Are you a villa owner or any Bali property owner in Bali that has difficulties in getting more villa bookings? Feels like you’ve done various things but it doesn’t work, this article is right for you!
Investing property in Bali can be a great long term investment. As mentioned by Statista, during pandemic in 2020, Bali’s tourist visit still improving although it dropped significantly from last year. In that year, Australians made around 222 thousands visits to Bali. Chinese tourists made up the second-largest group of arrivals to Bali, at 117 thousand million arrivals. Bali is one of the most popular places to visit in Indonesia. In 2019, almost 6.3 million direct foreign tourists went there. Thus doing business in Bali can be a great prospect.
Even though it has a lot of potential, this business is weak and easily affected by situations and circumstances. One example is when a pandemic is going on. Physical distance, isolation, travel restrictions, and many other situations can failed your business.
This explanation shows that the best place to build a bali property business is not enough to make it work well. As a villa owners, you need a good plan and strategy to bring a good benefits to your investment. You can learn from other people’s mistakes so you don’t waste your own time and end up losing. As one of the bali property management that has run for 8 years, here are 5 common mistakes that villa owner often make and you should avoid in 2022.
5 Common Mistakes That Bali Villa Owners Should Avoid
1. Lacking in Promotion Strategy
2. Not Maintaining Good Relationship with Guests
3. Making Decision Based on Feelings Not Data
Many properties don’t have a good way to collect transactional data. However, these data can be used to make a strategy, better prices, and revenue projections. Villa owners in Bali sometimes make hasty decisions. They compared the inappropriate sample, such a Villa with a Hotel or a Villa from another country, so it’s not valid to compare. Improper comparison causes wrong strategy, pricing, and uneven progress.
Some people make decisions based on feeling. For example, they set a low price to get more people to stay without thinking about the cost. Or they set a high price because they think the property is better than average and worth it without thinking about what will happen.
4. Set Same Price for All Season
Most Villa owners set the same price for all seasons without looking at what other people have paid in the past. By looking at past data, we can figure out the pattern of occupancy, which is the third most common mistake made by property owners. Different properties or areas have different occupancy rates, which show different opportunities.
High season happens when the occupancy is high while low season otherwise. It can be caused by national holidays, government policy, and many other things. If the pattern can be obtained, it’s important to adjust the price by setting it higher in the high season and lower in the low season. By doing this, we can maximize the occupancy and also the revenue for the property. To set the lowest price, make sure the price consists of profit already so there will be no loss though the price set lower.
5. Forget the Quality Control
Last is property maintenance. Guest expectations must be achieved. Guest reviews and weekly or monthly home inspections reveal the quality of your villa. Cleanliness, services, and other things can be maintained or improved with proffesional property management. Read here how to do property maintenance correctly for your villa.
Those are 5 Common Mistakes that Property Owners Make. Even though the location to build a property is nearly perfect for tourism like Bali, there are many other things that need to be considered and think strategically for bringing better opportunity and result for the owners. For more than 8 years, Bukit Vista has been helping partners to increase their occupancy.
Learn more about Bukit Vista’s villa management services in Bali and become a Bukit Vista partner, now!