Implementing The Static Rates to Increase Room Revenue at Archipelago International Indonesia Hotels Group

Yulianti, Ni Made Dwi (2024) Implementing The Static Rates to Increase Room Revenue at Archipelago International Indonesia Hotels Group. Masters thesis, Politeknik Negeri Bali.

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Abstract

The research being conducted examines the implementation of static rates to increase room revenue at Archipelago International Indonesia Hotels Group. While the majority of Archipelago International management considers that dynamic rates are more effective at increasing room revenue, the impact of global economic events such as the COVID-19 pandemic, wars, and earthquakes (force majeure) has been underestimated. Static rates can be used to respond to economic downturns induced by these occurrences, which reduce demand. Most current research focuses on the effectiveness of dynamic pricing; however, static rates may be utilised during a hotel's low occupancy as well as the pre-opening phase to ensure room occupancy and give fixed room revenue. This study uses qualitative research methodologies to assess current practices and offers ideal static rate models. The findings highlight suboptimal implementation challenges and propose two models: (1) Static Rates Stand Alone: managed by the channel manager for a minimum two-night stay, beneficial for remote or pre-opening hotels, during low occupancy or economic downturns; and (2) Bundle Packages: combining room rates with other services to increase revenue and promote additional facilities. These models provide consistent pricing, improved forecasting, and increased brand awareness. Implementing these models can help Archipelago International optimise its revenue plans and financial performance.

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