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THE INFLUENCE OF PERCEIVED VALUE,

PERCEIVED QUALITY, AND SATISFACTION


TOWARD BOOKING INTENTION (A CASE OF FAVE
HOTEL BRAGA BANDUNG)
Erbon Gregorius Ndruru, B.BA & Dr. Retnowati, STh., MSi
President University
Ki Hadjar Dewantara, Jababeka, Cikarang Utara, Bekasi, Indonesia
erbonnduru123@gmail.com & retnowati@president.ac.id

Abstract
The purpose of this research paper is to find out the influence of perceived value and
perceived quality toward satisfaction and the influence of satisfaction towards booking
intention in Fave Hotel Braga Bandung.This research used quantitative and qualitative
method to analyzed the data. Data collection of quantitative conducted by using an
online questionnaire to 100 guest who have ever stayed in Fave Hotel Braga Bandung.
For quantitative method the questionnaire used seven-point likert scale then analyzed
into Smart-PLS software. The author analyzed the data started from composite
reliability and discriminant validity until hypothesis testing. The data collection of
qualitative were obtained by preparing an interview guideline consist of ten main
questions and conducting interview with the Head of Human Resource Department and
Sales Marketing Department. The results found that perceived value positively
influence satisfaction, perceived quality positively influence satisfaction, and
satisfaction positively influence booking intention. To increase the occupancy through
booking online can be applied by doing marketing strategy. The strength of booking
online is accepted with correlated theory whereas the weakness is accepted with the fit
of data collection.
Keywords: Perceived value, Perceived quality, Satisfaction, Booking intention,
Fave Hotel Braga Bandung.
1.Introduction

1.1. Background of the problem

Globally, in 2019 travel and tourism directly contributed around 2.9 trillion U.S.
dollars to GDP. Still in the same year, the United States’ travel and tourism industry
directly contributed the highest amount to global GDP, with a total of 580.7 billion
U.S. dollars. Meanwhile, special administrative region and city of Macau resulted the
highest share of GDP through direct travel and tourism of any economy worldwide.
The factor that will significantly impact the global tourism industry in 2020 and, years
to come, is the current pandemic of COVID-19. Many countries are implementing
severe travel limitations to restrict the spread of the disease, national and international
tourism is coming to a drastic halt. And also, this pandemic estimated impact global
revenue in tourism and travel industry will drop by 17 percent in 2020, with Asia
forecast to see the bleak overall decrease in terms of revenue, as well as the highest
employment loss in the entire industry. (Lock, 2020). Additionally, according to Lock,
2020. In recent times, it has become increasingly common for travelers to book their
own trips, however, there are still those who use travel agencies to do so. Many
travelers tend to one of the two leading travel companies, such as Expedia Group and
Booking Holdings when booking a business trips and a holiday. Aided by their well-
frequented online booking platforms, the companies generated all-time high sales
revenues of 99 billion and 92.7 billion U.S. dollars, respectively, in 2018.

The hotel is one important component that cannot be missed when we are going on
vacation. Besides making it easier for us as customers, booking a hotel is not as
complicated as it used to be. There is a time to make a reservation we have to call the
hotel that we will sleep with. But since applications and online hotel booking sites are
scattered, total reservations have become easier. In Indonesia, Google said that, on
average, 24 percent of online hotel bookings turned out to be impromptu on a "last
minute" basis, the day before arrival or on D-day. "We see the tendency of Indonesian
people to become last minute bookers," said Zulfi Rahadian, Industry Manager of

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Google Indonesia in the Media Briefing event in Jakarta, Tuesday (09/10/2018).
(Tribuntechno, 2018). "There was a booking that same day. During the holiday season,
the presentation could rise to 32 percent, more impulsive for the holidays, "Zulfi added,
referring to data obtained from Google hotels throughout 2018. Google itself provides
various facilities on its search engine to make it easier for travelers, from finding tourist
information, comparing ticket prices, to booking hotels. (Tribuntechno, 2018).

In 2017, the value of online hotel bookings reached US $ 1,780 million and reached
US $ 1,986 million in 2018. It is estimated that, in 2023, the value of online hotel
bookings in Indonesia will reach US $ 2,879 million. In addition, Indonesia's tourism
potential is very promising, especially in the hospitality industry. The presence of a
technology-savvy millennial generation will help drive demand and trends in the
industry. Moreover, 50% of the total tourists who come are from technology-savvy
millennials (Petriella, 2019).

According to the Governor of West Java in Trans Hotel Bandung, Wednesday (22/1)
based on data from the Badan Pusat Statistik (BPS) in 2019, during the 2014-2018
period the average growth rate of tourist visits to West Java was 7.90 percent per year.
Emil said, in 2018 the number of tourists visiting West Java reached 65.90 million
people. Consists of 63.30 million domestic tourists and 2.60 million foreign tourists.
In 2020, Emil believes the number of visits will continue to rise. This was driven by a
variety of major events that will be held by West Java Provincial Government to attract
more tourists who come to West Java. (Jabarekspres, 2020).

