Thailand sees dip in hotel prices

[rickudon]

Two problems - first is the number of hotels. In Udon (not exactly a tourist destination), a popular soi in the centre of town had 2 hotels - now there are 6 .... also 3 more new ones just around the corner. I do not see an increase in tourists. One hotel on the ring road which i have used to put visitors up in (as fairly nice, quiet and has swimming pool) was 500 baht 6 years ago, price now - still 500 baht.

 

Second issue is the type of tourist. Friends who have visited Phuket, Pattaya etc. say indians and Chinese now make up about half the tourists. And sorry, it does make those moderately wealthy tourists (i.e. those who are not rich enough for top notch exclusive resorts but are willing to pay more for a pleasant environment) who have other options, think twice about Thailand.

[AtoZ]

On 4/16/2019 at 10:35 PM, moonseeker said:

What is that misinformation about Chinese travelers being cheap, not spending money, only staying in low class hotels at discount rates. I suggest you go to any of the big and well known newer chain hotels along the beach, go for a sumptuous breakfast buffet and see if there are just well off Westerners. You will be surprised... Then maybe head to any of the big tourist spots in Europe. Perfect example and often in the news lately is Switzerland which is overrun by Chinese and Asians paying top $ for any attraction they visit and buying not just one but 5 or 10 watches, most of us could not afford. A friend quadrupled his staff in Luzern and Interlaken shops and makes a killing. A Singapore investigate report, sorry can't find the name as was on Asia News, sets daily average expenditures per Chinese visitor at 425 $. Obviously Pattaya might not attract the top travelers, looking around i see a majority of Westerners probably are also not the creme de la creme. TH will continue doing well if politics calm down and will not starve because of the white men missing. Just wished it was like 20 years ago... MS>

There is 'slight' difference.

 

Sure the midlevel Chinese can spend $425 a day - because their holiday is usually 3-5 days.

The midlevel westerners come for 2-12 weeks and so they can't spend $425 but spend way more overall.

 

The Chinese spend large amount in big malls and supermarkets because everything in China is risk of being unsafe or/and fake. The money goes directly to the billionaires families of Thailand.

The westerners spend the money in mom-and-pop/small/medium size businesses because the stuff in malls are more expensive than back home where you also get warranty.

[nong38]

Perhaps it is the festival, who wants to come here to be soaked? On the other hand I see far more hotels than are required by numbers coming, the market is bringing the prices down.

[JimmyJ]

2 hours ago, AtoZ said:

The Chinese spend large amount in big malls and supermarkets because everything in China is risk of being unsafe or/and fake. The money goes directly to the billionaires families of Thailand.

The westerners spend the money in mom-and-pop/small/medium size businesses because the stuff in malls are more expensive than back home where you also get warranty.

There are no warranties on products sold in Thailand malls including computers?

 

Is this correct?

[Bangkokazy]

At this rate the country will become a land of paupers.’

[chama]

On 4/16/2019 at 1:15 AM, ryane66 said:

Go on Agoda and check prices anywhere in Thailand. Many discounted accommodations. Even over Songkan. Why? Because contrary to TAT, they aren't busy. Very nice resorts for low prices.

Supply and demand, and once the price starts to slip it may be hard to recover because the Thai response is often to let the quality of the rooms slip and tourist reduce their visits even further. The politics in the country are impacting many industries, this is one.

[taninthai]

Could have told you this two years ago ,the problem is oversupply equals more competition equals lower prices ,,,they just will not stop building.

[Sealbash]

Could have told you this two years ago ,the problem is oversupply equals more competition equals lower prices ,,,they just will not stop building.

And from a multi million (billion) CEO or board of director’s point of view, it may be wise to build now at a lower cost than wait for demand to outstrip supply, resulting in a hugely increased cost of development.


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[utalkin2me]

More hotels and resorts. And more people using airbnb. 

[morrobay]

53 minutes ago, Sealbash said:

And from a multi million (billion) CEO or board of director’s point of view, it may be wise to build now at a lower cost than wait for demand to outstrip supply, resulting in a hugely increased cost of development.


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That's a textbook case and they have been doing that for the last 10 years. So not sure how long they can wait for demand to out strip over supply and counting - if ever the way the direction is heading now. 

[GinBoy2]

On 4/18/2019 at 12:24 PM, JimmyJ said:

There are no warranties on products sold in Thailand malls including computers?

 

Is this correct?

Well there are warranties, but trying to get them honored, that can be problematic in my experience.

 

The other big difference when you buy anything in Thailand is, that with some exceptions, there is no return policy. 

You buy it, you get it home and for whatever reason it doesn't work for you...tough luck, it's yours!

 

When we are here in the US, my wife will go clothes shopping, or bag shopping, (how many bags do women need?), gets stuff home, doesn't like it takes it back next day.

 

When we are in Thailand when we go shopping takes 10x longer, since she always worries it's not gonna work for her and she's stuck with it.

[inThailand]

Thailand sees dip in hotel prices. 

 

The word sees should be seen. And add and there is no sight in end. 

[ChipButty]

10 hours ago, utalkin2me said:

More hotels and resorts. And more people using airbnb. 

According to airbnb 62% less people are searching for this time of the year and 26% more properties are available in Phuket

[taninthai]

12 hours ago, Sealbash said:

And from a multi million (billion) CEO or board of director’s point of view, it may be wise to build now at a lower cost than wait for demand to outstrip supply, resulting in a hugely increased cost of development.


