Shift of staffs, hiring freeze as Bangkok hotels, restaurants enter survival mode

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Shift of staffs, hiring freeze as city hotels, restaurants enter survival mode
Bamrung Amnatcharoenrit
The Nation

The political tensions have thrust Bangkok hotels and restaurants into survival mode.

BANGKOK: -- They are striving to pare operating costs to match their loss of income from plummeting occupancy rates and declining numbers of diners by freezing hiring, especially of part-timers, and moving staff to work in their better performing properties.

Ronnachit Mahattanapreut, senior vice president for finance and administration at Central Plaza Hotel Plc, the operator of Centara Grand, Centara and Centra brands, said yesterday that the group decided to stop hiring temporary staff. Usually in January, the firm would increase part-time staff by more than 10 per cent to serve the growth in business. Also, pay rates would be on the rise.

Since November, MICE events at the hotels have been cancelled or postponed.

Full-time staff have been sent to more active hotels of the chain, especially in Phuket, Hua Hin and Pattaya, where room occupancy is still high at more than 80 per cent. This follows the bitter lessons learned during the red-shirt political turmoil.

The group carries 9,300 full-time workers on its payroll.

Patrick Basset, senior vice president for Accor Thailand, operator of the Novotel and Ibis brands, said one of the top priorities was to take care of the company's employees, especially during these difficult times. For those hotels affected by demonstrations, Accor is taking steps to help the employees, including offering training sessions for them to attend. Also, they are sent to sister hotels in Bangkok and upcountry on mission duties. For those facing difficulties commuting, accommodations are provided.

Sanga Ruangwattanakul, president of the Khao San Road Business Association, said the business community in the area was adopting cost-saving measures. Electric appliances used on empty floors of hotels would be unplugged. Part-timers are no longer hired, while full-time staff would be given the chance to go on vacation with some pay. However, this political scenario would have to end next month. If the situation extends beyond that, they are definitely offering leaves without pay.

Khao San has more than 10,000 people working in the area.

Since November, Khao San has been badly hit. Sales of various businesses have dropped 40-50 per cent, while occupancy, including the Phra Nakhon area, has plunged to 50 per cent from 90 per cent in the same period last year.

About 70-80 per cent of the clientele is foreign, while the rest is a balance of domestic night revellers and visitors. However, some foreign groups have almost disappeared, especially Russians, who visit the area as part of their travel package.

Thaniwan Kulmongkol, chairwoman of the Thai Restaurants Association, with about 30,000 members, said more than 10,000 of them are located in Bangkok and have been devastated by the political mayhem. After a state of emergency was decreed on January 22, the business loss among members is projected to be more than Bt300 million.

However, layoffs are considered as the last option. Many have moved their staff to help in better-performing outlets. Operators can continue shouldering costs for three months in spite of suffering losses. If the situation drags on for more than three months, wait staff would be the first group to be axed.


-- The Nation 2014-01-28

[alant]

All sounds credible, I am sure it is tough for those caught up and even worse for those losing earnings and jobs. I imagine within the next couple of days there will be tourist bodies saying Chinese new year a success with increase in visitors which I would find hard to believe and perhaps more importantly, can't be good for the workers effected and losing jobs and pay.

[Patje]

Soon Bangkok will be a ghost town if this madness doesn't stop

I hope both sides will come to an agreement and put the people at the first place , not their ego's

[noitom]

Layoffs in Thailand would be the Thai "option three?"

[ExpatOilWorker]

Any good hotel deals being offered in Bangkok?

Sunday buffets? Member cards?

[ricku]

I've been looking for nice hotel deals in Bangkok.

I was so sure that the political chaos would force the hotels to lower their prices, but so far I haven't seen any drastic changes.

Edited January 28, 2014 by ricku

[householder]

Nope, can't see anything beyond the usual overpriced rubbish. Not even the independents/B&Bs have lowered prices, whether through brokers or on their websites. Are they preferring to cut staff rather than rates?

[Mentors]

I've been looking for nice hotel deals in Bangkok.

I was so sure that the political chaos would force the hotels to lower their prices, but so far I haven't seenr any drastic changes.

no, prices are unchanged. They prefer empty rooms same as with condos.

