The Indonesian hotel industry is facing a growing challenge as it struggles to keep up with market shifts and changing traveler behavior. While domestic tourism and international events continue to boost demand, many hotels still miss valuable revenue opportunities because they cannot adjust quickly enough to fluctuations in pricing and availability. In an increasingly data-driven world, artificial intelligence (AI) is emerging as a key solution to help hotels respond more quickly and effectively.
Indonesia Hotel Industry Struggles to Keep Up with Market Changes
A recent report by SiteMinder revealed that 47% of hoteliers in Indonesia miss revenue opportunities at least once a week because they fail to react swiftly to market changes. Many hotels lose potential profits when competitors lower prices or when major events suddenly increase demand. Despite recognizing these shifts, most properties still rely on slow, manual processes to update room rates and inventory.
The study also showed that 46% of Indonesian hoteliers update their room rates only once a month or even less frequently, while 42% do so just once a week. This slow response is risky because market conditions can change several times a day, particularly during large-scale events. For example, during the Pertamina Grand Prix of Indonesia 2025, hotels in Lombok and South Bali recorded a 19% year-on-year increase in average daily rates, reaching IDR 3,013,711, with total bookings up nearly 10%. These numbers show how faster price adjustments can significantly boost profitability.
Manual Processes Hold Hotels Back from Real-Time Pricing
Although 92% of hoteliers in Indonesia say speed-to-market has become increasingly important over the past year, many still depend on manual systems. Without automation or dedicated revenue management teams, hotels struggle to react in real time to market trends, competitor pricing, and local events.
This technology gap limits their ability to capture demand effectively. SiteMinder’s survey highlights that many properties continue to lose out even during peak travel periods. If hotels had the right tools to track demand and adjust prices instantly, they could take advantage of market surges and maintain stronger margins. The lack of data-driven strategies prevents many Indonesian hotels from realizing their full revenue potential.
AI Brings Smart Revenue Management to Indonesian Hotels
Artificial intelligence is now seen as the most practical way to close this performance gap. AI systems can analyze vast amounts of data, identify trends, and suggest optimal pricing strategies in real time. According to SiteMinder, 68% of hoteliers in Indonesia are actively seeking AI-based solutions, compared to the global average of 49%, while another 25% remain open to AI-driven recommendations.
In response to this growing demand, SiteMinder introduced Dynamic Revenue Plus, a mobile-based revenue management solution developed in collaboration with IDeaS. The platform provides real-time market intelligence and allows hoteliers to make immediate decisions on pricing, inventory, and distribution. It also delivers daily recommendations tailored to local events, competitor activity, and shifts in demand.
Bradley Haines, SiteMinder’s Market Vice President for Asia Pacific, explained that many hotels in Indonesia lack dedicated revenue management teams even as the market grows more complex. “Any hotel in Indonesia—from boutique hotels in Ubud to resorts in Lombok—can now move from static manual practices to truly dynamic operations,” he said. Haines added that the product aims to empower local hotels to become more agile and competitive in a digital-first market.
Dynamic Revenue Plus is powered by SiteMinder’s internal AI engine, SiteMinder iQ, which processes over 130 million hotel reservations each year. The system converts large volumes of data into actionable insights that help hoteliers make faster, more accurate decisions and maximize their revenue opportunities.
AI Shapes the Future of the Indonesia Hotel Industry
AI adoption marks a major shift for the Indonesia hotel industry as it moves toward a smarter and more profitable future. By embracing automation and real-time analytics, hotels can better anticipate market movements and adapt their pricing strategies instantly. The ability to act fast is no longer optional, it is essential for staying competitive in a rapidly evolving hospitality sector.
With AI-driven solutions like Dynamic Revenue Plus, Indonesian hotels have the tools to capture revenue that was once lost to slow decision-making. The industry’s next phase of growth will belong to those who can combine technology, speed, and strategy to meet the demands of a dynamic market.
Source: medcom.id, hypeabis.id
Image: Ferrantraite / Getty Images
