INTERNATIONAL JOURNAL OF LAW AND LEGAL ETHICS (IJLLE)
Volume 3 Issue 2 , (October,2022)
ISSN 746-9719 (online)
PARTNERSHIP IN THE HOTEL INDUSTRY WITH VIRTUAL HOTEL
OPERATOR (VHO)
Zeehan Fuad Attamimi1, Ika Ariani Kartini2
Faculty of Law, Universitas Muhammadiyah Purwokerto, Purwokerto1,2
[email protected],
[email protected]
ABSTRACT; The hotel business is experiencing the development of a modern cooperation
system, namely Virtual Hotel Operator (VHO) which is a company that has a system that has
its own application that provides virtual services or remote internet. This study aims to
analyze the partnership business system agreement between the hospitality industry and VHO.
The research method uses a juridical empirical approach, research that will explore data
through field surveys, and uses secondary and primary data sources which are analyzed
through qualitative methods. The results of the study explain that the partnership between the
hospitality industry and VHO uses a standard form of agreement that makes the hotel not
have a bargaining position but VHO is included in a different type of partnership cooperation
with partnerships in other hotel industries. There are several disadvantages and advantages
in this form of cooperation. The conclusion of this research is that VHO does not cooperate
with the franchise concept which is usually done in the hotel industry, namely using and
utilizing the values contained in its Intellectual Property Rights, but by implementing a
profit-sharing cooperation system. Recommendations The Government needs to support the
hotel industry. There is a need for a special law regarding the regulation of cooperation
between the hotel industry and VHO in order to ensure certainty and legal protection in
carrying out such cooperation..
Keywords: : Hotel;Virtual Hotel Operator (VHO); Franchise.
INTRODUCTION
Technological developments are increasingly rapid in today's modern era or what is
commonly referred to as the Industrial Revolution Era 4.0. The Industrial Revolution Era 4.0
was born due to technological developments that continuously occur in various industrial
fields. Technology is the main source of running an industry with the concept of making an
industrial workforce more effective and efficient. In a survey conducted by the World
Economic Forum (Future of Jobs Survey 2018) it is known that there are 4 technologies that
will dominate in 2018-2022, namely: high-speed mobile internet, artificial intelligence, big
data analytics, and cloud technology. It is believed that these four technologies will greatly
affect the company's business development. By 2022, based on the survey, 92% of companies
in Indonesia will adopt the use of big data analytics as one of the main technologies.
Likewise, a fairly large proportion will occur for the use of other technologies in the
Industrial Revolution 4.0 such as the internet of things, machine learning, and cloud
computing.1
Companies in the hospitality industry are experiencing technological developments with
the emergence of Virtual Hotel Operators (VHO). VHO was created to provide innovation to
1
Taufik Hidayat, “Trend Teknologi Revolusi Industri 4.0,” Unida, last
https://www.unida.ac.id/teknologi/artikel/trend-teknologi-revolusi-industri-40.html.
modified
2019,
INTERNATIONAL JOURNAL OF LAW AND LEGAL ETHICS (IJLLE)
Volume 3 Issue 2 , (October,2022)
ISSN 746-9719 (online)
hotel services to provide convenience. VHO was created with online network technology in
the form of a platform. The Virtual Hotel Operator platform is a software medium that is
useful as a container used to run software remotely. Technological developments in the hotel
industry are in line with the growth of tourism in Indonesia. Indonesia, which is known as a
tourism country, has tourist destinations from every region. Based on tourism growth
performance data from the World Trade Tourism Council (WTTC), Indonesia is ranked in the
top nine in the world. VHO was created to provide accommodation for tourists by providing
places at affordable prices by inviting cooperation with hotels or guesthouses in the tourist
area. Tourists can easily order from a distance without having to come in person like the old
system. For hotel or guesthouse owners, it can increase revenue and the number of guests.
The development using a modern cooperation system called Virtual Hotel Operator (VHO)
is a system that has its own application that provides virtual or remote internet services
making it easier for guests to book with several choices of room types, room facilities and
number of guests, cancel, to provide comments or ratings during the experience of staying at
the hotel. VHO provides facilities in the form of a neon box that is placed along with the
name of the hotel in front of the hotel to show that the hotel has a partnership with one of the
VHOs. Virtual Hotel Operators (VHO) in Indonesia are as follows: Airy Rooms, RedDoorz,
OYO Rooms, Nida Rooms, and Zen Rooms.
Virtual Hotel Operator (VHO) is a company that does not have its own hotel building but
can sell various rooms by cooperating with various accommodations. The VHO company
will rebrand several accommodation rooms that are partners and are sold under the VHO
name. Usually the rooms that are sold and rebranded by VHO are rooms that are difficult for
accommodations to sell. VHO generally focuses on providing budget hotels or it can be said
that hotels at affordable prices with adequate standard facilities.2
With the presence of the VHO, guests can easily order with several choices of room types
and room facilities without having to go directly to the hotel, if the guests are suitable, they
can book hotels online with the system provided in the form of their respective platforms
from the VHO. The number of online hotel bookings in Indonesia has increased from year to
year. The number of online hotel bookings in Indonesia in 2017 reached 14.5 million users
with a penetration rate of 5.5%. This number increased in 2018, reaching 15.7 million users
with a penetration rate of 5.9% and 16.9 million users in 2019 with a penetration rate of 6.3%.
This number is projected to increase quite dramatically in 2020, which is 18 million users
with a penetration rate of 6.6%, then 18.9 million users in 2021 with a penetration rate of
6.9%, 19.6 million users in 2022. with a penetration rate of 7.1%, and 20.1 million users in
2023 with a penetration rate of 7.2%.3
Problem
Based on the description of the background above, the problems in this study can be
formulated as follows:
1. What is the Agreement on the Virtual Hotel Operator (VHO) partnership?
2. What are the main characteristics of a Virtual Hotel Operator (VHO) as a hospitality
business partnership that distinguishes it from a franchise partnership business
partnership in general?
2
3
Yofana Virgianne, Ni Made Ariani, and Fanny Maharani Suarka, “Pengaruh E-Service Quality Terhadap
Kepuasan Wisatawan Nusantar (...truncated)
