High Season And No Drop In Hotel Prices

[gk10002000]

I looked over a few of the usual hotels and don't see much price lowering going on. They still seem to be holding on to their concept of "high season" around November 1. These guys don't get it. They are going to get slaughtered tourist wise if they keep raising prices as usual. They need to roll out the welcome mat and keep prices right where they are in the off season.

[BugJackBaron]

I looked over a few of the usual hotels and don't see much price lowering going on. They still seem to be holding on to their concept of "high season" around November 1. These guys don't get it. They are going to get slaughtered tourist wise if they keep raising prices as usual. They need to roll out the welcome mat and keep prices right where they are in the off season.

I talked to one hote on Buddha hill; they said they will keep there room rates 800-1200.

The hotels you see on the internet are not budget or even middle level hotels but usually

high end(2000 baht + per night). I wonder if the economics

is different for them as opposed to budget and medium priced places.

Apex at 550 baht a night for example usually does not change their

price according to season.(speaking as a former Apex stayer)

[gk10002000]

I never stayed at the Apex. Eat there a lot though. I have stayed at Flipper Lodge, Flipper House, Eastiny Place, Lek Hotel, Diana, and Intown Holiday. I loved the Flipper Lodge in the summer when they had a 5 for 7 price down. For that rooftop view and the pool, I was quite happy for an average price of about 580 baht as I recall.

I always wanted to stay at some of the places over on buddha hill because I don't mind some peace and quiet, but I never did it yet.

I guess I will see what happens this year. I just emailed the flippers. I will be interested to see if they quote me a discount or weekly rate.

On a side note, I am in Seattle at the moment and saw a nice small Indian (India people, not American Indians) downtown. Price was free and had some fine musicians and dancers. Tomorros are several sitar players. While meandering around town a bit, I ran into several Thai Places. Gosh I miss Thailand. Was there all of March and some of April this year. Should be back very soon. Still tossing the coin as to whether work the rest of the year or take the rest of the year off. I am tired.

[jdinasia]

Mortgages and employees still have to be paid and high season is when they make the cash. If you charge 40% more and lose less than that in business looking for the cheapest deal, you gain

[gk10002000]

Mortgages and employees still have to be paid and high season is when they make the cash. If you charge 40% more and lose less than that in business looking for the cheapest deal, you gain

I understand. I also personally have avoided repeating business at one of the places I mentioned above because they raised prices automatically regardless of my previous business and despite the fact they were no more busy than usual. Just rote price increasing. There is value to repeat customers that should be considered.

I know something of the hotel business. I know several major hotel chains in the Los angeles area that raise their rates by the minute as their occupancy fills up and the night gets later! You call back and the rate has changed again! I know they have their business models and optimization models. I also know I avoided them the next time.

I am old fashioned on my business models. More business is good. If your hotel is not full, you are charging too much. Of course that has its limits, but more business, with satisfied customers, is better than gouging 40% of the people.

[jdinasia]

gouging? are you really whinging on about 580 baht a night hotels?

Obviously paying the mortgage and employees and staying in business throughout the year ... ah ... why bother!

Stay home!

[Bangyai]

You'll probably find that if you turn up here you'll have a lot more bargaining power when you walk into reception and deal with someone face to face than you will on the internet. I have often been to Pattaya when it is quiet and been quoted 1200 for a room. After a polite smile and a thankyou as soon as I leave to go the price starts tumbling. I don't really like this ' try it on ' attitude and normally go somewhere else anyway.

[cali4995]

You really do have to negotiate. Places like the Apex that have one posted price are

a rare exception. I'd guess 90% of hotels have not updated their prices on websites

or even those posted in front of establishment to reflect current prices. Even though

occupancy rates are extremely low, and there are so many new places about, the

thinking seems to be, charge as high a price as the tourist is willing to pay. Common

business sense in trying to encourage repeat visitors with fair charges is just absent.

