Why Bali hotels prioritise room rates over occupancy growth
Stable occupancy and resilient pricing for differentiated properties signal that revenue growth may increasingly depend on premium experiences, market segmentation and additional guest spending.
Bali hotel room rates outperformed occupancy growth in H1 2026 as operators prioritised pricing discipline and higher-value guests amid increasing supply.
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Occupancy has begun to normalise as new hotel supply enters the market.
Bali's hotel market maintained resilient operating performance in the first half of 2026, with operators increasingly focusing on pricing discipline and higher-value guests rather than maximising occupancy, according to Colliers.
Colliers said occupancy remained healthy across most hotel segments, supported by international leisure demand, domestic holiday travel and the gradual recovery of corporate and MICE activity. However, occupancy growth has begun to normalise as new hotel supply enters the market and regional competition intensifies.
The consultancy said average room rates continued to outperform occupancy growth, reflecting a growing emphasis on profitability rather than aggressive discounting. Hotels are increasingly targeting premium leisure travellers seeking wellness retreats, longer holidays and higher-quality experiences.
Colliers noted that established destinations including Nusa Dua, Seminyak and Ubud continue to benefit from strong international demand and premium positioning, while Canggu is attracting lifestyle-focused travellers looking for alternative accommodation experiences.
Hotels offering differentiated wellness, cultural, family-oriented and destination-based experiences are demonstrating stronger pricing resilience than properties competing primarily on room inventory, according to Colliers.
Looking ahead, Colliers expects occupancy to remain relatively stable as additional hotel supply comes online. Future revenue growth is likely to depend on operators' ability to maintain room rates, optimise market segmentation and increase guest spending beyond accommodation through food and beverage, spa, recreation and curated experiences. The consultancy added that longer average stays, driven by travellers combining leisure, wellness and remote work, are creating additional opportunities to improve revenue quality and operational efficiency.