Europe finds itself squeezed out of Bali

EUROPEAN buyers decry being squeezed out of Bali, which is expecting another spurt of growth in the Australian market this year.

A UK buyer has charged that Bali hoteliers are “arrogant”, merely interested in Australian tourists, and have increased their contract rates by 20 to 30 per cent for the UK market.

Other European buyers are less scathing, but have described Bali as “challenging” to sell. TUI Netherlands product manager Asia, Sebastian de Vries, said: “On the one hand, the Holland market is price-sensitive and the euro’s devaluation (is not helping). On the other hand, airfares have increased and hotel prices in Bali are up because the island is doing well with the Australian and regional markets.”

Bali hoteliers deny giving longhaul markets the short shrift. In fact, several said they were trying to achieve a balanced mix as it was risky to have too much business from one market. But many have been able to maximise yields by turning to OTAs, which they said was also good for cashflow
because of immediate payments.

- Full story in TTG Asia