According to Berita Resmi Statistik, hotel room occupancy rate in West Java in April
2019 reached 49.19 percent, up 0.38 points compared to March 2019 room occupancy
rate which reached 48.81 percent. Both the occupancy rate of star and non-star hotel
rooms has increased. The occupancy rate of star hotel rooms in April 2019 was 53.17
percent, up 0.48 points compared to the March 2019 room occupancy rate which
reached 52.69 percent. While the occupancy rate of non-star hotel rooms reached 35.90
percent, up 1.30 points compared to March 2019 which reached 34.60 percent. During

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the period April 2018 to April 2019 the occupancy rates of star hotel groups are always
higher than the occupancy rates of non-star hotel rooms.

FIGURE 1 DEVELOPMENT OF OCCUPANCY RATE IN WEST JAVA


20182019

Source: The Formal news Statistic

Moreover, the occupancy rate of star hotel rooms in April 2019 has increased compared
to March 2019. The increase occurred in the occupancy rates of 1-star, 2star and 3-star
hotels, while the occupancy rates of 4-star and 5-star hotels decreased.

The occupancy rate for non-star hotels in April 2019 was 35.90 percent, up 1.30 points
compared to March 2019 which was recorded at 34.60 percent. Increased occupancy
rates of non-star hotels occurred in all room groups.

According to Department of Culture and Tourism in Bandung said, currenty the


occupancy rate of hotel in bandung is getting down quickly reached 30%. Decreasing
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this rate impacted by the disease of corona virus (Covid-19). Around 30 percent
domineted by domestic tourist who lived in Bandung city and its around region. “The
occupancy rate is decreased 30 percent which previously 60 until 70 percent. It’s from
January 2020, the data from PHRI and ASITA”. Added by Head of Deparment of
Culture and Tourism Bandung, Dewi Kaniasari to the reporter in Bandung city,
Tuesday (10/3) (Ayo Bandung, 2020).

The purpose of this research paper is to find out the relationship between perceived
value toward satisfaction, perceived quality toward satisfaction, satisfaction toward
booking intention, to increase the occupancy through booking online, and to measure
the strength and weakness of booking online. The factor that will significantly impact
the global tourism industry in 2020 and, years to come, is the current pandemic of
COVID-19. Many countries are implementing severe travel limitations to restrict the
spread of the disease, national and international tourism is coming to a drastic halt.
And also, this pandemic estimated impact global revenue in tourism and travel industry
will drop by 17 percent in 2020, with Asia forecast to see the bleak overall decrease in
terms of revenue, as well as the highest employment loss in the entire industry. (Lock,
2020). Currently, Fave Hotel Braga Bandung add to the list of hotels in Bandung city
that also support the government's efforts to change the spread of the corona virus. will
close their operations from April 1 to May 31, 2020. "While closing services and
facilities from April 1 to May 31, 2020," based on @favehotelbraga Instagram account
(Elvira, 2020).

2.Literature Review
This chapter explained about the conceptual of tourism, marketing strategy hotel, the
variable, and hypothesis among variable. The variable including perceived value,
perceived quality, satisfaction, and booking intention.

2.1. Tourism

Tourism is a cultural, economic, and social phenomenon which requires the movement
of people to places or countries outside their normal environment for

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professional/business or personal purposes. They are called as visitors (may be either
excursionists or tourist; non-residents or residents) and also tourism supposed to do
with their activities, some of that include tourism expenditure (World Tourism
Organization).

There are several definitions of tourism such as the practice or activity of touring
(especially for pleasure), the promotion in tour and travel (especially for commercial
purposes), and as the industry or business to provide some accommodations,
transportation, information, and the other services of tourists (House, 2002).

Tourism can be divided into two parts: tourism studies and tourism management. The
difference is existing in tourism application itself. In past study or research, tourism
brings us toward better understand the world around, the way of travelling, the
relationship between regional cultures, social mobility, and the different area where
these interactions happened. Meanwhile, as a discipline of management, tourism has
correlation on a regional, global stage and national; is represented in the private, public
and third sectors; and is considered as a major contributor of economic. Theory of
business studies, management, and marketing are important in order to understand the
different organizations in tourism, modalities, and methods for the tourism business
management (Robinson, 2012).

