Motivation of Villa Manager in North Kuta Distric, Badung, Bali Use On Line Travel Agents As Promotion and Sales Media.
MOTIVATION OF VILLA MANAGER IN NORTH KUTA DISTRICT,
BADUNG, BALI USE ONLINE TRAVEL AGENTS
AS PROMOTION AND SALES MEDIA
Made Antara1), Nyoman Madiun2) and Luh Sri Astuti 3)
1)
Tourism Research Consortium, University of Udayana, Bali, Indonesia (email: antara_unud@yahoo.com)
2)
Bali Tourism Education Institute, Nusa Dua, Bali, Indonesia (email: nmadiun@hotmail.com)
3)
Official of Bali Provincial Government (email: luhsri77@yahoo.com)
ABSTRACT
Construction of villas in Bali very rapidly, especially in Badung regency with the distribution of
the number of dominant villa in North Kuta district. Based on preliminary study, tourists tend to
make reservations through online travel agents (OTA). Therefore, there is a tendency if the villa
manager in North Kuta District promotion through OTA. The aim of this research is to explain and
analyze the motivation of villa managers in North Kuta District on using online travel agents as
promotion, and identify the advantage and disadvantage using OTA as promotion and sales
media. Analysis of data use statistic of descriptive dan qualitative descriptive. The result of the
research shows that the motivation of villa manager using OTA as promotion and sales media is
very highly. Advantages earned more than the disadvantages suffered when using OTA as
promotion and sales media. Advantages derived by among others increase occupancy rates, easy
adjust price, receive direct payments, reach wider and more efficient in time and costs, and
possibility to be a repeater guest. But the disadvantages are: net sales decreased villas, overbooking, and position is higher so the villa into a subordination of OTA.
Keywords: Motivation, Vila Manager, Online Travel Agents.
INTRODUCTION
Tourism in Bali in the last three decades has been growing very rapidly indicated by an
increase in the number of foreign and domestic tourist arrivals. Based on publication of BPS Bali
web (downloaded, 19 November 2015), in 1990 foreign tourist arrivals to Bali just as many as 489,
710 people, in 2000 increased to 1,412,839 people and in 2013 jumped to 3,278,598 people.
Increased tourist arrivals would require means that the more accommodations.
The accommodation sector in Bali is growing rapidly with increases in tourist arrivals, like
hotel, homestay, villas and other accommodation types. According Ismoyo (2011), there is a mode
shift from mass tourism to individual tourism where tourists prefer to stay in a villa that are more
personal. Shift mode can be seen from the tourists who prefer to live in a more private villa,
mainly couple tourists or honeymoon tourist. Shift mode of tourism has led to the increasingly
rapid growth of the villa.
Construction of villas in Bali very rapidly, especially in Badung regency. Number of villas in
the Badung regency in 2009 recorded 73 villas, increasing to 158 villas in 2010, to 293 villas in the
year 2011, reaching 414 villas in the year 2012 and up to July 2013 to 460 villas (Dinas Pariwisata
Badung, 2013), But the spread of villas in the Badung regency concentrate in the North Kuta
district (Evita, et al., 2012). Number of villas have a business license is 460 villas and 41.52 percent
of them are located in the North Kuta District (Dinas Pariwisata Badung, 2013 ).
Growth in the number of villa very rapidly lead to competition on the property business also
increased. Once of competition between villa businesses seen from a very tight competition in
getting potential customers. Various promotion efforts made by the villa industry. Promotion
efforts conducted through various promotion mix committed start from personal selling, sales
promotion, direct marketing, online advertising and online marketing is one of them through
online travel agents (OTA). Another promotion medium used is through online marketing media,
such as by using the website, blogs and social media.
