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View all search resultsJakarta hotels see decline in occupancy rate
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Jakarta Hotels Association chairman Alexander Nayoan said rates were declining among locals as well as expatriates. (The Westin Jakarta/-)
H
otels in Jakarta faced a decline in occupancy rate because of online-based bed-and-breakfast (BnB) services and increased efficiency among corporate customers, Jakarta Hotels Association chairman Alexander Nayoan said.
Occupancy rate declined by 20 basis points (bps) on average compared to two years ago, and the decline was more severe in four- and five-star hotels, he added.
"Three-star hotels have better performance with around a 90-percent occupancy rate. It seems good, but in fact, two years ago, they were often overbooked," Alexander said in Jakarta on Wednesday.
With the economic slowdown, travelers prefer to stay in rented rooms booked via online-based BnB services, he said.
Read also: Government asked to stop issuing licenses for hotel constructionHe added that by staying in BnB rooms, they spent only about Rp 150,000 (US$11.1) per night, cheaper than Rp 350,000 when they stayed at three-star hotels.
Moreover, Alexander said, the slow economy had forced businesses to be more efficient, such as by using Skype-based conferences, instead of conducting business trips.
Alexander also said efficiency affected the number of expatriates -- regular hotel customers -- in Jakarta.
"The number of expats is declining now and many of the existing expats have moved to the suburban areas. You can see more expats living in Cengkareng, nearby Soekarno-Hatta airport, than in Jakarta now," he said. (bbn)