2.2 Marketing Strategy

Marketing is defined as the set of institutions, activity, all process for communicating,
creating, exchanging offerings and delivering which have value for clients, partners,
society, and customers at large (Middleton, Fyall, Morgan, & Ranchhod, 2009).
Therefore, the enterprise must be understood and aware their customers; wants, needs,
and demands. That is reason of several companies put a lot of money and effort within
creating different kinds of customer surveys analyzing their customers’ learning and
behavior regarding many kinds of delivering the satisfaction and superior customer
value (Kotler & Armstrong , Principles of Marketing, 2004). Moreover, the studies of
marketing have spotlighted enhancement of perceived value, perceived quality, and
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satisfaction of customer results to competitive advantage and company achievement
(Wang, Lo, & Yang, 2004). Marketing strategy also affect to customer concerns
towards environmental, company have to increase green marketing strategy so that
perceived value will be increased too and decrease the risk of the product or service
(Juliana, Djakasaputra, & Pramono, 2020).

According to (Rendón, Martínez, & Flores, 2014), the first is operational. In practice
it is very easy to find companies where the marketing department is called as endeavors
to produce brochures and catalogs, and preparing attendance at fairs. This kind
mentality is pernicious and wrong. The first should be focus early efforts and focus
strategic. A proper analysis of the customers, market, internal and context, enabling
accurate segmentation to the segment with the best opportunity of success. Differential
positioning can be transmitted with the available resources and that results in a
defensible advantage, the selection of successful channels with pricing policy that
rewards the channel and profitability of sustainable is allowed, good in service creating
a winning proposition of customer value. It should increase strategic culture in hotel
industry and to achieve what seems impossible until today, not only the internal
activities of hotel, but also everything that can achieve better business performance.
Second is customer orientation as one of the important things in the literature of
marketing and management. For example, Morelia is known as the best one for its
quality of service and hospitality. Third is digitization historically is the best chance
for hotels to compete each other with weapons same with those of large companies.

Positioning, is factor in suitably position and competitive advantage an offering during


its existence, to identify the phase of the service life cycle in where the offering finds
itself that considered as crucial for the organization. The marketing strategies which
are appropriate to solve the challenges of the phase in problem will be determined by
the placement of the offering in the service life cycle. Another factor is service life
cycle. By applying a suitable selection of strategies, a hotel needs to be proactively
managed the service mix it is offering. The ability to compete successfully of hotel
industry through (1) in relation to its competitors, the hotel has to determine the
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position its service offering successfully throughout the life cycle of that offering so
that will finally retain customers. (2) for its service offering, a hotel needs to create a
sustainable competitive advantage. For example, to focus on getting more customers
to prefer its brand rather than competitors’ brand, a hotel must find its service offering
in the growth phase of its service life cycle (Petzer, Steyn, & Mostert, 2008).

2.3 Perceived value

According to (Kuo, Wu, & Deng, 2009), based on their previous sacrifice and expost
received result, perceived value as the customer’s evaluation of the benefits of the
product/service. In the narrowest sense of perceived value, is the amount paid for the
service/product. Perceived value was the value sum that customers gave up to receive
the benefits of using or having the service/product (Cuong & Khoi, 2019) and (Kotler
& Armstrong, 2016). Perceived value with a revealed and multi-dimensional structure
that value influences the repurchasing intentions of consumers (Petrick & Backman,
2002). In addition, perceived value has an impact on behavioral intention and customer
satisfaction based on their study (Williams & Soutar, 2009).

Perceived value is increase when innovativeness provides added benefits for consumer
(Moultrie, Clarkson, & Probert, 2007). According to (Zhuang, Cumiskey, Xiao, &
Alford, 2010) perceived value is not only the important one of relationships of
customer in long-term but also has an important role within influencing purchase
intention. Furthermore, if the perceived value of consumers is high definitely will
increase the number of services or products that they’re willing to purchase or book
(Geng & Shulman, 2015). Many sectors that perceived can contribute into one of them
is hotel industry which can predict customer behavioral intention to receive hotel
reservation service through mobile phone and also implicate to similar services which
are often employed general practice by hotels (Wang & Wang, 2010). The process of
formatting perceived value definition was also developed to hotel among each guest
(Sabiote, Frías, & Castañeda, 2014).

2.4 Perceived quality

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Competitive advantages are the important thing that hotel need to rate the development
of perceived quality through the best method or instruments (Xingran, Komalasari, &
Hadiansah, 2016). Dealing with competitive market, the perceived quality of service is
a critical factor within service organizations (Al-Ababneh, 2017). To repair the quality
of the services that provided to the customers is one of strategy of service organizations
that can be utilize to get competitive advantages (Desfitrina, Zulfadhli, & Widarti,
2019). According to (Mmutle & Shonhe, 2017), stated that in one condition when
employee caring, have a positive attitude, and making sure that all customer feel valued
and get need attention, meaning their expectations are lead and met to improve the
service provided and quality. In the world of hotel industry, good quality of service can
be seen in various ways, but to determine good quality of service reflected by safety,
cleanliness, rooms maintenance, and good attitude from hotel staff (Samoria & Sabtu,
2014).

