Hotel Operators Warned Against Further Discounting

[gharknes]

Prakit said, adding that cutting prices would not help operators to survive in the long term and would also damage the overall tourism industry.

I would love to hear the explanation from this prat on exactly what the above statement means, I've noticed before how Thai officials make these statements without explanation of the thinking behind them, I'm pretty sure he doesn't know lol

[Dakhar]

If stupidity could be sold, Thailand would be wealthy.

[brahmburgers]

This year, the average hotel-room rate in Bangkok is expected to be Bt2,373 a night, down from Bt2,584 last year.

When I take a break, I go to a very nice hotel in Burma. It's bt.400/night and is preferable to any hotel in Bangkok for the following reasons:

>>> each room has an entire wall which is all windows. They open to fresh air and views of blue sky and green trees, and have screens.

>>> no a.c. needed, as it's naturally cool on hot days.

>>> outside, only some smog, and no gridlock, and no ubiquitous loud noise.

One sixth the price, and ten times the appreciation factor.

[MAJIC]

What discount? Seems to me the assumption is wrong to begin with. I have not seen any reduction in prices.

This year, the average hotel-room rate in Bangkok is expected to be Bt2,373 a night, down from Bt2,584 last year.

So 211 bahts a night reduction is considered too much to bear on this price of room? what utter nonsense.

[Tejas]

What discount? Seems to me the assumption is wrong to begin with. I have not seen any reduction in prices.

This year, the average hotel-room rate in Bangkok is expected to be Bt2,373 a night, down from Bt2,584 last year.

So 211 bahts a night reduction is considered too much to bear on this price of room? what utter nonsense.

When something is grossly overpriced to begin with, 211 baht is not a real discount.

Having said that, I never believe any of the offical figures published in Thailand.

I have not seen real discounts on hotel prices.

They remain way too high for the market and quality of services.

It is no wonder that many travelers are going elsewhere.

[rfukata]

The Thai tourism industry continues to amuse me in their verbiage of strategies...

first each hotel has their right to set a retail price per room based on their marginal calculated profit. If they

can not attract or achieve these margins, then cost structures must be reanalyzed.

Needless to say, the entire global Hotel industry are facing the same problem. Why does't Prakit suggest

a 'value' marketing strategy such as 'stay 3 nights, get 4th free', or hotel's are offering free internet or

free morning buffet breakfast for 2 as part of boosting the Thai hotel association?

[Reasonableman]

OK, you got me hooked, where is it, is it suitable for a family of 4, and do you get commission???

This year, the average hotel-room rate in Bangkok is expected to be Bt2,373 a night, down from Bt2,584 last year.

When I take a break, I go to a very nice hotel in Burma. It's bt.400/night and is preferable to any hotel in Bangkok for the following reasons:

>>> each room has an entire wall which is all windows. They open to fresh air and views of blue sky and green trees, and have screens.

>>> no a.c. needed, as it's naturally cool on hot days.

>>> outside, only some smog, and no gridlock, and no ubiquitous loud noise.

One sixth the price, and ten times the appreciation factor.

[animatic]

A year ago I hade a lovelt hotel in Yangon for $50 a night,

in Bangkok it would run me more lie $150 at least.

And yes it had gorgeous views and lots of windows and great service.

[livinthailandos]

TAT & THA truly are not business people. Look from my opinion

a. At least next 2 years if a double dip recession doesn't happen, hotels along with agencies need to experiment more with pricing and find a price in which the customers are willing to pay but in which both agency and hotel still make a profit. Figure how to survive short term 2 years

b. More and more hotels are going up, competition will drive price wars

c. I wish this idiots would figure out, I need to look up but its from 2 years ago. Basically its said thailands tourists come in areas

40% Make less than $40,000 dollars a year

45% Make $40,000 - $80,000 dollars a year

15% Make $80,000 or more a year

Thailand is NOT a luxury destination,

Focus on these kinds of customers

a. backpackers ( backpackers just might turn into middle class customers or even luxury customers )

b. Families

c. Couples

d. Retiree's

I do agree discounting doesn't solve the issue, figure out what kinds of things can you offer your customers, weither its a stay 3 night pay 2 nights, include a spa treatment, free glass of wine, free internet. Smart people have already figured this out just not other people

[BlackJack]

please dont lower the price anymore as this means less tax for the government and so less free lunch for us

[LivinLOS]

What discount? Seems to me the assumption is wrong to begin with. I have not seen any reduction in prices.

