intention of budget hotel sites are 36.4 % % 19.3 % ZenRooms, become the main budget hotel sites in terms of Future Intention. 9.3 % 14.3 % 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. 16

17 Recommendation of Budget Hotel Sites The most recommended budget hotel sites are 32.9 % % 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. 17

18 Area Coverage - Bali - Batam - Bogor - Bandung - Jakarta - Makasar - Surabaya - Yogyakarta - P. Bintan - International - Jakarta - Bali - Bandung - Jakarta - Bandung - Bogor - Bali - Surabaya - Solo - Yogyakarta - Jakarta - Bali - Medan - Yogyakarta - Bandung - Malaysia - Thailand - Philippines - India - Malaysia 18

19 PT. Nusaresearch is a 100% Japanese investment. Our main professions are Online market research, Web creative and Web marketing. Online research is conducted based on Nusaresearch our actively managed over 100,000 members panel with various segmentations across Indonesia. FOR FURTHER INQUIRIES, PLEASE CONTACT: PT. Nusaresearch» Address: 21H Grand Slipi Tower, Jl. S. Parman Kav , Slipi, Jakarta Barat, Indonesia 11480» Office phone: (+6221) Fax: (+ 6221) » Website: The copyright of this report belongs to PT. Nusaresearch Company. The results (analyzing, wording, data, tables and graphs) of this survey can be publicly used, but must be cited and sourced from PT. Nusaresearch Company (also include its website address

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