Proposed Business Strategy for Hotel in Airport City (Case Study: Kualanamu International Airport)

Research, Society and Development, v. 9, n.1, e98911671, 2020 (CC BY 4.0) | ISSN 2525-3409 | DOI: http://dx.doi.org/10.33448/rsd-v9i1.1671 2 This final project is made to analyze the current business of PT Angkasa Pura II (Persero), by analyzing the internal and external factors of the Hotel business environment in the Airport City area of Kualanamu International Airport today. Then, it is expected to analyze the Hotel Business Model Strategy that is appropriate for hotel businesses in the Airport City Area of Kualanamu International Airport to be developed and the final step is to analyze the results of the implementation hotel strategies in the Airport City Area of Kualanamu International Airport in the face of competition in the current era of global competition. To achieve the objectives of this study, the proposed business strategy used by the author is SWOT Analysis, then proceed with the decision-making stage. The technique in question is the quantitative Strategy Planning Matrix (QSPM) technique. QSPM analysis tool is an analysis tool used to evaluate alternative strategic choices objectively according to internal and external factors that have been identified previously. Finally, the conclusion is based on the results of the analysis that has been done.


Introduction
Aviation industry has a sizable economic impact on a region or country. The aviation industry is a driving force for the economy because it allows the movement of people and goods in a short time and opens up large numbers of jobs for the community.
Transportation development and regional development have a very close and mutually sustainable relationship. Transportation development must be based on regional development and transportation is the forming force of regional economic growth and development (Adrian & Pradoto, 2017). Airport development as part of the transportation system must be carried out through a broad, comprehensive, coordinated and consistent spectrum (Frans, Sulistio, & Wicaksono, 2014).
PT Angkasa Pura II (PT AP II), a State-Owned Enterprise that conducts airport service activities in Indonesia has responsibility and important role in the management and development of airports to support government programs in order to improve Indonesia's economic growth.
In facing competition in the current era of global competition, every company is expected to have a competitive advantage, from various aspects. Competitive advantage will make the company win the competition. PT Angkasa Pura II (Persero) is expected to continue to grow, as an effort by the company to become a world-class company that is leading and professional (Angkasa Pura II, 2016).
The form of complexity and the different challenges faced by PT AP II in the future are increasingly high partner needs (B to B activities) and consumers (B to C activities) towards the quality of airport services. These services include the Aeronautical, Non-Aeronautical, Property and Cargo sectors.
PT Angkasa Pura II (Persero) has managed 16 airports, one of which is Kualanamu International Airport (Deli Serdang). The airport with 4-star status SKYTRAX which is the second largest airport after the Soekarno-Hatta International Airport (Banten) and has a fairly large land area, so that the potential for further development.

Figure 1. Kualanamu International Airport Location on Map
Source: PT AP II Internal Document (2019) Kualanamu International Airport is located in Deli Serdang Regency, North Sumatra. This airport is located approximately 39 kilometers from Medan. This airport was officially operated on 25 July 2013, and was inaugurated on 27 March 2014, replacing the previous airport, Polonia Medan International Airport. Kualanamu International Airport is developed and operated because Polonia Airport is no longer being able to accommodate the increasing air service needs and capacity; and is located within a high density commercial area in Medan.
At this time, Kualanamu International Airport covers a total area of ± 1,400 Ha, which will be developed in three phases. Currently, the land is on phase 1 development.
The main objective of this research is to identify the Business Strategy Model for Hotel that is suitable for development in Airport City and how the company should deliver the strategy according to its role. In addition, the objectives of study also tried to find out and analyze the internal and external factors of the Hotel in Airport City of Kualanamu International Airport's current business environment; to find out and analyze Business Strategy Model that is suitable for Hotel in Airport City of Kualanamu International Airport to be developed; to find out and analyze the results of the implementation of the business Research, Society and Development, v. 9, n.1, e98911671, 2020(CC BY 4.0) | ISSN 2525-3409 | DOI: http://dx.doi.org/10.33448/rsd-v9i1.1671 5 strategy for Hotel in Airport City of Kualanamu International Airport in facing competition in the current era of global competition.

