Originally Posted by
ukiechris
I think the main customers are Koreans who pay cash. The target audience are not the ones booking the cheapest rooms with points or cash but rather the ones going for the pool villas. Russians have also recently discovered this property, which was just the matter of time. The hotel is either testing the highest room rates they can charge or just realistically pricing based on the market. This is truly a very premium property and Regent Bali doesn’t come close. I would expect the price to climb further in the near future. The other aspect of high prices is that it serves as a filter for a certain type of clientele. In that regard the target audience actually appreciates the fact that hotel is doing this in order to keep the place higher class. Americans and Europeans are also driving the prices up globally though in this property they aren’t the majority.
I don’t fully share your take on the earning logic and the clientele demographics but to be fair, I can’t be certain either. I don’t have access to the numbers and insights, only my own empirical observations from multiple stays over the years and from conversations with both the old and the new management.
What I am certain about is the basic economics: when you raise prices by ~30–40%, you should expect a reduction in demand. That’s Econ 101