Bali short-term rentals see higher occupancy but weaker rates and revenue
Data compiled by GeoNet Properties from AirDNA and official tourism statistics show Bali’s short-term rental occupancy rising through July 2026 while average rates and revenue decline, even as premium hotels maintain higher occupancy and…
Editor: Mursyid Sonsang
· Event date: · 4 min read
Denpasar — — Bali’s short-term rental market is showing higher occupancy but weaker pricing and revenue in 2026, according to data compiled by GeoNet Properties from analytics firm AirDNA and official tourism statistics, while premium hotels appear better able to hold rates and attract higher-spending guests.
GeoNet Properties reports that AirDNA data through July 2026 shows short-term rental occupancy in Bali up about 9% to around 47%, while average daily rates fell 11.9% and revenue declined 12.2% compared with the previous period.
The firm notes that the available AirDNA summary does not specify the number of properties covered, the exact geographic scope within Bali or the precise comparison period, limiting how far the findings can be generalised across all villa and apartment markets on the island.
Key data points
- Short-term rental occupancy: about 47%, up 9%.
- Average daily rate: down 11.9%.
- Short-term rental revenue: down 12.2%.
- Active short-term rental listings: more than 39,000.
More bookings, weaker returns
GeoNet Properties highlights that higher occupancy has not translated into higher earnings for many short-term rentals.
The firm attributes much of the pressure on pricing to rapid growth in supply, with more than 39,000 active short-term rental listings now competing for guests across major booking platforms.
The report also cites separate research showing a similar pattern earlier in 2026, with occupancy improving but rental revenue slipping, though detailed methodology and percentage changes for that dataset are not disclosed.
GeoNet argues that regulatory changes in Indonesia, including tighter enforcement of licensing, zoning and tax compliance for properties marketed through platforms such as Airbnb, Booking.com and Agoda, add another layer of uncertainty to the outlook for owners and operators.
Hotels follow a different path
Hotel indicators suggest a different demand dynamic at the upper end of the market.
GeoNet Properties notes that Bali’s star-rated hotels recorded July occupancy of 67.29%, with five-star hotels reaching 74.45%.
The firm links stronger performance at four- and five-star properties to the spending power of guests choosing higher-quality accommodation and to the ability of branded hotels and resorts to differentiate themselves beyond price alone, through revenue management, international distribution, food and beverage, wellness facilities and on-site experiences.
Separate analysis of Asian luxury markets by Colliers describes Bali’s hotel sector as increasingly value-driven while new high-end supply continues to enter the market, with average daily rates in the second quarter of 2026 in the US$149–151 range.
According to GeoNet, well-located, professionally managed and properly licensed villas can still perform strongly, but the market is becoming more dependent on location, quality, management and differentiation as competition intensifies.
Demand remains resilient
The broader tourism picture remains relatively robust.
GeoNet Properties reports that Bali received about 3.9 million direct international arrivals in the first seven months of 2026, roughly 2% below the same period in 2025, which it describes as the island’s strongest tourism year on record.
The firm adds that Bali welcomed 697,809 international visitors in July 2026, up 15.3% from June and slightly ahead of July 2025.
Separate figures cited by Travel and Tour World, based on data from Statistics Indonesia’s Bali office, confirm that Bali received 697,809 direct international visitor arrivals in July 2026, 15.34% higher than June’s 605,013 arrivals.
These numbers indicate that softer villa and short-term rental revenue is not being driven by a collapse in overall tourism demand, but rather by more intense competition for guests who are still arriving in large volumes.
Tram project adds infrastructure context
Against this backdrop, authorities are moving ahead with a battery-powered electric tram project intended to ease congestion on key tourism corridors and support the island’s transport infrastructure.
The Bali provincial government and Badung regency signed a cooperation agreement with state railway operator PT Kereta Api Indonesia (KAI) in Denpasar on 1 September 2026 to develop an electric tram linking I Gusti Ngurah Rai International Airport and Canggu.
According to the provincial government and local media, the roughly 12 kilometre line is targeted to begin construction with a groundbreaking in March 2027, with the first section slated to start operating in 2028 and the full route to Canggu expected to be completed by 2029.
While the potential impact of the tram on villa and hotel performance is not yet clear, GeoNet Properties frames the project as part of a wider environment in which tourism volumes remain strong but financial outcomes increasingly depend on how different types of accommodation compete for visitors.
Sources
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