TOUR 710

  Tourism, Hospitality and Events in the Digital Age

Case Study (Individual Report

Awekage Meike Siep (19070625

Table of Contents
Tourism, Hospitality and Events in the Digital Age..............................................................................1
Executive summary.........................................................................................................................2
Background......................................................................................................................................3
Analysis of the organisation............................................................................................................4
1. Product...................................................................................................................................5
2. Price.......................................................................................................................................5
3. Place..........................................................................................................................................5
4. promotion.................................................................................................................................5
5. People........................................................................................................................................5
6.Process...........................................................................................................................................6
7. Physical evidence.........................................................................................................................6
VRIO analysis.......................................................................................................................................6
Digital competitive review...............................................................................................................7
Digital SWOT analysis..................................................................................................................10
Review of Social CRM Strategies.................................................................................................11
• Speak............................................................................................................................................11
• Serve.............................................................................................................................................11
• Sizzle.............................................................................................................................................11
Social Media Response Protocol...................................................................................................12
References......................................................................................................................................12

Executive summary 
Garuda Indonesia is the national airline of Indonesia that was established on 21 December 1949.
Garuda Indonesia is the first Indonesian aircraft to join SkyTeam. Garuda Indonesia operate
internationally and domestically. This product is the best Airline in Indonesia.
Marketing strategies have been designed with focus 7ps each with strategies to either improve or
promote what is already been over by Garuda Indonesia to raise brand awareness and increase Garuda
Indonesia market share oh social media.
To see the weakness and straight of the product Garuda Indonesia use SWOT analysis and VRIO
analysis to see what they can improve in the future and to describe the industry and the industry.
Garuda Indonesia targets mass market aiming at acquiring as many people to use their product of all
ages segmentation is not done in this particular industry because its service offer highly tailored to the
customers.
Garuda Indonesia has two competitors with is Lion Air and Batik air, however Garuda Indonesia has
more followers, following, like and post on their social media page while the other competitors don’t.
that’s the way Garuda Indonesia communicated to the customers around the world to promote their
brand. However, brand is more important for customers.

Background
Garuda Indonesia is the national airline of Indonesia that was established on 21 December 1949.
Garuda Indonesia is the first Indonesian aircraft to join SkyTeam. The airline offers both domestic
and international flights for around 60 global destinations, currently Garuda Indonesia operates 82
aircraft for 33 domestic routes throughout Indonesia and eight international flight routes in Asia,
Australia, and Europe. The company strives to provide the best service while highlighting the
country’s hospitality and diverse culture. This follows the vision of the company. In 2020, the
company was recognised by multiple international awards such as the 5-Star On-Time Performance
Rating. Furthermore, the company has been maintaining their award as the best airline in the country
since 2021. Also the company has received IATA Operational Safety Audit (IOSA) certification, this
proves that the airline has complied with international standards in the field of safety and security. To
improve services, Garuda Indonesia has launched a new service called Garuda Indonesia experience.
Garuda Indonesia is based in Jakarta. Currently, Garuda Indonesia has three hubs in Indonesia. The
first is the business hub at Soekarno Hatta airport in Jakarta. The second is the hub in the tourism area,
which is at the Ngurah Rai Airport, Denpasar, Bali. To increase the frequency of flights to the eastern
part of Indonesia, Garuda Indonesia also has a hub at Sultan Hasanuddin Airport, Makassar. The
company targets the high end of the market through the operation of 142 fleets operated by Garuda
Indonesia and 68 fleets that are operated by Citylink targeting the Low-cost market. It is Garuda
Indonesia’s mission to strengthen their revenue growth while focusing on a high standard of safety
and service that is delivered by passionate employees professionally. Health and safety of both
customers and employees have always been the priority of the company, especially during Covid-19
pandemic, as it is evident in how they implement various health protocols including in-flight physical
distancing.

