Everybody knows the Aman Jiwo brand in Magelang. In Aman Jiwo, a room can cost you almost 100 million rupiah per night. If we compare the prices of five-star hotels in Magelang and the Yogyakarta area, they are almost 100 times the average price, which is around one million Rupiah, or about 80 US$ per night. If we really think, though, 80 US$ is still expensive by Indonesian standards, that is par for the course for some. Yet, the 100 million rupiah per night for a room is a different kind of game since you can get a sumptuous room for almost one-third of a year. You can also use that amount of money to pay the down payment of a house or an apartment in the suburbs of Jogja with a similar kind of luxury, and it is exclusively for you. Yet, you use the same amount of money to rent a room. It is normal that people would ask, ” How does this number come out? How do we justify the price?
Not the Facilities
Though a room can offer many luxurious amenities, there is no justification for the price. We might have a plush bed, warm water, and a high-definition TV with adjustable AC, but it is still not right to use those amenities as a reason to pay for a room priced almost like a second-hand car. However, people still pay—or at least somebody will pay—.
The main reason for the price is actually the experience is usually directed to the experience reason. A place like Aman Jiwo in Magelang offers you exclusivity that not everyone has. The hotel has the biggest ratio of workers to guests. There are only 30 suites in total, with plenty of staff to help you with almost anything. This is a royal family experience, and there are several people more than willing to pay almost 100 million rupiah to feel like part of it.
Moreover, Aman Jiwo itself offers a staggering view of Borobudur Temple directly from your room. The location is also remote, so nobody can ruin your holiday. This situation is what great celebrities or successful businessmen are looking for. So they might think that 100 million rupiah for a hotel room would not be that bad.
Exclusivities in the 100 million Rupiah for a Room
Still, even after all the facilities, 100 million rupiah for a room is far from our logic, as we have lived on an average income or slightly above it. So, why do people pay the price? The answer is actually is the price itself. Sigmund Freud stated that the deepest layer of the human ego is actualisation, the feeling that they are special—the only one—who is incomparable to others in this world.
The desire to be special is itself a double-edged sword; people then need exclusive access to feel unrivalled by others. By renting a 100-million-rupiah room, people will feel different; they have something unmatched by what others can access.
The people’s deepest desire itself has been used to market lavish brands. The same principle has often been applied to watches, bags, and other items sold at fantastic prices. People might know that production cost is not the pivotal factor in determining the price. Vice versa, what is inside people’s minds, how the thing can bring you a certain feeling, is the reason to justify the fantastic price that might be better for social work, for example.
Fair to say that 100 million rupiah for a room-type business is about selling the feeling of being special. Everybody wants to feel that their life is meaningful and they have a special place in this world. As long as this human desire is still alive in most people, the marvellous type of business would still find its market.
