Travel demand fuels a boom in Asia Pacific — in hotel rates

[webfact]

file photo for reference only

 

by Monica Pitrelli

Finding a great hotel deal may be harder than ever before.

 

Hotel rates are at an “all-time high,” Alan Watts, Hilton’s Asia-Pacific president, told “Squawk Box Asia” on Thursday.

 

Rates are being fueled by travel demand that is like “a feast … to offset the famine,” he said, referencing the pandemic.

 

According to earnings reports, Hilton’s average daily rates increased by 8% in the fourth quarter of 2022, compared with the same period in 2019. Similarly, Marriott and IHG hiked prices by 13%, while Hyatt had a 14% daily rate increase.

 

It's more expensive to travel in Southeast Asia, especially in these four places

 

WATCH NOW VIDEO 0 2:51

It’s more expensive to travel in Southeast Asia, especially in these 4 places (Bali, Bangkok, Phuket and Singapore)

That’s globally. In parts of Asia Pacific, hotel rates are climbing even higher.

 

Rates in Asia are skyrocketing

The travel boom in Asia Pacific has been “phenomenal,” said Watts.  

 

Data shows this is especially true in places where Chinese travelers are going.

 

Average hotel rates across Southeast Asia have gone up more than 10% since 2022, according to data from the travel booking company Traveloka.

 

But rates have climbed more than 45% in destinations that are attracting the most Chinese travelers, said the company’s chief strategy officer, Joydeep Chakraborty.

 

“The most significant increase was recorded in Bali, Bangkok, Phuket and Singapore, with Bangkok topping the charts at over 70% and Singapore coming in at over 40%,” he said.  

 

Full story: https://www.cnbc.com/2023/03/05/hotel-rooms-are-getting-more-expensive-in-thailand-singapore-and-japan.html

 

-- © Copyright  CNBC 2023-03-09

 

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[proton]

What will the backpackers do? no more 200 baht a night hostels ????

[Tom H]

70% up from nearly nothing as a basis?

[hotchilli]

1 hour ago, webfact said:

Rates are being fueled by travel demand that is like “a feast … to offset the famine,” he said, referencing the pandemic

AKA gouging...

[Robert Tyrrell]

Good Afternoon,

 

70% Hotel cost up, Are certainly not because of Tourists demand in Thailand, There up because of dismal Tourist numbers !!  And TAT spewing there inaccurate Tourism numbers in hopes of stimulating more Tourism in Thailand ???? 

[Peterphuket]

I agree with my experience, the prices are higher and the service lower.

Recently I booked a hotel that used to have a shuttle service to the airport and now without mentioning no more.

With a kind of attitude it is your problem not ours.

[Xonax]

The Honeymoon will be over again, as soon as we get past Songkran. I have given up travel this year, but I am happy to stay at home, rather than to support those greedy hotels.

It is not just the hotel rates, but everything connected to tourism that have gone up, like car and bike rental, tours and even restaurant prices.

Edited March 9, 2023 by Xonax

[BestB]

If I am not mistaken they are comparing rates 3 years apart, leaving out 2 years where prices were slashed by as much as 90%.
what they have also failed to note now it is shoulder season going into low season in 2019 but remains high season in 2023 due to 2 years of restrictions.

 

better would be to compare prices in January 2019 to prices in January 2023 to see if any changes 

 

doing a light search to me prices look about the same and plenty of cheap rooms around.

 

but most importantly to note costs have also gone up, electric almost doubled , so unsure why anyone expects for rates to remain the same 

[koolkarl]

Long haul airfares are up 70 to 100% to most places too.  Incredible inflation.

Now the international media has to widely educate people that the air in Thailand,

everywhere, is highly toxic and nothing ever gets done about it.

[jacko45k]

3 hours ago, proton said:

What will the backpackers do? no more 200 baht a night hostels ????

I think this data is more about 5 star places. Quick to respond to demand...... not saying there will not be a trickle down to 4 star and onward. My usual Bolt Hole in Pattaya via Agoda is about where it was a month back. 

[nigelforbes]

1 hour ago, Robert Tyrrell said:

Good Afternoon,

 

70% Hotel cost up, Are certainly not because of Tourists demand in Thailand, There up because of dismal Tourist numbers !!  And TAT spewing there inaccurate Tourism numbers in hopes of stimulating more Tourism in Thailand ???? 

Nonsense! We've just returned from Hua Hin and Bangkok, high tourist volumes are evident everywhere. Where are you based, in the middle of nowhere!

[Chongalulu]

3 hours ago, hotchilli said:

AKA gouging...

Responding to supply and demand is not 'gouging'. It is really how it works almost everywhere and in most markets. That’s why your energy costs are multiples of what they were during the pandemic.   What do you call it when it works in your favour-are you gouging the hotel? 
Exactly at this time last year I booked great accommodation in Phuket that was  half what you’d normally pay and plenty of availability.This year the price is double and I struggled to get my dates. This is because it’s full of Russians stoking demand ,why should the hotel sell at less than what they can get ? 
It works both ways.