1
Travelers use the Internet to search for information about destinations will be visited before
making a purchase (Gupta and Gulla, 2010). Travelers generally use the Internet for booking travel
products start from booking of air tickets, accommodation services, a tour package even booking
for food and drinks in certain restaurants. A similar explanation is described by a villa manager
who says most tourists make a reservation through the internet. According Kotler (2000), Kotler
and Armstrong (2012: 108), the advantages of online direct marketing is to reduce the cost of
financing such as rental cost or cost of purchasing a store, can make efficiency and reach
worldwide
Internet marketing become the main topic and the reason why almost all the nations of the
world are very interested in the internet. Internet is an interactive medium where Internet users
can communicate without border of distance and time to reach the whole world. Along with the
rapid development of information technology and Internet applications to form new consumer
groups that integrate the website into their daily lives. Websites and social media influence the
way people communicate, make decisions, socialize, learn, entertain themselves, interact with
each other, and even do shopping just by clicking a computer mouse. However, efforts to create a
independent website for villas better known by internet users and potential customers is a matter
that requires considerable time and costs are quite high. Required average visitor to a web page
that is increasing in order to obtain top-ranked website in the search engines, so the villa manager
utilize online travel agents in order to assist the villa to be faster in the know.
Online travel agents (OTA) ravel agents is an online travel agency business, which focus on
dealing with the sale of a variety of tourism products of various tourism businesses are becoming
partners. Tourism businesses are working with OTA from selling the flight services, business
accommodation and other tourism businesses. There are three major OTA in Bali, agoda.com,
booking.com, and expedia.com.
In general, online travel agents (OTA) have a way of working that is almost similar to each
other. The following description of the booking process among the three top OTA in Bali. The
procedure for booking and payment on agoda.com is as follows: booking process performed by
the customer directly through the internet including payment processing via credit card or debit
card, after the payment of a few minutes later a confirmation voucher is sent via email
subscribers. The payment process on agoda.com billed by agoda (agoda collect payment), and the
agoda will pay to the hotel/villa using a virtual card and bank transfer.
North Kuta District is the location with the highest number of villas amongs the districts in
Badung, so it was decided to determine the location of the research in these districts. Therefore,
the need for research to determine motivation of villa manager, and the advantages and
disadvantages use online travel agent as promotion and sales media. Based on the previous
descriptions, so the aim of this research is to explain and analyze the motivation of villa managers,
and identify the advantage and disadvantage using OTA as promotion and sales media.
RESEARCH METHOD
Research Location
The research was conducted in the District of North Kuta, Badung, Bali Province. Selection of
the region as a location for research done purposively, based on the following considerations; (1).
North Kuta District is a district that has the highest percentage of villas spread among other
districts in Badung; (2). The phenomenon of increasing villa managers in North Kuta district uses
online travel agents as promotion and sales media in facing competition in an effort to grab
customers.
Kind and Source of Data
The type of data collected in this study is quantitative and qualitative data. Quantitative data
is data expressed in numerical form or figures, obtained directly from the field through the
questionnaire, among others the indicators of motivation to use online travel agents (OTA) as
2
promotion media. Qualitative data is data that is expressed in the form of statements and
descriptions of the manager of the villa in the North Kuta District, such as the advantages and
disadvantages of using OTA and other data.
The data source is the source of primary and source of secondary. From source of primary
obtained primary data collected directly from primary sources, which acts as respondent such as
data from a questionnaire regarding promotion effort, manager motivation of a villa in the North
Kuta District toward use of online travel agents (OTA) , and interviews on the various advantages
as well as disadvantages the use of OTA. From secondary sources obtained the secondary data
collected from second hand or from other sources which had been available before the study is
done. Secondary data such as data obtained from the documents of various parties such as data
from Badung Tourism Office and the Central Bureau of Statistics Badung.
Research Instrument
Data collection instruments used in the study was a questionnaire filled by the manager of
the villa, the interview guide for villa managers in the North Kuta District, and the researchers
themselves as instrument to collecting the qualitative data.
Method of Data Collection
Data collection methods used in this study is the observation method, interview, and depth
interview and literature study.
Population and Sample
The population in this research is the number of villas have a business license in the North
Kuta District, according to the data Badung Tourism Office in 2013 a total of 191 villas.