Really ?? I know a hotel that charges the same now in 2010 baht for a room with wifi cable tv and a pool then I paid back in 2000 baht when it had none of those add ons and was just a bare guest house room.

Room prices really havent moved much as so much new supply has come on the market.

[LivinLOS]

I think Prakit thinks that the foreigners will come back no matter what, so we should gouge them at the earliest possibility. The low prices are there to cover over any worries about political instability, and pi$s-poor infrastructure here. If you can't offer them that, they will look elsewhere.

Having lived in a Tourist area for a bunch of years I would say that is exactly how 99% of the Thai businesses seem to think and believe.. The 'Thailand No 1', all you farangs come here so it must be the best, and no amount of shoddy service rip off or scams will stop the next lot getting off the plane.

Its reflected in pricing and key money, growth is not only assumed but its priced in, bars 3 year leases simply dont break even on todays takings, the assumption has to be made that by the end of the 3 years the takings will be up.. Its just crazy.

Since the 97 currency crisis and baht devaluation this has sort of been true.. Ever increasing numbers.. But the idea of a saturation point just doesnt seem to be realised.

Edited January 31, 2010 by LivinLOS

[madmitch]

There is so much rubbish on this thread about Thai hotel prices. Some four and five star hotels are expensive as they are throughout the world but you can always find good hotels at bargain prices in Thailand, and I include the rip-off resort areas such as Patong in this comment. You just need to research and search.

How you can compare prices in Bangkok and Yangon is beyond me; two totally different economies. How about comparing Bangkok with Singapore? The exact opposite applies.

Back to the original topic: the TAT are in a different world to the rest of us. They maybe haven't heard that people are in general looking to spend less on their holidays or they want more for their money. Hotels and guesthouses at all levels are discounting as it is better have full rooms rather than empty rooms. Simple economics.

[phetpeter]

"Tourists are concerned about the expense of travel. In Europe, they are now looking for rooms with four beds, and that trend should spread into other regions," Ekasith said.

That's the answer - put 4 beds into every hotel room in Thailand and charge per person. If you cannot find 3 people to share your room then you have to pay more. So it will usually be cheaper to hire someone to fill the extra beds for the night.

Oh! Thats a good idea, We are fleeced all over Euro and the UK from charging per person, that it has become a very unwelcome choice to stay overnight anywhere, and we tend to travel on overnight there and back. At least in Thailand if you wanna do a road trip or visit somewhere, you will think nothing of stopping at a hotel and spending the night. Maybe on a trip to BKK for passport business. No need to turn round and go back, a night out and a meal lovely! Except for the really cheap charlies outthere!

We certainly do not want the hotels to charge per person, save money they can drop the crap breakfasts, just put a kettle and mugs not them stupid cups , some tea coffee in the rooms and I for one will be happy!

[Tongdee]

Wow How can anyone that ignornant of the ways of the world atain a position of telling anyone anything. In Canada they would be asking "would you like fries with that sir, can I supersize that for you sir". I have been coming to Thailand averaging every second year for 25 years And stay 4 to 6 months.

Why?

#1....Charming, friendly, helpful, polite regular Thai people.

#2....Low priced accomodation, low priced and tastey street stall food, low priced restarants, Reasonable priced entertainment venues ( food drink & music& or dance)

#3....Beutiful islands, uncrowded beaches, Fantastic Temples, scenic naturalwonders..jungles little mountains ( I am canadian need I say more) all avalible at reasonable cost.

#4....Reasonable priced regular thai transportation. Busses, trains Nothing all inclusive, always over half full of regular Thai people.

I started my thai travels paying 100 baht a night for accomadation. Now I am up to 350 baht a night. In total I might average 1000baht a day for 4 or 6 months of the year.

Thats 180,000baht some portion of the Thai economy aquires. In my mind that makes me an asset to Thailand.

If these costs go up I will become an asset of another contry that does offer all of the above at prices I am willing to pay.

Summary Choose

1)....up 180,000 baht every year From me. 180,000baht for like me's

2).....Empty bed where I would have slept. Empty chair in restarant where I would have lunched 000,000baht in Thai economy but

With bragging rights of yer big spending "High Quality Tourists"whom may drop 40,000baht per year. (alibet in 2 weeks )

So hello Hiso stupid who purchased his economics degree without understanding the concepts.

