Is Airbnb taking over the Thai hotel industry?

[webfact]

Is Airbnb taking over the Thai hotel industry?

By The Thaiger

 

 

Airbnb is posing a less significant threat to hotels in Thailand than expected, but its influence in the longer term should not be underestimated, according to real estate company JLL

 

Offering new alternatives to travellers, Airbnb is certainly taking some of the wind out of the sails of the traditional hotel accommodation model. However, findings from Jones Lang Lasalle (JLL) shows that hotels in Thailand have been less affected by online home-sharing platforms than people perceive, or companies like Airbnb hope.

 

The research collected data from more than 11,200 rooms offered by Airbnb and hotels in Bangkok, Phuket and Chiang Mai.

 

An analyst at JLL’s Hotels and Hospitality Group, Pichayut Vacharavikrom, says that the perception that room-sharing platforms were ruining the hotel business or ‘taking over’ was wrong.

 

“It is evident that for Thailand most travellers still prefer traditional hotel accommodations, particularly those operated by brands that they are familiar with and give them more confidence in security and levels of services.”

 

When checking review pages in Bangkok, for example, there were many more reviews for traditional hotels than for Airbnb – 664.2 for hotels and 31.3 reviews for Airbnb, according to the JLL research (it should be noted that Airbnb has its own internal review system in place on its website).

 

Another perception is that people believe staying at an Airbnb is cheaper than booking a branded hotel room. But in Thailand, according to the research, hotel rooms remain more economical than Airbnb and have remained more competitive.

 

JLL’s research indicates that that the average prices per night for hotel accommodations is lower in Chiang Mai, Bangkok and especially Phuket, where the average price per night of hotels is less than half of the average price of an Airbnb room.

 

Pichayut believes that Airbnb, rather than being a direct competitor with hotels, is offering a different product that reaches out to a new market of travellers.

 

“Airbnb offers much larger spaces through offerings that include entire villas, houses, apartments and bungalows, which can accommodate a larger number of guests than hotel rooms It’s attracting a new generation of guests, particularly millennials, who represent an increasing portion of travellers that are constantly seeking new experiences.”

 

 

Source: https://thethaiger.com/hot-news/tourism/is-airbnb-taking-over-the-thai-hotel-industry

 

-- © Copyright The Thaiger 2019-06-07

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[ChipButty]

This is straight from the Horses Mouth

 

Airbnb acquired HotelTonight back in April for 400 million $

 

HotelTonight is a hotel-booking service that specializes in boutique and independent hotels, and focuses on making last-minute trips easy and fun.

Specifically, boutique hotels on Airbnb need to feel personalized, with qualities such as guest rooms that reflect the local culture. And we expect the hoteliers to provide personal hospitality to guests by offering things like unique recommendations and an owner or manager available on the property full time. A great example is Surfhouse Boutique Motel, an eight-room inn run by Sander, a former home host, and his brother, Nikki, in their hometown of Encinitas, California.

On HotelTonight, you might see some global chain hotels when HotelTonight is filling specific guest demand needs. These hotels do not meet the Airbnb standards for personal hospitality, and we do not plan to add them to Airbnb.

 

[from the home of CC]

air bnb is driving down the values of people condo's by illegally renting rooms like a short time hotel with all it's associated security issues...

[ChipButty]

2 minutes ago, from the home of CC said:

air bnb is driving down the values of people condo's by illegally renting rooms like a short time hotel with all it's associated security issues...

Airbnb are not the problem it is the owners of the so called condos who are listing them on Airbnb the owners are doing the illegal shit,

[from the home of CC]

1 minute ago, ChipButty said:

Airbnb are not the problem it is the owners of the so called condos who are listing them on Airbnb the owners are doing the illegal shit,

and airbnb and others are facilitating it by pandering to the needs of the cheap ass tourist who won't pay for a hotel, similar to being the 'getaway driver' of a crime for they know it's illegal here but still do it for the $

[lemonjelly]

I’ve used them in Paris and Penang a few times, well worth it because you can get a whole apartment for less than a low end shabby hotel room, but in Thailand the hotels are plentiful and cheap enough and the service usually excellent as to render AirBnB unnecessary for me in Thailand.

[G950]

A lot of the brand new condos around the sukhumvit area completed in the last few years are less than 50% full with residents or tenants. Hence, you see a ton of these places pop up on airbnb just to generate some cash.

[yokat]

21 minutes ago, from the home of CC said:

air bnb is driving down the values of people condo's by illegally renting rooms like a short time hotel with all it's associated security issues...

