Hotel Performance in the Digital Era: Roles of Digital Marketing, Perceived Quality and Trust

Technology advancements in this digital age drive customers to use it to meet daily necessities. This is evident from how many customers use information technology resources to satisfy their information needs, one of which includes using the internet [1].

Tourists consider the COVID-19 epidemic in terms of costs, energy use, and safety as it now wreaks havoc on the planet. It is projected that leisure travel will continue to be the main strategy for fostering family harmony and economic recovery [2], [3].

Indonesians are increasingly interested in traveling, and the nation's tourist industry is growing swiftly. Several tourism-related businesses, such as websites and social media channels that discuss travel experiences and tourist destinations, have also undergone changes [1]. Nearly everyone needs tourism as a commodity in the age of the fourth industrial revolution and globalization. By participating in tourism-related activities, one can increase creativity, alleviate workplace monotony, acquire insight into a place's culture, unwind, learn about a country's relevant heritage, and do business [4].

Consumer lifestyles change as the Internet becomes an easily accessible source of information [5]. People's shopping habits have shifted from traditional to online transactions, as a result of the flow of changing times and their changing lifestyles. Many online sales sites have made it simpler for consumers to access information and transaction without going to a place to sell products or services, owing to the changes in people's purchasing habits [6]. The benefits of online purchasing, which save time, effort, and money [7], are to blame for this shift in customer behavior.

Companies must empower their resources effectively and efficiently in order to have a competitive advantage, given the present business changes, difficulties, and fiercer competition for market share. According to the results of Alamsyah et al. [5], Assaker et al. [6], and Alves et al. [7], in order to thrive in the face of competition, any company must be able to create marketing strategies. One such strategy is to have a marketing strategy in the form of a marketing mix with digital marketing. The company's business plan should have an impact on both financial and non-financial profits, help it stay competitive, and enable it to meet its long-term objectives.

Marketing is now a key career in some contexts. Since the advent of the Internet, digital marketing technology becomes more sophisticated and competitive. It has grown into a focal point of meaningful learning in the marketing context [8]. For hotel marketers and certain business operators, it is crucial to realize promotion and marketing responsibilities. Compared to traditional promotion strategies, the situation that many hotel and tourism businesses receive the majority of potential clients will not change. In these days, digital marketers start to promote their items online [9]. Similar to how search engines, social media marketing, and videos broadcasted through certain channels have grown increasingly important in application-based digital marketing in lodging and hospitality. An emerging trend in finding and making reservations online is computerization, which expands the possibilities for finding out what customers want. Marketing and advertising managers need to employ and combine digital advertising heavily while marketing an inn [10].

Tourism is a source of foreign exchange for the nation outside the oil and gas business. This industry has great potential and influences economic growth even if it is still in the early stages of development [11]. Indonesia has a lot of stunning and distinctive tourism spots. Each region has an own culture that typifies the region's qualities. The diversity of Indonesia's culture and tourism is admired by many travelers, both domestic and foreign. Hence, hotel rivalry is fierce in many locations. Even hotel management fight to offer their room units at the lowest feasible price. If not, they will not get any visitors. Competition exists not just between hotels of the same class but also between hotels of different classes [12]. The competition gets even worse, due to the tightening market conditions. Everyone, both domestic and foreign, may learn about the possibilities for regional tourism thanks to the Internet. Alamsyah et al. [5] and Assaker et al. [6], who studied digital marketing has a positive and significant effect on hotel and other organizational performances. Thus, digital marketing has a positive and significant effect on organizational performance [11], [12], [13], [14], [15], [16].

Closely associated persons, such as local governments, travel associations, hoteliers, restaurant entrepreneurs, and others, can provide a website that anybody can access regarding the possibilities of the local travel industry [13], [17]. Advanced promotion has a significant impact. This is related to the work of the sales and marketing department, which is responsible for presenting and promoting hotels and their offerings online through the use of transient media. The review conducted by Chi et al. [14], Dastane and De [15], Pelsmacker et al. [16] found that consumers' purchasing decisions are heavily influenced by the Internet. A huge opportunity for finance managers to market their products is the growing audience for online and virtual entertainment. De Pelsmacker et al. [16] used the term scorching to describe the enormous opportunity for online advertising.