[phetpeter]

"Tourists are concerned about the expense of travel. In Europe, they are now looking for rooms with four beds, and that trend should spread into other regions," Ekasith said.

That's the answer - put 4 beds into every hotel room in Thailand and charge per person. If you cannot find 3 people to share your room then you have to pay more. So it will usually be cheaper to hire someone to fill the extra beds for the night.

Another answer for any hotel is keep prices fair, remember most are for sleeping, in the UK the travel lodge group are good simple standards with a fair priced resturant and pub (cannot remember the names) so even if you didnt stay at the hotel/motel you would be very happy to go down for a meal. In Thailand the hotel catering overal is expensive and standards can lead to be the first place you get the s--ts from!

[nakachalet]

a brilliant idea.... indeed adding more beds, helping tourists reducing expenses and bringing in more marginal income.... fabulous....

"Tourists are concerned about the expense of travel. In Europe, they are now looking for rooms with four beds, and that trend should spread into other regions," Ekasith said.

That's the answer - put 4 beds into every hotel room in Thailand and charge per person. If you cannot find 3 people to share your room then you have to pay more. So it will usually be cheaper to hire someone to fill the extra beds for the night.

[Puccini]

I would think that the operators of these major multi billion dollar companies have a better idea on how to run their properties than any TAT mouthpiece

Hold it! This one, you cannot blame on the TAT (Tourist Authority of Thailand). Go back to the first post in this thread and read the news report and you will see that it was the president of the THA (Thai Hotels Association) who made these pronouncements.

[animatic]

Who says quality and nice surroundings must be extremely expensive in Thailand...?

Good one Dr., a quaint little bed room.

Been through Trang a couple of times, nice area.

I like most everything, but that fountain is a bit over the top...

Still it DOES stop you to look at it.

Edited January 31, 2010 by animatic

[Ronaldo69]

Sounds like a pontificating someone who's job performance is based on the numbers,

irregardless if international economic woes and localize political chaos.

He has no control over the lack of significant tourist numbers,

nor of serious worries for some of safety in Thailand right now.

But he can try to look like he is doing SOMETHING, how ever irrational.

Let those hotels starve, priced out of the REAL market, so his numbers MIGHT look good.

Yes quality before quantity, even if there are few customers period.

......irregardless?????? which means what exactly????

[Penkoprod]

Sounds like a pontificating someone who's job performance is based on the numbers,

irregardless if international economic woes and localize political chaos.

He has no control over the lack of significant tourist numbers,

nor of serious worries for some of safety in Thailand right now.

But he can try to look like he is doing SOMETHING, how ever irrational.

Let those hotels starve, priced out of the REAL market, so his numbers MIGHT look good.

Yes quality before quantity, even if there are few customers period.

......irregardless?????? which means what exactly????

http://en.wikipedia.org/wiki/Irregardless

[animatic]

I am no William F. Buckley and I do speak colloquially from time to time; nay, daily.

While I rarely liked his politics, his usage of the English language was always worth of praise.

Rather than wiki I'll use Random House.

irregardless –adverb Nonstandard. for regardless.

Origin: 1910–15; ir- 2 (prob. after irrespective) + regardless

Usage note:

Irregardless is considered nonstandard because of the two negative elements ir- and -less.

It was probably formed on the analogy of such words as irrespective, irrelevant, and irreparable.

Those who use it, including on occasion educated speakers, may do so from a desire to add emphasis.

Irregardless first appeared in the early 20th century and was perhaps popularized by its use in a comic

radio program of the 1930s.

Random House Dictionary, © Random House, Inc. 2010.

Edited January 31, 2010 by animatic

[animatic]

...someone who's job performance is based on the numbers,

irregardless if international economic woes and localize political chaos....

No matter what is happening in the REAL world,

he can NOT get the big year end bonus,

if he can't talk the numbers up.

So he tries to say SOMETHING, anything that might make

his figures handed to the boss look better.

Edited January 31, 2010 by animatic

[ding]

OK I'm done defending Thailand now.

Micro Economics 101 is now canceled in the entire country of Thailand! Chai yo!!!

We now learn that when demand is down, a contrapuntal price move is indicated. Hey I should be teaching in Thailand. I can do this thing!

When Thailand hosts the world economic forum in 2011 maybe they can share this moment of clarity with the rest of the world.