Edited October 12, 2008 by cali4995

[jts-khorat]

Mortgages and employees still have to be paid and high season is when they make the cash. If you charge 40% more and lose less than that in business looking for the cheapest deal, you gain

Also it is a fact that many of those hotels have contracts with big international travel resellers whose catalogues and brochures are printed months in advance. Now lowering prices on short notice for the walk-ins and small travel agencies who are flexible enough to be able to quote them will not make a good impression with the big guys -- and their business in the coming years counts much more than disgruntled potential guests right now.

[sotsira]

I looked over a few of the usual hotels and don't see much price lowering going on. They still seem to be holding on to their concept of "high season" around November 1. These guys don't get it. They are going to get slaughtered tourist wise if they keep raising prices as usual. They need to roll out the welcome mat and keep prices right where they are in the off season.

November 1 is high season so why would you expect any price lowering?

I think you have your high and low seasons mixed up maybe, as high season is just about to start and go on for the next six months, so if anything prices will be going up this month.

[jdinasia]

Mortgages and employees still have to be paid and high season is when they make the cash. If you charge 40% more and lose less than that in business looking for the cheapest deal, you gain

Also it is a fact that many of those hotels have contracts with big international travel resellers whose catalogues and brochures are printed months in advance. Now lowering prices on short notice for the walk-ins and small travel agencies who are flexible enough to be able to quote them will not make a good impression with the big guys -- and their business in the coming years counts much more than disgruntled potential guests right now.

good point!

[NanLaew]

The OP may also consider that with the current global financial toilet syndrome (that's money you hear flushing away), the traditional 'business models' may not have a whole lot of relevance to those in the hospitality industry right now.

I know something of the hotel business. I know several major hotel chains in the Los angeles area that raise their rates by the minute as their occupancy fills up and the night gets later! You call back and the rate has changed again! I know they have their business models and optimization models. I also know I avoided them the next time.

They used to do that at the old MMM on Patpong years ago. During the intense 'short-time' period between 10pm and 2am, rooms were pricey but if you hung out till after the bars closed, you could get a suite for 300 baht. Just had to make sure you caught the room service ladies before they knocked off!

I saw the same years ago with an Indian-managed hotel in Galveston. I wanted to book a minimum of 2 rooms for a 6-month stay by some engineers and tried to work out a discounted rate for this guaranteed long-stay. The manager insisted on a Mon-Thurs 'low' rate and a Fri-Sun 'high' rate (because of the tourists at the weekend) and would not negotiate. He also had an even higher tariff for any single room on any single night over the weekend. I ended up renting a trailer, which despite having to pay the 6 months up front, was cheaper and less hassle.

[Tolley]

I wouldn't expect prices to go down rather they will probably go the other way...TIT

I wonder if the Xmas New YEear season will still be chock a block.

I just booked a ticket from Sydney for the Xmas holiday season 19 Dec to Jan4 and the cheapest ticket i could get was 2157 dollars and on top of that the Aussie dollar is in the doldrums at 22 to the Baht from32 two months ago.

I wonder how many people will change their plans due to the deteriorating economic situation and the internal problems in Thailand.

[gk10002000]

gouging? are you really whinging on about 580 baht a night hotels?

Obviously paying the mortgage and employees and staying in business throughout the year ... ah ... why bother!

Stay home!

Hey JDINASIA, get off your high horse. I never whined about anything or gouging. I was pointing out the obvious. People are traveling less, the economy is not great, the foreign exchange rates are not great, and if Thai hotels keep trying to raise prices as usual, they will probably lose more business. Thailand toursim is down signiicantly, and the political environment is not a big draw for new business.

You are free to go book whatever hotel you want and pay any seasonal price you want. I am sure you enjoy the mandatory Xmas or New Years "gala" charge even if you have plans with friends at other places too. Please, by all means, if you feel it is your duty to pay whatever price is brought forth and if you think it is your duty to support everybody's mortgage and employee payrolls, then just stand on 2nd road and give out all your millions.

[kedawi]

I think there is a distinct possibility that Pattaya may benefit from the "Wal-Mart" effect...in fact it could be re-named the "Pattaya" effect.

