The dynamics are changing??

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Posted by Baldie on Thursday, 7. May 2009 at 11:38 Bali Time:

With the proliferation of specials and cheap flights that are appearing, many people who would have previously booked a package are now looking for accomodation only.
The accomodation pool seems to be drying up somewhat.
I guess that larger Hotels have to block some rooms out to meet commitments to agents etc. as well.
This shift in the way people are arranging their holidays will have some interesting side effects.
To start with, I certainly see this trend driving up the price of accomodation as the rule of supply and demand kicks in. (Already happening??)
Also, walk ins will have a rise in demand, which will also drive their prices up.
I think that many places not currently serving breakfast will start to do so as people are not picking up the b'fast supplied package deals, and will be looking for a breakfast.
Also, own your own (or lease) properties become a more attractive proposition as people realise that they can stay in Bali for a month for the price of a $400 air fare (or less) plus the outgoings on the leased property.
I think that the Aussie average stay time will also be lengthened as a result of this shift.
I guess that historically, the travellers who arranged seperate accom to their air fares were more the single or younger backpacker set, but now more and more family groups are doing it.
Will this force travel agents to re-think the way they go about their business...I think so.
Do others see additional negative or positive aspects of the trend to "air" or "land" only bookings?


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