Determination of the number of samples is done by using the Slovin formula (see Riduwan, 2010).
With a population of 191 units, then the calculations, as mch as 66 villas. This amount is
considered representative for this research, which suggested using the number of samples at least
5-10 times the number of variables or indicators (see Santoso, 2014). In this research identified 10
variables forming motivation, so that the necessary samples of at least between 50-100
respondents. Considering the time, cost and need for appropriate data by means of factor
analysis, the number of samples in this study assigned 66 people (Table 1).
Table 1
Population and Sample of Villa in North Kuta District, Badung Regency, Bali
Number
Villages
Population of Villa
Percentage Sample of Villa
1
Kerobokan Kelod
83
44
29
2
Kerobokan
47
25
17
3
Kerobokan Kaja
4
Tibubeneng
33
17
11
5
Canggu
26
13
8
6
Dalung
2
1
1
Total
191
100
66
Respondents in this study are a villa manager who is responsible for the villa promotion
activities, which is considered to represent a sample of the villa. In addition to the respondents as
a source of quantitative data is also needed informant as a source of qualitative data. The
informants in this study are the ones who are competent in terms of promotion villa, perhaps
general manager, operations manager, marketing manager or sales and marketing manager, and
supervisor, or a sales staff that is responsible for villas promotional activities to provide answers
3
to the question- given during the interview. Determination of informants using purposive
sampling method.
Identification and Measurement of the Variables
Motivation variables of villa manager in North Kuta District toward use online travel agents
(OTA) as promotion and sale media decomposed into variables based theory. The description of
the motivation variables are described in Table 2.
Measurement of each variable forming motivation using the Likert scale with five levels of
hierarchy. Each response was received for managing the villa to the items statement per
variables/ indicators category from very disagree (very low)=1; disagree (low)=2; neutral
(moderate) =3; agree (height)=4; very agree (very high)=5. To be able to categorize the average
value of the variables of motivation that is a fraction, then the Likert scale can also be made in the
form of class intervals, very disagree (very low)=1-
BADUNG, BALI USE ONLINE TRAVEL AGENTS
AS PROMOTION AND SALES MEDIA
Made Antara1), Nyoman Madiun2) and Luh Sri Astuti 3)
1)
Tourism Research Consortium, University of Udayana, Bali, Indonesia (email: antara_unud@yahoo.com)
2)
Bali Tourism Education Institute, Nusa Dua, Bali, Indonesia (email: nmadiun@hotmail.com)
3)
Official of Bali Provincial Government (email: luhsri77@yahoo.com)
ABSTRACT
Construction of villas in Bali very rapidly, especially in Badung regency with the distribution of
the number of dominant villa in North Kuta district. Based on preliminary study, tourists tend to
make reservations through online travel agents (OTA). Therefore, there is a tendency if the villa
manager in North Kuta District promotion through OTA. The aim of this research is to explain and
analyze the motivation of villa managers in North Kuta District on using online travel agents as
promotion, and identify the advantage and disadvantage using OTA as promotion and sales
media. Analysis of data use statistic of descriptive dan qualitative descriptive. The result of the
research shows that the motivation of villa manager using OTA as promotion and sales media is
very highly. Advantages earned more than the disadvantages suffered when using OTA as
promotion and sales media. Advantages derived by among others increase occupancy rates, easy
adjust price, receive direct payments, reach wider and more efficient in time and costs, and
possibility to be a repeater guest. But the disadvantages are: net sales decreased villas, overbooking, and position is higher so the villa into a subordination of OTA.
Keywords: Motivation, Vila Manager, Online Travel Agents.
INTRODUCTION
Tourism in Bali in the last three decades has been growing very rapidly indicated by an
increase in the number of foreign and domestic tourist arrivals. Based on publication of BPS Bali
web (downloaded, 19 November 2015), in 1990 foreign tourist arrivals to Bali just as many as 489,
710 people, in 2000 increased to 1,412,839 people and in 2013 jumped to 3,278,598 people.
