Backward Logic

[pointofview]

Reported in todays Pattaya mail: Local hotels are to substantialy increase their room rates next year to bring them in to line with othere asian destinations!

I wonder if this is a wise move, will it not further deter tourists as lower room rates are part of the attraction. The so called 'quality tourists' may or may not mind a few hundred or so more extra baht - but then they would require better standards.

Surely these people being paid to promote tourism should be promoting the lower room rates as an attrtaction. Do thais have a backward logic - or is it me!

[Mighty Mouse]

Unfortunately hotel management rarely think about tourism when they contemplate raising their room rates. They are more interested in their bottom line.

Thai mentality dictates that when business is falling, raising prices is the best way to compensate.

The four and five star Thailand based hotels may continue to raise their rates in line with other Asian hotels in their chain. If they do, I doubt that there would be too much of a flow on effect to the two and three star independent hotels. In fact it may be a good thing for some of those smaller hotels. They could gain increased patronage from those travellers who refuse to pay extra for a hotel room.

[londonthai]

now is the high season - rising prices the next year is just a few months too late. If they rise the prices the tourists will go somewhere else in thailand - hua hin, cha am or even phuket. And it will be the competition for the guests which will lower and stabilise the prices

[Gary A]

Nothing new here. It has always been standard procedure to raise prices when business is bad to make up for the loss of customers. And, YES, I think it is indeed counter productive.

[think_too_mut]

Nothing new here. It has always been standard procedure to raise prices when business is bad to make up for the loss of customers. And, YES, I think it is indeed counter productive.

Who said business is bad?

Last month, I could hardly find a room in Pattaya, rock bottom low season. Looks more like they will rase hotel rates because they can.

The prices for Americans have gone up 25% by dollar depreciation, has Thailand seen massive losses?

[cm-happy]

ah well, since we're speaking about Pattaya, perhaps the room rate increase will include a FREE girl or boy for the visitor during their stay.

[tartempion]

Several times/year I stay a few days in Khon Kaen, usually at the Sofitel Raja, possibly "the only 5 star hotel in Isaan"

Years ago I paid 1800 baht/night, an excellent deal that was.

In 2005 I got a promotion 4400 for two nights with 2 free buffets for two persons and upgrade to suite.

2006 got same promotion for 4600.

Booked this week for Januari, 5700, no more upgrade to suite and only one buffet for two. (the buffet is good value)

This will be my last stay at the Sofitel. I have my birtday then, so it will be a treat, the last treat there.

There are other good choices in the 1 to 2k bracket.

For me it's clear: They raise their prices: I find decent places in a lower price bracket.