Hotel room rates remain stagnant whilst Airbnb continues to grow in Thailand

By The Thaiger

 

PHOTO: Airbnb

 

As the head-scratching continues as to why traveller aren’t drinking expensive beers in girlie bars and avoiding ‘traditional’ tourist haunts, Airbnb has a record year in Thailand, signaling more problems for the hotel business as tourists seek alternative holiday experiences.

 

As the number of guests continues to trend upwards with more than 1.65 million inbound Airbnb guests to Thailand the past year, the accommodation-share platform sees more locals wanting to be a part of the sharing economy.

 

TravelWireAsia.com is reporting that locals are starting to see the benefit that hosting brings thanks to international tourists who are now conscious of traveling in a more healthy and sustainable way.

 

Full story: https://thethaiger.com/news/national/hotel-room-rates-remain-stagnant-whilst-airbnb-continues-to-grow-in-thailand

 

-- © Copyright The Thaiger 2018-12-27

I don't foresee much of a future for Airbnb in Thailand, taking money away from the "Elite" hotel owners, no taxes or VAT paid, how long before they are deemed illegal, or has that already happened?

I've lived in Thailand for 21 years, done hotels throughout the country.  Our daughter recently visited and arranged Airbnb on the 46 floor of The Tower condo on Silom Rd, and condos in Phuket and Samui.  We did stay in an overnight hotel (The Cottage) near the airport before she and her friends returned to the US.  All 3 Airbnb locations were exactly as advertised......super clean, convenient, and spacious.  Our daughter is a well-seasoned traveler and business woman.........she does Airbnb everywhere she goes and has not had a bad experience.   She's as concerned about her rating when she leaves as the owner is.  

Newspapers, magazines, CDs, taxis, retail stores, 9-3 banking.........going the way of dinosaurs

I have big success renting my condo on lower Sukhumvit in high season when I travel abroad.
There is no comparison. Big spacious condo vs a hotel room.

35 minutes ago, webfact said:

TravelWireAsia.com is reporting that locals are starting to see the benefit that hosting brings thanks to international tourists who are now conscious of traveling in a more healthy and sustainable way.

Can someone explain to me what is either healthy or sustainable about residential condos and other unregulated buildings being used as short-term hotel accommodation, with no taxes being paid and no safety rules being applied?

When the hotel industry gets decimated enough change will come, lots of taxes being avoided and immigration rules flaunted. 

6 minutes ago, KittenKong said:

Can someone explain to me what is either healthy or sustainable about residential condos and other unregulated buildings being used as short-term hotel accommodation, with no taxes being paid and no safety rules being applied?

My sentiments also K K .. 

When the hotel industry gets decimated enough change will come, lots of taxes being avoided and immigration rules flaunted. 

Strictly speaking, hotels should remain unaffected as its against the law to rent condos less than a month.

 

Anyone paying a nightly rate for one month in a hotel needs head examined

 

Besides you really think all hotels and guest houses are actually registered and paying taxes? Too funny!

And yet they keep building

3 minutes ago, madmen said:

Strictly speaking, hotels should remain unaffected as its against the law to rent condos less than a month.

Anyone paying a nightly rate for one month in a hotel needs head examined

 

Very few rooms get rented for over a week in the Hua Hin condo I'm in. Maybe a crackdown on the flaunting of the Hotel Act will be the next thing to thin the ranks of the expat in Thailand, along with the compulsory insurance and visa funding.

And nearly every abnb type property is being rented illegally by unlicensed landlords"

Airbnb tends to be a better quality, cleaner experience at a cheaper price. 

Hordes of mainland Chinese and Indians, coming up right next door to you. Enjoy your peaceful condo life!

1 hour ago, kokesaat said:

I've lived in Thailand for 21 years, done hotels throughout the country.  Our daughter recently visited and arranged Airbnb on the 46 floor of The Tower condo on Silom Rd, and condos in Phuket and Samui.  We did stay in an overnight hotel (The Cottage) near the airport before she and her friends returned to the US.  All 3 Airbnb locations were exactly as advertised......super clean, convenient, and spacious.  Our daughter is a well-seasoned traveler and business woman.........she does Airbnb everywhere she goes and has not had a bad experience.   She's as concerned about her rating when she leaves as the owner is.  