Customers that are satisfied with a product or service will recommend it to others [4], [18]. Computerized marketing is a type of advertising that connects with potential customers by promoting or marketing a product or service through modern media [18], [19]. Digital advertising is a type of advertising frequently used to promote goods or services and reach customers through digital platforms. Digital marketing is crucial in the age of globalization, due to its wide scope and user-friendly target market segment, which can be accessed by the entire population. Digital marketing is correlated with organizational performance, references [19], [20] which is the ability to carry out the tasks assigned to the organization and achieve agreed targets. Digital marketing brings many benefits to the company. One of these benefits is the increase in sales through digital marketing. This research explores the effect of digital marketing on hotel performance, perceived quality to hotel performance, the effect of trust on hotel performance, the effect of digital marketing on perceived quality, and the effect of digital marketing on trust.

Technologies that provide feedback, ratings, and suggestions have become one of the most well-liked social shopping channels, owing to how simple they are to use and how easily users can share their entire buying and evaluation experiences. Social trading, which enables customers to digitalize their purchasing decisions through two-stop communication and strong relationships with other customers, has replaced traditional e-commerce business models that focused on one-stop shopping and browsing, as the use of social media rises. The potential impact of other people's opinions has considerably increased with the expansion of the Internet [21].

In a time of intense competition, hotel managers unquestionably have a duty to boost hotel performance [22]. For customers to find the hotel more easily, managers must understand the importance of marketing and tactics like digital marketing that enable hotels to operate better. In addition, customers will regard the hotel as a reputable establishment that they can depend on if they need a place to stay [16]. Like hotel managers, having the proper knowledge and plan for running a hotel, and with a tried-and-true plan, the hotel can easily provide the necessary service to entice guests to stay. Of course, any induction has its challenges because the competition is so fierce. The use of websites is undoubtedly a strategy for marketing so that hotels can compete healthily among a large number of hotel growth, and challenges can be overcome by developing hotel marketing strategies [7].  

The hierarchical execution is affected by perceived quality [23], [24], [25], [26], [27], [28], [29], [30]. The growth of the perceived quality variable would clearly and significantly affect the execution of authoritative decisions. Thus, the following hypothesis can be put forth: The impact of perceived quality on hotel performance is positive and significant. Digital marketing has a significantly positive impact on the operations of hotels and other organizations [5], [6]. Digital marketing positively and significantly affects organizational performance [11], [12], [13], [14], [15], [16]. Hence, it is assumed that: The impact of digital marketing on hotel performance is positive and significant [15], [16], [17]. Trust in digital marketing exerts a major effect on hotel guests' trust. To coordinate customer interest in purchasing, buyer trust in a product is essential. As a result, the following hypothesis can be made: Digital marketing has a large positive impact on trust. Trust influences the effectiveness of authoritative execution or hotel performance [11], [12], [14], [31], [32], [33], [34], [35], [36], [37], [38], [39], [40], [41]. Then, the following hypothesis can be put forward: Trust has a considerable positive impact on hotel performance. Digital marketing has a significant impact on an organization's ability to enhance customers' perceptions of value [9]. In a similar industry, notably in the hotel business of Tangerang, advanced marketing as a respectable unique method and expertise would pose a serious risk. Thus, the following hypothesis can be put forth: Digital marketing has a positive and strong effect on perceived quality.

In contrast to traditional approaches, hotels in modern information technology-driven era clearly have tasks and ways to address marketing issues, so as to benefit hotels. Making it simple for guests to locate their hotel will help them develop into loyal guests, who will no longer be hesitant to visit as regular clients [23]. To empower existing resources and make the hotel easier to find online, digital promotional applications are the best option. In-depth studies are needed to attract visitors via online marketing.

To assure the functioning of their hotels in the digital era, hotel managers must undertake more research. In the global era, tourists are accustomed to fast Internet access. Gomezelj et al. [24] pointed out that the tourists rely on electronic devices to search for hotels. Hotel managers must attach great importance to marketing, especially digital marketing to win the trust of tourists [24]. Therefore, hotel managers should clearly understand the role of marketing strategies. Through digital marketing, it is important to make consumers perceive the hotel as having quality and can be trusted as a place to stay [16].

Hotel managers and other interested parties need to comprehend the relationship between hotel performance variables in the digital era and the role provided by digital system marketing as well as perceived trust and quality by potential guests. For this purpose, a hotel marketing study was conducted based on the direct survey data in the field. By analyzing the survey data, analysts could derive how the use of digital marketing improves appearance, including perceptions of quality and terraces of hotels in the eyes of consumers [25]. It is critical to improve hotel in an era that is full of competition [22].