Analysis of the organisation

A service business is an intangible business, which can meet the needs and desires of customers.
Garuda Indonesia is one of the airline service businesses. The main business component of the airline
business is aviation. The company has aircraft to provide transportation services. In the service
business, there are seven components of the marketing mix. According to Kotler & Armstrong (2000)
marketing mix is a marketing strategy that is carried out in an integrated manner. The strategy is used
by implementing the strategy elements that exist in the marketing mix itself.
The seven marketing mixes are:
1. Product
Products can be in the form of anything, both physical and digital in the form of applications and parts
thereof. Products, including services, are produced for use by customers to meet their needs and
provide their satisfaction. The digital product that Garuda Indonesia provides is a variety of in-flight
entertainment options such as presenting selected movies and TV programs with various categories,
you can enjoy a variety of entertainment options Audio and Video on Demand with a touch screen
LCD TV, music albums with various genres, also play a variety of interactive and entertaining games.
Garuda Indonesia also provides in-flight internet available for all passengers and free for first-class
passengers and Garuda Indonesia provides online food orders before departure so you can enjoy the
food onboard.
 2. Price
The price component is an element of the marketing mix that generates revenue for the company,
while the other three, such as product, distribution channels and promotions, are the cause of cost
generation. In Garuda Indonesia flight services, it provides online prices such as discounted prices by
following certain moments, getting several attractive promotions and massive discounts.

3. Place 
Place is a marketing channel for any activities or efforts undertaken by a company to make its
products or services easily obtainable or available in the hands of consumers and customers wherever
they are. Garuda Indonesia conducts offline and online marketing, such as ordering or booking the
tickets through the call centre, online ordering facilities (Website and SMS), and through social media
websites.
4. promotion
The promotion referred to in this marketing mix is an effort of persuasion (induction or
encouragement) to invite consumers and prospective consumers to buy (or use) products or services
produced by a company. Garuda Indonesia carries out online promotions through advertising through
various media channels such as Website, Facebook, Instagram and Twitter and Television.
5. People
People are factors that play an important role in making progress or even decline of a company.
Garuda Indonesia always motivates its employees because employee motivation can make a big
difference in customer satisfaction. The ideal Garuda Indonesia employee is an employee who can
communicate well with customers on social media, is always updated with social media and is an
employee who is patient in dealing with difficult customers.
6.Process 
Process is an organizational system that is not visible but supports the service business. Things that
are classified as processes in the Garuda Indonesia flight service business include: the check-in and
boarding process, which is easy to do online, the ticket purchase process can be directly entered into
the Garuda Indonesia website.

7.Physical evidence
Service quality can be demonstrated through physical evidence and presentation. Physical evidence in
this business is the number of travel agents who make it easy for customers who may not use social
media.

VRIO analysis
(presented in chart with written explanation, *completed in Tutorial workshop)
Pake chart and write a brief summary of the findings

VRIO
Attribute V R I O

Wi-Fi Internet Access No No No

Great Airport Location No No No

Sustainable aviation group No No

 Customers Experience No
-High level of customer satisfaction

Customers Experience No

Strong Global Presence- strong brand portfolio

Human Resource Management

Strong brand name

Strong Relationship with alliance partners across key International and

domestic markets. 

Highly skilled workforce through successful training and learning

programmes
-Yellow colour for Competencies

VRIO Model

Is Is it Is it difficult Is the organisation What is the result?

Valuable? Rare? to imitate? organised around?

NO COMPETITIVE
DISADVANTAGE

YES NO COMPETITIVE
EQUALITY/PARITY

YES YES NO TEMPORARY

COMPETITIVE
ADVANTAGE

YES YES YES NO UNUSED COMPETITIVE

ADVANTAGE

YES YES YES YES LONG-TERM

COMPETITIVE
ADVANTAGE

The findings from VRIO are that Garuda Indonesia is indeed the best aircraft in Indonesia and there
are only two competitors, namely lion air and batik air, so this makes Garuda Indonesia always in the
top position, but there are several things that are NO signs that competitors can make or imitate also
with versions they are better, so Garuda Indonesia must really focus on their business. And the sign of
YES is true that Garuda Indonesia deserves it because the brand is a trusted product, indeed before
that Garuda had no competitors because it was a national aircraft so many customers liked it. For the
next ten years, Garuda Indonesia will remain in first place in Indonesia without competition.
Digital competitive review
Garuda Indonesia's main competitors are Lion Air and Batik Air.
Lion Air Group oversees several airlines, namely, Lion Air, Wings Air, Batik Air, Lion Bizjet,
Malindo Air based in Malaysia, and Thai Lion Air based in Thailand. Batik Air is part of the Lion Air
group, but with the presence of Batik Air in the Lion Air group, the competition in the aviation
business is getting tougher.
Batik Air serves flights to various cities in Indonesia and internationally.
Batik Air has 276k followers and 1,139 posts on Instagram. Have 56,465 followers on Facebook and
53,393 people who like their page on Facebook. and
Lion Air has 285K followers and 476 posts on Instagram. Lion Air has 70,587 people who like their
page and 76,979 who follow their page.