Newspapers, magazines, CDs, taxis, retail stores, 9-3 banking.........going the way of dinosaurs

The condo where we stay in Bkk has very strict rules about not allowing any short term rentals (read Airbnb). The penalties are very stiff.

1 hour ago, madmen said:

I have big success renting my condo on lower Sukhumvit in high season when I travel abroad.
There is no comparison. Big spacious condo vs a hotel room.

I'm surprised they allow you. Where I'm living in Bkk, the penalty, if caught, is 10,000 baht per day. The condo management takes the owner to court.

1 hour ago, CGW said:

I don't foresee much of a future for Airbnb in Thailand, taking money away from the "Elite" hotel owners, no taxes or VAT paid, how long before they are deemed illegal, or has that already happened?

Despite having unenforced laws, it’s not going anywhere. The times have changed and it’s a better service than 95% of the hotels.

1 hour ago, dcnx said:

Despite having unenforced laws, it’s not going anywhere. The times have changed and it’s a better service than 95% of the hotels.

I'm not disputing the fact they have better service and are better value than hotels, but we have seen the extents that the ruling "elites" go to in Thailand to hang onto the money, having the government removed is nothing to them, removing street vendors from outside their expensive real estate easy done, if they let Airbnb prosper I for one will be pleasantly surprised.

I'm surprised they allow you. Where I'm living in Bkk, the penalty, if caught, is 10,000 baht per day. The condo management takes the owner to court.

Monthly rent is legal. I only rent per month

Plenty break the law but renting daily is chaotic, not to mention arrivals and departures at all hours and bnb guests are EXTREMELY needy. They know their review will make or break you

I'm not disputing the fact they have better service and are better value than hotels, but we have seen the extents that the ruling "elites" go to in Thailand to hang onto the money, having the government removed is nothing to them, removing street vendors from outside their expensive real estate easy done, if they let Airbnb prosper I for one will be pleasantly surprised.

No way to police it. Ain't gonna happen

Head scratching!

 

Why?

 

Thailand has become too expensive, with poor customer service coupled with rude attitudes, poorly maintained accommodation, filthy streets, whereby most farang get openly ripped off with the two tear pricing and abused for being a foreigner having no rights or very little, not forgetting the pathetic visa regulations, health and safety with the Police targeting farang for tea money.

 

110 THB for a small bottle of beer in a third world progressive country. Equate that to your own money. Come on! Day light robbery.

 

The list goes on...

Nearly all the responses here so far are from people who are either hosting their own condo on AirBnB or talking about people they know who are doing this. And there's a general thinking that hotels are suffering because of this. But it's not just about condos.

 

I've spent a lot of time in the last 6 months, not as a host but actually scanning and *looking* for AirBnB places to stay - studying what's on offer and at what price. And there are hundreds of plain, ordinary little hotels advertising their rooms. 

These aren't the huge 4-or 5-star hotels which are said to be suffering, but the small sidestreet family places which all big cities are riddled with - not to mention the thousands of small beach hotels and resorts all around the coasts.

 

They're listed with online booking agents like Agoda and also cashing on on the AirBnB craze and getting it both ways.

 

Whether it's against the rules or not I reckon that AirBnB is actually a godsend for small hotels and resorts everywhere - no trace of doom on their horizon at all!

Edited December 27, 20187 yr by robsamui

3 hours ago, KittenKong said:

Can someone explain to me what is either healthy or sustainable about residential condos and other unregulated buildings being used as short-term hotel accommodation, with no taxes being paid and no safety rules being applied?

Well it explains why tat sais there are 38 million visitors and why hotels are empty.

So its just a ploy to further the case of billions of visitors comming. No i cant explain the questions.

I've used Airbnb a few times but have run into a few issues. Firstly, the room owner can cancel a booking with no financial penalty, unlike the guest who, even with free cancellation, has to pay at least the service fees to Airbnb. This has happened to me and it's very annoying trying to find a new place at the last minute. All that happens for the owner is a comment on the review page that he/she cancelled the room.

 

Last year I booked Airbnbs in Japan. The Japanese Govenment suddenly introduced a law stating that all short term rental acommodation needed a licence. Airbnb removed all their Japanese listings, only reinstating them when a licence number had been issued. Both my places were affected and although Airbnb offered generous terms to guest whose plans had been upset, it was extrememly difficult to find alternatives, especially with most owners that received their licence realising rooms were now at a premium and raising prices accordingly. This could happen in Thailand and elsewhere. Great opportunity for a little corruption for the expediting of licences!