According to (Mat, Mohamad, Ali, Shafini , & Said, 2020), determination of perceived
quality cannot be concluded totally straight away as it is an opinion and due to human
perception regarding the crucial thing to customers are contributed. Many factors
become the crucial of features, types of clothes to be washed, action of cleaning, and
others that probably not suitable with all customers. In addition, it is important to
remember as an overall that every customer have their own personalities. Many
researchers have identified perceived quality as tangible quality especially in the
hospitality industry (Kincaid, Baloglu, Mao, & Busser, 2010). For example, after
investigating the frontline workers in hotels with high engagement in their work, the
results acquired the workers are able in frontline service department and committed to
offering the best service quality (Demir, 2014).

2.5 Satisfaction

According to (Xiang, Schwartz, Gerdes, & Uysal, 2015), the definition of customer
satisfaction is the key to make every organization or community in the hospitality field
successful and also had been discussed and studied many times in recent years due to
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its increasing importance for all managers. A trip website which is Trip Advisor,
customer satisfaction and overall customer satisfaction (OCS) on six involved
attributed (Cleanliness, Service, Location, Value, and Location) can be received (Bi,
Liu, Fan, & Zhang, 2019). For instance, the relative importance of hotel attributed
available in the formation of service satisfaction and price (Matzler, Renzl, &
Rothenberger, 2006). Online satisfaction of customer is the traveler who has
communicated to hotels, read the online information on hotel website or tourism
agency through positive evaluation. So, this traveler already has positive or good
evaluation if perhaps they will plan for travelling (Xin & Yuchen, 2020).

One of the crucial concepts in marketing department is customer satisfaction (Ryu &
Han, 2012). Based on the literature, especially in the hospitality industry area the
satisfaction concept had been widely researched and present (Ali, Hussain, Konar, &
Jeon, 2016). According to (Zhu, Nakata, Sivakumar, & Grewal, 2013), to achieve
positive behavior intentions and customers’ increased satisfaction the resolution has to
be successful. Unfortunately, the satisfaction would be decreased and behavior
intentions become negative if the resolution is failed then customers’ negative blaming
to service providers. Satisfaction refers to evaluation of customer through using
product or service and whether those product and services fulfill their expectations and
needs (Juliana, Djakasaputra, & Pramono, 2020).

2.6 Booking intention

The greater of booking intentions indicated by positive emotions in terms of online


environment (Essawy, 2017). Booking intention is very important in the hospitality
industry based on prior research through one of approach which is information quality
(Li, Peng, Jiang, & Law, 2017). Supported by (Pavlou, 2003) stated customers’
intention to buy services and products online to become an intention and willingness
of the customer in order to increase in the agreements and deals available online,
involving in the information contained and quality of the website of evaluating process.

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Booking the room is the important one to the service provider because it refers to
profits and revenues for the firm (Bhatiasevi & Yoopetchb, 2015).

According to (Leong, Hew, Ooi , & Lin, 2017), the ability to provide personalized
services and information as the strengths of hospitality industry; therefore, knowing
the demographic variables impacts on ‘hotel booking intentions that would upgrade
marketing strategies of hoteliers. The online booking indicates to the service
reservation that conducted by internet (Abdullah, Krishnaswamy, Norhayati, & Bahari,
2017). The online booking rate could be increased by organizing an appropriate online
booking strategy of implementation and technology performance (Carlson Wagonlit
Travel, 2011). For example, beside conducting booking facility for a computer
operation, on the smart phone or other portable devices with internet connection which
provide online booking apps can also utilize to purchase tourism product and airline
tickets including hotel accommodations of reservation (Yang, Chu, & Yang, 2006).

3. Hypothesis Development

3.1. Perceived value and satisfaction

Based on previous result of (Lai, 2004) and (Turel & Serenko, 2006) stated that
perceived value positively influences customer satisfaction. This supported by (Eid,
2015) who stated that perceived value has direct impact positively towards customer
satisfaction in various sectors of service and retail company. According to (Yang &
Peterson, 2004), there is an evidence that perceived value influences customer
satisfaction from empirical studies. In addition, perceived value is the comparison
generated from the benefits of service provider compares to the time and cost as used
by consumers. Whereas, customer satisfaction is stated to reflected overall negative
and positive feelings about the benefits or value as received from the service provider
itself. In the result, it is concluded that perceived value is being considered as a strong
predictor within explaining customer satisfaction. This result was also supported by
(Cronin, Brady, & Hult, 2000) who said that perceived value represents the conceptual
of net benefit obtained within a deal with a provider. And also, if the net benefit is
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negative, the perceived value will be less than one and the perceived value will be
greater than one if the net benefit is positive.

