Historically, star-rated hotels held a 20–35 percentage point occupancy advantage over non-classified properties, buoyed by brand affiliation, prime locations, and international tour operator contracts. This gap persisted from the late 1990s through the mid-2010s, reinforcing a clear hierarchy in Bali lodging formats.
However, since 2020, that advantage has steadily eroded. By 2024, star-rated hotels’ occupancy edge had narrowed to 10–20 points, with early 2025 figures hinting at potential single-digit differentials. This occupancy convergence reflects a deeper market realignment driven by agile, non-classified properties that adapt faster to guest preferences and distribution shifts.