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Digital Advertising and Customer Purchase Decisions in the Hospitality Industry: Evidence from Hyatt Hotels in Indonesia

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Digital advertising has become a critical strategic tool for hospitality firms seeking to influence customer behavior and enhance competitiveness in increasingly digitalized markets. This study aims to examine the effects of multiple digital advertising channels—namely e-mail marketing, mobile marketing, social media marketing, search engine marketing, affiliate marketing, and website marketing—on customer purchase decisions at different stages of the decision-making process in the hospitality industry. A quantitative research design was employed using a survey method, with 170 customers who had stayed at Hyatt Hotels in Indonesia within the past 6–12 months selected through purposive sampling. Data were collected using structured questionnaires and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results of the measurement model assessment confirm that all constructs demonstrate satisfactory validity and reliability. The findings indicate that digital advertising channels exert differentiated effects across the customer decision journey. E-mail marketing, social media marketing, and search engine marketing significantly influence the information search stage, while mobile marketing and search engine marketing affect the evaluation of alternatives. Notably, affiliate marketing exhibits a significant positive effect across all stages, including the final purchase decision, highlighting its critical role in driving conversion. Conversely, website marketing does not show a significant impact at any stage of the purchase decision process. These findings underscore the importance of aligning digital advertising strategies with specific stages of customer decision-making. The study provides managerial implications for hospitality firms to adopt an integrated, channel-specific digital advertising strategy to enhance customer engagement and improve purchase conversion in competitive hospitality markets.

Business Strategy for Atlantic City Hotel Facing Covid-19 Pandemic

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As the supporting industry of the economic sector, the tourism industry has been impacted deeply by the Covid-19 pandemic. The social activities restrictions in the early pandemic, from March to June 2020, became the biggest disaster for the tourism industry, especially the hospitality industry. Atlantic City Hotel is one of the hotels that survived this pandemic even though some financial restrictions have done caused by the decreasing income impact of the low occupancy rate. In this research, two kinds of data are used to obtain the information: primary and secondary data, then analysed using the PESTEL framework, Porter’s Five Forces framework, and Perceptual Mapping framework to understand the external condition.

On the other hand, the Resources-based view framework, Value Chain Analysis, and reviewing existing business model canvas are used for internal conditions. Using some methods such as SWOT analysis, TOWS matrix, Porter’s Generic Strategy, Diamond Strategy, and adjusted Business Model Canvas will consequence business solution for Atlantic City Hotel facing the Covid-19 pandemic such as Hotels can pursue differentiating and cost leadership strategies at the same time. In addition, hotels can also make improvements in technology and its use for innovation activities. Technology is also used as a marketing tool, covering the lack of hotel facilities, and preventing the spread of the COVID-19 virus.