The implementation of six sigma DMAIC in evaluation of direct booking improvement strategy at Alpha hotel management

Ni Putu Widya Maheswari Karantika Putri; I Putu Utama; I Gede Darmawijaya

doi:10.26905/jpp.v10i1.13968

Authors

Ni Putu Widya Maheswari Karantika Putri Magister Terapan Pariwisata, Politeknik Pariwisata Bali
I Putu Utama Magister Terapan Pariwisata, Politeknik Pariwisata Bali
I Gede Darmawijaya Magister Terapan Pariwisata, Politeknik Pariwisata Bali

DOI:

https://doi.org/10.26905/jpp.v10i1.13968

Keywords:

direct booking, hospitality industry, six sigma dmaic

Abstract

The management of room source of bookings (SOB) plays a crucial role in the hospitality industry as it directly impacts hotel profitability. A significant challenge faced by Alpha Hotel Management (AHM) is the dominance of Online Travel Agents (OTAs), contributing up to 80% of total bookings, while direct bookings only account for 12%, far below the 30% target. This high dependency on OTAs not only reduces profit margins due to high commission fees but also limits the hotel’s direct engagement with guests. This study aims to develop strategies to increase direct bookings through website optimization using the Six Sigma DMAIC approach (Define, Measure, Analyze, Improve, Control). The study revealed key issues such as limited room allotment, low website visibility, lack of early bird programs, and suboptimal website performance as major factors hindering direct bookings. After implementing strategies like SEO optimization, Google Ads, website redesign, and staff training, significant improvements were observed, with conversion rates increasing by up to 181%. These improvements were accompanied by a marked increase in visitor interactions and direct bookings across AHM’s properties. Further developments such as loyalty programs and flexible payment systems are expected to enhance website performance and reduce reliance on OTAs. Continuous monitoring and adaptive strategies are essential for achieving sustained growth in direct bookings and enhancing hotel profitability.

Downloads

Download data is not yet available.

References

Beritelli, P., & Schegg, R. (2016). Maximizing online bookings through a multi-channel-strategy: Effects of interdependencies and networks. International Journal of Contemporary Hospitality Management, 28(1), 68-88.

Citra, E., Kusuma Ningrat, N., & Kurnia, Y. (2023). STRATEGI OTA (ONLINE TRAVEL AGENT) DALAM MENINGKATKAN PEMESANAN KAMAR HOTEL PAMORDIAN DENGAN METODE SWOT DAN AHP DI PANGANDARAN. INTRIGA (Info Teknik Industri Galuh), Jurnal Mahasiswa Teknik Industri, 1(1), 16–24. https://doi.org/10.25157/intriga.v1i1.3595

Gao, G.-X., & Bi, J.-W. (2021). Hotel booking through online travel agency: Optimal Stackelberg strategies under customer-centric payment service. Annals of Tourism Research, 86, 103074. https://doi.org/10.1016/j.annals.2020.103074

GARCİA, G., DOS ANJOS, S., & DOĞAN, S. (2022). Online Travel Agencies and Their Role in the Tourism Industry. Advances in Hospitality and Tourism Research (AHTR), 10(3), 361–386. https://doi.org/10.30519/ahtr.865546

Hastjarjo, K. (2023). The Managing Hotel Employees Achieving Wow!: A Conceptual Paper. E-Journal Of Tourism, , 60-73. doi:10.24922/eot.v10i1.93658

Heuvel, D. (2022). Hotel’s Strategic Objectives Regarding Direct Bookings at Four- and Five-Star Hotels in The Cape Town Metropole. September.

Hidayat, T., Suparman, A., & Saputra, A. M. (2024). PENGARUH PROMOSI MELALUI ONLINE TRAVEL AGENT (OTA) TERHADAP VOLUME PENJUALAN KAMAR DI LASKA HOTEL SUBANG. The World of Business Administration Journal.

Kareem, S. A., & Venugopal, P. (2023). The Effects of Website Quality, Review Ratings and Cewebrity Reviews on Online Booking Intention: A Serial Mediation Model. Vision: The Journal of Business Perspective. https://doi.org/10.1177/09722629231198610

Kartika, I., Astawa, I. K., & Ernawati, N. M. (2022). The Influence of Direct Booking and Indirect Booking Distribution Channels on Room Revenue at Movenpick Resort & Spa Jimbaran Bali. Repositori Politeknik Negeri Bali.

Kartajaya, H., & Setiawan, I. (2014). WOW Marketing (Y. Savitry, Ed.). Gramedia Pustaka Utama.

Liu, L.-L. & Teng, H.-Y. (2024). How perceived coolness and wow affect customer engagement: the role of self-image congruity. Journal of Hospitality and Tourism Insights. Vol. 7 No. 5, pp. 2844-2861. https://doi.org/10.1108/JHTI-07-2023-0477

Muliadi, M., Andriani, M., & Irawan, H. (2020). Perancangan Sistem Informasi Pemesanan Kamar Hotel Berbasis Website (Web) Menggunakan Data Flow Diagram (Dfd). JISI: Jurnal Integrasi Sistem Industri, 7(2), 111-122.

Morales, T. (2017). Increasing Direct Booking in Hotels. Haaga-Helia University of Applied Science.

O’Connor, P. (2021). Loyalty Programs and Direct Website Performance: An Empirical Analysis of Global Hotel Brands. In Information and Communication Technologies in Tourism 2021 (pp. 150–161). Springer International Publishing. https://doi.org/10.1007/978-3-030-65785-7_13

O’Connor, P., Assaker, G., & Haddad, R. El. (2025). Online Travel Agency Participation: An Empirical Investigation of Its Financial Contribution to U.S. Hotel Profitability. Cornell Hospitality Quarterly. https://doi.org/10.1177/19389655251318185

Oktadiana, H., & Kurnia, A. (2011). How Customers Choose Hotels. Binus Business Review, 2(1), 510–517.

Okwu, M. O., Enarevba, D. R., Tartibu, L. K., Oyejide, O. J., & U-Dominic, C. M. (2021). Six Sigma as a Strategy for Process Improvement in Industry 4.0. Proceedings of the International Conference on Industrial Engineering and Operations Management, 1072–1083. https://doi.org/10.46254/SA02.20210523

Purba, M. M. (2020). Perancangan sistem informasi pemesanan kamar hotel berbasis online. Jurnal mitra manajemen, 11(2).

Setiyarti, T., & Wardhana, I. W. W. (2018). SALURAN DISTRIBUSI PEMASARAN DAN PENGARUHNYA TERHADAP PENDAPATAN SEBUAH HOTEL. Jurnal Riset Ekonomi Manajemen (REKOMEN), 1(2), 37–44. https://doi.org/10.31002/rn.v1i2.714

Steinhauser, C., & Bohne, H. (2018). Multi Channel Strategy: An Empirical and Theoretical Analysis of Online Distribution Channels in the Hospitality Industry. Journal of tourism Research, 19, 107-123.

Suwanda. (2024). The Role of The Six Sigma Method in Controlling and Improving Product Quality. Jurnal Ilmiah Multidisiplin Indonesia (JIM_ID), 3(1).

Talwar, S., Dhir, A., Kaur, P., & Mäntymäki, M. (2020). Barriers toward purchasing from online travel agencies. International Journal of Hospitality Management, 89, 102593.

Tang, L., Wang, X., & Kim, E. (2022). Predicting Conversion Rates in Online Hotel Bookings with Customer Reviews. Journal of Theoretical and Applied Electronic Commerce Research, 17(4), 1264–1278. https://doi.org/10.3390/jtaer17040064