While driving up the prices because of the potentially higher return than regular tenants.

[ChipButty]

10 minutes ago, from the home of CC said:

and airbnb and others are facilitating it by pandering to the needs of the cheap ass tourist who won't pay for a hotel, similar to being the 'getaway driver' of a crime for they know it's illegal here but still do it for the $

Definitely not cheap ass tourist as you put it, lots of High end properties listed lots of people prefer the freedom of a villa or condo.

[from the home of CC]

22 minutes ago, yokat said:

While driving up the prices because of the potentially higher return than regular tenants.

you're wrong, when a person decides to sell his condo later on he'll find few takers wanting to buy a room in a short time hotel..

[from the home of CC]

27 minutes ago, ChipButty said:

Definitely not cheap ass tourist as you put it, lots of High end properties listed lots of people prefer the freedom of a villa or condo.

Won't be 'high end' for long with all the increased traffic resulting in a robust increase in wear and tear and thus condo fees won't be going for improvements as they should but rather just the greater maintenance costs. No problem for those who just bought the units to profit on the backs of others, expats screwing other expats.

[WinnieTheKhwai]

That's an excellent article.  And indeed holiday rentals are rarely about cost; you can always find a bargain basement hostel/hotel/guesthouse room that's way cheaper than AirBnB's minimum charge, which ends up at around 400 Baht. 

 

It's just that the traditional travelling demographic is changing and when a family or group of friends travel together it's so much nicer to have a real house with a living room, kitchen, etc.  compared to just 3 hotel rooms.

Hotels just don't (want to) cater to that; they don't want guests to have a kitchen as they have restaurants to fill.. 

[ChipButty]

33 minutes ago, WinnieTheKhwai said:

That's an excellent article.  And indeed holiday rentals are rarely about cost; you can always find a bargain basement hostel/hotel/guesthouse room that's way cheaper than AirBnB's minimum charge, which ends up at around 400 Baht. 

 

It's just that the traditional travelling demographic is changing and when a family or group of friends travel together it's so much nicer to have a real house with a living room, kitchen, etc.  compared to just 3 hotel rooms.

Hotels just don't (want to) cater to that; they don't want guests to have a kitchen as they have restaurants to fill.. 

Lots of people rent a villa because it has everything they need your very own pool go shopping for everything you need and no vat and service charges.

I stayed in a 5 star hotel last weekend and out of the fridge a bottle of water 120 baht a bottle of Hoegarden 240 ++++

[bkk6060]

1 hour ago, from the home of CC said:

air bnb is driving down the values of people condo's by illegally renting rooms like a short time hotel with all it's associated security issues...

Wrong.

Many buyers are investors.

A constant flow of Airbnb is like having a rental property for investment.

Plus here, I bet little if any pay taxes on the income.

The Base for example in Pattaya is 1000 rooms mostly now being rented ST.

And the prices there have gone up.

Check it yourself.

I believe it is all hurting the hotel industry tremendously.

But, they are unorganized and have no power to do anything.

Edited June 7, 2019 by bkk6060

[Orton Rd]

1 hour ago, ChipButty said:

Airbnb are not the problem it is the owners of the so called condos who are listing them on Airbnb the owners are doing the illegal shit,

Ah yes the OWNERS, who are not vetted by Airbnb. How do you know the hosts are not criminals, mental patients of have a history of violence? Only had two Airbnb tries first was crap the last one had such a problem host. Hotels for me, Airbnb is too much of a gamble just to save a few dollars.

[AJBangkok]

1 hour ago, from the home of CC said:

Won't be 'high end' for long with all the increased traffic resulting in a robust increase in wear and tear and thus condo fees won't be going for improvements as they should but rather just the greater maintenance costs. No problem for those who just bought the units to profit on the backs of others, expats screwing other expats.

Whether the owner of a unit or a tenant of the unit uses the common areas makes no difference. You can actually spin it that Airbnb creates less traffic just as easy as you spin it that it creates more traffic. If Airbnb rentals frustrates you maybe focus on security or something like that which is a more solid argument. 

[JTXR]

One thing I don't get about Airbnb is why, if it's illegal, it can't easily be cracked down on.  I mean, those conducting most illegal enterprises try at least a bit to hide their activity.  Those doing Airbnb illegally openly advertise it!  If the government  made each violation a 50,000 baht fine and actually enforced it, they'd make a bundle and shut it all down pretty quickly.

 

In the BKK condo building where I rent, there are big posters in the lobby saying daily and weekly rentals are illegal, but I can go on Airbnb and find three units in my building advertised now.  I admit the equivalent Chinese sites might be harder to crack down on, but not impossible -- again, those breaking the law openly advertise that they are doing so.  Yes, I guess the short answer is "corruption," but still.....