3.2. Perceived quality and satisfaction

In service enterprise perceived quality is a standard measurement which helpful to


satisfaction (Kumar & Zikri, 2018). According to (Askariazad & Babakhani, 2015),
perceived quality positively influences customer satisfaction. This research supported
by (Pandey & Mookerjee, 2018), who stated perceived value and perceived quality
which are rational antecedents have influenced satisfaction. In the result, customer
satisfaction often can be used as an index to measure the perception of quality
(Homburg & Stock, 2004). However, if the perceived quality is low and customer
expectation is high, it makes customer to be dissatisfied obviously (Li, Ye, & Law,
2013).

Many authors conclude that perceived quality responsible corporate contributes to


satisfaction of customer (Chang & Fong, 2010) and (Chen, 2010). Chang and Fong
added, an antecedent is quality of product that has positive relationship to overall
satisfaction of customer. In particular, especially in tourism company, a key driver of
purchase intention is the perceived quality value resulted that satisfied of customer
display higher levels of loyalty (Zehir, Sehitoglu, Baykal, & Zehir, 2014). Improving
service quality and satisfaction of customer can be help through focusing on
engagement of employee work based on paired data between customer and employee.
(Lee, Lee, & Kang, 2012).

3.3. Satisfaction and booking intention

In the past studies have proved that booking intentions and satisfaction levels are
positively correlated (Alegre & Garau, 2010). Discussing about quality of website and
e-tourism, for example usability and functionality directly impacts the online
customers satisfaction, then leading to online booking intentions (Bai, Law, & Wen,
2008). This result supported by stated that actually an important factor in behavioral of

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online intentions is satisfaction of customers’ information (Jeong, et al., 2003).
According to (Emir, et al., 2016), direct booking online enables the hotel to increase
satisfaction through hotel website in order to booking the room. The intention of
customer to use service and product continuously can be strengthen by customer online
satisfaction (Veeramootoo, Nunkoo, & Dwivedi, 2018). Customer satisfaction
influence purchase intention or booking intention which turn to organization’s profit
and revenue in the future, as the result direct relationship with advantage, the problem
of customer satisfaction and service quality has become a focus of the hospitality
industry (Kumar, Suriana, Sari, & Hasan, 2019).

FIGURE 2: THEORITICAL FRAMEWORK

Perceived
Value

Booking
Satisfaction
Intention

Perceived
Quality

Source: (Pham, Williamson , Lane , Limbu , Nguyen, & Coomer , 2020), (Assaker,
Connor, & Haddad, 2020), (Cuong & Khoi, 2019)

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4. Method

This research used quantitative and qualitative method that investigate the influence of
perceived value towards satisfaction, the influence of perceived quality towards
satisfaction, and the influence of satisfaction towards booking online, and identify the
way to increase occupancy through booking online, to measure the strength and
weakness of booking online.

Both of method (quantitative and qualitative) have the different strength and weakness.
In this point, the research has to think about developing better understanding of the
questions and problems in the study by merging the strengths of each method. When a
researcher begins to do mixed method, the first step is the basic meaning and design
definition, why the research choose the procedure, and what value received to a study.
After that, choose which one is the best design for the study of mixed method used
among different possibilities. Then, prepare about how to collect, analyze, interpret the
data, and validation steps as the design context. Eventually, explain the conclusion
from the whole discussion and the important suggestion for final study (Creswell,
2014).

According to (Creswell, 2014), the basic types of mixed method are Convergent
Parallel, Explanatory Sequential, and Exploratory Sequential. First, Convergent
Parallel is the most often and basic method used by a researcher because only explain
the combination between data of quantitative and qualitative. To collect the data both
forms used with parallel or same concepts. To analyze the data consists of two ways
which are first, report the results of quantitative statistically, then go discussing the
results of qualitative or start doing the findings of qualitative, then analyze to the results
of quantitative. To interpret the method, the discussion needs a report of both different
database results and also same procedure for validity checking.

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Second, explanatory sequential is a researcher collects data of quantitative until
analyzing and get results in the first stage, then plan second stage which is qualitative
using the results of quantitative. It means the purpose of qualitative data is to support
more the results of quantitative. For data collection started from quantitative sampling
then qualitative stage where the data of qualitative received from quantitative results.
The research analyzes this design not only explain the procedures of sampling in
quantitative results but also ask various questions for participants in qualitative stage.
Conducting an interpretation, it follows up the report of quantitative results, and then
continued to qualitative results. The accuracy of validity might be harm because the
researcher totally doesn’t consider how to follow up the results of quantitative and
avoid some significant information which useful for further understanding (Creswell,
2014).

Third, exploratory sequential is the opposite of explanatory sequential design which is


a researcher explores all qualitative data from many sources, analysis, and then
operates the findings for the next quantitative stage. With the same concept, in this case
the quantitative is built from initial database of qualitative results. In the beginning,
data collection of qualitative conducted then followed by quantitative phase. Analyzing
conducted with two data (qualitative and quantitative) where analyze from initial data
and determine what findings need to be built for quantitative measures. Still same if
the researcher interprets data, started from a report of qualitative results and ended by
quantitative as final stage of the study. Validity checking is used followed by the
concept of exploratory sequential design (Creswell, 2014).

