Thai Hotels Struggle as Mid-Priced Rooms Fail to Attract Tourists

[snoop1130]

 

Thailand's hotel industry grappled with occupancy challenges in August, particularly within the budget and mid-priced segments. Despite a nationwide average occupancy rate improvement to 61.8% from 58.4% year-on-year, levels still lagged behind the pre-pandemic figure of 64.7%.

 

Three-star and lower-rated hotels faced the toughest test, with occupancy rates dropping to 49.3%. In stark contrast, rates for four-star or higher-rated hotels surged to 68.8%. This disparity highlighted the ongoing struggle for budget hotels to draw in tourists.

 

Thienprasit Chaiyapatranun, President of the Thai Hotels Association (THA), disclosed these data through the August hotel operator sentiment index. Amongst the surveyed hoteliers, 40% had not fully restored their revenue streams, and 20% foresaw normalcy only by mid-next year. A small 7% doubted a full return to pre-pandemic levels.

 

Interestingly, 31% of respondents had indeed surpassed pre-pandemic revenue markers, mostly by hiking their room prices following renovations and service upgrades. Foreign tourists from regions such as China, the Middle East, Europe, and other Asian countries formed the bulk of their customer base, filling over 50% of hotel rooms.

 

 

 

 

For budget hotels, competitively low rates, intense market competition, and a noticeable reduction in bookings were pointed out as significant hurdles. These establishments kept their rates below 1,500 baht (£34) per night compared to the more expensive four-star hotels (1,500-2,499 baht) and five-star hotels at prices exceeding 5,000 baht.

 

On top of this, the hospitality sector in Thailand continued to wrestle with a pernicious labour shortage since July, with 40% of hotels failing to fill vacant positions. This issue was most pronounced in Central Thailand, exacerbating the woes of the struggling mid-range and budget hotels.

 

As the Thai tourism landscape adjusts and rebuilds post-pandemic, the road to recovery for mid-priced and budget hotels remains fraught with price sensitivity and competitive pressures. The industry's fight to reclaim its pre-pandemic vibrancy continues.

 

File photo for reference only

 

-- 2024-09-12
 

 

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[Will B Good]

 

 

 

If you bookings are down there is only one solution.....increase your prices to make up for the lower numbers.....no brainer.

 

 

 

 

[khunPer]

Higher flight prices might be a reason why the budget travellers aren't coming, while travellers in the higher financial level both can afford and expects better accommodation than budget travellers. I've noticed the same trend on Samui for a while, many-star hotels are busy, budget resorts seems to have many vacant rooms.

[DrPhibes]

In Issan at the moment.  Our 2 bed room overlooking the pond.  800 baht.

[JudoChop]

Throw in breakfast and a jar of weed.

[maesariang]

8 minutes ago, DrPhibes said:

In Issan at the moment.  Our 2 bed room overlooking the pond.  800 baht.

Mosquitoes?

[DrPhibes]

5 minutes ago, maesariang said:

Mosquitoes?

Nit noy, very pleasant!

[Ben Zioner]

Well, seem like Thais have less money to spend holidays while the International clientele is back. I doubt I have ever stayed in a Hotel for less than 2000 Baht a night. Do these sub 1500 places have private bathrooms, beds or mats on the floor?

[MarkBR]

13 minutes ago, DrPhibes said:

Nit noy, very pleasant!

 

29 minutes ago, DrPhibes said:

In Issan at the moment.  Our 2 bed room overlooking the pond.  800 baht.

Looks nice and peaceful

[phetphet]

Schools in Europe have just reopened after summer break, the THB is getting stronger, and no one has any money.

But don't worry hoteliers, once the Thai taxman starts taxing all the expats next year, even they will likely cut back on travel.

[Maitdjai]

The only solution is more

"Concrete-Mania"!

More Hotels in demand.

For the multi-millions of

"Super-Rich-VIP-High-Class" tourists from anywhere, who are dying and pay any price to get only one of those precious luxury accommodations in TiT. 😂😂😂

What goes around (stupidity), comes around. Sooner or later, but always.

 

 

[still kicking]

2 hours ago, Ben Zioner said:

Well, seem like Thais have less money to spend holidays while the International clientele is back. I doubt I have ever stayed in a Hotel for less than 2000 Baht a night. Do these sub 1500 places have private bathrooms, beds or mats on the floor?

I paid 800 baht per night in Pattaya last year, private bathroom in a  decent hotel  with restaurant an bar,

[Maitdjai]

2 hours ago, Ben Zioner said:

Well, seem like Thais have less money to spend holidays while the International clientele is back. I doubt I have ever stayed in a Hotel for less than 2000 Baht a night. Do these sub 1500 places have private bathrooms, beds or mats on the floor?

