Bangkok hotels prices plummet as Bangkok's seizure continues

[webfact]

Bangkok Hotels Prices Plummet as Bangkok's Seizure Continues
By Wimintra

BANGKOK: -- Wait for it travelers. Bangkok is going to be a paradise for travelers once the political turmoil has ended. Just when that will be however, is another question entirely.

After speaking with many hotels located along the main ‘Battle Grounds’ of the so-called ‘Bangkok Shutdown’, it seems that right now hotels right across the city are suffering. Should there be any parting of the ubiquitous political cloud enshrouding Bangkok, rest assured that hotels will be jumping at every chance to try and grab as many as travelers as possible to offset the losses that have been mounting daily now for the past week of protests and the several weeks running up to the city’s shutdown. You can look forward to discounts and room rates being slashed to lure the visitors back to this great city.

“The government will only do promotions such as grand sales to lure back tourists, but this will not be enough, and hoteliers will try harder to play with pricing. It’s not 100%, but we expect to see this situation” said Chanin Donavanik, the chief executive of the Thai hotel chain Dusit International. He added that the industry, particularly in Bangkok, cannot avoid a price war once the political problems have been solved.

To try and mitigate the hit, a lot of hotels downtown are trying to survive by giving attractive discounts for Thai citizens with an assortment of extremely discounted room-rates and up to 20% discount on F&B, laundry and spa services. Some online hotel booking apps are even running special promotions to lure the ‘mob’ market.

Despite the unbelievably low room rates being offered for Thais, these promotions haven’t done much to curb the losses. Perhaps because the people who could most likely afford to stay in higher end hotels in Bangkok already live in Bangkok, while many of the people from up country in for the protests are sleeping in tents at each of the key rally areas.

Sugree Sithivanich, Deputy Governor for Marketing Communications at the Tourism Authority of Thailand (TAT), said travellers from Hong Kong were the most worrying group. About 40 per cent of tour packages for Chinese New Year from Hong Kong have reportedly been cancelled. For some hotels, this has been devastating as most of their business relies on the Hong Kong / Chinese market.

Generally room rate in Bangkok is lower than other Asia Pacific Destinations such as Hong Kong, Singapore and Malaysia. The rate has remained relatively unchanged since 2007. The Bangkok Shutdown has pushed the average room price to the lowest level we have seen in years.

For those that do decide to come to Bangkok, the Tourism Authority of Thailand (TAT) has set up Tourist Friend Centres (TFC) to help tourists make the most of their stay given the abnormal circumstances. The TFC’s remain open 24 hours a day to offer assistance to tourists and are located at Suvarnabhumi and Don Mueang International Airports. There are also four TFC Help Desks located at Siam, Phaya Thai, Ekkamai and Sala Daeng BTS Skytrain stations.

Despite the shutdown, right now could well be a great time to visit Bangkok. You can take advantage of some unprecedented deals around town and stay at some of the most spectacular properties in the country at a fraction of the usual price.

-- HOTELIER HERALD 2014-01-22

Check out the best Bangkok hotel deals here:

http://www.booking.com/city/th/bangkok.html?aid=369143&label=forum20130122

[mca]

I was talking to a Thai friend whos gm of a boutique hotel just of lower suk and they're suffering. 60 rooms and as of today only 7 are occupied. Normally they'd be running at 80% plus

[cmiuc]

like who would like to go there for a holiday to get caught up in trafic jams, bombs going off, no doubt curfews... and as most police say... "it is a very crazy place to be in right now" . And with the Rice farmers coming... it ought to be a really hot place soon... so it is understandable that the hotels vacancy is low. hopefully soon it will all get sorted out and back to normal.

[pinkpanther99]

I reckon it's well worth checking out what hotel deals in Bangkok are up for grabs right now. Sure, the protests are hitting the headlines but it's not like every single soi in the capital is jam-packed with protesters. I bet you could still stay in Bangkok and not be that affected by what's going on. I have a friend who lives near Surasak BTS station and he says it has been pretty much normal for him.

Providing you're flexible I bet that are some hotels are literally giving away rooms at the moment

[wilcopops]

i'm surprised they haven't put the prices up to compensate for the lack of income!?!?!

