Advances in Social Science, Education and Humanities Research, volume 647

International Conference on Applied Science and Technology on Social Science 2021 (iCAST-SS 2021)

Green Hotel Promotion Strategy in Bali: A

Study Using SWOT Analysis

*I Ketut Astawa* I Ketut Budarma

Tourism Department Tourism Department
Politeknik Negeri Bali Politeknik Negeri Bali
Indonesia Indonesia
[email protected] [email protected]

Cokorda Istri Sri Widhari I Gede Mudana

Tourism Department Tourism Department
Politeknik Negeri Bali Politeknik Negeri Bali
Indonesia Indonesia
[email protected] [email protected]

Abstract— Bali is a small island of extraordinary

natural beauty and cultural appeal. This island's I. INTRODUCTION
stunning qualities make it one of the world's most Future development is most times extremely
popular tourist destinations. According to TripAdvisor, difficult to foresee and assure. Owing to this, various
Bali was chosen as the world's best tourist destination in types of changes arising from the external and internal
2021. Therefore, this study aims to identify several
environment cannot be isolated from the company as
strategies for the development of green hotels in the
some modifications having a negative impact can be
hospitality industry in Bali. A theoretical base and
relevant concepts of promotion mix were used, and the inconvenient to the company, while others with a
process of data collection was conducted by observation, positive impact can help the organization. There are
interviews, and questionnaires from six green-certified two factors that make environmental analysis
5-star hotels. They include Melia Bali, St. Regis Bali, important in strategic management which should
Intercontinental Hotel, Conrad Bali, Mandapa Bali, and always be conducted by top managers, namely: 1) the
The Royal Pita Maha Resort. Furthermore, a purpose company does not stand alone but interacts with parts
sampling was used to define the number of informants of the environment that change over time and 2)
about 30 employees working at the managerial level. environmental influences are very complicated and
The evaluation of strategic factors used in this study complex can affect the performance of different parts
integrated the SWOT approach with the Internal of a company [1].
(IFEM) and External Factor Evaluation Matrix
(EFEM). The results showed that the green hotel One of the external factors that affect the
industry in Bali can be developed through 9 strategies. performance of the hospitality business is competition.
CHSE certificate as a promotion of hotel readiness to Additionally, when there is more competition between
receive guests during a pandemic and using various the destination and the businesses involved,
media to reach guests directly are given the highest promotional efforts become more vital for the
priority. Implementing a green business hotel in Bali sustenance of the hotel industry. Therefore,
and to increase its promotion, can be useful during and establishing a planned promotional mix for green
after the pandemic. The findings will assist hotels, including the creation of awareness, public
policymakers and other stakeholders to examine current relations, trade system, sales incentives, and direct
tourism issues and discover the most realistic and timely marketing, is very critical. The strategy's backdrop is
actions for the sustainable development of the tourism connected to the search for breakthroughs in
industry in Bali. promotions, to target the expanding green market
while also avoiding pandemic-related barriers. The
Keywords— green hotel; promotion strategy; SWOT;
following are the most important aims of promotional
Bali
efforts for green hotels in improving its
competitiveness: enlightening the target market,

Copyright © 2022 The Authors. Published by Atlantis Press SARL.

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 Advances in Social Science, Education and Humanities Research, volume 647