Edited June 7, 2019 by JTXR

[tjo o tjim]

1 hour ago, tomazbodner said:

I had excellent host for 3 month rental on Airbnb ...

There are genuine offers on Airbnb that make it easy to rent between 1 and 6 months which other sites typically do not offer, and that's why I disagree with some who say they should be banned. But they should do something to prevent illegal rentals or at the very least warn tenants what mess they could get themselves into when accepting the illegal offer.

 

Completely agree.  It is generally hard for people to arrange rentals that are less than one year online and in advance of travel.  While we aren’t using AirBnB (renting from a friend), we have a place for 6 months in BKK as a “base” that we can call home rather than constantly shuffling around with all of our stuff.  We looked at the outer Suk soi’s listed on AirBnB, but most of them were really focused on short-term rentals of less than a week.

[DLock]

Airbnb is here to stay, so we better get used to it.

 

They are far more agile and smarter than the Thai Government pretends to be.

 

So, whatever laws they implement will be useless to stop Airbnb.

 

The only line of defense is the condo and juristic people - if they make a stand then it can be stopped in a development (like it is in mine), but if they see a "benefit" to Airbnb happening...it's a very hard battle that police and immigration really don't want to deal with...

 

 

[Tropicalevo]

2 hours ago, tomazbodner said:

I had excellent host for 3 month rental on Airbnb for my parents, and all was by the book. We obviously both knew that below 30 days rental was illegal. But many foreigners coming to Thailand don't have a clue until they come to check-in and see those "our home is not your hotel" posters warning what they are about to do is illegal. For those it's too late to learn now. Airbnb SHOULD add a warning that renting below 30 days is illegal in Thailand at the very least when booking is made. Or plain reject it.

 

As with everything in Thailand - not only landlord is punishable by law, but in most cases also the one renting. The condo we rented in has called the cops for a guy with a short term rental and the man was taken to police station and charged 10k baht (if what he says is true). He rented for a weekend on Airbnb. On check-in I also got asked to show the contract that shows 30+ days which wasn't a problem. My Thai landlord did arrange all the immigration reporting etc. and asked for copies of passport up-front, so by the time we got there, all was completed.

 

There are genuine offers on Airbnb that make it easy to rent between 1 and 6 months which other sites typically do not offer, and that's why I disagree with some who say they should be banned. But they should do something to prevent illegal rentals or at the very least warn tenants what mess they could get themselves into when accepting the illegal offer.

 

You post does not differentiate between renting a condo and renting a private villa.

 

Yes - there are legal issues with renting condos for less than 30 days.

 

These issues do not exist if you are renting a private villa that has a valid villa/pool licence. Those are legal Airbnb rentals even when for less than 30 days.

 

Now, if you want to start talking about paying tax on your income.....

[arithai12]

The few times I tried AirBnb I was quite happy, especially because we can get a proper apartment with all facilities. However often we are forced to book hotels because of the cancellation policy. Most hotels you find on e.g. booking.com give you a free cancellation policy until 2 days before. Airbnb usually has very strict policies (like, no refund or just a fraction), which are not suitable for people who are not 100% sure of their travel dates. And in some destinations/periods, if you don't book 1-2 months in advance you find nothing. I also dislike the hidden charges that appear only at the end, like cleaning fee.

So it's an open field, I don't see one prevailing on the other.

 

[GeorgeCross]

4 hours ago, ChipButty said:

Lots of people rent a villa because it has everything they need your very own pool go shopping for everything you need and no vat and service charges.

I stayed in a 5 star hotel last weekend and out of the fridge a bottle of water 120 baht a bottle of Hoegarden 240 ++++

 

haha yeah i gave up on hotels a few years back after a beach front hotel on koh samui was selling cans (!) of chang for 360 baht poolside.. plus 10% service charge and 7% VAT. taking the michael

 

now we rent villas and the family loves it

 

 

Edited June 7, 2019 by GeorgeCross

[dcnx]

9 hours ago, from the home of CC said:

air bnb is driving down the values of people condo's by illegally renting rooms like a short time hotel with all it's associated security issues...

Wrong. Airbnb doesn’t devalue a property. 

 

I don’t even need to read the rest of this thread to know most of the posters will be wrong and don’t even own condos to begin with.

 

We have multiple units on Airbnb. If you’re careful about who you allow in you generally don’t have a problem. All Airbnb owners can check the reviews of the guests before you accept them. Owners who are desperate to fill their room and accept everyone are the ones causing the problems. 