Actually, the study of economics is a bogus one, IMHO. I mean people do NOT act in their own best interest. (I know, I live in America and see chickens vote for Colonel Sanders all the time) And that is supposed to be a foundational premise of economics.

[animatic]

One thing is clear,

if you want 100 answers ask 100 economists

in the same room the same question.

Theoretical economics is not the same as applied economics modeling.

so up your answers to 150 for those same 100 voices.

So certainly you will get some chaotic 'contrapuntal' opinions sounding in that space.

contrapuntal –adjective Music.

1. of or pertaining to counterpoint.

2. composed of two or more relatively independent melodies sounded together.

counterpoint, counterpoint rhythm.

Prosody. the use of rhetorical stress at variance with the metrical stress of a line of verse,

as the stress on and and of in

Come praise Colonus' horses and come praise

The wine-dark of the wood's intricacies.

Actually I enjoyed your new coinage for the word.

Certainly short terms interests trump long term best interests in far to many peoples minds,

as best witnessed in the political spheres... or maybe oblongs...

Even that topsy turvidom is turned on its side in LOS. Logic Openly Shunned?

Edited January 31, 2010 by animatic

[ding]

Lets hope this orbit of logic is elliptical and that the gravitational forces of applied economics pulls the thing back closer to this planet.

[nakachalet]

tongdee--yes, you definitely are a very valueable asset to thailand....

and we in thailand do welcome you with open arms.... to say the least....

pls do come back again soon.

<while coming across that referenced post.... i felt like wanting to throw up too.... seriously....

it lacks basic understanding of hospitality industries and decent sensitivity and proper consideration for the hands that feed thailand....

for thailand's sake, i surely hope there is something lost in the translation process>.

Wow How can anyone that ignornant of the ways of the world atain a position of telling anyone anything. In Canada they would be asking "would you like fries with that sir, can I supersize that for you sir". I have been coming to Thailand averaging every second year for 25 years And stay 4 to 6 months.

Why?

#1....Charming, friendly, helpful, polite regular Thai people.

#2....Low priced accomodation, low priced and tastey street stall food, low priced restarants, Reasonable priced entertainment venues ( food drink & music& or dance)

#3....Beutiful islands, uncrowded beaches, Fantastic Temples, scenic naturalwonders..jungles little mountains ( I am canadian need I say more) all avalible at reasonable cost.

#4....Reasonable priced regular thai transportation. Busses, trains Nothing all inclusive, always over half full of regular Thai people.

I started my thai travels paying 100 baht a night for accomadation. Now I am up to 350 baht a night. In total I might average 1000baht a day for 4 or 6 months of the year.

Thats 180,000baht some portion of the Thai economy aquires. In my mind that makes me an asset to Thailand.

If these costs go up I will become an asset of another contry that does offer all of the above at prices I am willing to pay.

Summary Choose

1)....up 180,000 baht every year From me. 180,000baht for like me's

2).....Empty bed where I would have slept. Empty chair in restarant where I would have lunched 000,000baht in Thai economy but

With bragging rights of yer big spending "High Quality Tourists"whom may drop 40,000baht per year. (alibet in 2 weeks )

So hello Hiso stupid who purchased his economics degree without understanding the concepts.

Edited January 31, 2010 by nakachalet

[nakachalet]

BRAVO.... animatic

appreciate your research and all....

I am no William F. Buckley and I do speak colloquially from time to time; nay, daily.

While I rarely liked his politics, his usage of the English language was always worth of praise.

Rather than wiki I'll use Random House.

irregardless –adverb Nonstandard. for regardless.

Origin: 1910–15; ir- 2 (prob. after irrespective) + regardless

Usage note:

Irregardless is considered nonstandard because of the two negative elements ir- and -less.

It was probably formed on the analogy of such words as irrespective, irrelevant, and irreparable.

Those who use it, including on occasion educated speakers, may do so from a desire to add emphasis.

Irregardless first appeared in the early 20th century and was perhaps popularized by its use in a comic

radio program of the 1930s.

Random House Dictionary, © Random House, Inc. 2010.

[TAWP]

C9 Hotelworks

Can we get an image of the consultant from here that wrote the report?

[WeeGB]

Or you could let the hotels have casino and not an empty room in the country.

Let people do with their money what they like to do, its their money.

You need a draw if you want demand. The girls arn't cutting it anymore.

Didn't realise you got a free circumcision thrown in at Pattaya & Patpong, no wonder the medical tourists are back on the agenda!