I mentioned this elsewhere.....if you are a middle-aged western male, you will have lost 25% of your holdings on the stock market, you house too is not only worth less but virtually unsalable and you will shortly be laid off if you are not already retired...so the answer is to "give up" and go and have a blast in somewhere cheap cheerful and sexy whilst you are still physically and financially able.

i.e. do it now while you still can and to hel_l with the consequences.

[Tolley]

I think there is a distinct possibility that Pattaya may benefit from the "Wal-Mart" effect...in fact it could be re-named the "Pattaya" effect.

I mentioned this elsewhere.....if you are a middle-aged western male, you will have lost 25% of your holdings on the stock market, you house too is not only worth less but virtually unsalable and you will shortly be laid off if you are not already retired...so the answer is to "give up" and go and have a blast in somewhere cheap cheerful and sexy whilst you are still physically and financially able.

i.e. do it now while you still can and to hel_l with the consequences.

how did you know???

[Guderian]

I don't really pay much attention to hotels as I live here, but even I have noticed several places on the Baht Bus run into town from Jomtien that are advertising cheap rates at the moment. This is on Thappraya Road, going up the hill from Pattaya. Both Mr. Mac's and the Sevenoaks Inn have had big banners outside proclaiming special discounts.

If you don't mind staying in Jomtien, there's a little lane running parallel to Thappraya Road, just off Dongtan Beach by the Police Box, that's got several small hotels along it (try the Comeback Inn). Prices are negotiable at the moment, but I have heard that 500 Baht will get you a bery nci e room with TV, fridge, AC, hot water, etc.

[torrenova]

I've lived in Pattaya for quite a few years and have seen this week some hotels actually moving high season prices from November 1st to October 1st and stretching it out until March 31st. Absolutely stupid. Sure, some people come for Loy Krathong but that is in November. Gouging people in October is madness.

On a similar point, some condo rentals will not reduce their prices even though they are now sitting empty with few bookings or enquiries. Houses seem more easy to discount.

I do some business in this field and am talking to owners about whether I can continue to represent them if they are unwilling to be more flexible in their approach.

[moo9]

Hi,

honestly I think that lowering prices would not bring more people to Pattaya, low - or high season.

This year will see the impact of the global financial crisis, higher energy costs etc.

People in the developed countries will try to save where ever they can, shopping, leisure activities, no new car, no travel. And that has nothing to do with the fact whether a hotel costs 200 Baht a night more or less.

Cheers

Moo9

[Pattaya Diver]

I think I'd agree with Moo9. So much bad stuff is happening inside and outside Thailand, price is not the deciding factor. This story points out that the Sunbeam has been running at 20% occupancy since the PAD protests started and that's despire running room rate promotions monthly. You can only cut so far.

[gk10002000]

I would be content if they just kept things relatively constant. I did just get an email response back from Flipper Lodge. They said they are booked full starting November 8th and could only book me from Oct 25 up to Nov 8. But they would not quote me a rate. Not sure what they are on about. No big deal. I will book something somewhere when I get there.

[gk10002000]

I don't really pay much attention to hotels as I live here, but even I have noticed several places on the Baht Bus run into town from Jomtien that are advertising cheap rates at the moment. This is on Thappraya Road, going up the hill from Pattaya. Both Mr. Mac's and the Sevenoaks Inn have had big banners outside proclaiming special discounts.

If you don't mind staying in Jomtien, there's a little lane running parallel to Thappraya Road, just off Dongtan Beach by the Police Box, that's got several small hotels along it (try the Comeback Inn). Prices are negotiable at the moment, but I have heard that 500 Baht will get you a bery nci e room with TV, fridge, AC, hot water, etc.

I haven't quite wandered down that street, but I know about where you mean. Thanks

[jdinasia]

gouging? are you really whinging on about 580 baht a night hotels?

Obviously paying the mortgage and employees and staying in business throughout the year ... ah ... why bother!

Stay home!

Hey JDINASIA, get off your high horse. I never whined about anything or gouging. I was pointing out the obvious. People are traveling less, the economy is not great, the foreign exchange rates are not great, and if Thai hotels keep trying to raise prices as usual, they will probably lose more business. Thailand toursim is down signiicantly, and the political environment is not a big draw for new business.