FIGURE 3: FMIXED QUANTITATIVE AND QUALITATIVE METHOD

Data Collection and


Analysis of Relate or
Interpretation
Quantitative and compare
Qualitative

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Data Collection and Data Collection and
Analysis of Follow up with Analysis of Interpretation
Quantitative Qualitative

Data Collection and Data Collection and


Analysis of Builds to Analysis of Interpretation
Qualitative Quantitative

Source: (Creswell, 2014).

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4.1. Data Collection

The first method is quantitative research that used questionnaire form as the tool. The
online questionnaire spread through several social media and consists of profile and
questions that related to booking online in Fave Hotel Braga Bandung. The quantitative
is the method to get respond through several questions involving numerical data
(Williams C. , 2007). The second method is qualitative research which is conducting
interview session at Fave Hotel Braga Bandung with two Head of Human Resource
and Sales Marketing Department. This aimed to get more data and description as much
as researcher receives from Fave Hotel Braga Bandung. The qualitative is about
experience, people’s belief, and meaning system from the people perspective
(Mohajan, 2018). The interview session conducted by phone calling and the length of
interview session is around 35 minutes. The informants of interview are Fikri
Wijaksana as a Head of Human Resource Department and Erwin Chandra as Head of
Sales Marketing Department of Fave Hotel Braga Bandung.

4.2. Data Analysis

To check the composite reliability and convergent validity, the research used SEMPLS
as the tool to check each variable are good. This research selected SEM-PLS as the
appropriate method of analysis data with some reasons: first, the model is not really
specified; second, this research model not tested yet in this present research context;
and third, the sample size of this research is small. For composite reliability the result
must be greater than 0.7 and the result of convergent validity must be greater than 0.5.
The acceptable value of Cronbach’s Alpha can be 0.6 or 0.7 (Griethuijsen, et al., 2014).
If the construct shows the Cronbach’s Alpha greater than 0.7, the variables are good.
And if the construct less than 0.6, the variables are poor obviously. For outer loadings,
the standard of indicator must be > 0.70 (Hair, Ringle, & Sarstedt, 2011). SEM-PLS
provides another one which discriminant validity. According to Fornell-Lacker
discriminant validity is the result that the square root of each variable’s AVE must be

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greater than correlations with other different variables (Jr, Hult, Ringle, & Sarstedt,
2017).

To check the inferential analysis, the research will use bootstrapping on SEM-PLS as
the instrument. To test the three hypotheses, the criteria of p value must be less than
0.5. Previously, the data confirmed to bootstrapping. The bootstrapping is run to
analyze the significant coefficients’ relevance and path coefficient is evaluated by
checking the its magnitude or size (Ghasemy, Teeroovengadum, Becker, & Ringle,
2020)

MODEL OF ANALYSIS

Source: SmartPLS3

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5.Fanding and Discussion

5.1.Occupancy on booking online and System of booking online in Fave Hotel Braga
Bandung

Before pandemic of COVID-19, the occupancy and revenue of hotel is getting high. In
weekend, which is from Friday until Sunday, the hotel always full of occupancy where
many people doing holiday and spend their time in outside. The occupancy is low only
on Monday until Thursday (Wijaksana, 2020). In this pandemic, customer who book
the room comes from VIP or individual traveler than group. Due to prevent crowd
which can endanger hotel comfort and other customer.

According to (Wijaksana, 2020), as the Head of Human Resource Department, the


Fave Hotel Braga Bandung provides a website for booking online definitely. It can be
accessed through website of Fave Hotel itself which is favehotels.com. Fave hotels
spread in several region in Indonesia, so people can directly type Fave Hotel Braga
Bandung on searching box as the keywords. In addition, the hotel also cooperated with
various e-commerce platforms for example, booking.com, traveloka.com, tiket.com,
agoda.com, etc. From both of different way, most customer prefer booking the hotel
through e-commerce platforms especially traveloka.com.
However, the hotel has to set up the price by giving a fee to e-commerce so, that’s why
the price of e-commerce is a little bit higher than the hotel website. And also, the hotel
only sells 60% of booking online then, the rest is customer come to hotel directly. In
addition, the security of customer data identity when registration on booking online is
safe whether in hotel website as well as e-commerce. The different is the e-commerce
asked a little data rather than hotel website (Chandra, 2020).