 

 

 

[hakama]

it took me a year to learn how to read "airbnb"

Edited June 7, 2019 by hakama

[ChipButty]

8 hours ago, arithai12 said:

The few times I tried AirBnb I was quite happy, especially because we can get a proper apartment with all facilities. However often we are forced to book hotels because of the cancellation policy. Most hotels you find on e.g. booking.com give you a free cancellation policy until 2 days before. Airbnb usually has very strict policies (like, no refund or just a fraction), which are not suitable for people who are not 100% sure of their travel dates. And in some destinations/periods, if you don't book 1-2 months in advance you find nothing. I also dislike the hidden charges that appear only at the end, like cleaning fee.

So it's an open field, I don't see one prevailing on the other.

 

Is is the owners who set the cancellation not Airbnb let's say you have a villa and you have a booking then your calendars are blocked and they want to cancel at last minute you would be very lucky to get a last minute booking that's why people set to strict as for booking.com their cancellation rate is unbelievable but the host can also set to strict 30 day before arrival 

Also on booking you can set to None Refundable 

Edited June 7, 2019 by ChipButty

[mikebell]

12 hours ago, tomazbodner said:

below 30 days rental was illegal.

It should be end of story & would be if Thailand had a police force.  On my mooban an unscrupulous owner lets out her house at weekends for noisy parties.  The police were called but did nothing.

[ChipButty]

There must still be huge potential in the market as the Marriott group is moving into the Luxury villas already in USA and Parts of Europe

[jonclark]

16 hours ago, from the home of CC said:

Won't be 'high end' for long with all the increased traffic resulting in a robust increase in wear and tear and thus condo fees won't be going for improvements as they should but rather just the greater maintenance costs. No problem for those who just bought the units to profit on the backs of others, expats screwing other expats.

Whilst I do sympathise with you a great deal as from the tone of you posts, it sounds like you have been negatively affected by airBnB. I use it whenever family come over - renting a villa in Hua Hin, with a pool etc that can sleep the entire family for 4000 a night cost wise beats taking three or four rooms in a hotel which would come in at 10k+ a night (big family). I have the money to spend and am not a "cheap skate", but like all of us I spend hard earned money wisely to get the best value. 

 

I do think that airBnB must and needs to do something about the impact that disruptive guest using their service have on their surroundings is very important - maybe a complaints section of airBnB which results in listings being suspended if a certain number of complaints are received from neighbours. AirBnB and its users must work in harmony with the people who live in the same condos etc that are rented out. 

[Tropicalevo]

18 minutes ago, jonclark said:

Whilst I do sympathise with you a great deal as from the tone of you posts, it sounds like you have been negatively affected by airBnB. I use it whenever family come over - renting a villa in Hua Hin, with a pool etc that can sleep the entire family for 4000 a night cost wise beats taking three or four rooms in a hotel which would come in at 10k+ a night (big family). I have the money to spend and am not a "cheap skate", but like all of us I spend hard earned money wisely to get the best value. 

 

I do think that airBnB must and needs to do something about the impact that disruptive guest using their service have on their surroundings is very important - maybe a complaints section of airBnB which results in listings being suspended if a certain number of complaints are received from neighbours. AirBnB and its users must work in harmony with the people who live in the same condos etc that are rented out. 

Your post is accurate and very valid.

 

Just one problem.

 

Airbnb does not care about owners or neighbours. Their customer is the renter. They are the only ones giving Airbnb an income. They will glibly ignore complaints, requests for compensation etc etc just to protect the renter.

 

Only in extreme circumstances do Airbnb support the owner. (About 1 in 10 cases in my experience.)

Edited June 8, 2019 by Tropicalevo

[ChipButty]

30 minutes ago, jonclark said:

Whilst I do sympathise with you a great deal as from the tone of you posts, it sounds like you have been negatively affected by airBnB. I use it whenever family come over - renting a villa in Hua Hin, with a pool etc that can sleep the entire family for 4000 a night cost wise beats taking three or four rooms in a hotel which would come in at 10k+ a night (big family). I have the money to spend and am not a "cheap skate", but like all of us I spend hard earned money wisely to get the best value. 

 

I do think that airBnB must and needs to do something about the impact that disruptive guest using their service have on their surroundings is very important - maybe a complaints section of airBnB which results in listings being suspended if a certain number of complaints are received from neighbours. AirBnB and its users must work in harmony with the people who live in the same condos etc that are rented out. 

I think there is a place for Neighbours to complain on Airbnb