In Reply to: Hotel price rises posted by Hillary on Wednesday, 27. August 2008 at 10:38 Bali Time:
over the last three months and over the last few years costs have risen dramatically while prices have been kept below economic levels due to supply far exceeding demand and hotels undercutting each other in order to attract the lower number of visitors.
The exception was the 5 star properties who struck a deal about the minimum rate they would charge - illegal in our countries but just fine here.
Now that demand for good properties balances or exceeds supply it gives the industry a chance to catch up.
Another thing to consider is that prices are still very cheap compared to Australia, for example.
When you consider the land price of hotels close to the beach and the fact that they are low rise ( so the room to land area ratio is low) a good property with large grounds, pool etc compares well with a small crappy room in a Sydney downtown highrise hotel or the Gold Coast.
May these conditions continue and hope that some of the new profits get plowed back into better facilities.