Villa rentals are a booming business in the Asia Pacific region and more villas are being built to cater to it. A recent report by Villa Finder looked in detail at the region's villa rental market and found Bali was leading the way.

Travel Trade Gazette (TTG), the world's oldest travel trade publication, citing the Villa Finder report, suggested the villa rental market in Asia Pacific has grown by 12-percent in the last two years to create a business valued at around USD 440-million.

Bali shows above average growth

The largest market, they say, is Bali, which has grown by 18-percent in the last two years, boasting more than 4,000-villas with a value of more than USD 162-million.

Villa Desa Berawa is a fine example of Bali's booming villa rental business. Image supplied by Harcourts Seven Stones.

As Bali pushes for more of the global tourism market there are issues of over-saturation. A recent report from Fodor, for example, cited Bali as suffering from over-tourism as the island's infrastructure struggles to cope with Year-on-Year increases of tourist arrivals.

Despite this, there has been a 34-percent increase in the number of villas being built in Bali, says Villa Finder.

Catch-22

For travellers always on the hunt for good deals, this is a great time to be staying in a villa in Bali as average prices have decreased by around 10-percent to around USD 220-per night over the last couple of years.

In turn, competitive pricing attracts more visitors, which then compounds the problems associated with over-tourism, especially waste and water management.

Unique Selling Propositions

For villa owners it's very much a wake up call.  As the market grows so to does the competition. Villa Finder suggests those villas with unique selling propositions are doing much better than those that don't.

This too has a knock-on effect. Current market trends in the global tourism industry point to more sustainable, eco-friendly destinations and more responsible travel.

Travel Pulse recently reported on Responsible Travel forecasts for 2020, which suggest those destinations offering more eco-friendly and sustainable solutions from home-grown organic, plant-based menus to off-season packages are those that stand-out in the market.

Villas with unique selling propositions, such as Villa Desa Berawa, are doing much better than those that don't. Image supplied by Harcourts Seven Stones.

Sustainable solutions

"Customer expectations are ever-increasing. They demand better service, more inclusions and lower prices, so the need for professionally trained staff, proper maintenance and value-added services, while meeting your business goals must work hand in hand," suggest Villa Finder.

Andrzej Barski from Harcourts Seven Stones and a big supporter of eco-friendly tourism initiatives agrees. "Experiential travel is certainly gaining traction and that movement goes hand-in-hand with sustainable alternatives and a more sophisticated customer journey."

Finding the balance

There is a fine balance between running a successful business and doing the right thing, but Barski believes it's not impossible. "It just needs people to wake up, be less greedy and be more conscious," he says.

"It would be great to see more villa owners and developers looking for alternative energy solutions, managing their waste and water resources better and supporting the communities they're doing business in. I believe this can be done in such a way it becomes an integral part of the customer experience, especially in a place like Bali, which is so culturally focused on balance."

Sources: TTG Asia, Villa Finder, Travel Pulse, Responsible Travel

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