Sent from my iPad using Thailand Forum - Thaivisa mobile app

For about two weeks off the year in many tourist areas maybe demand already does outstrip supply but for the rest off the 6 month tourist season it’s massive oversupply.

I know off a hotel that 3 years ago was selling rooms 4500 bht dec,jan,feb and was full most of the time last 2 years they now selling rooms 2500 bht and cannot get 100% occupancy apart from the Christmas two weeks.

[ChipButty]

52 minutes ago, taninthai said:

For about two weeks off the year in many tourist areas maybe demand already does outstrip supply but for the rest off the 6 month tourist season it’s massive oversupply.

I know off a hotel that 3 years ago was selling rooms 4500 bht dec,jan,feb and was full most of the time last 2 years they now selling rooms 2500 bht and cannot get 100% occupancy apart from the Christmas two weeks.

My feelings are the Low season is already here how low it will go nobody knows already places are empty

[madmen]

56 minutes ago, taninthai said:

For about two weeks off the year in many tourist areas maybe demand already does outstrip supply but for the rest off the 6 month tourist season it’s massive oversupply.

I know off a hotel that 3 years ago was selling rooms 4500 bht dec,jan,feb and was full most of the time last 2 years they now selling rooms 2500 bht and cannot get 100% occupancy apart from the Christmas two weeks.

what hotel is that sounds like a good deal?

[bartender100]

Agoda is owned by booking.com, if fact just about all hotel booking sites are owned by three companies

 

https://www.frommers.com/tips/airfare/the-new-big-three-of-travel-bookings-competition-dies-among-search-engines-too

[Pravda]

On 4/16/2019 at 12:14 PM, nasa123 said:

Just look at phuket, my wife works at a large international hotel with 700 employees.  This year no pay rise cancellation of 250+ workers and all farang is being replaced by Indians.

 

A hotel with 700 employees? I find that hard to believe. Or is that globally?

[guru]

 
A hotel with 700 employees? I find that hard to believe. Or is that globally?

Why not? An extreme case but the Oriental in Bangkok apparently has 1700 employees.

[Pravda]

6 minutes ago, guru said:

Why not? An extreme case but the Oriental in Bangkok apparently has 1700 employees.

 

Please provide any sort of link for this incredible claim.

 

The hotel has less than 400 rooms.

 

 

[guru]

 
Please provide any sort of link for this incredible claim.
 
The hotel has less than 400 rooms.
 
 

Here we go:
https://famoushotels.org/news/bangkok-o-zone-an-employees-heaven


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[guru]

Here we go:
https://famoushotels.org/news/bangkok-o-zone-an-employees-heaven


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Having now read the whole article about the Oriental, 1700 employees is first mentioned and later 1300. 1300 seems to be the genuine number: https://photos.mandarinoriental.com/is/content/MandarinOriental/corporate-bangkok-PK-corporate-social-responsibility

[AtoZ]

2 hours ago, Pravda said:

 

A hotel with 700 employees? I find that hard to believe. Or is that globally?

The recommended room:employee ratio for 5* hotel tends to be around 2 employee per room

 

That's in the west where you don't need 3 employees in supermarket to do the job of one.

[tlandtday]

On 4/16/2019 at 10:35 PM, moonseeker said:

What is that misinformation about Chinese travelers being cheap, not spending money, only staying in low class hotels at discount rates. I suggest you go to any of the big and well known newer chain hotels along the beach, go for a sumptuous breakfast buffet and see if there are just well off Westerners. You will be surprised... Then maybe head to any of the big tourist spots in Europe. Perfect example and often in the news lately is Switzerland which is overrun by Chinese and Asians paying top $ for any attraction they visit and buying not just one but 5 or 10 watches, most of us could not afford. A friend quadrupled his staff in Luzern and Interlaken shops and makes a killing. A Singapore investigate report, sorry can't find the name as was on Asia News, sets daily average expenditures per Chinese visitor at 425 $. Obviously Pattaya might not attract the top travelers, looking around i see a majority of Westerners probably are also not the creme de la creme. TH will continue doing well if politics calm down and will not starve because of the white men missing. Just wished it was like 20 years ago... MS>

Of course there will always be high end Chinese travelers but they are the 10 percent and 90 percent are in fact the budget travelers.  So a few Chinese travel here to show big face.  Big deal.  And how do you know they are Chinese?  They could be Malaysian or Japanese or do you also speak the language?

[mikebell]

Hotels.com sold me three nights in a Vietnamese hotel that was patently unprepared for paying guests.  I walked out after one night.

[madmen]

19 hours ago, madmen said:

what hotel is that sounds like a good deal?

  20 hours ago, taninthai said:

"For about two weeks off the year in many tourist areas maybe demand already does outstrip supply but for the rest off the 6 month tourist season it’s massive oversupply.

I know off a hotel that 3 years ago was selling rooms 4500 bht dec,jan,feb and was full most of the time last 2 years they now selling rooms 2500 bht and cannot get 100% occupancy apart from the Christmas two weeks."

 

 

No link? so much BS on here you just have to laugh

[inThailand]

Cheaper rooms mean a lower class of customer? Expats are looking better these days?