4.2. Strength and weakness on booking online

The weakness of booking online in Fave Hotel Braga Bandung is happened many
times. For example, the customer book the room in online, some of them pay on early
and the end. Paying at the end means come paying in hotel directly. After that, the hotel

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locked the room but unfortunately, the customer doesn’t come staying to hotel
suddenly. This problem is the most impressive to the hotel experience on booking
online. The easier and convenience transaction are the strength of Fave
Hotel Braga Bandung within serving customer on booking online (Wijaksana, 2020).
According to (Chandra, 2020), the strength of booking online in Fave Hotel Braga
Bandung is the member of certain e-commerce always given several advantages such
as discount price or cashback by e-commerce. Unfortunately, the problem is when
customer who already book the room then do cancellation, they can’t report to hotel.
The customer should deal with the third party directly. And then, sometimes voucher
of registration haven’t accepted by customer yet meanwhile the hotel already has it.
Moreover, booking on hotel website will be early check in and customer may postpone
the payment then pay when arrived in hotel. So, the problem in booking online impacts
to both side which are customer and booking online provider.

As mentioned previously, Fave Hotel Braga Bandung serves customer by focusing on


60% of booking online and 40% offered for those who come to hotel directly. The way
to increase the occupancy on booking online is building good relation between hotel
and e-commerce such as set the best fee and ensure both parties are profitable each
other (Wijaksana, 2020).

4.3. COVID-19 impacts to Fave Hotel Braga Bandung

According to (Wijaksana, 2020), pandemic of COVID-19 is really impacted to tourism


industry. Almost all hotel in Bandung feel the same thing obviously. This is the first
time of worse experience that hotels face all this time. Unfortunately, the hotel doesn’t
have income. That is the first bad impact have been facing until now.
Next, the hotel was forced to lay off several workers who doesn’t have contract with
company for instance, the worker in internship and training program. Moreover, the
school or campus instructs their students to stop all activities outside school or campus.

4.4. How to Promotion Fave Hotel Braga Bandung during Pandemic of Covid-19

19
Almost all department get difficulty to face this pandemic. So, the hotel will decide to
increase promotion in social media and make interesting advertisement. It’s not only
responsible of marketing and sales department but everyone has to be aware and help
each other to cover the hotel’s loss (Wijaksana, 2020). In addition, Sales Marketing
Department keep doing promotion and update in social media periodically such as
Facebook, Twitter, and Instagram during pandemic. Before pandemic of COVID-19
clients are easy to cooperate and communicate each other without any limitation among
them. But this time, all of them required to follow regulation of government which is
creating something trouble in Sales Marketing Department activity. For example, the
amount of people in meeting room attended by 50% people then applying social
distancing and applicable regulation. Price adjustment also considered by hotel which
is set the lower price rather than normal situation (Chandra, 2020).

In conclusion, according to (Chandra, 2020), the hotel focuses on increasing service


quality rather than spend promotion more because to achieve revisit intention of
customer. With different and many offers services provided by an industry at least can
survive them in all competitions (Kumar & Zikri, 2018). In addition, to compete with
other competitor attempted to offer best price (new normal price) but with the best
service too. The employee has to be humble and friendly to anyone who comes to hotel.
And all facilities should be clean, neat and comfortable that adjusted with customer
expectation (Wijaksana, 2020).

4.5. Validity and Reliability Test

The results of validity and reliability test are conducted in PLS Algorithm. Since the
data shows the composite reliability is good (greater than 0.7) where the highest value
(0.904) is booking intention and the lowest one (0.884) is perceived quality. Next,
convergent validity is achieved (0.5) where booking intention has the highest
convergent value (0.703) and the lowest one (0.656) is perceived quality. After that,
the result of Cronbach’s Alpha is accepted (>0.7) in every variable with the highest
one achieved by variable of booking intention and perceived quality again listed in the

20
lowest value (0.826). For outer loadings (greater than 0.7) is acceptable where the
highest value (0.859) are indicators of booking intention and the lowest one (0.780) is
indicator of satisfaction. Beside of convergent validity, discriminant validity was also
tested with Fornell-Larcker criterion, and the result is acceptable since the diagonal
value (square root of AVE) is higher than correlation value among variables.

However, in the beginning of validity and reliability testing, there was a problem in
discriminant validity test where the diagonal value of perceived value and perceived
quality are not met (lower than correlation value among variables). Meanwhile the
other criteria are good. So, to solve this problem the researcher screens the value of
every single indicator on its variable to be deleted. The indicators are PV2, PQ4, and
S2. In the results, every variable consists of four indicators and diagonal value of
perceived value, perceived quality, satisfaction, and booking intention become better
(diagonal value higher than correlation value among variables). The comparison of
before and after fixed the discriminant validity result is explained on the figure.

