2nd African International Conference on Industrial Engineering and Operations Management

Customer Cluster Model to Determine Business Opportunity by Hierarchycal Method

Eneng Tita Tosida, Cani Nur Rahmawati, Mulyati Mulyati & Abdul Talib Bon
Publisher: IEOM Society International
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Track: Business Management
Abstract

The hotel and resort business is a business that has been very strongly affected by the Covid-19 pandemic. The decline in occupancy rates encourages entrepreneurs to be able to map business opportunities and business strategies that are fast and on target. The main objective of this research is to create a customer cluster model for a hotel and resort in Sukabumi, West Java, Indonesia. The cluster model is used to map business opportunities and determine business strategies. The customer cluster model is carried out using the Hierarchical Clustering method. The attributes involved in this study include program, type of transportation, type of package, nationality, age, customer classification and visit status. The most optimal number of customer clusters is 3 clusters, with a Davies Bouldin Index value of 0.262. Based on the customer cluster model, 3 business opportunities are selected : basic service compliment with dinner or yoga, basic service compliment with hiking to village or crater, and basic service compliment with body treatment. The business strategies that have been mapped are on-line promotion, remarketing, regional marketing, incentives, and customer loyalty programs.

Published in: 2nd African International Conference on Industrial Engineering and Operations Management, Harare, Zimbabwe

Publisher: IEOM Society International
Date of Conference: December 7-10, 2020

ISBN: 978-1-7923-6123-4
ISSN/E-ISSN: 2169-8767