training and educating consumers, and stressing the Kelingking Beach, Lake, and Mount Batur, Sekumpul
fulfillment of their social obligations [2]. Other Waterfalls, and the vast expanse of rice fields in
objectives of hotel promotional activities include; Jatiluwih make it a tourist spot that always provides
increasing demand for hotel services, developing new experiences in traveling. Additionally, Balinese
positive relationships with intermediaries such as culture and customs are still strong and tightly held by
offline and online travel agencies and tour operators, its people, who primarily adhere to Hinduism,
the readiness to implement new services and allowing visitors to experience a new religious
advancements to the market, improving and atmosphere each time they visit Bali. The presence of
maintaining the hotel's market prestige, and growing a hotel that is responsible to its employees, the local
revenue. community, local culture, and the environment
completes this province’s image as an environmentally
Promotion, along with product conception, friendly cultural tourism destination.
development, pricing, and distribution, is considered
one of the most important marketing activities [3]. It Therefore, this study aims to identify several
makes a product, company, person, or idea popular promotion strategies for the development of green
and accepted among the general public, especially hotels in the hospitality industry in Bali.
within the target market. Furthermore, promotion has
begun to pave way as one of the most prioritized II. LITERATURE REVIEW
aspects in the current highly competitive business
economy as a result of; expanding geographic and 2.1 Green hotel
cultural gap between producers and consumers, a rise
in the number of consumers following population A green hotel is defined as a resort with policies
expansion, growth of markets due to high rates of and practices that promote sustainable living [6].
revenue, improved competition as a result of These include ecologically friendly hotel management
alternative products, middlemen growing number, practices, land conservation, adequate use of building
consumer needs and wants to evolve due to increased material, controlled energy consumption, water
per capita income, customers' need for unique, high- efficiency, air quality, and waste management. Green
quality, and distinguished products, seasonal hotels, for the most part, decrease environmental
variations in need, and building brand loyalty among effects and energy utilization while delivering goods
consumers [4]. and services to consumers. It is characterized by a
program that promotes employees and consumers to
Promotional activities should therefore be granted save water and energy, as well as decrease waste and
by disbursing appropriate budgets as well as its environmental effect.
monitoring market changes, new projects, and
adequately relaying the information to the entire staff. These hotels place a high value on security,
This will assist hotels in obtaining more anticipated wellness, and environmental friendliness. In this
advantages from promotional activities effectively and aspect, security refers to a focus on public and food
suitably, hence should be treated importantly. Hotels safety, while wellness refers to the supply of products
should follow effective and efficient promotional and services that benefit customers physically and
strategies to survive and provide high-quality services mentally. In terms of environmental friendliness, green
in the very competitive international business hotels seek to decrease pollution, save energy, and
environment [4]. limit the number of resources used during its
operations. There is yet to be a clear agreement on the
Bali is a favorite destination for both domestic and standard or exact definition of a green hotel. However,
foreign tourists to take a vacation and also do business. with the involvement of management practices, the
However, tourism faces obstacles and challenges due terms; eco-efficient, green, and environmentally
to the pandemic in 2021. The Covid-19 pandemic has friendly hotels are interchangeable internationally.
caused a very sharp decline for the world of tourism According to the previous study, green hotels strive to
and the economy around the world, including this provide services that are environmentally friendly by
province. In addition to the current economic situation, effectively utilizing energy, water, and raw materials
the number of tourist visits has drastically reduced. [7].
Although the pandemic that occurred in 2020 to mid-
2021 made it extremely difficult for tourism to grow, Green hotels actively explore possibilities for
Bali was still chosen as the world's best tourist business growth in the market and take the necessary
destination in 2021 and the most preferred tourist spot steps. To leverage on market opportunities and prevent
for the last 12 months according to TripAdvisor, market threats, a study was conducted to provide
which is the largest travel site located in the United recommendations and identify growth strategies for
States [5]. green hotels [8].

Bali has many well-known tourist attractions such Market opportunities and strengths of green hotels
as Kuta, Jimbaran, Nusa Dua, Sanur, Ubud, and many are listed as follows:
others. The natural beauty of this province such as

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1. Lower procurement prices for resources and 2.2 Promotion mix