 

 

 

 

 

 

 

 

I've used Airbnb a few times but have run into a few issues. Firstly, the room owner can cancel a booking with no financial penalty, unlike the guest who, even with free cancellation, has to pay at least the service fees to Airbnb. This has happened to me and it's very annoying trying to find a new place at the last minute. All that happens for the owner is a comment on the review page that he/she cancelled the room.
 
Last year I booked Airbnbs in Japan. The Japanese Govenment suddenly introduced a law stating that all short term rental acommodation needed a licence. Airbnb removed all their Japanese listings, only reinstating them when a licence number had been issued. Both my places were affected and although Airbnb offered generous terms to guest whose plans had been upset, it was extrememly difficult to find alternatives, especially with most owners that received their licence realising rooms were now at a premium and raising prices accordingly. This could happen in Thailand and elsewhere. Great opportunity for a little corruption for the expediting of licences!
 
 
 
 
 
 
 
 

Wrong. Air bnb owners are penalized for pulling a reservation
If it happens several times then they are banned for life
Did you really think that air bnb would let them off the hook?
It's a multi billion dollar success story and for good reason.

5 minutes ago, madmen said:

Wrong. Air bnb owners are penalized for pulling a reservation
If it happens several times then they are banned for life
Did you really think that air bnb would let them off the hook?
It's a multi billion dollar success story and for good reason.

Sorry. I was told this by someone and I have now seen that there are fees involved, though under certain circumstances they are waived, and, as you said, Airbnb get quite strict with perrenial cancellers. I'd advise anyone to avoid those properties that do have a tendency to cancel, though. You can see it in the reviews.

Booking.com also where many small hotels and guest houses can advertise for free, yes they have to pay commission but a lot better than paying advertising cost and would be to expensive which pushes up the their price

58 minutes ago, madmitch said:

I've used Airbnb a few times but have run into a few issues. Firstly, the room owner can cancel a booking with no financial penalty, unlike the guest who, even with free cancellation, has to pay at least the service fees to Airbnb. This has happened to me and it's very annoying trying to find a new place at the last minute. All that happens for the owner is a comment on the review page that he/she cancelled the room.

 

Last year I booked Airbnbs in Japan. The Japanese Govenment suddenly introduced a law stating that all short term rental acommodation needed a licence. Airbnb removed all their Japanese listings, only reinstating them when a licence number had been issued. Both my places were affected and although Airbnb offered generous terms to guest whose plans had been upset, it was extrememly difficult to find alternatives, especially with most owners that received their licence realising rooms were now at a premium and raising prices accordingly. This could happen in Thailand and elsewhere. Great opportunity for a little corruption for the expediting of licences!

 

 

 

 

 

 

 

 

The host pays $100 cancellation fee

14 minutes ago, madmitch said:

Sorry. I was told this by someone and I have now seen that there are fees involved, though under certain circumstances they are waived, and, as you said, Airbnb get quite strict with perrenial cancellers. I'd advise anyone to avoid those properties that do have a tendency to cancel, though. You can see it in the reviews.

Look through the calendar it also shows booking "Cancelled by the Host" 

39 minutes ago, ChipButty said:

The host pays $100 cancellation fee

Who gets that money, the customer or airbnb?

 

Edited December 27, 20187 yr by arithai12

2 hours ago, madmitch said:

I've used Airbnb a few times but have run into a few issues. Firstly, the room owner can cancel a booking with no financial penalty, unlike the guest who, even with free cancellation, has to pay at least the service fees to Airbnb. This has happened to me and it's very annoying trying to find a new place at the last minute.

I've never booked anything via AirBnB though I have glanced at their listings on occasions. I've mostly been put off by obligatory cleaning charges and other extras that are applied on top of the headline daily rate. Requests for payment in advance by bank transfer, or awkward check-in requirements (limited hours, or having to phone ahead) have also put me off.

 

I compare that with Booking.com/Hotel.com where I can book a room at a fixed price with no surprise extras and pay for it by credit card with one click of the mouse, and all with 24 hour check-in. I must have spent around 5,000USD with them over the last couple of years and have not had a single problem with messed-up bookings or bad rooms.