Challenging the giants: Factors contributing to local homestay competitiveness in Ubud Bali

Abstract

Tourism development in Ubud raises new paradigm that encourages city hotel and hostel investment in the area. Ubud, which was once secluded for the development of mass accommodation facilities, now has begun building various brands managed by hotel chains that threaten the existence of homestay owned by residents. The dilemma is not only these homestays must survive with market change, but they also must compete with the "giants" like Evitel (Asiawood Hospitality Management) and MaxOne (Milestone Pacific Hotel Group) offering relatively similar price. Looking into this phenomenon, the study conducted a survey to 163 homestays in Ubud to see what this local homestay has to support their existence: competing for the "giants" of the hospitality industry. Results of the survey were then being elaborated through an in-depth interview to selected homestay owners and administrator. Literature studies were also being conducted, ensuring five main factors that contribute to homestay competitiveness in Ubud, namely experience, digitalisation, innovation, market and location.