energy usage Promotion mix is a particular activity including
2. Lower waste processing prices advertising, sales promotion, public relations, personal
3. Opportunities to attract new green customer groups selling, and direct marketing that is used by a company
4. Provision of a safe and convenient work to introduce and persuasively communicate with
environment customers. This combination of promotion is designed
5. Reduction of employee risks concerning health or to make the customers satisfied and achieve the
security problems company goals [11]. Marketing mix is a strategy of
6. Improvement of employee morale, which combining activities to produce satisfactory results
reinforces the provision of high-quality service [12].
7. Improvement in relationships between the hotel There are 5 components of promotion mix, such
and neighboring communities as:
8. Improvement of market image
1. Advertising. Advertising is a form of delivery that
Hotels that do not implement appropriate is conducted through a designated sponsor [11]. It
environmental protection measures may maintain the excels at raising awareness, convincing, informing,
following market losses: and reminding people [13]. The goal of hotel
1. Loss of market shares attributable to a damaged advertising is to bring the services of the hotel to
market image the attention of new and existing clients.
2. Loss of attractiveness Furthermore, exterior signage, in-hotel and in-
room signage and materials, pamphlets, radio or
3. Risk of legal consequences caused by regulation
television commercials, internet banners, direct
violations amid the passing of stricter mailing, e-mail messages, yellow pages,
environmental protection regulations franchisor-supplied advertising vehicles,
4. Reduced employee loyalty leading to a higher billboards, and personal contact are some of the
turnover rate methods used in the advertisement [14].
5. Lack of preparedness leading to an inability to
respond to increased operational costs 2. Sales promotion. Similarly, sales promotion is a
short-term incentive to support the product
Manaktola and Jauhari recognized low pollution purchase or sales [15]. The main characteristic of
generation, energy conservation, and the application of sales promotion is to offer lower prices, provide
regenerated and recycled materials as the main quick responses, to get faster sales [16]. This
principles for green hotels operation [8]. In general, promotional tool is used by a company to make the
the hotel industry's expansion and operations impede customer buy more and faster [17]. Furthermore,
sustainable development since they involve high some alternative sales promotions that can be
consumption of natural resources, as well as generate a conducted are by giving discounts, gifts, extra free
significant amount of waste and substantial water products, and games [18]. Sales promotion can be
contamination. Hotels all over the world have paid in many models such as discounted prices when
increasing attention to environmental preservation in the low seasons, bonus coupons for an ala carte
recent years and have taken appropriate steps to restaurant, complimentary familiarity tours, giving
reverse the present pollution trend. Green hotels have additional services and facilities for free.
become an international trend as some companies
fulfill their corporate social responsibility by using 3. Public relation and publicity. Public relations
such measures [8]. The hotel adopts environmentally functions to foster good relations between all
responsible practices (ERPs) to reduce their adverse components in an institution to provide
environmental impacts, which may include understanding, foster motivation, and goodwill of
compliance to sustainable environmental standards the public. Furthermore, public relations include
and policies, improvement of environmental various activities that are designed to promote and
protection practices, use of protection seals and build a positive public image of the company [19].
management systems, and consideration of Publicity serves as a specific objective, such as
environmental factors [9]. Cost savings, resource launching a new product or lowering the public
conservation, enhanced customer retention rates, and perception of a negative issue. It may also be
customer loyalty are some of the advantages that ERPs utilized for a variety of reasons to improve a range
may provide to businesses. Another advantage is that of disciplines of the company's operations [20].
staff morale improves, which strengthens the Public relation is a non-personal form of
company's image. Various ERPs in the hotel industry communication aimed at influencing the behaviors,
have been explored in studies [10]. feelings, and perspectives of customers, non-
customers, stockholders, suppliers, employees, and
political bodies toward a company [21]. The goals
of public relations for hotels as marketing mix
instruments are to (a) save business activities, (b)

