Festive outlook for resorts in Asia 2023/24

Today is the first day of December, I can only imagine resorts watching their pace for the year-end festive season like a hawk.?

For many tropical resort markets, this is the time where the most revenue is made. Not only does it affect the performance for 2023, January’s performance will also set the stage for 2024’s performance - no pressure. :)?

I remember back when I was managing the revenue of a complex of luxury hotels in Bali, my non-hotelier friends envied that I was spending the festive period in Bali. In reality, I was under the heat to deliver a stellar festive performance.

I did a quick pulse check on the state of the festive season across resort locations in Asia, and had some interesting findings. I looked at Maldives, Bali, Nusa Tenggara (Lombok, Sumba, Komodo), Phuket, Krabi and Goa.

*Side note: I took into account the best reviewed resorts from Tripadvisor for this article.

#1: Maldives is the most expensive, Goa is the most affordable:

Maldives, with its luxurious resorts, mesmerising beaches and turquoise waters, came in 1st in terms of ADR, with an average room rate of USD5,000. Not only are the room rates high, the price of the gala dinners in Maldives are 2 times the price of gala dinners in Bali and Phuket. And by the way, these gala dinners are mandatory for all the resorts that I’ve seen.

Goa is the most affordable, with an average room rate of USD300. Goa also has the lowest festive premiums like gala dinner - and this surcharge is not always mandatory in Goa.

#2: 60% of the resorts do not have a minimum length of stay:?

Minimum length of stay restriction was common pre-covid when guests are staying over 31st December - this restriction seems to be removed from most resorts this year. I was able to find many resorts who would take a reservation for 1 night stay on 31st December.

This is usually an indication that hotels are forecasting a soft festive period.

#3: Mandatory New Year’s Eve gala dinner is still the norm:?

72% of the resorts across the different destinations have mandatory New Year’s Eve gala dinner for all guests.?

It is not just to increase Food & Beverage revenue, but also to better manage this big event. Resorts usually close all other restaurants and have the whole F&B team work on the gala dinner to give the guests a great experience.

#3: Travellers seem to pick Bali over Phuket:?

Bali is 10% more expensive as compared to Phuket, in both rooms and gala dinner charges - indicating the appeal of Bali for today’s travellers.

#4: Mixed reviews for non-mainstream destinations: Krabi vs Nusa Tenggara :?

Krabi has been considered as a secondary destination as compared to Phuket. Interestingly, Krabi’s average room rate is 30% higher than Phuket. Krabi came a long way and continues to grow as a destination. Fun fact, my wife started her hospitality career in Krabi years ago, when Krabi was selling about 50% lower than Phuket.

I looked at Indonesia’s secondary destinations, including Lombok, Sumba and Komodo. Their average room rate is only half of Bali’s room rate. There is still a lot of room to grow for these beautiful destinations, including investments in infrastructure.

Success in the festive season can make or break a resort’s full year performance.

I hope you find this insightful and look forward to hearing from you!

Check out the article from my teammates, Julien Naouri, Marina Bracciani and Margaret Ching: Are tropical resorts the hidden gems of the hospitality industry?