[shackleton]

The influx of Russians  and Chinese is probably causing the rates to rise 

Has to be good for Thai Tourism 

Wait until Songkran ???? 

[superal]

Strange that Booking.com sent me two 5 star hotels @£23 and £25 a night , below  . That price is no boom , rather a reduction . So OK , not in the middle of Pattaya but not far

[nigelforbes]

20 minutes ago, superal said:

Strange that Booking.com sent me two 5 star hotels @£23 and £25 a night , below  . That price is no boom , rather a reduction . So OK , not in the middle of Pattaya but not far

I wouldn't call those 5 star, not by any means, one of them shows up at 885 baht per night!

[Lee65]

Chinese are graciously showing others where not to go.

 

 

Edited March 9, 2023 by Lee65

[CartagenaWarlock]

They are comparing expensive hotels also. I used to pay $60 for Sofitel during the Pandemic and now I checked in agoda it shows $170. Jasmine city hotel $40 vs $70 now. A cheap hotel like Grand President (closed during the Pandemic) is around $50 which was around $50 in 2019. Bangkok offers a variety of decent hotels at a reasonable price, unlike singapore where low cost hotels are 18 sqm and most probably Geylang neighborhood. 

Edited March 9, 2023 by CartagenaWarlock

[sandyf]

19 hours ago, BestB said:

but most importantly to note costs have also gone up, electric almost doubled , so unsure why anyone expects for rates to remain the same 

It is the same old hypocritical rhetoric.

Last year this forum was all  for the rise in minimum wage and now complaining about the knock on effect. Larger hotels have always had to follow wage rises, does not affect the smaller ones to the same extent.

A couple of years ago I went to my nephew's wedding in NE Scotland, an area that is highly dependent on tourism. I paid more for a B&B in Forres than I did in the Pattaya Holiday Inn a few weeks later, things should be kept in perspective.

Scotland justifies the high rates on the basis they only get tourists for part of the year, maybe Thailand plans to follow suit.

[superal]

16 hours ago, nigelforbes said:

I wouldn't call those 5 star, not by any means, one of them shows up at 885 baht per night!

Link please for the 885 baht per night . I have just been online to look at direct booking with the 2 hotels which have some promo . Hotel Alyara starts at 1650 , 1950 & 3500 baht a night .  Hotel Crystal Palace stars at 2500 , 3500 & 3800 bahta night .

[nigelforbes]

5 minutes ago, superal said:

Link please for the 885 baht per night . I have just been online to look at direct booking with the 2 hotels which have some promo . Hotel Alyara starts at 1650 , 1950 & 3500 baht a night .  Hotel Crystal Palace stars at 2500 , 3500 & 3800 bahta night .

[h90]

my parents just stay in a hotel...same price as 2019 for the same room.

only less staff...the luggage and open the door guys are missing

[superal]

14 minutes ago, nigelforbes said:

Thanks , what a surprise . Cannot trust theses hotel agencies .

[NextG]

18 hours ago, superal said:

Strange that Booking.com sent me two 5 star hotels @£23 and £25 a night , below  . That price is no boom , rather a reduction . So OK , not in the middle of Pattaya but not far

I think they would be happy to describe themselves as 4*. 

[Stargeezr]

It seems to be the high end hotels that jacked up their prices. I checked with a few

guest houses in some places in Thailand and their rates are the same as before.

  I do not stay in 4 or 5 star hotels anyway.

Harvey M

[Artisi]

On 3/9/2023 at 5:18 PM, hotchilli said:

AKA gouging...

Correct, gouging in the extreme - what demands,  tourist numbers are down - so it's all bull$hit. 

[hotchilli]

57 minutes ago, Artisi said:

Correct, gouging in the extreme - what demands,  tourist numbers are down - so it's all bull$hit. 

Some sense spoken at last, you're correct.

Tourist numbers are down, and yet they boast of demand for rooms?

BS

[Chongalulu]

4 hours ago, Artisi said:

Correct, gouging in the extreme - what demands,  tourist numbers are down - so it's all bull$hit. 

If the demand isn’t there how are they able to get those prices?  -otherwise their hotel would be empty. You may want to inform yourself of the many more Russians (1 million reported fleeing the country ) widely reported filling major Thai (and other) tourist resorts- it’s not difficult. I’m afraid the only bull ???? is your economic understanding.

[crouchpeter]

Time to cut right down on international travel unless you're very well-off. Singapore, pre covid was $100 for a clean hotel. Got back yesterday after a month in Europe, and the Singapore hotels were $180 and $300 each. Both excellent. (Wanderlust and Owens House). The $100 hotels come with dirt, cockroaches, an old sock and ants. Disgusting! Singapore: the worlds biggest con.

[jacko45k]

30 minutes ago, crouchpeter said:

Disgusting! Singapore: the worlds biggest con.

There is a big difference between cheap and nice hotels in Singapore..... the price very much so, along with the quality. I always just pay and suck it up....

[stoner]

good morning little buddy.