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generate financial support, (c) increase both public III. RESEARCH METHODOLOGY
and market respect, (d) increase public support and This study aims to identify several promotional
trust, (e) improve positive attitudes toward strategies for the growth of green hotels in Bali
themselves, (f) increase demand, (g) establish good hospitality sector. These strategies were studied using
interactions with the employee, (h) create a theoretical foundation and related ideas. The process
employment offers, and (i) to improve relations of data collection was conducted by observation,
with the society. The operations of public relations interviews, and questionnaires from six green-certified
in tourism are applied to enhance the effectiveness 5-star hotels, which include; Melia Bali, St. Regis
of advertising and sales promotion efforts or to Bali, Intercontinental Hotel, Conrad Bali, Mandapa
establish a favorable destinations image, tourist Bali, and The Royal Pita Maha Resort. The number of
companies, hotels, and other tourism merchandise informants of about 30 employees working at the
[4]. managerial level was determined by purposive
4. Personal selling. Personal selling is a direct sampling.
conversation with one or more potential customers To evaluate strategic considerations for the
to create a sale. It is the right promotional media decision, this study integrated the SWOT technique
for companies to build good relationships with with the Internal (IFEM) and External Factor
their customers. Furthermore, it is regarded as a Evaluation Matrix (EFEM). Two primary categories
sales force, and it involves private communication were used in the SWOT analysis: (1) Analyzing
with the target market, intending to inform and internal factors: which involves assessing the internal
convince consumers to acquire a product. Personal environment's relevant strengths (S) and weaknesses
selling objectives differ considerably based on (W). Strengths and weaknesses were aspects in the
their positions in the long-term process of unifying system which enabled or hindered the organization's
communication These include: (a) finding, objective achievement, respectively. (2) Examining
informing, and convincing potential customers to external factors: Involving the examination of the
purchase, and (b) keeping satisfied (ultimately external environment for relevant opportunities (O)
loyal) customers through follow-up service after and threats (T). Additionally, opportunities and threats
the sale [20]. were viewed as exogenous factors that enhanced or
5. Direct marketing. Direct marketing aims to get hindered the system's ability to achieve its objectives.
immediate responses and foster lasting customer A panel discussion weighed and scored these factors,
relationships. It is conducted through social media and the final score was calculated. The scoring
because people spend a lot of time playing social procedure for S and W is elaborated in the next
media [22]. There are some examples of direct section:
marketing which include; catalogs, the internet, 1. The factors were given a coefficient between 0 and
channels television, and other written as well as
1, standing for “not important” and “most
verbal media. Direct marketing allows businesses
to communicate a wide range of information about important”, respectively. This coefficient
their products to their customers. They entice represents the relative significance of the factor in
people to buy with unique offers to get an success rate and is represented by the term “weight
advantage in selling straight to customers. Hotels in the IFEM”. Even though each factor is
are not restricted from utilizing direct marketing as considered as an internal strength or weakness, the
a promotional strategy in today's highly more effective the factor in green hotel
competitive business world. For instance, hotels development is, the higher the allotted weight will
employ holiday channels, websites, and other be.
customized web pages to carry out direct 2. Every factor was scored between 1 and 4 where 1,
marketing as a promotional tool. 2, 3, and 4 stand for fundamental, minor, strength,
and great strength respectively. These scores were
2.3 Strategy based on the activities held in the hotel sampled.
Strategy is the concept of how a company 3. To find out each factor's final score, the weight
regulates itself with all activities to run a business was multiplied by the score.
successfully by competing and providing returns to its 4. Once every factor's total score was calculated, they
stakeholders [23]. Furthermore, it is a company plan were summed to find out the total final score of
and reflects a company's awareness of how, when, and IFEM.
where it should compete in the face of opponents and 5. The interpretation suggests that when this score
with what goals and objectives [24]. It is also seen as a was less than 2.5, it indicated that strengths were
process of making decisions and taking actions, outweighed by weaknesses, and when it was
beginning from the top management and implemented greater than 2.5, strengths exceeded weaknesses
by all levels to achieve the goals [25]. [26].