[belg]

tourists did not forget they were taken hostage when they closed the airports.... but hey, TAT claims tourists will be up 10% this year... miracle thailand

many hotels are way way overpriced, so these prices, they still make a profit

dont worry, after the protests, they will charge normale rate again + a hefty premium for the losses

[cornishcarlos]

"many of the people from up country in for the protests are sleeping in tents"

​I thought all the protesters were rented from the South ??

[Noriki]

But still no news from the Hotel about lowing the price.

[terryp]

well Ive stayed at 3 of those hotels on the list in the past 6 weeks and paid LESS ? I am looking at 18 Feb and prices have not dropped 1 baht from 2 weeks ago..so someone is wrong

[Suradit69]

Bangkok Hotels Prices Plummet

I know some of the Thai Visa economics experts (it's hard to write than and not be convulse with mirth) think that lowering prices is a fundamental precept if ever you want to move something that's not been selling well, but if I were a tourist, or even a resident staying elsewhere in Thailand, and I decided that it would be dangerous or at least aggravating and frustrating to deal with all that's going on in Bangkok, I can't see myself changing my mind because rooms were being discounted a few hundred baht.

And I would think the only potential Thai customers would be people who had to be in Bangkok anyway. Not likely that there would be a rush of people in rural Thailand keen to spend a few nights in the Big Mango while it's under siege.

Despite the unbelievably low room rates being offered for Thais, these promotions haven’t done much to curb the losses

Well if you charge Baht 3000 a night and have 50 rooms occupied, your revenue would be Baht 150,000 per night.

Cut it by 20% (assuming everyone gets the discount) and maybe gain 5 more occupants, then you have 55 rooms generating Baht 2400 per night which would put your top line at Baht 132,000. per night.

Most likely it would be optimistic to think you'd get 10% more guests anyway, so you'd probably have the same number of guests paying less. Whoopee.

Edited January 22, 2014 by Suradit69

[Nepsydaz]

i'm surprised they haven't put the prices up to compensate for the lack of income!?!?!

Why are you surprised?

Prices go up if there is high demand - more demand than total supply.

When there is no demand, and lot of supply, you try to create demand by lowering your price...

Simple Economics.

[thailandbeachisland]

Aren't people who stay in Bkk when Thailand have so many beaches to offer just retarded anyway ?

:-)

[bartender100]

Agoda full of flash deals, some 5* are slashed

[dknslowly]

Bangkok Hotels Prices Plummet

I know some of the Thai Visa economics experts (it's hard to write than and not be convulse with mirth) think that lowering prices is a fundamental precept if ever you want to move something that's not been selling well, but if I were a tourist, or even a resident staying elsewhere in Thailand, and I decided that it would be dangerous or at least aggravating and frustrating to deal with all that's going on in Bangkok, I can't see myself changing my mind because rooms were being discounted a few hundred baht.

And I would think the only potential Thai customers would be people who had to be in Bangkok anyway. Not likely that there would be a rush of people in rural Thailand keen to spend a few nights in the Big Mango while it's under siege.

Despite the unbelievably low room rates being offered for Thais, these promotions haven’t done much to curb the losses

Well if you charge Baht 3000 a night and have 50 rooms occupied, your revenue would be Baht 150,000 per night.

Cut it by 20% (assuming everyone gets the discount) and maybe gain 5 more occupants, then you have 55 rooms generating Baht 2400 per night which would put your top line at Baht 132,000. per night.

Most likely it would be optimistic to think you'd get 10% more guests anyway, so you'd probably have the same number of guests paying less. Whoopee.

Don't forget the Food & Bev - this generates much better returns. Give up 500 Baht but get food purchases and you're in front. They think revenue per person rather than pure room rate.

Once the turmoil ends I'm looking forward to the special dining promotions. Don't need a room in Bangkok

[smotherb]

Aren't people who stay in Bkk when Thailand have so many beaches to offer just retarded anyway ?

:-)

Aren't people who think Thailand is only for the beach goers the most retarded? )))))

[HerbalEd]

like who would like to go there for a holiday to get caught up in trafic jams, bombs going off, no doubt curfews... and as most police say... "it is a very crazy place to be in right now" . And with the Rice farmers coming... it ought to be a really hot place soon... so it is understandable that the hotels vacancy is low. hopefully soon it will all get sorted out and back to normal.

There are no curfews. And where did you get that "most police say ..." quote?

[Carrerakiss]

i'm surprised they haven't put the prices up to compensate for the lack of income!?!?!

Why are you surprised?

