High-end Hotels Plan Rate Hike Amid Tourist Surge

[webfact]

File photo for reference only. Courtesy: Wikipedia

 

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.

 

-- 2024-10-17

 

 

[daveAustin]

Don’t blame them. I would if I owned one. High end hotels are still generally well priced (at least compared to 1st world countries) in Thailand. 

[Eloquent pilgrim]

15 minutes ago, webfact said:

As the tourism sector anticipates a booming high season

 

And I anticipate winning millions on the lottery this month 

[lordgrinz]

An act of lunacy.

[Rolo89]

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. 

[bkk6060]

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.

 

 

[Artisi]

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.

[dinsdale]

Prices have always gone up in the high season. Not sure why this is even a story.

[Karma80]

The market will dictate what people are willing to pay. The one thing that Thailand doesn't have a shortage of is options for accomodation. They should be mindful that price is perhaps the biggest factor when choosing Thailand as a destination, and not get too full of themselves.

[ChipButty]

Lets see the end of this month, right now down in Phuket it looks a bit slow, the weather is not helping the rains have normally stopped by not in the south of Phuket, 

I was down Nai Harn beach this morning, I dont see any tourist, only expats that live here, 

[ronster]

Prices have been high for ages in samui when I looked and the prices over Xmas and new year were a joke for around 12 nights .

Bandara was something like 275,000 but room only and anantara was 450,000 for an average looking room described as a junior suite . These are not even high end hotels 😄

[connda]

When the going gets great, the great price gouge.

[Dave0206]

If you want to travel in high season expect to pay hotel and air transportation @ a higher rate its been pointed out its merely supply and demand. 

Any parents that can only travel @ school holidays will testify to that.

Luckily for most of us oldies who still work we choose our holidays when work colleagues don't want so we can book well in advance at cheaper times

[Frankie baby]

Accommodation wise, Thailand as always been very good value. However, I expect the block-bookings in the upper-class hotels will bring down the inflated walk-in prices.

[Tongjaw]

3 hours ago, lordgrinz said:

An act of lunacy.

Why? Happens in every other country, flights, accommodation all rise with demand. 

[lordgrinz]

1 minute ago, Tongjaw said:

Why? Happens in every other country, flights, accommodation all rise with demand. 

 

Wasn't it just last week that the Hotel Industry were crying to TAT to help them because of low bookings?

[dick turpin]

Think that should read "tourist gouge"

[baansgr]

4 hours ago, daveAustin said:

Don’t blame them. I would if I owned one. High end hotels are still generally well priced (at least compared to 1st world countries) in Thailand. 

In first world countries salaries are 10 x what they are here, food is more expensive and property prices are a fraction of the cost here...it's just most.grubbing, but hey, can still get a fan bungalow on Samui for 450 Baht

[soi3eddie]

4 hours ago, Rolo89 said:

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

 

Yes. Most hotels know their seasonal demand and increase prices accordingly. Back in April, I was looking to book my favoured 3 star hotel in Pattaya for 28th December to 5th  January. I know the manager and asked to book. Already fully booked. Looked on Agoda for nearby, similar hotels and the prices already more than doubled. I understand the surge and accept it. Many businesses use "dynamic" pricing based on demand. If they didn't, they wouldn't survive.

 

[Burma Bill]

4 hours ago, webfact said:

posh hotel operators are expected to increase room rates.

 

thailand - the hub of GREED!

[terryofcrete]

1 hour ago, ChipButty said:

Lets see the end of this month, right now down in Phuket it looks a bit slow, the weather is not helping the rains have normally stopped by not in the south of Phuket, 

I was down Nai Harn beach this morning, I dont see any tourist, only expats that live here, 

Maybe the word is spreading that Phuket...aka..LittleMoscow... is a bad choice ?

[Tongjaw]

40 minutes ago, lordgrinz said:

 

Wasn't it just last week that the Hotel Industry were crying to TAT to help them because of low bookings?

They will increase if the demand increases, as I said it happens in all countries. I was in Singapore on a  business trip during then F1 last month. The hotel the company booked is normally S$300.00 was costing S$575.00 die to high demand. 

[bbbbooboo]

hmmm… that’s a diabolically clever move. Increase prices to make Thailand even more attractive as a tourist destination

[hotchilli]

4 hours ago, lordgrinz said:

An act of lunacy.

Should change the name from high season to gouging season... or does the latter apply all year?

[Will B Good]

 

 

Supply and demand I guess.....if they have the numbers who will pay those prices....then those are the prices.

 

It will balance out to an extent when prices drop during the low season.

 

Alternatively do as we do now......house/pet sit for free.

 

 

[ourmanflint]

I noticed this too, prices on Agoda for January are up 70-100% on same time last year for a lot of mid-range 4 star hotels 

[shackleton]

Tourists will always come to Thailand 

It's the quality ones the Thai Tourist office wants who  spend plenty 💰 

And there is plenty of them  according to the Thai tourist board 🥳

It's probably the lower end  tourist  on a budget where most 2-3 star hotels feel the pinch 🤔

[newnative]

     Earlier in the year the same trend was noted with hotel bookings--high-end hotels were doing better than lower-end hotels.  So, that trend is continuing.  Several posters on AN have repeatedly claimed that high-end tourists have abandoned Thailand due to the numbers of lower-end tourists that visit.  Nice to see that is actually not the case.

[ikke1959]

This smart thinking... Lower occupancy we raise the prices ... result will probably be even more lower occupancy

High season we raise the prices every time and we complain why the occupancy is still down...Than we complain that we have so many costs and ask for help of the Government, instead of lower the prices which will make the hotels more accessible for more tourists surely now the THB is soo expensive... 

 

You can search on website in foreign currencies and use  the exchanges rates to see what the effects are...

 

BTW the High end tourists are not endless

 

 

[RethairedJarhead]

Surprised face: 😐