Increased tourist arrivals would require means that the more accommodations.
The accommodation sector in Bali is growing rapidly with increases in tourist arrivals, like
hotel, homestay, villas and other accommodation types. According Ismoyo (2011), there is a mode
shift from mass tourism to individual tourism where tourists prefer to stay in a villa that are more
personal. Shift mode can be seen from the tourists who prefer to live in a more private villa,
mainly couple tourists or honeymoon tourist. Shift mode of tourism has led to the increasingly
rapid growth of the villa.
Construction of villas in Bali very rapidly, especially in Badung regency. Number of villas in
the Badung regency in 2009 recorded 73 villas, increasing to 158 villas in 2010, to 293 villas in the
year 2011, reaching 414 villas in the year 2012 and up to July 2013 to 460 villas (Dinas Pariwisata
Badung, 2013), But the spread of villas in the Badung regency concentrate in the North Kuta
district (Evita, et al., 2012). Number of villas have a business license is 460 villas and 41.52 percent
of them are located in the North Kuta District (Dinas Pariwisata Badung, 2013 ).
Growth in the number of villa very rapidly lead to competition on the property business also
increased. Once of competition between villa businesses seen from a very tight competition in
getting potential customers. Various promotion efforts made by the villa industry. Promotion
efforts conducted through various promotion mix committed start from personal selling, sales
promotion, direct marketing, online advertising and online marketing is one of them through
online travel agents (OTA). Another promotion medium used is through online marketing media,
such as by using the website, blogs and social media.
1
Travelers use the Internet to search for information about destinations will be visited before
making a purchase (Gupta and Gulla, 2010). Travelers generally use the Internet for booking travel
products start from booking of air tickets, accommodation services, a tour package even booking
for food and drinks in certain restaurants. A similar explanation is described by a villa manager
who says most tourists make a reservation through the internet. According Kotler (2000), Kotler
and Armstrong (2012: 108), the advantages of online direct marketing is to reduce the cost of
financing such as rental cost or cost of purchasing a store, can make efficiency and reach
worldwide
Internet marketing become the main topic and the reason why almost all the nations of the
world are very interested in the internet. Internet is an interactive medium where Internet users
can communicate without border of distance and time to reach the whole world. Along with the
rapid development of information technology and Internet applications to form new consumer
groups that integrate the website into their daily lives. Websites and social media influence the
way people communicate, make decisions, socialize, learn, entertain themselves, interact with
each other, and even do shopping just by clicking a computer mouse. However, efforts to create a
independent website for villas better known by internet users and potential customers is a matter
that requires considerable time and costs are quite high. Required average visitor to a web page
that is increasing in order to obtain top-ranked website in the search engines, so the villa manager
utilize online travel agents in order to assist the villa to be faster in the know.
Online travel agents (OTA) ravel agents is an online travel agency business, which focus on
dealing with the sale of a variety of tourism products of various tourism businesses are becoming
partners. Tourism businesses are working with OTA from selling the flight services, business
accommodation and other tourism businesses. There are three major OTA in Bali, agoda.com,
booking.com, and expedia.com.
In general, online travel agents (OTA) have a way of working that is almost similar to each
other. The following description of the booking process among the three top OTA in Bali. The
procedure for booking and payment on agoda.com is as follows: booking process performed by
the customer directly through the internet including payment processing via credit card or debit
card, after the payment of a few minutes later a confirmation voucher is sent via email
subscribers. The payment process on agoda.com billed by agoda (agoda collect payment), and the
agoda will pay to the hotel/villa using a virtual card and bank transfer.
North Kuta District is the location with the highest number of villas amongs the districts in
Badung, so it was decided to determine the location of the research in these districts. Therefore,
the need for research to determine motivation of villa manager, and the advantages and
disadvantages use online travel agent as promotion and sales media. Based on the previous
descriptions, so the aim of this research is to explain and analyze the motivation of villa managers,
and identify the advantage and disadvantage using OTA as promotion and sales media.
