In Reply to: hotel prices for 2011 posted by cheeky on Tuesday, 22. March 2011 at 00:20 Bali Time:
Dear Forum members and valued patrons of Febri's and Green Gardens,
First of all, please apologize for my awkward expression as apart from being a non English speaker, this is my first time using the forum. I also notice that most forum members are regular travelers to Bali and unfortunately no hotel manager/representative answers to issues pertaining to their respective hotels. I hope my attempt will not be perceived as being defensive but merely sharing the facts that travelers might not be aware of.
Generally, price increase is applied due to increase of operational costs, especially in a highly competitive tourism business environment like Bali. Nevertheless, there are always a few companies around that are able to maintain their pricing despite higher cost constraints such as family-run companies that employ fewer staff or newly established companies with promotional offers. On the long run, though, quality is usually compromised unless significant adjustments are made.
As posted by Cintamu on 21 March, hotel prices (and airlines) are adjusted yearly starting from 1st of April. Seasonal prices are then applied according to the periodical occupancy levels with surcharge in higher occupancy months. Febri's and both Green Garden properties significantly apply higher prices (as a result of seasonal surcharges) from 15 June to 15 october and from 24 December to 6 January accordingly. We always encourage our regular patrons to come before OR after those high months whenever possible for better deal. From 1 April, Standard Room charges from USD 70, Superior Room from USD 80, Family Room from USD 110.
In a macro economy level, our central and local governments have gradually reduced their subsidies on main necessities such as electricity, fuel, water, and food staples. Their subsidies are not completely gone but they are being withdrawn at a steady pace (and still continuing) until the amounts reach optimum level where the governments manage to ease off their massive debts. Hence, living costs have gradually increased and inflated hotel's operation costs too in due course. To our horror, officials and parliaments have been discussing that prices will generally increase again by 30% from third quarter of 2011, and are expected to rise further if the national economy and security does not significantly improve. Such increases are becoming a dilemma for every one here as Bali (as a destination) might lose its appeal due to uncompetitive pricing against other tourism destinations. Being the largest tax payers to the local government, however, Bali hotels are obliged to deal with such social challenges and absorb the social costs. Otherwise, Bali will face social unrests as happen in other regions.
PAYROLLS
Staff salaries increase at least once a year (from January) in anticipation to the higher living costs so that staff welfare is well looked after. In addition, our hotel group no longer applies casual working status with daily wage but all our staff are now entitled for UMK (the highest minimum salary scheme among regencies in Bali), daily meals, JAMSOSTEK (state superannuation and personal insurances), medical benefits and a monthly bonus. The monthly bonus is a certain percentage of the hotel's gross revenue being shared to our staff (from 6% to 15% varying across departments as further incentives) because we don't levy any service charge to our patrons. Monthly remuneration benefits for supervisors and other senior staff are also provided in addition to the above. Such payroll and incentives are not generally applied in traditional hotel businesses and new establishments which also explain why they can offer better pricing due to lower payroll costs. Many of our patrons shall agree that we treat our staff as our own extended family members. After all, their services and friendliness are the main factors that make your Bali holiday memorable.
RENOVATIONS
Elevators will be available at Febri's from mid April 2011, providing easy access for our patrons with physical challenges to upper floor rooms. Tourism development in Bali, including construction of new hotels, is an ongoing part of Bali's development. In the Tuban/South Kuta area several new hotels are currently under construction which may have some visual/noise disruption on a localized basis from time to time. The closest neighboring construction going on near Febri's Hotel is THE EDEN HOTEL - located at the opposite side of our Standard Rooms.
Should you require further information, please feel free to email me personally or meet me at the Febri's for a chat. I always enjoy mingling among my guests whenever time permits. Cheers.