Prices go up if there is high demand - more demand than total supply.

When there is no demand, and lot of supply, you try to create demand by lowering your price...

Simple Economics.

I think you may have misread wilcopops post. I believe he was saying that since demand is less, he is surprised hotels havent raised their prices to make up the income lost through lower demand.

The implication being......Simple THAI Economics.

[Nepsydaz]

i'm surprised they haven't put the prices up to compensate for the lack of income!?!?!

Why are you surprised?

Prices go up if there is high demand - more demand than total supply.

When there is no demand, and lot of supply, you try to create demand by lowering your price...

Simple Economics.

I think you may have misread wilcopops post. I believe he was saying that since demand is less, he is surprised hotels havent raised their prices to make up the income lost through lower demand.

The implication being......Simple THAI Economics.

oh ok now i see what wilcopops meant....

Now I am surprised why i didn't think about it.

My Bad...

[HerbalEd]

i'm surprised they haven't put the prices up to compensate for the lack of income!?!?!

Why are you surprised?

Prices go up if there is high demand - more demand than total supply.

When there is no demand, and lot of supply, you try to create demand by lowering your price...

Simple Economics.

I think you may have misread wilcopops post. I believe he was saying that since demand is less, he is surprised hotels havent raised their prices to make up the income lost through lower demand.

The implication being......Simple THAI Economics.

Perhaps he should recalculate what surprises him about Thailand.

[Ulic]

I thought the standard Thai practise was to double the price of rooms to make up for lost /reduced revenue that way

you could make up the lost money with half the numbers. Thats what many TV readers say anyway. Maybe I will have

to check things out in Bangkok next month.

[tullynagardy]

Ive been checking prices daily for a trip in April into the capital.

I confirm prices, even for pay now deals, are not down at all. Some have gone up

[jackflash]

I've also been checking prices.

In spite of the breathless announcements, they don't look cheap to me.

[tx22cb]

Don't forget the Food & Bev - this generates much better returns. Give up 500 Baht but get food purchases and you're in front. They think revenue per person rather than pure room rate.

Once the turmoil ends I'm looking forward to the special dining promotions. Don't need a room in Bangkok

Me too - can't resist the 2-for-1 lunches, yum yum.

[SeaVisionBurma]

Post containing inappropriate language removed

[ericthai]

i'm surprised they haven't put the prices up to compensate for the lack of income!?!?!

Why are you surprised?

Prices go up if there is high demand - more demand than total supply.

When there is no demand, and lot of supply, you try to create demand by lowering your price...

Simple Economics.

Yes, that is real world economics, guess you have not been in Thailand long. Thai economics is if you have fewer customers increase the price to make up for the loss. It's called "screw you economics", it's the Thai way! welcome to the land of smiles.

To TV members that say I'm Thai bashing, I'm not I love Thailand been living and working here 20 years, but the truth sometimes hurts.

[charmonman]

i'm surprised they haven't put the prices up to compensate for the lack of income!?!?!

Why are you surprised?

Prices go up if there is high demand - more demand than total supply.

When there is no demand, and lot of supply, you try to create demand by lowering your price...

Simple Economics.

We're not talking Simple Economics here, we're talking Thai Economics.

[howzat]

i'm surprised they haven't put the prices up to compensate for the lack of income!?!?!

Nice one. Thai thinking for sure. Just look at the green fee prices at golf courses

[ILOOKFORWORK]

These rates are still high. Hotels and condos are incredibly overpriced, especially in Bangkok and the beach areas.

[impulse]

These rates are still high. Hotels and condos are incredibly overpriced, especially in Bangkok and the beach areas.

$100 a night for a room in a 4-5 star hotel in a destination beach resort or downtown capital (tourist) city would hardly be considered incredibly overpriced.

We're all spoiled by the fact that Bangkok and beach hotels are incredibly overbuilt and prices have been depressed as long as anyone can remember.

[wilcopops]

It seems very common in Thailand to consider that 500 baht is a good discount on an initial price of 50,000 so I can't see that the OP has any real truth in it at all.

As an example of the national concept of discount may I offer this - I notice is that supermarkets often offer tins of fish at "2 FOR THE PRICE OF ONE!" - this price is about 24 baht. However the more perspicacious customer may have noticed that the price for one tin on the previous week was 12 baht.....which has mysteriously risen to 22 baht to coincide with the new offer...............

Discount schmisch-count!