An Innovative Business Strategy Formulation of Loca Indonesia to Promote Integrated Community Based Tourism Using Analytical Hierarchy Process (AHP)

Abstract:

Travel industry is one of the sector that has been affected by the pandemic. Travel industry in the middle of the COVID-19 pandemic has been like facing a hurricane. This condition leads the consumer behaviour shifted , in this case, a traveller who shifting their preferences the way of travelling. Loca Indonesia take apart for the opportunity. In this research, The company want to emphasize the strategy to promote community based tourism architecture firm. Researcher use PESTEL Analysis and Five Porter’s Forces for external analysis. Furthermore, from the internal is VRIO Analysis that has been done before. After the Internal  Analysis has done, researcher conclude that the result of the research is the company need to fix some of the strategy. The applicability of Analytical Hierarchy Process (AHP) is needed to solve the problem. AHP is a multicriteria decision tool to put a prioritization of criteria available that will be shown as a set of weighted criteria. From the interview and the forum group discussion with village operator results, there are 10 criteria of consumer perception in choosing architect: commercial viability, richness of culture, landscape, participation of locals, protection of environmental, government support, political, social, and economic stability, access of information, destination image, pricing strategy. These criteria will be directed into 4 alternatives strategy, which are: marketing strategy, human resource strategy, finance, and products.  Afterwards, the result will be utilized into a new marketing strategy as business solution to make a mobile application as the main strategy to promote the company.

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