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These scoring procedures were also performed for competitors offer the same special package that
EFEM and the interpretation of the value was that receives the highest weight as threats. The total
when the score was less than 2.5, it indicated the number of all EFEM is 2.4423, and the analysis is
opportunities were less than threats, and when it was presented as an external factor evaluation matrix in
more than 2.5, opportunities exceeded the threats [27]. Table 2.
Tabel 2: External Factors Evaluation Matrix
IV. RESULTS AND DISCUSSION (EFEM)
A. Analysis of Internal and External Factors
Based on the questionnaire survey results, a
SWOT analysis was conducted through an internal and
external factor evaluation matrix to determine
priorities.
1. Internal Factors Evaluation Matrix (IFEM).
Regarding strengths and weaknesses, a total of 13
factors selected and surveyed were weighted for
the IFEM. The weights given to the 11 strengths
ranged between 0.0712 and 0.0873. Meanwhile,
CHSE certificate as a promotion of hotel readiness
to receive guests during a pandemic and using
various media to reach guests directly are given the
highest priority. In contrast, the 2 weaknesses were
given a weight range between 0.0511 and 0.0622.
Collaboration with green Instagram celebrities to
attract green market and reduce personal selling
activities due to pandemic regulations are given B. SWOT Matrix and Strategy Formulation
maximum weight, and the total IFEM weighted
The SWOT matrix is supplemented by external
level was 3.1909. The IFEM results are
and internal elements [28], which after selection,
summarized as an internal factor evaluation matrix
evaluation, and identification of their relationships,
in Table 1.
using the SWOT analysis, lead to the rise of four
Table 1. Internal Factors Evaluation Matrix kinds of techniques, showing the need for its
successful utilization in the construction of green
(IFEM) hotels. Strong relationships between strengths and
opportunities (S-O), for example, can indicate the
good health of the Bali hotel industry and allow
aggressive methods to be used. Strong interactions
between weaknesses and threats (W-T) are, on the
other hand, possibly seen as a possible warning and
recommendation to employ defensive tactics and
decrease internal weaknesses to prevent external
dangers [29]. Subsequently, significant relationships
between strengths and threats (S-T) can allow for the
use of a variety of tactics. Strong interactions between
weaknesses and opportunities (W-O) are examined to
ascertain if review or overview methods are
applicable. Table 3 shows the outcomes of this stage.
The weighted rating of IFEM was 3.1909 and
EFEM was 2.4423, which means that strengths were
2. External Factors Evaluation Matrix (EFEM). more than weaknesses. This is the power and
Comparable to IFEM, 9 external opportunities and opportunity that dominates the green hotel in Bali and
threats were weighted, of which 4 were the industry is still growing well. From this
opportunities and the remaining 5 were threats. discussion, it can be generalized that a well-developed
Events organized by the government and and sustainable green hotel industry will benefit
opportunities to do promotions because many society and the environment.
people want to go on vacation get maximum From the total weighted value of IFEM and
weight as opportunities. In contrast, there is EFEM, S-O strategies will be suitable to improve the
decreased economy since the pandemic and many

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green hotel industry in Bali. The suggestive S-O

strategies are as follows:
1. Optimizing special government packages in the
event field
2. Develop a family package for a vacation at a green
hotel
3. Develop work packages from green hotels
4. Create discount packages for specific target
markets
5. Strengthen hotel green practices to increase green
brand awareness
6. Utilize the CHSE certificate as a promotion of the
hotel's readiness to receive guests
7. Create a 60% discount promo for local and
domestic markets with the green hotel package
8. Create a representative agent in Jakarta to
maximize direct selling to the government market
9. Cooperate with the Ministry of Tourism and
Creative Economy and Ministry of Environment
& Forestry by holding an event about green globe
awareness V. CONCLUSION
This study reflects the first initiative of using the
It should be emphasized that the S-O approaches SWOT analysis in evaluating green hotels in Bali. It
listed above were proposed based on the outcomes (in considers qualitative and quantitative analyses of
2021), and they are temporary solutions. However, green hospitality business practices as well as its
due to the environment (internal and external) being a strengths, opportunities, limitations, and threats to
dynamic factor, changes must be investigated [28], build a viable approach for future development. The
and approaches in varying periods should be accessed current strengths as using various advertising media to
via thorough study relating to changes in the internal conduct regular online advertisements through social
and external environment. media, often give discounts of up to 60% to attract
guests to make reservations, create various product
packages to attract guests. Also, they involve special
government package rates, using various media to
reach guests directly, respond quickly for direct sales,
provide various discounts through direct sales,
publicize green hotel practices, CHSE certificate as a
promotion of hotel readiness to receive guests during a
pandemic. Implementing a green business hotel in Bali
Table 3. SWOT Strategies and to increase its promotion, can be useful during and
after the pandemic. This study findings will assist
legislators and other tourism stakeholders in analyzing
existing challenges and determining the most feasible
and timely measures for the industry's continuous
development in Bali.

ACKNOWLEDGMENT
The authors are grateful to (1) DRPM Ministry of
Education, Culture, Research, and Technology for
funding this study, (2) Director of Politeknik Negeri
Bali, and (3), Business Management of the hospitality
industry in Bali and respondents that have helped
during data collection.

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