The findings matter because the hospitality industry in Indonesia heavily depends on government-related events. When these activities declined due to fiscal policy changes, hotels faced immediate revenue loss and operational challenges. The study offers practical insights into how communication strategies can help businesses survive external crises.
Budget Policy Triggers Industry-Wide Shock
The Indonesian government introduced budget efficiency measures through Presidential Instruction No. 01 of 2025, significantly reducing spending across ministries and regional governments. As a result, official meetings, seminars, and conferences were scaled down or canceled.
For hotels like Solo Paragon, which rely on MICE activities as a primary income source, the impact was severe. Hotel occupancy rates in Surakarta dropped dramatically, with some estimates ranging between 20% and 30% after the policy took effect.
This decline not only reduced room bookings but also affected meeting room rentals, catering services, and the broader hospitality ecosystem, including event organizers and vendors.
Simple Research Approach with Real-World Insights
The study uses a qualitative descriptive approach to capture real experiences from the field. Researchers conducted in-depth interviews with key stakeholders, including the Marketing Communication team of Solo Paragon Hotel and representatives from the Indonesian Hotel and Restaurant Association (PHRI) in Surakarta.
Additional data came from industry reports, occupancy statistics, and the hotel’s digital content, including social media platforms. The analysis followed an interactive process of data collection, reduction, and interpretation to identify patterns in communication strategies.
This approach allowed the researchers to understand not just what strategies were used, but why they were effective.
Key Findings: Flexible and Targeted PR Strategy
The research shows that Solo Paragon Hotel responded quickly by adjusting its communication and market strategy. Instead of relying on a single approach, the hotel implemented a combination of adaptive PR tactics:
1. Market repositioningThe hotel shifted its focus from government clients to private corporations, social events, and individual travelers.
2. Digital-first campaigns
PR teams intensified promotion through Instagram and TikTok, using influencers to increase visibility and engagement.
3. Partnership expansion
Collaboration with Online Travel Agents such as Traveloka and Agoda helped reach broader audiences.
4. Value-based offerings
The hotel introduced competitive pricing and promotional packages without compromising service quality.
5. Integrated communication channels
Digital media were combined with traditional platforms like television and newspapers to maintain credibility across different audience segments.
These strategies demonstrate how communication can serve as a survival tool, not just a promotional function.
Crisis Framed as External, Not Internal
The study applies the Situational Crisis Communication Theory (SCCT) developed by W. Timothy Coombs. Under this framework, the crisis faced by Solo Paragon Hotel is classified as a “victim crisis”, meaning it was caused by external factors beyond the organization’s control.
This classification is important because it influences public perception. Customers and stakeholders tend to assign low responsibility to the hotel, recognizing that the problem stems from government policy rather than poor service.
As a result, the hotel’s communication strategy focused less on apology and more on adaptation, reassurance, and value creation.
Three Core PR Response Strategies
The study identifies three main crisis communication strategies used by Solo Paragon Hotel:
1. Clarification (Deny Strategy)The hotel emphasized that the decline in MICE activities was not due to service quality or management issues.
2. Contextualization (Diminish Strategy)
PR messaging framed the crisis as an industry-wide challenge caused by macroeconomic policy.
3. Image Reinforcement (Bolstering Strategy)
The hotel promoted new packages, highlighted upgraded facilities, and strengthened relationships with loyal customers.
This combination allowed the hotel to maintain trust while repositioning itself in a changing market.
Local Culture Strengthens Communication
One of the study’s most distinctive findings is the integration of Javanese cultural values into PR practices. Solo Paragon Hotel adopted principles such as “tepa selira” (empathy) and “andhap asor” (humility) in its communication approach.
Instead of enforcing strict penalties when government clients canceled events, the hotel prioritized dialogue and understanding. This human-centered approach helped preserve long-term relationships and build customer loyalty.
Romantias and Rizqi from Slamet Riyadi University emphasize that combining modern communication theory with local cultural wisdom creates a more effective and sustainable strategy. This approach positions PR not just as a technical function, but as a relationship-building tool rooted in social values.
Real-World Impact and Industry Lessons
The study provides several practical insights for stakeholders:
- Hotels and tourism businesses should diversify revenue sources and reduce dependence on government events.
- Public Relations professionals need to design flexible, data-driven strategies that adapt to external shocks.
- Policymakers should consider the broader economic impact of fiscal policies on industries like hospitality.
- Researchers can expand this work using quantitative methods to measure the direct impact of PR strategies on performance indicators such as occupancy rates.
Overall, the findings highlight that communication strategy can determine whether a business survives or struggles during a crisis.
Author Profile
- Tri Ulan Romantias – Researcher in Public Relations and crisis communication at Slamet Riyadi University, Indonesia.
- Fikriana Mahar Rizqi – Academic specializing in strategic communication and hospitality industry studies at Slamet Riyadi University, Indonesia.
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