Guess which hotel markets in Indonesia outperformed on leisure-led demand

Several five-star hotels in one city reported that foreign guests account for up to 97% of total room nights.

Hotels in Bali and Bandung continue to outperform other major markets, supported by strong leisure demand and shifting travel preferences, according to Savills.

Savills said Bali recorded exceptionally strong hotel occupancy in Q3 2025, with demand overwhelmingly driven by international visitors. The island’s performance highlights the resilience of destinations with deep tourism fundamentals and global appeal, Savills noted.

According to Savills, luxury hotels in Bali are gaining strong traction, particularly those emphasising sustainable practices and authentic local experiences. This positioning reflects a broader shift in consumer preferences toward environmentally conscious travel and experience-led stays.

Several five-star hotels in Bali reported that foreign guests account for up to 97% of total room nights, Savills said. Key source markets include Australia, South Korea, Europe and the United States. Most visitors are travelling as individuals or families, booking primarily through online travel agents, and favouring beachfront and resort locations.

Savills added that Bandung has also shown resilience, underpinned by a structural shift toward family and individual leisure travel. Families have become the city’s dominant demand driver, particularly on weekends, as Bandung remains a popular domestic tourism destination for residents of Greater Jakarta and West Java.

“The performance of Bali and Bandung demonstrates the importance of diversified leisure demand and strong destination branding,” Savills said, adding that these markets are better positioned to withstand volatility than destinations reliant on a narrow demand base.