Pattaya Hotel Prices To Rise

[morphic]

According to the Pattaya Mail, it has been decided by the government that Pattaya hotel prices are too low in comparison to their competitors (who ever they are supposed to be). So next year hotels in Pattaya are being asked to raise their prices in an attempt to go upmarket.

When I read this I was just shocked. There was no talk of value for money and quality, just some kind of average price comparison. Does it not occur to these people that in a free market prices are determine by supply and demand. Assuming tourists are somewhat rational surely they will react to higher prices (for the same thing) by prefering to go elsewhere. I know I will. So Pattaya will put off both the low and the the high end.

Unless of course certain of these tourists have no choice, Pattaya offering something that other locations don't. Now, lets think about what that could be. Could it be the wonderful beaches? Hmmmm....nope, the beaches are filthy. Could it be the various high end attractions, such as Starbucks, Sizzlers, the shopping malls, spas etc. Hmmm, well, no, these are everywhere...Malaysia has them, the Philippines has them, Indonesia even has them. In fact, if it was Starbucks I wanted Id just stay at home...we have one on every corner and the prices are identical. So what could it be? The food? Not really, thats pretty good across the whole of Asia. Ahhhh....I think ive got it. It could be the girls. Yes, thats it. So, the only people who will pay higher prices for the same shoddy (lets be honest) hotels are those with no immediate choice as to an alternative location. Everyone else will vote with their feet, stick two fingers up, and take their business elsewhere. So the only feasible economic justificatiion for a blanket rise in prices is that Pattaya must be offering sexual services that are essential to the economy. Thats fine, I have no objection. Trouble is, Cambodia and Jakarta and the Philippines also compete in that area and its just a matter of a short time before that fact is well known. So my conclusion is that this decison to get upmarket by the cunning strategy of raising prices is another example of mad policy from the land of smiles.

Then again, maybe Im wrong and higher prices is exactly what the high end tourist has been clamouring for.

[tropo]

Don't believe everything you read in the Pattaya Mail. This article does rate as one of the more ridiculous however they're not rare.

It won't happen because the government or council don't have the authority to force private businesses to raise their prices.

The only reason why the prices are lower in Pattaya is because there is an oversupply of accommodation at all levels most of the year. If these hotels could get higher rates, they would already be charging more without having to be "asked".

You maybe surprised to learn that some of us are not in Pattaya for the girls. I enjoy living here without ever spending a baht at beer bars or a-gogos.

Edited November 11, 2007 by tropo

[morphic]

You maybe surprised to learn that some of us are not in Pattaya for the girls. I enjoy living here without ever spending a baht at beer bars or a-gogos.

My point was that in the absence of Pattaya's seedier side (which I think makes for an interesting and friendly atmosphere whether you partake or not) there is little to offer in comparison to any other beach resort. So if hotel prices did rise there would be no resaon for people to not go elsewhere unless it was the seediness that had attracted them in the first place, that being Pattaya's differentiating feature. If that side as wiped out we would have Starbucks, Sizzlers, malls...nothibg else...I for one would never bother coming back. But even for those that are attracted to the seedier side, higher prices would still drive visitors to other locations eventualy.

Over supply or not, value is always relevant. Increase prices and people will be driven away. Once the "low end" is driven away I also think Pattaya's charcter will be destroyed.

[tropo]

My point was that in the absence of Pattaya's seedier side (which I think makes for an interesting and friendly atmosphere whether you partake or not) there is little to offer in comparison to any other beach resort. So if hotel prices did rise there would be no resaon for people to not go elsewhere unless it was the seediness that had attracted them in the first place, that being Pattaya's differentiating feature.

Even if the prices of the hotels rose to equal other beach resorts, Pattaya would still have many advantages over other beach resorts...that's why I'm here. I don't stay in hotels, but if you could name any resorts that can equal Pattaya in all around value, please do so.

Edited November 11, 2007 by tropo

[torrenova]

A junk article which would be more suited to theat junk paper the Pattaya People Weekly or shoud that be the Colov bullshitter.

[JSixpack]

There was no talk of value for money and quality, just some kind of average price comparison. Does it not occur to these people that in a free market prices are determine by supply and demand.

Then again, maybe Im wrong and higher prices is exactly what the high end tourist has been clamouring for.

Nah. It's not a free market here, you see. "Cartel" is the operative word. Consider motorbike taxis.

Anyway, the article (not just that part, but the whole article as well) offers some verification of what the owner of Shenanigan's was saying, that got all the flak in another thread in this forum.

And tourism is doing quite well in Patters. Seen all those Chinese on Walking Street?

[MisterFingers]

There was no talk of value for money and quality, just some kind of average price comparison. Does it not occur to these people that in a free market prices are determine by supply and demand.

Then again, maybe Im wrong and higher prices is exactly what the high end tourist has been clamouring for.

Nah. It's not a free market here, you see. "Cartel" is the operative word. Consider motorbike taxis.

Anyway, the article (not just that part, but the whole article as well) offers some verification of what the owner of Shenanigan's was saying, that got all the flak in another thread in this forum.

And tourism is doing quite well in Patters. Seen all those Chinese on Walking Street?

Motorbike taxis operate in a "cartel"?

Most of them charge only 20 baht for Thai fares.

Why would they ever want to go lower than that?

And even if they did, who's stopping them? The Thai government?

It seems that the government wants the hotels to charge more.

I agree with whoever thinks this is an incredibly stupid and ridiculous request.

The hotel prices are low because of their quality and the "seediness" of the resort.

Not the other way around.

[JSixpack]

There was no talk of value for money and quality, just some kind of average price comparison. Does it not occur to these people that in a free market prices are determine by supply and demand.

Then again, maybe Im wrong and higher prices is exactly what the high end tourist has been clamouring for.

Nah. It's not a free market here, you see. "Cartel" is the operative word. Consider motorbike taxis.

Anyway, the article (not just that part, but the whole article as well) offers some verification of what the owner of Shenanigan's was saying, that got all the flak in another thread in this forum.

And tourism is doing quite well in Patters. Seen all those Chinese on Walking Street?

Motorbike taxis operate in a "cartel"?

Most of them charge only 20 baht for Thai fares.

Why would they ever want to go lower than that?

And even if they did, who's stopping them? The Thai government?

Oh, the motorcycle taxi mafia controls the motorcycle taxis and sets prices. The drivers (at the typical stand, where other drivers are around) start with a price above the set price and then negotiate down to the set price. You can test this for yourself anytime at the North Pattaya bus station, where the prices are the most ridiculous. Ask a driver for the fare to wherever; offer less (that is, offer a reasonable non-ripoff standard fare); and watch the drive want to take less but ask the "boss" and get refused.

That's merely one example.

Odd sense of economics here, yes indeed. I love the "raise the rent 'cause we're losing money 'cause nobody's renting from us" mentality--amazing, no?