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High-end Hotels Plan Rate Hike Amid Tourist Surge


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As the tourism sector anticipates a booming high season, posh hotel operators are expected to increase room rates. The latest hotel operator sentiment index suggests a rise in tourists, especially impacting luxury accommodations, while budget hotels are struggling to keep up.

 

Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), revealed that September's average occupancy rate stood at 55%, a drop from August's 62%. This is also lower than pre-pandemic levels, with 2019 figures showing 63.4% occupancy in the same period.


Diving deeper, Thienprasit noted that three-star hotels and below reported a mere 45% occupancy for September. In stark contrast, four-star and above accommodations enjoyed a higher rate of 58.7%.

 

Regional variations were also significant; northern hotels were hit hardest with a drop to 25.7%, primarily due to severe flooding. Meanwhile, central hotels led with a 64.4% rate, and the eastern region followed at 57.1%. The South and Northeast both logged 49% occupancy.

 

During the high season, luxury hotels plan to raise rates modestly, with an increase of less than 10%. However, four-star and above establishments predict room rate surges of over 20%, given their robust performance in the third quarter.

 

October's occupancy rates so far stand at 55.6%, with a predicted tourist uptick of 5-10% in the last quarter. The Chinese market remains unpredictable, with 35% of hoteliers not foreseeing more arrivals, while 27% anticipate a decline. Nonetheless, 38% expect a 10-20% rise, primarily favouring four-star hotels.

 

Concerning domestic tourism, 65% of operators foresee flat or declining bookings, with 19% predicting a drop exceeding 10%.

 

Thienprasit expressed concerns over persistent flooding, urging government intervention with relief measures to help hotels recover in time for the upcoming season. Tourism recovery heavily depends on financial assistance and reduced utility costs to offset damages caused by recent floods, reported Bangkok Post.

 

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-- 2024-10-17

 

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Non story - they all already use IT systems that increase the prices with demand to make the most possible.

 

Prices for the December will have already been increased to make money on the holiday surge. 

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18 minutes ago, bkk6060 said:

Most of the upper Marriotts are around 8,000 b a night starting next month.

JW is 9,000 and up.

Yes, tourists are willing to pay it.

 

 

more fool them.

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