Methodology
Data used in this study are primary and secondary data. Primary data were obtained through interviews with Senior Leaders below Board of Director who are directly related to the development of the Airport City Area. Interviews were conducted with three respondents who were considered experts and the most appropriate, that are Mr. Gautsil Madani as Senior Vice President of Corporate Strategic Planning (respondent 1), Bravian Bambang Yudhanto as Vice President of Airport Business Strategy (respondent 2), and Dorma Manalu as Executive General Manager of the Commercial Service Division (respondent 3). The percentage obtained from each respondent is for respondent 1 with a percentage of 40%, respondent 2 with a percentage of 35%, and respondent 3 with a percentage of 25%.
Secondary data were obtained from various related institutions, such as PT Angkasa Pura II (Persero) as well as other literature and sources related to the research topic.
After data collection, the next method is data analysis technique. SWOT analysis here is applied as an analysis tool for evaluating strengths and weaknesses as well as opportunities and threats for a company to face business competition with similar competitors. According to Rangkuti (2013) SWOT stands for the internal environment of strengths and weaknesses as well as the external environment of opportunities and threats faced by the business world.
Other than ranking strategies to achieve the prioritized list, there is only one analytical technique in the literature designed to determine the relative attractiveness of feasible alternative actions. This technique is the Quantitative Strategic Planning Matrix (QSPM), which comprises Stage 3 of the strategy-formulation analytical framework. The QSPM is a tool that allows strategists to evaluate alternative strategies objectively, based on previously identified external and internal critical success factors. Like other strategy-formulation analyticral tools, the QSPM requires good intuitive judgment (David, 2011). Research, Society and Development, v. 9, n.1, e98911671, 2020(CC BY 4.0) | ISSN 2525-3409 | DOI: http://dx.doi.org/10.33448/rsd-v9i1.1671 6 The summary step in conducting an internal strategic management audit is to build an Internal Factor Evaluation Matrix (IFE). This strategy formulation tool summarizes and evaluates key strengths and weaknesses in the functional areas of business, and also provides a basis for identifying and evaluating relationships between these fields. Intuitive assessments are needed in developing the IFE Matrix, so the appearance of a scientific approach does not have to be interpreted as a very powerful technique. A thorough understanding of the factors entered is more important than the actual number.

Internal Factor Evaluation (Ife) Matrix
IFE matrix analysis is a presentation of the results of the identification of internal company factors in the form of strengths and weaknesses. The IFE matrix for Kualanamu international airport is shown in Source: Author's Analysis (2019) From the calculation results, the sum of the IFE matrix weighting for the Kualanamu international airport is 3.300. This value illustrates the condition of companies that are classified as being able to utilize strengths, as well as disguising weaknesses properly.
Based on Table 3.1, there are main factors the strength of the company. The strength factor is the location of Property at International Airport of Kualanamu with the airport community as a potential and captive market with a score of 0.472. Kualanamu International Airport has a large total area, making it a potential target market for the development of commercial hotels on the property. Kualanamu International Airport in Deliserdang Regency, North Sumatra, now has a three-star hotel that deserves to be proud of the name Horizon Sky.
The hotel with an investment value of Rp 52 billion is the product of a subsidiary of PT Angkasa Pura II (Persero), namely Angkasa Pura Propertindo (APP) (Leandha, 2018).
Based on the results of the identification of the IFE matrix, the factor which is the weakness of Kualanamu International Airport is the company does not have expertise in the hotel business, other than that the company organization does not support to focus on the business, with a score of 0.452. Experience is the knowledge gained from the last job as well as the work that has been done in the present. With experience often makes someone to see the possibility to modify existing products, improve services and duplicate business concepts in different locations. Experience can be a very valuable thing because with experience one can better understand what is being done (Longenecker & Pratia, 2000).

External Factor Evaluation (EFE) Matrix
Research, Society and Development, v. 9, n.1, e98911671, 2020 (CC BY 4.0) | ISSN 2525-3409 | DOI: http://dx.doi.org/10.33448/rsd-v9i1.1671 8 The EFE matrix is the result of the main factors related to opportunities and threats for Kualanamu international airport. The main factors of opportunity and threat of international airports Kualanamu consists of five factors (five opportunity factors and four threat factors).
The opportunity and threat factor of the EFE matrix can be seen in Table 2.  (2019) Based on the results of the analysis, the total score from the weighted EFE matrix assessment is 2.030. This value illustrates the effectiveness of companies that are able to take Research, Society and Development, v. 9, n.1, e98911671, 2020 (CC BY 4.0) | ISSN 2525-3409 | DOI: http://dx.doi.org/10.33448/rsd-v9i1.1671 9 advantage of opportunities in the business industry and minimize the impact of external threats.