RESEARCH METHOD
Research Location
The research was conducted in the District of North Kuta, Badung, Bali Province. Selection of
the region as a location for research done purposively, based on the following considerations; (1).
North Kuta District is a district that has the highest percentage of villas spread among other
districts in Badung; (2). The phenomenon of increasing villa managers in North Kuta district uses
online travel agents as promotion and sales media in facing competition in an effort to grab
customers.
Kind and Source of Data
The type of data collected in this study is quantitative and qualitative data. Quantitative data
is data expressed in numerical form or figures, obtained directly from the field through the
questionnaire, among others the indicators of motivation to use online travel agents (OTA) as
2
promotion media. Qualitative data is data that is expressed in the form of statements and
descriptions of the manager of the villa in the North Kuta District, such as the advantages and
disadvantages of using OTA and other data.
The data source is the source of primary and source of secondary. From source of primary
obtained primary data collected directly from primary sources, which acts as respondent such as
data from a questionnaire regarding promotion effort, manager motivation of a villa in the North
Kuta District toward use of online travel agents (OTA) , and interviews on the various advantages
as well as disadvantages the use of OTA. From secondary sources obtained the secondary data
collected from second hand or from other sources which had been available before the study is
done. Secondary data such as data obtained from the documents of various parties such as data
from Badung Tourism Office and the Central Bureau of Statistics Badung.
Research Instrument
Data collection instruments used in the study was a questionnaire filled by the manager of
the villa, the interview guide for villa managers in the North Kuta District, and the researchers
themselves as instrument to collecting the qualitative data.
Method of Data Collection
Data collection methods used in this study is the observation method, interview, and depth
interview and literature study.
Population and Sample
The population in this research is the number of villas have a business license in the North
Kuta District, according to the data Badung Tourism Office in 2013 a total of 191 villas.
Determination of the number of samples is done by using the Slovin formula (see Riduwan, 2010).
With a population of 191 units, then the calculations, as mch as 66 villas. This amount is
considered representative for this research, which suggested using the number of samples at least
5-10 times the number of variables or indicators (see Santoso, 2014). In this research identified 10
variables forming motivation, so that the necessary samples of at least between 50-100
respondents. Considering the time, cost and need for appropriate data by means of factor
analysis, the number of samples in this study assigned 66 people (Table 1).
Table 1
Population and Sample of Villa in North Kuta District, Badung Regency, Bali
Number
Villages
Population of Villa
Percentage Sample of Villa
1
Kerobokan Kelod
83
44
29
2
Kerobokan
47
25
17
3
Kerobokan Kaja
4
Tibubeneng
33
17
11
5
Canggu
26
13
8
6
Dalung
2
1
1
Total
191
100
66
Respondents in this study are a villa manager who is responsible for the villa promotion
activities, which is considered to represent a sample of the villa. In addition to the respondents as
a source of quantitative data is also needed informant as a source of qualitative data. The
informants in this study are the ones who are competent in terms of promotion villa, perhaps
general manager, operations manager, marketing manager or sales and marketing manager, and
supervisor, or a sales staff that is responsible for villas promotional activities to provide answers
3
to the question- given during the interview. Determination of informants using purposive
sampling method.
Identification and Measurement of the Variables
Motivation variables of villa manager in North Kuta District toward use online travel agents
(OTA) as promotion and sale media decomposed into variables based theory. The description of
the motivation variables are described in Table 2.
Measurement of each variable forming motivation using the Likert scale with five levels of
hierarchy. Each response was received for managing the villa to the items statement per
variables/ indicators category from very disagree (very low)=1; disagree (low)=2; neutral
(moderate) =3; agree (height)=4; very agree (very high)=5. To be able to categorize the average
value of the variables of motivation that is a fraction, then the Likert scale can also be made in the
form of class intervals, very disagree (very low)=1-