Hotel Market Segmentation Analysis in the New Capital City A Case Study of East Kalimantan

Abstract

The relocation of the Indonesian capital to East Kalimantan has had a significant impact on the hospitality industry in the region. This study analyzes the segmentation of starred hotels in East Kalimantan using the Two-Step Cluster method based on hotel room occupancy survey data in April 2024. The segmentation results reveal three main hotel segments: the 4 and 5-star hotel segment offering luxury and large capacity, the 1 and 2-star hotel segment with affordable prices and good service standards, and the 3-star hotel segment offering a balance between comfort and price. The high occupancy rates in these three segments indicate the growth potential of the hospitality industry in East Kalimantan. The practical implications of this research emphasize the importance for the government, investors, and hotel managers to understand guest needs and preferences and to align hotel development strategies with existing market trends. Thus, the hospitality industry in East Kalimantan is expected to continue growing and positively contribute to the economic and tourism development in the region.