Discussion

Hypothesis 1 stated perceived quality influences satisfaction. The result is supported


with the prior study that explained perceived quality influences satisfaction. The
hypothesis proven to be significant (t-stat = 2.507 and p value = 0.012). According to
(Askariazad & Babakhani, 2015), perceived quality positively influences customer
satisfaction. This research supported by (Pandey & Mookerjee, 2018), who stated
perceived value and perceived quality which are rational antecedents have influenced
satisfaction. So, the hypothesis of perceived quality positively influences satisfaction
is accepted.

Hypothesis 2 stated perceived value influences satisfaction. The result is supported


with the prior study that explained perceived value influences satisfaction. The
hypothesis proven to be significant (t-stat = 5.157 and p value = 0.000). According to
(Yang & Peterson, 2004), there is an evidence that perceived value influences customer

21
satisfaction from empirical studies. Whereas, customer satisfaction is stated to
reflected overall negative and positive feelings about the benefits or value as received
from the service provider itself. So, the hypothesis of perceived value positively
influences satisfaction is accepted.

Hypothesis 3 stated satisfaction influences booking intention. The result is supported


with the prior study that explained satisfaction influences booking intention. The
hypothesis proven to be significant (t-stat = 8.071 and p value = 0.000). In the past
studies have proved that booking intentions and satisfaction levels are positively
correlated (Alegre & Garau, 2010). According to (Emir, et al., 2016), direct booking
online enables the hotel to increase satisfaction through hotel website in order to
booking the room. So, the hypothesis of satisfaction positively influences booking
intention is accepted.

4.1. Increasing the occupancy through booking online

Increasing the occupancy or obtain more customer through booking online is the part
of marketing strategy. Marketing is a set of companies’ activities, all process for
communicating, creating, exchanging offerings and delivering which have value for
clients, partners, society, and customers at large (Middleton, Fyall, Morgan, &
Ranchhod, 2009). According to (Wijaksana, 2020) as a Head of Human Resource
Department in Fave Hotel Braga Bandung, the impact of COVID-19 that faced by Fave
Hotel Braga Bandung leads to loss for instance, cancellation of booking online.
Therefore, the hotel will decide to conducted more promotion in social media and make
interesting advertisement as the best solution of increasing the occupancy in Fave Hote
Braga Bandung. This solution is supported by (Kotler & Armstrong , Principles of
Marketing, 2004), that stated an enterprise is willing to pay a lot of money and effort
to be aware towards customer; needs, wants, and demands. Moreover, many hotels
have been inspiring by growing competition currently to find prospectively customer
through creating strategy of promotion, especially during offseason (Hu & Yang,
2019). Another fact is according to (Wijaksana, 2020), the Fave Hotel Braga Bandung

22
serves customer by booking online only 60% which more profitable to hotel occupancy
rate. However, it is not totally guarantee 100% of occupancy rate as long as 40% of
people who come and pay to hotel directly is low rate. So, the action taken by hotel is
can be accepted and suitable with some related theories.

4.2. Measuring the strength and weakness of booking online

Measuring the strength and weakness of booking online in hotel can be compared with
data from hotel itself and several supported theories. According to (Wijaksana, 2020),
the weakness of booking online in Fave Hotel Braga Bandung is cancellation of
payment of the room already booked and one of the strengths is ease and faster to use.
This strength supported by (Jeong, Oh, & Gregoire, 2005) who stated the important
characteristics of booking in hotel website are ease of use and completeness
information. In addition, better usability positively influences satisfaction of user and
also can increase loyalty of the website (Flavian, Guinalíu, & Gurrea, 2006). This
weakness opposite by (Sanchez & Satir, 2006) who stated in online reservation when
customer is looking for any information, it takes long time for responding. Although
not happened often, but the network can be delayed for minutes even hours. So, the
strength of booking online in Fave Hotel Braga Bandung can be accepted with
supported theories but for the weakness itself, however the result doesn’t match with
the theory because the weakness of theory doesn’t really affect to performance of
booking online in Fave Hotel Braga Bandung and create a big problem for the
company. Meanwhile, the weakness of cancellation considered as main and big
problem even really affecting to performance of booking online in Fave Hotel Braga
Bandung (60% for booking online and 40% for book to hotel directly) and creating a
big problem for the company.

23
5. Conclusion

This research is conducted to find the influence of perceived value, perceived quality,
satisfaction towards booking intention, how to increase the occupancy through booking
online, and how to measure the strength and weakness of booking online in Fave Hotel
Braga Bandung. The results acquired perceived value influences satisfaction is
accepted, perceived quality influences satisfaction is accepted, satisfaction influences
booking intention is accepted; to increase the occupancy through booking online, the
Fave Hotel Braga Bandung must be focus on marketing strategy; the strength of
booking online in the Fave Hotel Braga Bandung is related to supported theory and the
weakness of booking online in the Fave Hotel Braga Bandung is opposite to theory.
For Practical the research can be used as marketing strategy of hotel and company
development to obtain more customer through hotel booking intention properly.

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