Business Level Strategy
Business strategy is concentrated on increasing the competitive position of a company's products/services. The strategy implemented can help the company facing all competitors for advantage (competitive strategy) and/or working with others to gain an advantage (cooperative strategy).

Competitive Strategy
Competitive strategy is defined as the long term plan of a particular company to gain a competitive advantage over its competitors because hotel business is very competitive industry. Company chooses from among five business-level strategies to establish and defend their desired strategic position against competitors: cost leadership, differentiation, focused cost leadership, focused differentiation, and integrated cost leadership/differentiation (see Figure 3.2). Each business-level strategy helps the firm to establish and exploit a particular competitive advantage within a particular competitive scope. How firms integrate the activities they perform within each different business-level strategy demonstrate show they differ from one another (Hanson, Hitt, Ireland, & Hoskisson, 2017).

 Cost leadership strategy
Integrated set of action taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors;  Differentiation strategy Integrated set of actions taken to produce goods or services that customers perceive as being different in ways that are important to them;

 Focused Cost Leadership Strategy and Focused Differentiation Strategy
Integrated set of actions taken to produce goods or services that serve the needs of a particular competitive segment. Thus, firms use a focus strategy when they utilize their core competencies to serve the needs of a particular industry segment or niche to the exclusion of others; Research, Society and Development, v. 9, n.1, e98911671, 2020 (CC BY 4.0) | ISSN 2525-3409 | DOI: http://dx.doi.org/10.33448/rsd-v9i1.1671

 Integrated Cost Leadership/ Differentiation
Involves engaging in primary and support activities that allow a firm to simultaneously pursue low cost and differentiation.

Figure 1. Business Level Strategy
Source: (Hanson et al., 2017) In accordance with the explanation above from internal and external environment condition, it can be concluded that it is recommended to use strategy differentiation for hotel business in Airport City of Kualanamu International Airport because the hotel business has a unique competitive scope with broad targets and competitive advantage, it is very suitable to use the differentiation strategy.
According to Hanson et al (2017), in the differentiation strategy, the company tries to be unique in its industry by taking into account several dimensions that are generally valued by consumers, in this research PT Angkasa Pura II (Persero) should provide a variety of hotel levels from three-star hotels, four-star hotels, up to five-star hotels in one area at Airport City of Kualanamu International Airport with strategic location which is equipped with complete facilities and competitive prices (Hanson et al., 2017).
Cooperative strategy means corporate have to collaborate with others to achieve a shared objective. Generally, cooperating with others to create value for a customer that it is likely could not create by itself (Hitt, Ireland, & Hoskisson, 2016).
In accordance with the explanation in Chapter II, the hotel business requires a large capital and has a large risk if not managed properly. Other than that, from the external aspect, the competitors already have their markets, while the internal conditions of PT Angkasa Pura II (Persero) do not have expertise and capabilities in the hotel industry both in terms of competence and from the organizational structure.
Therefore, company must carry out business transformation to inorganic businesses through partnership patterns for Hotels in Airport City of Kualanamu International Airport.
Partnership with hoteliers who have global hotel business networks and strong brands so as to increase company revenue and provide the best and classy service to service users. This is in line with the integration strategy described before where the company establishes partnerships with companies that already have greater control with the company's external parties, integrative backward (has suppliers), integrative forward (has channels distribution), and horizontal integrative (have sales branches / channels). This condition is especially faced by companies who want to expand their activities into international or global markets. By doing partnerships the company gets several important benefits, namely access to markets, technology and capital (this is especially if the company partners with partners who have large capital). Partnership directed with global strategic partners who already have a good reputation in the industry. Strategic Partnership with global companies is carried out in the effort of PT AP II to improve the market, as well as strengthen the company's competitive position.
Furthermore, this is also done in the context of implementing strategy to produce competitive rates. Large business networks can reduce costs so that PT Angkasa Pura II (Persero) can compete with competitors who already have a market.
From the EFE Matrix analysis that illustrates opportunities and threats, as well as the IFE Matrix analysis that illustrates the strengths and weaknesses of the company, the researcher conducted an IE Matrix analysis which is a combination of the IFE Matrix and EFE. By using the IE Matrix, management can find out the picture of the company's position.
Therefore, an appropriate strategy for the company's condition can be formulated.
Based on the results of the IFE Matrix analysis on the Kualanamu International Airport business the score obtained was 3.300, meaning that the company has strong strength.
EFE matrix scores are classified as moderate with a value of 2.010. The hotel business at Kualanamu International Airport can take advantage of the opportunities. If the results of the IFE and EFE matrices are combined, then the value lies in the coordinates (3.300 : 2.010). IE Matrix Analysis of Kualanamu International Airport hotel business can be seen in Figure 3.1.

