Balik kampung rush: Small town hotels are seeing a surge this festive season

SHAH ALAM – Budget hotels in smaller towns and districts are seeing higher occupancy rates during the festive season compared to major city centres as urban residents return to their hometowns.

Malaysian Budget and Business Hotel Association (MyBHA) president Dr Sri Ganesh Michiel said early feedback from members nationwide indicated occupancy rates had increased by around 10 to 20 per cent depending on location.

He said the increase was not uniform across all areas as travel patterns during the festive period were largely focused on returning to hometowns and visiting family.

“Hotel bookings are usually higher in small towns, district centres and transit areas that serve as main routes for balik kampung travel.

“Areas such as district towns in states like Johor, Perak, Kedah, Kelantan and Terengganu recorded higher occupancy rates.

“In contrast, major urban areas such as Kuala Lumpur and large commercial centres typically do not reach full occupancy,” he said.

Sri Ganesh added that bookings typically began to rise about two weeks before Hari Raya, with a noticeable surge occurring a week before the celebration.

He said there were also customers who made last-minute bookings, particularly for spontaneous travel.

“Generally, most budget hotels maintain stable room rates and do not sharply increase prices during the festive season.

“The registered hotel industry consistently prioritises price transparency and compliance with industry guidelines as well as regulations set by authorities,” he said.

He also highlighted an important factor in which unregistered Short-Term Rental Accommodation (STRA) continued to be a preferred option for some travellers before they considered hotels.

“In addition, unregistered STRA is often chosen due to lower prices and larger capacity for family groups.

“However, it does not adhere to the same safety standards, tax requirements and regulatory compliance as registered hotels,” he said.