The Role of Service Innovation and Crisis Recovery Strategy in Improving Business Performance of Non-Star Hotels in Jakarta

This study examines the effects of service innovation and crisis recovery strategy on business performance in non-star hotels in Jakarta during the post-pandemic recovery period. Non-star hotels continue to face major pressures, such as limited resources, changing guest expectations, and growing market competition. Using a quantitative design, the study involved 150 key decision-makers from non-star hotels in DKI Jakarta, including owners, general managers, and department managers, selected through purposive sampling. Data were gathered through questionnaires and analyzed using PLS-SEM with SmartPLS 3. The results showed that all indicators met the required standards of validity and reliability. Service innovation had a positive and significant effect on business performance, whereas crisis recovery strategy showed an even stronger influence. Together, both variables accounted for 52.2% of the variance in hotel business performance. These findings suggest that service innovation and crisis recovery strategies are positively associated with the business performance of non-star hotels in Jakarta during the post-pandemic recovery period. This study is limited to DKI Jakarta, relies on perception-based responses, and focuses only on three variables. Future studies should broaden the research area, apply longitudinal and mixed-method designs, and include additional influencing variables.