Articles

Selecting the Best Alternatives of Virtual Hotel Operator Using SMART Analysis: A Case of CBS Hotel

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This study investigates the strategic decision faced by CBS Hotel in 2024, following the decline in revenue in 2024, despite stable occupancy rates. The decline was not caused by reduced demand, but rather by centralized pricing policies, and internal competition from an increasing number of properties managed by the same Virtual Hotel Operator (VHO). The purpose of the research is to analyze the root causes of the performance decline and evaluate whether the CBS Hotel should renew its partnership with RedDoorz or switch to OYO or Zuzu. The research employs a two-stage methodology, the first stage is a root cause analysis, which is conducted using the Ishikawa Diagram and Porter Five Forces Analysis to explore environmental, operational, and market-based pressures. Second, a structured decision-making framework is applied using Value Focused Thinking (VFT) and SMART (Simple Multi Attributes Rating Technique) method to assess three alternative VHO options. Six criteria are generated, which consist of: pricing autonomy, commission scheme, operational support, average room rate, occupancy, and contract flexibility. Findings indicate that RedDoorz scores highest across the criteria. Making it a more strategically aligned option. However, the study also recommends that CBS Hotel leverage its high-performing status to negotiate better terms, particularly in rate control and area exclusivity. This study demonstrates the value of combining root cause identification with multi-criteria decision-making analysis to guide hotel budget segments or industries to optimize the 3rd party partnership with the VHO business model company in a highly competitive urban market.

Increasing Company’s Profitability through Achieving Crude Distillation Unit Production Target at PT. XXYZ, Indonesia

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PT XXYZ is an oil and gas industry company that is a downstream company, namely a company that processes crude oil into various products that are ready to be transferred to the market. Oil and gas companies, especially PT XXYZ, are certainly faced with various challenges that need to be faced related to future business continuity, in the form of the challenge of substituting fossil sources with environmentally friendly energy followed by rapid technological developments. PT XXYZ is also faced with the challenge of always being able to respond to changes in demand in the market and able to maximize the production until distributing it to customers. PT XXYZ has a problem in CDU production which is not achieving the monthly production target. The company has loss 103.5 million barrels of products that can be produced which is equal to losing 8 million USD. The production monthly target is determined based on STS documents. Several factors that can affect production are quality of materials, quantity, unplanned shutdown/slowdown, operational limitation, and low intake. Based on the root cause analysis using the Ishikawa Diagram method, it is concluded that the main problem that may be solved by PT XXYZ is related to the supply activities and material readiness. Inventory management at PT XXYZ not implementing a policy to be able to control stock and avoid losses in inventory. PT XXYZ experienced stockout on various materials and the safety stock level tends to be stagnant and all materials have the same safety stock value. By carrying out inventory management using the Q-model, the company has a standard and policy for each crude oil material, so as to reduce the risk of stockout and hopefully will maximize the needs of CDU production. PT XXYZ gains more profits by saving 56.4 million USD in inventory cost and able to achieve the production target with 95% of service level.