This study carries out a field survey by distributing questionnaires to hotel visitors in Tangerang [26], [27]. The goal is to clarify the role of digital marketing in perceived quality and consumer confidence, two metrics of hotel performance in the era of digital technology.

This study aims to prove the promoting role of digital marketing in the performance, perceived quality, and trust of hotels in Tangerang. For this reason, a series of data were collected by distributing questionnaires to 145 respondents hotel visitors in Tangerang between 2020 and 2021 [31]. The collected data were processed and analyzed through statistical tests, using the partial least squares (PLS) model. The PLS, a part of structural equation modeling (SEM), is a convenient way of sampling. Here, the collected data are analyzed on SmartPLS 3.0, with the aid of PLS-SEM. The specific scheme is described below [32].

The quantitative data analysis adopts a Likert 5-point scale: strongly disagree = 1, disagree = 2, neutral = 3, agree = 4, and strongly agree = 5. The measuring errors were corrected on SEMPLS, taking account of the interaction effect in the model [33]. The software examines the resampling results by bootstrapping. The PLS SEM estimation aims to form the best score component of the endogenous variable, i.e., the travel choice variable. In addition, SEM PLS predicts the relationship between latent variables and external models through an internal model [33].

The SEM is implemented in the following steps [3]: (1) Develop a theory-based model; (2) Build path diagrams for causal relationships; (3) Convert path diagrams into structural models and measurement models; (4) Select the input matrix and conduct model estimation; (5) Assess the selected structural model, (6) Evaluate the suitability of the model based on fitness; (7) Interpret and modify the model (Figure 1).

Reliability testing aims to determine the size of a test that has consistent and stable results every time. To make sure that each notion of each latent variable is distinct from other latent variables, discriminant validity is used. Based on the cross loading of measurements with variables, the discriminant validity of the measurement model with reflecting indicators is evaluated [4]. Table 1 and Figure 2 demonstrate the respondents' legitimacy and dependability. According to the study's findings, all variable statement items are acceptable because their significant value is less than 0.050. Because the Cronbach alpha result for the reliability test is more than 0.6, each assertion can be considered reliable.

Because of Figure 2, it tends to be seen that the cross-stacking yield shows that there is no low build incentive for the expected development. Each development showed critical outcomes or the most elevated contrasted with different builds. With that, the legitimacy test brought about by this review can be supposed to be substantial. Besides, at the development sanitization stage, build unwavering quality testing was estimated by two standards, in particular composite dependability and Cronbach's alpha [35] The development is solid, assuming that the composite is worth unwavering quality and Cronbach's alpha is above 0.70 [36]. The outcomes for unwavering composite quality at the development filtration stage should be visible in the accompanying table.

After assessing the external estimation model or estimation model, further testing of the underlying model or internal model is done to see the worth of R-Squares on the endogenous (bound) variable. Changes in the R-square worth can make sense of the impact of exogenous factors on whether they make a characteristic difference.

The table shows that the composite constancy esteem got by all develops massive than 0.70. She was observed that each build has high dependability, permitting the examination model to be run at the model assessment stage with the actual example. The stacking factor discoveries of all pointers for each development have satisfied concurrent legitimacy, as shown by the external stacking yield in the table because the stacking factor worth of every marker is more than 0.70. The worth of Cronbach's alpha made by all builds is enormous than 0.70, as found in the table. It is inferred that each build in the assessed model is sufficiently dependable to go on with the following model's execution.

In the wake of assessing the external estimation model or estimation model, further testing of the underlying model or inward model is completed to see the worth of R-Squares on the endogenous (bound) variable. Changes in the R-square worth can make sense of the impact of exogenous factors on whether they make a characteristic difference.

The interpretation of the R-square output results can be explained as follows:

The R-square value (𝑅2) of the Perceived Quality (PQ)construct in this research model was obtained at 0.912. In this case, the Perceived Quality (PQ) construct can only explain the digital marketing construct by 91.2%, and other variables outside the model explain the remaining 8.8%. The R-square value (𝑅2) of the Trust (TR) construct in this research model was obtained at 0.815. In this case, the Trust (TR) construct can only explain the digital marketing construct by 81.5%, and other variables outside the model explain the remaining 8.5%. The R-square value (𝑅2) of the Hotel Performance construct in this research model was obtained at 0.949. In this case, the construct of Hotel Performance (HP) can only explain the digital marketing, Trust, and perceived value construct by 94.9%, and other variables outside the model explain the remaining 5.1% (Table 2).

