AirBnB Starts "Disturbing" Hospitality Business in Bali

Most startups bring a business model that can disrupt the business order in several conventional sectors. In Indonesia this can be seen how Go-Jek, Uber, Grab, and other startups. Especially businesses that rely on strength sharing such as Go-Jek, Uber, Grab and AirBnbs. The first three names are engaged in the transportation sector relying on their partners, while AirBnB is conducting business in the residential or temporary housing rental sector. Everything is proven bother conventional business in Indonesia.

Regarding disrupting conventional business arrangements, Go-Jek, Uber and similar services can be seen from the large-scale demonstrations carried out by conventional taxi businesses. They are considered to have violated the rules by not completing the requirements as the taxi companies have met. Finally, the government responded to the demonstration by issuing existing regulations.

For AirBnB, Bali is said to be one of the areas with the biggest impact that is disturbed by this room rental business. AirBnB, which is the biggest “enemy” of the hospitality industry in the United States, also seems to be the “enemy” of the Indonesian hospitality industry.

It was conveyed by the Chairperson of the Indonesian Hotel and Restaurant Association (PHRI) Hariyadi Sukamdani, the demand for hotel rentals decreased by 35 percent. The main indication is that many villas are individually owned and rented out through AirBnB

"Demand" down to 35%. Perhaps many villas are individually owned and rented out through AirBnB. Since 2010, there has been a significant decline in Bali. The figure is not clear because hotel rooms are also increasing," said Hariyadi.

Haryadi also explained that the phenomenon of sharing economy will also disrupt the hospitality business and are asked to prepare for this phenomenon. The lower prices and ease of use of the AirBnB app promises huge disruptive potential.

One of the anticipatory steps taken is to more aggressively promote both at home and abroad. With the tourism sector's potential which is projected to grow 10% compared to last year, the hotel sector hopes to increase demand.

Hariyadi in the SWA report also revealed that his party would propose to bring order to the perpetrators sharing economy, in this case AirBnB. About taxes and responsibilities to the state.

“We have to propose controlling the perpetrators sharing economy this. They rent out hotels or villas but do not pay taxes. This is clearly unfair. They also have a responsibility to the state. We have a hotel business, the rules are very strict," said Hariyadi.

In addition to proposing control, Haryadi also explained that hoteliers are also preparing technology-based innovations such as Agoda, Booking and also a bowling business owned by local parties. In addition, hotel business owners will also create a platform E-commerce which are B2B between hotel entrepreneurs and vendors.

Later the vendors will be consolidated so that buyers and sellers can meet face-to-face. As a result, the volume will be larger and the price cheaper.

“Tourism is the key in attractions. If it's not there, it's of no value. It is this goal that we promote throughout Indonesia in an integrated manner with calendar of events, "He said.

Regulation seems to be a big scourge for startups that carry sharing economy. Go-Jek, Uber, Grab, AirBnB and services sharing economy other. At least for now the government has regulations for sharing economy car fleet transportation. For hotels, it will probably not be long before a similar regulation will be issued, waiting for how disturbed the hoteliers are and how much pressure they have on the government.