Indonesian Political, Business & Finance News

Hotels Cut Rates by 30% to Boost Revenue from School Holidays

| | Source: KOMPAS Translated from Indonesian | Business
Hotels Cut Rates by 30% to Boost Revenue from School Holidays
Image: KOMPAS

JAKARTA, KOMPAS.com — The surge in population movement during the 2026 school holiday season has become a key catalyst for accelerating capital turnover in the real sector. Domestic tourism dynamics during this period are driven by accommodation infrastructure readiness to reduce high family travel costs. To capture the economic ripple effect from family tourists’ spending, hotel industry players are moving away from conventional rate management strategies. Current strategies focus on reducing maximum room rates to secure high occupancy across secondary growth regions in Indonesia. Companies are intervening in the market by cutting room rates by up to 30% across all unit categories in over 130 properties. The programme integrates additional incentives such as free entry tickets to local attractions. This product bundling is designed to lower the overall spending burden for cost-sensitive family tourist groups. Through a booking period extending until end-July 2026, companies aim to generate revenue and improve cash flow in Q2. Companies emphasise that guests must use direct booking channels to eliminate third-party commissions, ensuring net profit margins remain intact despite rate cuts. The aggressive accommodation promotion has directly impacted tourist spending patterns. Capital flows from major economic hubs such as Jakarta, Surabaya, and Medan are now more evenly distributed towards popular tourist destinations like Bali, Yogyakarta, and Lombok, extending to emerging secondary cities including Makassar. According to Chris Legaspi, the company aims to provide a more accessible quality family holiday experience during school holidays. ‘By offering competitive packages combined with authentic local experiences, we hope more families across Indonesia can explore, strengthen bonds, and create unforgettable moments,’ he stated in a press release on Sunday, 31 May 2026.

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