You are free to go book whatever hotel you want and pay any seasonal price you want. I am sure you enjoy the mandatory Xmas or New Years "gala" charge even if you have plans with friends at other places too. Please, by all means, if you feel it is your duty to pay whatever price is brought forth and if you think it is your duty to support everybody's mortgage and employee payrolls, then just stand on 2nd road and give out all your millions.

I would be content if they just kept things relatively constant. I did just get an email response back from Flipper Lodge. They said they are booked full starting November 8th and could only book me from Oct 25 up to Nov 8. But they would not quote me a rate. Not sure what they are on about. No big deal. I will book something somewhere when I get there.

Hmmmmm so the place you wanted to be is FULL part of the time at least?

You also seem to have brought in even more issues that you obviously will not be subjected to! and yes you are the one that mentioned 'gouging'

[Godolphin]

I just booked a ticket from Sydney for the Xmas holiday season 19 Dec to Jan4 and the cheapest ticket i could get was 2157 dollars and on top of that the Aussie dollar is in the doldrums at 22 to the Baht from32 two months ago.

I just booked a flight with Jetstar from Melbourne, late Dec to late Jan: about $1700AU. All the other airlines were up around the 2000+ range.

I think that Rudd's package, announced today and yesterday, has already bolstered the economy and is going to see the $OZ go up - 24 baht today.

But I agree with you. Some very uncertain and challenging times ahead.

[torrenova]

But no need for hotels who used to start high season Nov 1 to start it Oct 1. That is not discounting, that is putting the price up in spite of fewer people. Thai logic I know but bloody stupid.

[tropo]

But no need for hotels who used to start high season Nov 1 to start it Oct 1. That is not discounting, that is putting the price up in spite of fewer people. Thai logic I know but bloody stupid.

If they're all doing it, then why not? Pattaya doesn't have a well defined high season....just a gradual rise and fall toward the end of the year. It's really anyone's guess as to when this illusive "high season" starts and finishes.

[gk10002000]

gouging? are you really whinging on about 580 baht a night hotels?

Obviously paying the mortgage and employees and staying in business throughout the year ... ah ... why bother!

Stay home!

Hey JDINASIA, get off your high horse. I never whined about anything or gouging. I was pointing out the obvious. People are traveling less, the economy is not great, the foreign exchange rates are not great, and if Thai hotels keep trying to raise prices as usual, they will probably lose more business. Thailand toursim is down signiicantly, and the political environment is not a big draw for new business.

You are free to go book whatever hotel you want and pay any seasonal price you want. I am sure you enjoy the mandatory Xmas or New Years "gala" charge even if you have plans with friends at other places too. Please, by all means, if you feel it is your duty to pay whatever price is brought forth and if you think it is your duty to support everybody's mortgage and employee payrolls, then just stand on 2nd road and give out all your millions.

I would be content if they just kept things relatively constant. I did just get an email response back from Flipper Lodge. They said they are booked full starting November 8th and could only book me from Oct 25 up to Nov 8. But they would not quote me a rate. Not sure what they are on about. No big deal. I will book something somewhere when I get there.

Hmmmmm so the place you wanted to be is FULL part of the time at least?

You also seem to have brought in even more issues that you obviously will not be subjected to! and yes you are the one that mentioned 'gouging'

You are a sad person with a hyper active imagination. Run along now. I think you need some serious massaging. I didn't say I wanted flipper lodge. I might depending on what they charge and their availability. It has been adequate in the past. Since I did not get any rate information and they don't meet my availability needs, I go elsewhere. It is as simple as that.

[cali4995]

Occupancy rates are low at many hotels and apartments. As it is the low-season I

had been researching new apartments thinking it was a good time to move but

many places quote ridiculous inflated prices I guess just to see if you will pay it?

You really have to pit one against the other and encourage them to discount. I even

had one place tell me that if I moved-in, paid deposits etc., the rent would INCREASE

starting in OCT for the "high-season". Ha-Ha. Not going to be a high-season this year.