TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

Bali Room Rates Hit The Skids

Category: Hotels, Posted:23 May 2016 | 21:08 pm

Over the past few days I have been in Bali and despite the sunshine many hoteliers are shedding tears over declining room rates.

Clearly the hardest hit is the bludgeoning budget and economy sector and smaller off-beach boutique properties.

Prior to arrival I scanned a number of popular OTA’s and was amazed at the rate offerings in the trendy Seminyak area at the entry point of the market where rooms in regionally branded offerings were often as low as USD18 and within the USD20-40 a night band, it was indeed a buyers delight.

From a hotel developer standpoint once you take out the OTA commission it’s hard to understand what is left on the table that could even come close to covering operating expenses much less cover bank loans.

Driving around, the signs of stress are evident as properties are re-branding or changing affiliations after shortly lived management agreements. Talking to hotel staff it’s not uncommon to hear of delayed salaries or cost cutting.

There is a defined market shift with China becoming an increasing influence on arrivals and that is worsening the rate drift. Does it sound familiar Phuket?

One of the growing issues in Bali though is the prominence of taxi mafias and it’s not uncommon to see signs in Canggu, Legian and Seminyak that say Uber, GrabTaxi and Go-Jek are not welcome.

Though from a travelers perspective metered taxis are plentiful and the welcome sign of the Bluebird chain is evident most places.

Bali and Phuket remain yin and yang but the quick urbanzing trend is startling, as is the overbuilding of budget, economy and midscale hotels that all appear to be cast in the same nondescript model. Same, same but no different in any significant way.

For now value-seekers in Bali certainly are getting bang for their buck and for hotel owners, the grail is now turning from a fading hope of holding rates to simply stabilizing cash flows.

Oversupply, followed by the changes in geographic sources of business are the real disruptors in 2016.

 

Other News

Read more

It’s A Tuesday, What’s Up in Thailand

Category: Tourism, Posted:03 Aug 2021 | 10:49 am As the Thailand red zone closures mount, and domestic travel remains challenged, we take a few minutes to bring you some of our new feature videos. August looks to be challenging but vaccinations are continuing and there is light at the end of the tunnel, for now to our readers we say – keep the […]
Read more

Why Is The Phuket Sandbox Important?

Category: Tourism, Posted:02 Aug 2021 | 10:27 am As Bangkok grapples with rising numbers of Covid infections, leading tourism voice KP Ho, Executive Chairman of Banyan Tree Group, has told European envoys, airlines, senior officials and business leaders, that for Phuket Sandbox to succeed it is imperative for Phuket to be given “green” destination status. Speaking at the Phuket Sandbox Summit held at […]
Read more

Direct International Flight For Koh Samui Coming

Category: Tourism, Posted:27 Jul 2021 | 11:29 am Koh Samui is set for the resumption of international flights from Singapore on the 1st of August. Under the Samui Plus program and expecting increased demand, Bangkok Airways is taking this first step for the direct overseas service. The initial stage is three flights a week on Monday, Thursday and Sunday. Meanwhile in the Phuket […]