Making 'inn'-roads into Indonesia : Potentials and risks of launching a hotel chain in Indonesia

Résumé du document

Since I first started studying at the university level, I often went abroad to work, perfected language skills, or simply took some time off. It was only last year that I have had the opportunity to carry out an internship. After the Licence year at the University of Evry, France, I worked for Samsung-Thales Co. Ldt., Seoul, South Korea. Even though this was a unique experience, in the sense that I worked for the defence industry (military), I was required to take up analysis, initiatives and putting into practice the knowledge that I gained at school. I started with sending my resume to all the Human Resources Managers of Accor in Asia as I did not have any particular preference towards which country in Asia I was going to go to. The only thing that mattered to me was to work in a French environment, in the hotel industry, in Asia. After two weeks, it seemed that I was the right person at the right place, just about the right time. Mr. Steinmeyer, who has previously worked for 20 years for Accor sent me an email asking me to meet him during his next business trip to Paris.

Extraits

[...] The possibility of expansion need to be regarded after consolidation, since not so many actors play in the general picture. Indonesia remains one of the hot tourist spots with no full exploitation. Most of the surrounding islands in Sulawesi (Celebes) and nearby Bali are not exploited Management Analysis The hierarchy and the management strategy that Tauzia has adopted is quite paternalistic and very much French, as we may read on the following organization chart. Both entities (PT. Tauzia Consulting and PT. Tauzia Management) are using all of the departments in order to achieve the goals. Organization Chart of PT. [...]

[...] Foreign companies only sign management contracts but the ownership of the hotels is controlled by local interests, which often are linked to the financial restructuration of the country after the monetary crisis of 1997/1998. Almost all the major hotel chains are implemented in Indonesia. Accor operates a total of 46 properties, Sheraton 17, Hyatt 10, Shangri-la Hilton and Intercontinental 4. There are also Indonesian hotel chains, almost all of them being independent from any other group. The most famous ones are Aryaduta, Mulia, and Kartika. There is a crucial differentiation among hotel chains. There are the classified and the non-classified ones. [...]

[...] Suruyalaya Anindita International (SAI) The majority of those small competitors manage only one or more property. They also concentrate their efforts on real estates and tourism. This is why they are not real competitors in the sense that they do not tackle the whole property management industry as Tauzia does. Perspectives for the sector The present hotel infrastructure in the 8 main touristy spots of Indonesia is that of a developing nation. Most of the hotels are not affiliated to hotels chains and are not starred. [...]

[...] The main goal was certainly to develop exponentially the Accor's network in Indonesia but more importantly it was to collect fees resulting from those contracts. The exclusivity contract that Tauzia signed with Accor is only valid until 2006, which means that Tauzia has to forecast another strategy, rather middle to long term in order to survive. It also needed to diversify its activities so that it does not get stuck with it former partner, Accor. Why such partnerships? 1st STEP: short-term strategy TO COLLECT FEES 2003 2nd STEP: Long-term strategy RE-INVEST IN HOTEL VENTURES End of the ACCOR Exclusive contract of representation And management (2006) The first step of the whole strategy is the short-term vision. [...]

[...] Obviously, this four-month internship was both a great professional and personal experience all in all. It really was a give-and-take experience. Eventually, I did manage to define a project, analyze the method I would use, see the limits to these projects and conclude on some reliable results. Of the subjects I studied in school, the most useful to me was the English language. It was necessary to conduct any kind of research, understand data and being able to compose the report. [...]