                          Online competitors for Garuda Indonesia

Lion Air
Number of follower on
Facebook
1%12% Number of Like on Facebook
Number of post on Instagram
11%
How many social media plat -
form they have

76%

Source: Lion Air Group official Instagram and Facebook account. (accessed on August, 12,2021,
1:42).
 Batik Air
Number of followers on Instagram
3; 0% 5%4%
56.468; Number of followers on Facebook
53.391;
Number of like on Facebook
Number of posts on Instagram
How many social media platforms
they have?

1139; 91%

Source: Batik Air official Instagram and Facebook account. (Accessed on August, 12,2021, 1:42)

Online competitors Lion Air Batik Air Garuda Indonesia

Number of followers on Instagram 285K 276K 1.1m

Number of followers on Facebook 76.979 56.468  2.098.241

Number of like on Facebook 70.587 53.391 2.092.847 

Number of posts on Instagram 476 1,139 2,071

How many social media platforms they -Instagram - -Instagram

have? - Instagram -Facebook
Facebook -Facebook - YouTube
-Twitter  -Twitter -Twitter
-LinkedIn -LinkedIn
-website
Batik Air and Lion don't post on Facebook and Instagram every day. However, the content they post
almost half this year is about the requirements for departure with their planes in this Covid pandemic
situation due to the current situation Indonesia is on lockdown. In addition, they post a lot of
congratulatory messages or commemorate Indonesia's national day. In my opinion, content like that is
unimportant, it will not make customers interested in visiting their social media accounts. I've
researched many times even so I can't see any data that provides how long customers have spent their
time on their social media. The three types of standards that I must apply in my company are the first
to keep posting lots of giveaways and discounts on their social media platforms because that's a way
to get customers to be attracted to us, the second is to put information about how long customers
usually spend in Their social media on their website is also for the standards that my competitors must
make.

Source: Garuda Indonesia official Instagram and Facebook account. (Accessed on August 12,2021,
1:42).

Digital SWOT analysis

A SWOT analysis stands for Strengths, Weaknesses, Opportunities and Threats. According to
Business News Daily (2021), it helps businesses develop further awareness of many factors involved
in decision making in the company to explore new opportunities, develop business overcoming
challenges. Digital SWOT analyses it is a useful tool in terms of favourable or unfavourable factors to
derive including internal and external factors playing a part in the Garuda Indonesia company in
social media.

                    Digital SWOT Analysis

STRENGTHS WEAKNESSES
  Strong variety of value- adding  Taking forever to get back to the customers'
Instagram and Facebook posts. comments on their social media platform.
  Always Update on social media.
 Strong brand.

OPPORTUNITIES THREATS
 No competitors on Facebook   Low prices tickets due to many giveaways
and Instagram and discounts from other industries on social
  media.

