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This study presents and examines an integrated model that investigates the ability of the hospitality industry leaders in Indonesia to reconfigure resources such as digital market capabilities, digital leadership capabilities, and digital technology capabilities, to conduct sustainable digital transformation to build and improve engaging customer strategy. Research was carried out in Jogyakarta Province using a purposive technique sample of 101 hotel and resort leaders. The analytical method used multiple linear regression using SPSS version 23. The results show that hospitality industry leaders must rethink the dimension of customer experience, internal operation, and new business model. They must have cohesive strategy in integrating digital and physical elements in order to be able to transform their business model and set direction for the entire industry. Hospitality industry leaders must also focus on two complementary activities: sharpening customer value proposition and transforming their operating models using digital technology to interact and collaborate with their customer. From the managerial aspect this study contributes that managers must focus on factors such as digital market capabilities, digital leadership capabilities, and digital technology capabilities that determine the succes of digital transformation in order to build and increase customer engagement. Keywordsmarket, leadership, digital, transformation, customer

Sustainable Digital Transformation in the Hospitality Industry: A Study of the Hotel Industry in Indonesia