CASE STUDY ARTOTEL GROUP: THE ART OF STEALING MARKET SHARE
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Abstract
Sometimes ago, George Bernard Shaw reminded us about a critical function of ‘art’ as the way we see ourselves and live our lives. At the present time, following the footsteps of their father on entrepreneurship and the love for art, Erastus Radjimin as the Chief Executive Officer (CEO), and Christine Radjimin as the Chairman of ARTOTEL Group, creatively brought the soul of ‘art’ and ‘hotel’ to life. As a result, starting from 2011, the group has started providing memorable hospitality experience in unexpected ways through their 4 pillar of business models (see Exhibits 1). Today, with tremendous passion in art and people, ARTOTEL Group is known as the pioneer of Indonesia art-inspired unique boutique hotel which provides innovative offerings in the hospitality industry. In the frontline, Eduard Rudolf Pangkerego, the Chief Operating Officer (COO), assembles original young talented Indonesian contemporary artist and art galleries to yield an irreplaceable experience for all occupants and guests at all ARTOTEL Group premises. In doing so, whilst other hotel only applying art and design material to complement the hotel decoration, Eduard integrates art and design works at every corner of the hotel as well as food and beverages (F&B) authentic products and outlet. Moreover, alongside pampering guests with urban concept, modern facilities and Food & Beverage (F&B) selections, he turns hotels’ wall into a canvas for local talented artists to paint. Thus, it includes transforming the public area of the hotel for an artwork space and exhibition. In collaborating with every designated Indonesian artist, ARTOTEL Group provides the artists with the exclusivity to display and craft their contemporary artworks as a part of the interior design of the hotel’s rooms. All of these ARTOTEL Group’s artsy aim to satisfy and fulfil the vision of in making beautiful stories about the humanity of sleeping, eating and drinking and deliver the best staying experiences. Therefore, along with keeping the brand alive and delivering memorable-service quality, Eduard makes sure every hotel is built to reflect the local environment, represent the surrounding, and aligned with the present-day market behaviour and preference. No wonder, each of the ARTOTEL Group’s hotels are able to steal both different layers of market such as business owners and consumers. However, in the future, Eduard worries that ARTOTEL Group might not be able to keep stealing the market’s devotion and loyalty since the hospitality industry is dynamic and market is fragile. Albeit the challenges to stay on par. For example, in the beginning year 2012 for the market products differentiation strategy, ARTOTEL Group’s highly considered by millennial spenders that fell under into Retail type (individual and walk-in guest). But, these market segmentations changed, as the retail market has shrunk and replaced by the OTA (Online Travel Agents) patrons (see Exhibits 3). Furthermore, in the middle of the hotels’ price war and severe competition, ARTOTEL Group strives to stay alert with ideas on appealing markets without robbing their wallets, particularly in the light of the new waves of post-millennial/ centennial demands. In addition to meet the call from the CEO and Chairman of the ARTOTEL Group, what does Eduard need to think and do in heightening and upholding ARTOTEL Group hotel’s inimitability that tailor the different layers of market?