A summit of over 200 leading Indonesian hospitality industry professionals has predicted a positive outlook for the regional hotel sector, with 65 percent of attendees forecasting six percent or more revenue growth in the year to come.
The ‘Driving Hotel Revenue Indonesia Summit 2016,’ organised by IDeaS, a provider of revenue management software solutions and advisory services, drew together leading hotel owners, general managers, revenue managers and sales directors from across Indonesia to discuss and share best practices of hotel revenue management and distribution.
While healthy revenue growth is expected from the regional hotel sector, according to almost half of the summit attendees, hoteliers also face significant challenges from increased supply coming into the market.
Locally, increased competition remains a primary concern for the Indonesian hotel sector, while terror alerts were predicted to have minimum impact on growth – a sentiment shared by more than 50 percent of event delegates.
“With increasing competition and supply being clearly identified as a key challenge for hoteliers, the approach should be to avoid aggressive discounting to stimulate short-term demand. Instead, hotels should focus on defining products that target specific customers and maximise the guest experience. Integral to this is managing their online reputations and pricing themselves accurately to attract the right business from the right segment,” said Rachel Grier, managing director Asia Pacific for IDeaS. “Every price and promotion strategy should be carefully planned and monitored. Impulsive pricing decisions must be replaced with strategic, data-driven and consistent decisions.”