Hypothesis testing between exogenous and endogenous constructs was carried out using the bootstrapping resampling method. Hypothesis testing is seen from the magnitude of the t-statistical value or p-value. The t-statistic value between the independent variable and the dependent variable in the Path Coefficient table at the SmartPLS output below can be used to assess the predictive model's structural significance in model testing (Table 3, Table 4, Table 5 and Figure 3).

This study indicates that the Digital Marketing variable from the Hospitality Industry positively influences hotel performance with a p-value test of 0.000 < 0.050. This positive impact is in line with [5], [6], who studied digital marketing has a positive and significant effect on hotel and other organizational performances. This result is also supported by Banerjee and Chua, Chakraborty and Biswal, and Becker [11], [12], [13] that digital marketing has a positive and significant effect on organizational performance and is in line with references [14], [15], [16] that digital marketing has a positive and significant effect on organizational performance. An increase in digital marketing variables in the organization will positively and significantly affect improving organizational performance. In the face of current competition and a slowing economic situation that results in decreased growth of the hotel industry, the ability of hotels to implement marketing strategies is essential to note. Digital Marketing owned by hotels must continue to be considered and developed following existing developments. This is expected to be able to make the hotel survive from economic fluctuations for the sake of the company's sustainability in the future. However, in maintaining the hotel to continue to grow, it cannot only depend on the Digital Marketing owned by the hotel. To maintain good Digital Marketing, it is necessary to have Intellectual Capital that supports the course of marketing itself.

The effects of this review should be visible that Digital Marketing impacts Intellectual Capital yet also influences the Perceived Quality of the 4-star lodging industry to test T-measurements values> 1.96, i.e., 15.531. These outcomes demonstrate that Digital Marketing fundamentally affects the organization's capacity to improve the impression of value according to shoppers [9] Advanced showcasing as a decent particular method and proficiency would be a not kidding danger in the opposition are in a comparable industry, particularly in the inn business in Tangerang [7]. Media can make the insight made to buyers about the nature of an item presented by money managers. One might say that the utilization of Digital Marketing has a positive effect and is related to the insight that is made to purchasers. The utilization of computerized media advertising possibly makes a discernment locally concerning the quality of execution [17].

Discernments like this are an additional worth and not claimed by hoteliers who do not use computerized showcasing. Likewise, this period is overwhelmed by the age that depends on innovation, and like all the high speed and quickness, then, at that point, the formation of the impression of value can be a weapon in conveying esteem not recently claimed. Insights are made for their advanced advertising is turning into a particular benefit in a significant stretch. Doubtlessly, this is a positive worth of the organization even with rivalry. When seen in a way coefficient regard, the relationship of Digital Marketing to Perceived Quality has a Square Value of 0.728, a positive relationship [37]. This infers that the presence of Digital Marketing in the four-star dwelling industry in Tangerang can accept a section in establishing the connection of excellent quality in the public eye.

Advanced Marketing on Organizational and inn Performance on results show that Digital Marketing is authentically not an adequate effect on Organizational Performance. On the assessment results, note the setback of such a significant effect on the delayed consequences of T-test experiences with a value of 0.903. This is supposed to be not adequate for T-experiences are guaranteed under 1.96. These results exhibit that Digital Marketing does not influence Organizational Performance. From the way coefficient, the connection between Digital Marketing on Organizational Performance by 0.095. This figure is significantly more unassuming than the connection between Digital Marketing and Organizational Performance through Intellectual Capital in how much 0.910 (= 0.721 × 0.417) and Perceived Quality 0.255 (= 0.907 × 0.350). Electronic Marketing of the 4-star dwelling industry in Tangerang has not had the choice to chip away at the show of the association's affiliation.

This happens because automatic promotion is astounding yet not followed by the limit of scholarly capital resources as the need might arise to continue to learn and remain informed concerning the times. Without an excellent quality perspective on the public eye, the association cannot construct Organizational Performance. Consequently, the object of this study is the necessary occupation of mediating elements of Intellectual Capital and Perceived Quality to make a good [38].