Review of Social CRM Strategies

In this era of globalisation communication technology impact various aspects of human life: the way
they work, build relationships, and meet their needs. According to Beniger in Grant: " the purpose of
Communication technology was as a mechanism of control that played an important role in human
life and almost every area of the production and distribution of manufactured goods" (Grant &
Meadow, 2008). The development of communication technology brings people to a new media era,
one of which is social media. New media describe all forms of digital technology such as computers,
or information and communication technology networks site.
The essence of social media is sharing and participating. Stowe according to Boyd social media has a
big impact on humans: changing the way they find, read, and share news, information, and content
(Boyd, 2012). people become an addiction to social media, they use social media to express
themselves to the world and how they communicate with each other (Ather et al. 2019). Social media
that are currently widely used are Twitter, Instagram, YouTube, and Facebook. Social media
applications are made possible by the development of Internet-based online technology, but the
technology itself is not the reason behind the popularity of applications such as Facebook or Twitter.
In contrast, social media are popular because individuals want to be social and share their experiences
with others (Chaffey et al., 2009).
Effectiveness of current social CRM strategies that are in place are Speak, Serve and Sizzle.
• Speak 
Speak (get closer to customers) this creating a two-way dialogue through web and emails form and
polls. Garuda Indonesia always encourage their customers through their social media like they post a
giveaway on their Instagram and to get the giveaway the customers must like their post, tag a friend
on that post, and share it on their story. This is the way they are communicating their brand with key
massage that if you tag more friends on our giveaway post you will win this.
• Serve 
Serve (add value) achieved through giving customers extra benefits online. Garuda Indonesia provide
information to resolve customers services issue through their website there is a phone number to call
to resolve customers problem, also like in Instagram they put all the link on their bio that you can
access, or they sometimes put a question box on their story. However, Garuda Indonesia don’t have
chat box to answer customers question in a second, this one they need to improve.
• Sizzle
Sizzle) Extend the brand online) achieved through providing a new proposition and new experience
online while at the same time appearing familiar. Garuda Indonesia good at extend their brand online.
The experience at Garuda Indonesia and Lion Air is the same and Garuda is more expensive than lion
air. however, the brand of Garuda Indonesia brand is famous in Indonesia and internationally, so
many people considered flight with Garuda Indonesia.
Social Media Response Protocol

Positive Neutral Negative Urgent

start from satisfied neither praise nor insult Dissatisfaction with Offensive
customers to loyal is rather accurate. can brands product or service. comments or
brand aficionado. also be basic or Always acknowledge serious user
Acknowledge user's complex questions negative post, never aggression should
comment and acknowledging all ignore it, or delete it. be step up brand
acknowledge customers questions. Must act as Respond promptly and management for
by their name. Replay soon as possible on the keep responses simple and immediate
with thank or additional customer's question and short however don’t response.
information to continue resolve it as much as promise something that however, should
dialogue, the example possible and show them your brand can not be response
like asking the that you are serious in deliver. Inappropriate post offline direct to
customers to check out responding to the takes the post down from the user.
another service or question the wall, send direct
visiting your social message and addressing
media website and tag their question within
their friends. private conversations
The reason this flowchart is important is the way we communicate via social media to our
customers, so we must make sure our customers are happy with the products we are promoting
because if the way customer service serves their customers is not good then the customers will go to
a better place or look for another brand that is the customer service is good. this is a lot in real life,
the product being promoted is good to be a customer interest but the service to the customer is not
good, so this makes the customer leave. so, I think this flowchart is very good or important for this
company to use it.

References:

ANALISIS SWOT GARUDA INDONESIA

https://www.academia.edu/6781537/ANALISIS_SWOT_GARUDA_INDONESIA
Business News Daily. (2021). SWOT Analysis: What is it and when to use it
         https://www.businessnewsdaily.com/4245-swot-analysis.html

Garuda Indonesia
https://www.garuda-indonesia.com/other-countries/en/index

Grant, August E. dan Jennifer H. Meadows. (2008). Communication Technology Update and
Fundamentals. 11th Edition. USA: Focal Pre.  
https://www.taylorfrancis.com/books/mono/10.4324/9780240824666/communication-
technology-update-fundamentals-august-grant-jennifer-meadows
 Kim, C. (2021). CRM to Social CRM: How can brands engage customers in social media?
[PowerPoint slides]. Blackboard. https://blackboard.aut.ac.nz
Kotler, P., Armstrong, G., Saunders, J., Wong, V., Miquel, S., Bigné, E., & Cámara, D.
(2000). Introducción al marketing. Pearson Prentice Hall.
http://www.tezpuronline.co.in/attendence/classnotes/files/1597735884.pdf

Sigala, M. (2018). Implementing social customer relationship management: A process framework

and implications in tourism and hospitality. International Journal of Contemporary
Hospitality Management, 30(7), 2698-2726. doi: 10.1080/13683500.2012.662215.

Zach DeGregorio (2019). How to do VRIO analysis (video 4 of 8).

https://www.youtube.com/watch?v=H2SyZljQT5s&t=7s