Rates expected to hold

HOTELIERS in Singapore, Malaysia and Indonesia are angling for moderate room rate increases, reflecting current concerns about the economy but also a hint of optimism that occupancies can be maintained.

Despite Singapore hotels enjoying healthy rate hikes over the past few years, The Traveller DMC Singapore executive director Yvonne Low said hotels were asking for five to six per cent hikes in rates. She has resigned herself to the rise.

“It’s quite owner-driven these days, so although there’s uncertainty, rates will still go up,” she said.

Hoteliers in Indonesia and Malaysia, who are also pitching for an increase of five to 10 per cent, argue that the quantum only covers “inflation and electricity hikes”, as Ayodya Resort Bali assistant sales manager Budi Susanta pointed out.

Agreeing, Flamingo Hotel by the Lake Kuala Lumpur director of sales Fiona Achung said: “Rates have to increase every year as costs are also increasing.” The hotel, and its sister in Penang, are planning to increase prices by five and 10 per cent. The four-star properties’ average rate today is between US$80 and US$90.

But buyers such as The Netherlands’ Smaragd Reizen’s director, Amy Foss, who sends clients to South-east Asia, said: “It is going to be challenging for us. The increase in prices on top of the weakened Euro effectively doubles our selling price.”

– Read more in ITB Asia 2011 Official Daily – Day 3 issue

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