The worth of Perceived Quality on Organizational Performance in the Three Star Hospitality Industry has worth with a p-esteem test worth of 0.000 < 0.050. This outcome is the following According to references [39], [40], [41]. Perceived quality affects hierarchical execution; this outcome is upheld by research. As indicated by references [17], [18], [19], [20], Perceived Quality affects authoritative execution and is following According to references [28], [29], [30] that Perceived quality affects hierarchical execution. An expansion in the Perceived Quality variable in the association will emphatically and essentially influence authoritative execution. This worth shows that the connection between Perceived Quality and Organizational Performance has critical worth. Along with the development of the times, it will be followed by growing and increasingly complex public perceptions, increasingly severe economic conditions, and increasingly fierce competition that poses a threat to the company. Companies must be able to face these threats and survive and even grow. An excellent public perception of the company is undoubtedly an advantage in itself; this can change the public's mindset in general about the company. Therefore, Perceived Quality creates consumers' perceptions so that the company has a good image. Perceived quality supports hotel performance growth because hotels with high perceptions will undoubtedly continue advancing and developing. Organizational performance is often measured through profitability. In this manner, a decent advertising system should be applied with accessible help. The way coefficient worth of Perceived Quality on Organizational Performance is 0.326. This worth shows a moderately substantial impact of Perceived Quality on Organizational Performance.

The worth of Trust on Hotel Performance in the Three Star Hospitality Industry has a p-worth of 0.000 < 0.50. This outcome is following According to reference [30], Trust significantly affects hierarchical execution; this outcome is upheld by research as per [11], [12], [13] that Trust affects authoritative execution and is following According to references [28], [29] that Trust significantly affects hierarchical execution. This worth shows that the connection between Trust and Hotel Performance has enormous worth [42]. express that Trust can be characterized here as how much customers have mental, full of feeling, and social convictions in electronic merchants because of the utilization of data fraud control systems, so their associations and exchanges in online business are liberated from all take a chance with that might emerge from programmer assaults [43]. Trust alludes to positive convictions about the unwavering quality and steadfastness of an individual or an item. The connection between Trust and buy aim. Tong et al. [44] express that shopper trust in the idea of fair exchange, and item ascribes can impact client purchasing interest. The outcomes are like [42], which expresses that Trust affects shopper purchasing interest in the online business climate.

Advanced Marketing on Trust in the Three Star Hospitality Industry has a p-worth of 0.000 < 0.050. This outcome follows [14], [15], [16] that advanced showcasing affects Trust; this outcome is upheld by research as per [14], [15], [16] that computerized promoting affects Trust following [17], [18], [19], [20] that computerized advertising affects Trust. This worth shows that the connection between Digital Marketing and Trust has a considerable worth that emphatically influences lodging client trust. Buyer trust in an item is indispensable in coordinating client purchasing interest.

The hypothetical ramifications of the aftereffects of this study give proof to the advancement of purchaser conduct science and advertising, particularly in regards to computerized promoting, Trust, saw Quality, and execution. Subsequently, the consequences of this study offer practical help and can be expressed to reinforce the aftereffects of past investigations. Also, the aftereffects of this study can be a reference for different specialists who need to explore computerized advertising, Trust, saw Quality, and lodging execution. Hypothetically, this exploration likewise gives a comprehension of advanced advertising, Trust, saw Quality of lodging execution can further develop in execution by expanding computerized promoting Trust, saw nature of inn execution will increment.

In light of the discoveries of the information examination, it tends to be reasoned that computerized promoting altogether affects lodging execution, saw Quality essentially affects inn execution, Trust fundamentally affects inn execution, advanced showcasing essentially affects apparent Quality, and Trust fundamentally affects inn execution, computerized advertising fundamentally affects apparent Quality, and computerized showcasing altogether affects Trust. Expanding advanced showcasing, saw Quality, and belief factors can all assist with further development in execution. According to the findings of the study, additional elements that can influence buying interest, such as risk perception, electronic word of mouth, perceived value, customer behavior, promotion, location, service quality, product quality, and so on, should be considered future researchers. Moreover, it recommended broadening the scope of research done in the Tangerang area and replicated in other areas. It is hoped that future researchers will not be based on the factors in this research, namely digital marketing and Trust, but can add other factors that might affect hotel performance. Further researchers are expected to add or use other research subjects.