Selecting the Best Alternatives of Virtual Hotel Operator Using SMART Analysis: A Case of CBS Hotel

This study investigates the strategic decision faced by CBS Hotel in 2024, following the decline in revenue in 2024, despite stable occupancy rates. The decline was not caused by reduced demand, but rather by centralized pricing policies, and internal competition from an increasing number of properties managed by the same Virtual Hotel Operator (VHO). The purpose of the research is to analyze the root causes of the performance decline and evaluate whether the CBS Hotel should renew its partnership with RedDoorz or switch to OYO or Zuzu. The research employs a two-stage methodology, the first stage is a root cause analysis, which is conducted using the Ishikawa Diagram and Porter Five Forces Analysis to explore environmental, operational, and market-based pressures. Second, a structured decision-making framework is applied using Value Focused Thinking (VFT) and SMART (Simple Multi Attributes Rating Technique) method to assess three alternative VHO options. Six criteria are generated, which consist of: pricing autonomy, commission scheme, operational support, average room rate, occupancy, and contract flexibility. Findings indicate that RedDoorz scores highest across the criteria. Making it a more strategically aligned option. However, the study also recommends that CBS Hotel leverage its high-performing status to negotiate better terms, particularly in rate control and area exclusivity. This study demonstrates the value of combining root cause identification with multi-criteria decision-making analysis to guide hotel budget segments or industries to optimize the 3rd party partnership with the VHO business model company in a highly competitive urban market.