Maybe you'd check out the

1500 Baht rooms. Before you talk! Your "doubts" about where or if you've been staying are more of a cognitive or healthcare issue. 😂

[DonniePeverley]

Open up the country to cheap mass tourism and these are the consequences. 

[Woke to Sounds of Horking]

The p(l)andemic shifted everything. Lots of mental diseases now in the wake of what corvid nineteen did to people and society. Flights still too expensive compared to pre-corvid. Ever shifting visa rules and inconsistent application wait times and processes. The kids go for AirBnB or the ultra-low budget setups now, so traditional guesthouses/hotels are becoming irrelevant to that demographic. And weed shops aint enough considering you can smoke your brains out legally in much of the USA and all of Canada now.

 

Most significantly - Thailand has lost that joie de vivre that it had when I first visited many moons ago.

[it is what it is]

4 hours ago, phetphet said:

Schools in Europe have just reopened after summer break, the THB is getting stronger, and no one has any money.

But don't worry hoteliers, once the Thai taxman starts taxing all the expats next year, even they will likely cut back on travel.

 

i've got money 😁

[redwood1]

5 hours ago, Ben Zioner said:

Well, seem like Thais have less money to spend holidays while the International clientele is back. I doubt I have ever stayed in a Hotel for less than 2000 Baht a night. Do these sub 1500 places have private bathrooms, beds or mats on the floor?

I dont think I have ever rented a room for more than 500 a night.

[Ben Zioner]

7 hours ago, still kicking said:

I paid 800 baht per night in Pattaya last year, private bathroom in a  decent hotel  with restaurant an bar,

Are u Thai?

[hotchilli]

13 hours ago, snoop1130 said:

Thailand's hotel industry grappled with occupancy challenges in August, particularly within the budget and mid-priced segments. Despite a nationwide average occupancy rate improvement to 61.8% from 58.4% year-on-year, levels still lagged behind the pre-pandemic figure of 64.7%.

Maybe offer what the tourists want at a fair price, then market it properly.

Tourism is almost back to an all time high, if you're not getting occupancy look inwards.

[hotchilli]

10 hours ago, Ben Zioner said:

Well, seem like Thais have less money to spend holidays while the International clientele is back. I doubt I have ever stayed in a Hotel for less than 2000 Baht a night. Do these sub 1500 places have private bathrooms, beds or mats on the floor?

Yes

[Ben Zioner]

8 hours ago, Maitdjai said:

Maybe you'd check out the

1500 Baht rooms. Before you talk! Your "doubts" about where or if you've been staying are more of a cognitive or healthcare issue. 😂

So, you remember all the hotels where you've stayed, or keep records of everything? hmmmh

[2baht]

5 hours ago, redwood1 said:

I dont think I have ever rented a room for more than 500 a night.

That's pretty cheap, Charlie! 😏

[Paul Henry]

Problem may be lack of maintainance and cleanliness of three star and down.Last few I stayed at at Pattaya and Jomtien were a disgrace to the hotel industry,torn ,dirty linen and walls and floors that had not been cleaned in years. Now I pay alittle extra and enjoy my stay.

[BoganInParasite]

My wife's homestay and most other accommodation businesses up here in northern Nan province largely cater to low-mid middle income Thais living in Bangkok and surrounding provinces. No surprise that her sales were down 30% over the past 12 months and based on her monitoring of local competitors via online sales sites, they seem to be doing a bit worse. Not uncommon to get automatic cancellations a week out from the stay when the online booking site is unable to access sufficient funds in the guest's card account.

[Gecko]

5 hours ago, redwood1 said:

I dont think I have ever rented a room for more than 500 a night.

Me too.  My budget is usually 500-600 per night. Would rather spend the money for shopping, food and entertainment.

Actually my first room in Thailand back in 2001 was 50 baht per night. It was ok, jus ta bed in a tiny room. But yes, some of the cheap rooms at that time looked exactly as the ones you can see in "The Beach". 😄 

[RichardColeman]

Wonder if the mad and insane baht conversion is anything to do with it. Seems to me the baht explodes when tourism is low to make up the numbers

[NorthernRyland]

1 hour ago, Ben Zioner said:

Are u Thai?

I stayed at plenty good 800 baht rooms. If they're good enough for the Thais they're good enough for me. 

[Kinok Farang]

11 hours ago, DrPhibes said:

Nit noy, very pleasant!

Yes,I've found some mosquitoes to be very convivial.

[Kinok Farang]

I have stayed in 74 Thai provinces. "Guess the other 3" .

Started off in 2005 in 200 baht a night hotels and was quiet happy doing it that way.Then covid hit and i found out i could get a 2000 baht room for 500.

That spoilt me for staying in shiitholes but still limit myself to 500.Currently in Phuket paying the same for a clean bed,wifi,kettle,tv and fridge.

[Sydebolle]

Supply and demand, value for money, location - need I say more?