Crisis Management Strategy in Bali Hotel Industry during the COVID-19

Abstract

The Corona Virus Disease (COVID-19) pandemic that has occurred has had an impact on life in Bali, which relies on tourism. The crisis cannot be avoided, both economic and psychological, for tourism actors in Bali. Many hotels experience a crisis and then close because they cannot survive during the pandemic. Therefore, this study aims to determine Bali's hotel crisis management strategy during the Covid-19 pandemic. This study uses a qualitative approach. The sample was determined purposively, and data were collected through observation, in-depth interviews, and documentation. The sample of this study were employees of 3-star hotels in Kuta, Bali, with as many as 20 respondents from different hotels. This research was conducted from May 2020-April 2021. Data reduction, data presentation, and conclusion were drawn in qualitative data. The results of this study are that crisis management strategies in Bali are carried out based on the crisis level category of each Hotel. Of the total objects studied, there are three categories of hotel crisis levels, namely healthy-owning companies (20%), struggling-owning companies (45%), and unhealthy- owning companies (30%). A healthy-owning company implements a defensive strategy by focusing on budget efficiency, changes in marketing strategy, and product innovation. While struggling-owning company apply an adaptive strategy and focus on crisis management, including asset and HR management. Then, unhealthy-owning companies apply a dynamic strategy, namely closing operations and laying off employees, to hotels. This study concludes that the crisis management strategy is adjusted to the company's health to find the best and most appropriate solution. The theoretical implication of this research is that the theory of crisis management strategies in the hotel industry is obtained based on crisis-level conditions. Then, the practical implication of this research is that it can be a consideration for hotel entrepreneurs in determining the most appropriate strategy in maintaining their business during the pandemic, especially in Indonesia. Other recommendations can be made in different locations to compare the crisis management strategies and provide more comprehensive input for business actors, destination managers, and the government.