There are certainly a lot of challenges in a hospitality industry today. One of the biggest is just coping with how quickly business is changing and really how quickly customers’ needs and wants are changing.
But for Co-Founder & CEO Artotel Indonesia Erastus Radjimin, be one step ahead of what the guest is looking for before they are looking for it, will be his biggest consideration.
Art is surely a big factor in Artotel. Almost every month, the hotel always collaborates with local painters, sculptor, designers, or any kind of artists who create a collection of contemporary artworks designed specifically for that particular property.
Like in Bali’s oldest tourist spot, Sanur, Artotel attracts people’s attention through the beautiful eye sculpture created by Bali-based sculptor Pintor Sirait. Located in the main lobby, the artwork steals the thunder and won’t go unnoticed.
It’s one of reason why Artotel can make their guests go back to the hotel and tell their friends about a very different experience they had while staying in its three established hotel.
Saviq Bachdar from Marketeers recently spoke with Erastus Radjimin about hotels’ role as an ‘art atelier for local artist, giving guests a story to tell after their stay, and striking a balance between art, guest experience and also technology. Here are some excerpts.
Why did you choose to open Artotel business? Why art? What distinguishes Artotel from a standard hotel?
We see the opportunity in promoting Indonesian contemporary art with original and fresh approach which from a hotel platform, but with a twist from the usual hotel with art concept. Most existing art hotel in the world is beautiful hotel with lots of art as a decoration, which is where ARTOTEL stands out different, we make the ART itself as the center of the whole experience, not just as a decoration but integrated in every corner of the hotel.
What is your target group? What do your guests expect from Artotel?
Our biggest chuck comes from active working and traveling age around 20-40yrs old but all of them are people who’s young at heart, always looking for something unique and original, and able to relate their own personality or passion with ARTOTEL’s core DNA – what people say these days are the millennials.
We only have 3 properties so far but we are quite blessed to be able to set such a strong brand positioning where our guests already expect to have different experience from the design and aesthetic experience, but with the same level of service excellence as our brand standard promise.
How important is the design of a hotel room in contribution to a guest’s experience?
Very important. You need to live and breathe the brand, which means everything about ARTOTEL needs to be ARTOTEL. From how we design the hotel facade, lobby, lift, public toilet, all the way to the most personal space which is the room and they all have an allignment somehow.
However, a superb design only plays a strong differentiator factor in the market, but guests don’t come back just purely because of a good design, but for a good experience as a whole. Service is very critical to create a sustainable business concept of ARTOTEL, and the data already shows that we have more than 40% of returned customer until today throughout our properties (no, we don’t have any loyalty program yet … but soon).
What are the biggest challenges that you face today in improving the guest experience at the hotel?
Expectations and consistency. Hospitality is people’s business, hence our main asset are our people and human, which sometimes they make mistake from time to time, therefore we thrive on constant training and empowerment to ensure the accurate skill set and the same mindset is being communicated and spread throughout the organization.
Tell me more about your expansion strategy. Where are your key areas and where are you developing?
We always put more pressure on quality than quantity. Most of our effort is spent to expand ARTOTEL in strategic location throughout major cities in Indonesia such as Jakarta, Surabaya, Bandung, Bali, etc. However good locations not only the critical factor, but also the surroundings, infrastructure and access, and owner’s mindset to believe in our brand will able to increase the value of their asset and give good return for their investment.
So far, we have been trusted to operate 3 ARTOTELs (Thamrin – Jakarta, Surabaya, and Sanur – Bali), and we have 3 more openings in 2017 (Yogyakarta in September, Ubud Bali in December, and ARTOTEL Beach Club in December), another 4 in 2018 (Semarang, Bandung, Jakarta in Daan Mogot and Kota Tua), and 2 in 2019 (Lombok and Canggu Bali).
We have several more in the pipeline but it is too early to announce at this point. Furthermore, we have been getting a lot of internationals exposure for potential franchise opportunity in overseas so that will also come to play soon.
How do you view the Chinese market? Do you see increasing interest among Chinese travelers to visit your hotels?
Our guest in our city hotels mostly dominant from domestic travelers up to 60%, and 40% comes from overseas travelers but mostly they are from South East Asia region, Australia, USA, and Europe. With exception for ARTOTEL Sanur – Bali, our market 90% comes from the European market (mostly Netherland, France, and Germany). We have Chinese travelers but not as significant in quantity compare to other nationalities.
The digital era has familiarized people to make hotel bookings digitally. What do you do to maximize a guest who use the technology?
The behavior of modern travelers is quite similar and one common thing they can’t live without is fast paced and stabled internet connection. This is one of the reason of our success and its part of our brand standard throughout all of our properties.
We are working on many new initiatives to improve and ensure a simplicity throughout the guest experience, in which we are rolling out this year and next such as we are going to eliminate check in process for our repeater guests, best online rate guarantee campaign if you book through our website artotelindonesia.com, and many others.
Is travel aggregator bad or good for your business?
Very good. Our approach has always been guest driven and we believe our guest will able to compare and decide on better value for them when they make bookings in ARTOTEL. Whether it’s from our website which has best online rate guarantee, or other online booking sites, we value their trust and loyalty in choosing ARTOTEL and we always try to deliver our best service at the end of the day no matter where they book from.
Southeast Asia is one of the truly rising regions in the global hospitality industry. I want to know the reasons why investors should consider hotel room investment in this region, especially Indonesia?
Indonesia is one of the most uprising economy player in the world where we have several key factors that other countries don’t have: First, big domestic population. Second, biggest active working age throughout our population. Third, big in natural resources which impact on trading activity. Fourth, market openness and receptiveness toward international and local brand. Fifth, stabile politic climate and consistent support from the government.
The hotel market performed relatively throughout 2016, based on the occupancy and room rate indicators. What do you think the real problem is here? Does supply overcome demand now in Indonesia, especially in key areas like Jakarta and Bali?
I believe that our travelers are quite mature and sophisticated when it comes to choosing hotel in different cities and thanks to internet research has never been easier. At the end of the day, if you have a strong product concept with good and consistent excellent customer service, you will be able to become major player in the market.
The demand is growing, the supply adds up, but at the end of the day, can you keep up with the market growth and demands? That’s why in ARTOTEL we have never stop working for the future to keep improving and give better value for our guests.
And finally, what is your vision for the future – both personally and professionally?
It’s my goal to be able represent Indonesian home-grown creative hotel brand to compete in the international world. Hopefully this will able to be realized soon as we are currently discussing with number of partners to make this happen. Personally, my goal is to create a balance between life and work but I can’t tell which one which at the moment as I am having so much fun at both!
Editor: Priyanka Sekhawat