DESPITE oversupply issues, Indonesian hospitality professionals remain upbeat about prospects, projecting revenue to grow by 10 per cent by 2016.
This was revealed in a survey at the Driving Hotel Revenue Indonesia Summit, which also showed that growth would be driven by better operating processes and newer technologies.
Adwien Dhanu, president, Jayakarta Hotels & Resorts, said that while outlook was positive, the anticipated 10 per cent increase in revenue would not simply “fall into every hotel operator’s lap”.
“Hoteliers need to enhance their understanding and approach to revenue management so that properties are pricing themselves correctly…Given the current issues around oversupply, the government should look to curb new development until occupancy levels recover. More work also needs to be carried out to improve tourism infrastructure in general, including traffic management in the Legian area,” Adwien said.
Rio Kondo, vice president development Indonesia & Malaysia, Accor, said: “While there are fast-maturing hotel markets like Jakarta, Bali, Surabaya and Bandung in Indonesia, where manoeuvring new hotel projects can be precarious, I believe opportunities in this vast archipelago are still plentiful but one must be observant and thorough.”
The same survey highlighted digital hotel bookings as another area expected to deliver significant benefits to the industry, with a 40 per cent increase in digital bookings forecast for 2016.
Philip Stanley, regional director of sales, IDeaS, said Indonesian hoteliers have to capitalise on growth in digital bookings by having the “right strategies and systems in place to determine the best rate for their rooms” and ensurely timely delivery of these rates.
Organised by pricing and revenue management software provider IDeaS Revenue Solutions, the Driving Hotel Revenue Indonesia Summit brought together over 200 hotel owners, general managers, revenue managers and sales directors from across Indonesia for educational sessions.
