Phuket Resort Tells Staff: Take High Season Leave

[alanmorison]

ONE of Phuket's largest and most successful resorts has asked its staff to take accrued leave this high season, a move likely to be repeated at many smaller resorts.

Concern about booking levels at the huge Hilton Arcadia Phuket Resort and Spa for January and February has led to a memo being issued suggesting the action.

And remember, this is happening in November, usually the first of a run of revenue-generating high-season months.

That's an indication that 2009 will be even worse than feared, without the cash cushion of a prosperous high season.

-- All the latest on Phuket's economy at www.phuketwan.com

Edited November 19, 2008 by alanmorison

[madmitch]

ONE of Phuket's largest and most successful resorts has asked its staff to take high season holidays or unpaid leave, a move likely to be repeated at many smaller resorts.

Concern about booking levels at the huge Hilton Arcadia Phuket Resort and Spa for January and February has led to the ''take-your-leave now'' decision.

And remember, this is happening in November, usually the first of a run of revenue-generating high-season months.

That's an indication that 2009 will be even worse than feared, without the cash cushion of a prosperous high season.

-- All the latest on Phuket's economy at www.phuketwan.com

I have heard from an inside source that it's the cancellation and the doeturn in booking of company functions and conventions that is the main problem at the Arcadia, though general bookings are down as well.

Does anyone know the deal with package holidays? If a major tour operator block books a number of rooms for a particular time yet can't sell all of them, does the hotel still get paid? Are there cancellation clauses whereby the tour company can return the rooms within a particular timeframe? I would assume that the rooms are then resold, particularly on last-minute booking websites. I'd be interested to know.

[huggybear]

ONE of Phuket's largest and most successful resorts has asked its staff to take high season holidays or unpaid leave, a move likely to be repeated at many smaller resorts.

Concern about booking levels at the huge Hilton Arcadia Phuket Resort and Spa for January and February has led to the ''take-your-leave now'' decision.

And remember, this is happening in November, usually the first of a run of revenue-generating high-season months.

That's an indication that 2009 will be even worse than feared, without the cash cushion of a prosperous high season.

-- All the latest on Phuket's economy at www.phuketwan.com

If you are familiar with The Hilton, take this with a "grain of salt".

First off, they have 800 rooms, so their 35% occupancy level is larger than most of the resorts here.

Secondly, for what they charge, that resort is old and rundown. Great location, but the buildings themselves have mold on the outside, need to be repainted etc. The rooms, also getting a bit shabby. Great location, but then Karon Beach Resort is actually on the sand....

So they have staff to cover 800 rooms, but now only need staff to take care of 400. So this news is not surprising, I don't think alarming.

There's my 2 satangs. Cheers, HB

[jts-khorat]

ONE of Phuket's largest and most successful resorts has asked its staff to take high season holidays or unpaid leave, a move likely to be repeated at many smaller resorts.

Concern about booking levels at the huge Hilton Arcadia Phuket Resort and Spa for January and February has led to the ''take-your-leave now'' decision.

And remember, this is happening in November, usually the first of a run of revenue-generating high-season months.

That's an indication that 2009 will be even worse than feared, without the cash cushion of a prosperous high season.

-- All the latest on Phuket's economy at www.phuketwan.com

I have heard from an inside source that it's the cancellation and the doeturn in booking of company functions and conventions that is the main problem at the Arcadia, though general bookings are down as well.

Does anyone know the deal with package holidays? If a major tour operator block books a number of rooms for a particular time yet can't sell all of them, does the hotel still get paid? Are there cancellation clauses whereby the tour company can return the rooms within a particular timeframe? I would assume that the rooms are then resold, particularly on last-minute booking websites. I'd be interested to know.

A hotel of this size where the concept is mostly geared towards corporate group bookings will naturally be more affected than others. And the value they offer, as was pointed out, might not be that good to other competition within Thailand or the region.

As such I believe this news is not unexpected, and also not very alarming.

Certain sectors of the hotel industry will suffer more than others, but with an extremely good season just past, none of the big hotels should have any problems to sit it out for a year and maybe concentrate a little bit on schooling their staff to deliver the service one expects nowadays from a 4-star resort.

In this context, I am actually surprised that Hilton group would not do this but instead react very Thai -- so maybe they #should# be on the loosing end of current economic woes.

As a contrast, the Laguna group talked about falling revenues, but also that they will shift their marketing to accommodate for the changes in regions where tourists come from.

The local tourist market is evolving and as I said in other places, a lean year for Phuket will wean out scammers and resorts not able to deliver good service, so it should be seen as an opportunity for Phuket.