International Airport
Source: Author's Analysis (2019) If presented in the IE Matrix, the company's position is in cell IV with Growth and Build conditions, and building an intensive strategy can be done with market penetration, market development and product development. The integration strategy can be carried out with forward integration, backward integration, and horizontal integration.

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The market penetration strategy has the aim to obtain an increase in market segments for the company's existing products or services through more intensive marketing. This strategy cannot yet be used because airport city proportions (hotels have not yet been developed). The strategy is suitable for use when operational assets have been established and product/service optimization has not been optimally carried out.

Market Development Strategy
Market Development Strategy is the most relevant way to be applied is business diversification through the concept of airport city with the highest priority being hotels areas which are considered the most relevant in optimizing the economic benefits of APII.

Integration Strategy
In addition, the Integration Strategy can also be done, in this case the integration strategy is carried out in the form of a strategic partnership, where the company establishes partnerships with companies that already have greater control with the company's external parties, integrative backward (has suppliers), integrative forward (has channels distribution), and horizontal integrative (have sales branches/channels). Strategic Partnership with global companies is carried out in the effort of PT AP II to improve the market, as well as strengthen the company's competitive position.  (2) The target market for hotels were mainly airline crews, local governmental officers, corporations, and transit visitors from the airport, thus, the development for hotels on property should be varied. While the factors that pose a threat to Airport City of Kualanamu International Airport are (1) As at 2Q 2018, hotel occupancy near the Property is at 50% -70%, with declining trends over the past 3 years, due to the lack of attraction within the area (hotel guests are expected to come only from airport passengers); and (2) There are a number of budget hotels that have operated near the Airport that already have a market.

The Hotel business strategy model that is suitable for Hotel in Airport City of Kualanamu
International Airport to be developed is the differentiation strategy. In accordance with the explanation above from internal and external environment condition, it can be concluded that it is recommended to use strategy differentiation for hotel business in Airport City of Kualanamu International Airport because the hotel business has a unique competitive scope with broad targets and competitive advantage, it is very suitable to use the differentiation strategy. The company tries to be unique in its industry by taking into account several dimensions that are generally valued by consumers, in this research PT Angkasa Pura II (Persero) provides a variety of hotel levels from three-star hotels, four-star hotels, up to five-star hotels in one Airport City Region at Kualanamu International Airport.
3. Based on the results of the IE matrix analysis, the Business Model Strategy Hotel that is suitable for Airport City of Kualanamu International Airport to be developed is in quadrant IV, where these conditions indicate that Airport City of Kualanamu International Airport is in a Growth and Build. The strategies that can be applied by companies are market penetration, market development and product development with the differentiation and cost leadership strategy (Mix Strategy). The results of the implementation of the Hotel Business strategy of Airport City of Kualanamu International Airport in facing competition in the current era of global competition is by conducting company partnerships and obtaining several important benefits, namely access to markets, technology and capital (this is especially if the company partners with partners who have a large capital).

Suggestions
Based on the analysis of internal and external factors, some suggestions that the author can give are: 1. It is recommended to be able to maintain strength by taking advantage of opportunities, to overcome the threats and weaknesses of the Hotel Business at Airport City International Kualanamu International Airport, PT AP II must be able to maintain or even further optimize and increase the strength in order to take advantage of opportunities that exist. In addition, the Hotel business at Airport City of Kualanamu International Airport must also minimize existing weaknesses to avoid threats coming from new competitors. Because the threat will bring a very bad impact on the Hotel business of Airport City of Kualanamu International Airport. With this good and superior strategy, it is expected that the Hotel Business in Airport City of Kualanamu International Airport will be able to compete in the hotel industry and be able to dominate the existing market.
2. Hotel Business in Airport City of Kualanamu International Airport should identify competitors more specifically, in order to determine the strategies that must be determined in competing.
3. It is recommended to increase the number of employees (HR) and establish a management structure in managing and carrying out hotel business activities at the Airport City of Kualanamu International Airport. of consumers where the way to determine the perspective of consumers by using empathy maps.