[OMGImInPattaya]

How does this report square with the oft reported retort on this forum that when custom is down, Thai businesses simple raise their prices to make up any lost sales? There is no mention of this strategy in this article...please don't tell me this is only an urban myth existing only in the T-V universe.

Edited January 28, 2014 by OMGImInPattaya

[dddave]

How does this report square with the oft reported retort on this forum that when custom is down, Thai businesses simple raise their prices to make up any lost sales? There is no mention of this strategy in this article...please don't tell me this is only an urban myth existing only in the T-V universe.

Pretty much an urban myth that has gain credibility through repetition. Hotel chains, like any established business have to maintain some sort of rate credibility. Major hotels that suddenly drop rates find themselves with angry regular customers who pre-paid regular rates. It's a tough balancing act, really

They've had many similar crises's over the last ten years or so to hone their coping skills...The SARS Crisis where all of Asia emptied out, the Bird Flu epidemic a few years later, the coup in 2006 and the closure of Survanabhumi, then the Red Shirts in 2010...same-same all over again.

[dutchchiangmai]

I'm sure prices will rise soon, typical Thai way of dealing with declining profits.

[Patje]

I'm sure prices will rise soon, typical Thai way of dealing with declining profits.

Well, if you are in charge of a hotel, what would you do ? Open doors policy ? with free meals 4 all ?

Let me know, I'll come over with the family ......

[gandalf12]

Best way to get a deal is contact the hotel and ask for a discount. I have tried it and I received a 50% discount, it was in SEA but wasnt in Thailand but in a similar circumstance.

If you dont ask you dont get

[larsjohnsson]

There are good deals on hotels now. Especially in the higher range and better hotels. My friend just booked 6 nights at Grand Suhkumwit Hotel for a very good price compared to the normal price.

[Gummigalgen]

Any good hotel deals being offered in Bangkok?

Sunday buffets? Member cards?

Sheraton Sukhumvit Grande has good accommodation deals. 4,900 instead of normally + 8,000. And best hotel in town.

[LuckyLew]

This aftenoon TAT will issue statement saying numbers are exceeding goals

There are many hotels now offering deals, mostly those around protest sites

There was an article over the last week about it

You might have to call hotels directly as in line with Thai lack of customer service they probably did not tell the wholesalers

[Gummigalgen]

I'm sure prices will rise soon, typical Thai way of dealing with declining profits.

Well, if you are in charge of a hotel, what would you do ? Open doors policy ? with free meals 4 all ?

Let me know, I'll come over with the family ......

Yes Patje. When Spain was suffering tourism crisis in the past, they offered accommodation almost for free. Great solution. Once people are in they eat, drink, make internet charges, change money, book excursions, etc.etc. You better offer rooms for a fraction and have customers in then sit and watch for the worms.

[gemini81]

At least there will be less balcony 'accidents' and it should also separate the pretentious from the professional. The downside is it assists PTP in playing martyr futher.

[GrantSmith]

Any good hotel deals being offered in Bangkok?

Sunday buffets? Member cards?

Your regular is offering quite good deals as are the neighbouring hotels...

But I'd give the Sunday buffets a miss this weekend, unless there's a change of date

[phka]

Any good hotel deals being offered in Bangkok?

Sunday buffets? Member cards?

when thai businesses loose customers they put prices up to try to cover the loses not down to attract more customer

[rfukata]

I've been looking for nice hotel deals in Bangkok.

I was so sure that the political chaos would force the hotels to lower their prices, but so far I haven't seen any drastic changes.

its always nice to have a good hotel deal anywhere but I think the major hotels have contractual pricing agreements

with wholesale GSA agents, airlines, retail agents etc and lowering the rates drastically will be difficult especially if

commissions are involved.

As one TV poster mentioned, negotiate directly with the hotel you are interested in through phone, email or at times

check the respective hotel website for deals / promotions.

[spidermike007]

I've been looking for nice hotel deals in Bangkok.

I was so sure that the political chaos would force the hotels to lower their prices, but so far I haven't seen any drastic changes.

If you look carefully, you will find some good deals. I might suggest the hotel websites, rather than the mass hotel sites. I was recently in Bangkok, and it was delightful. A lot less traffic than usual, and as long as you are able to use a lot of public transportation very easy to get around.

[larsjohnsson]

Any good hotel deals being offered in Bangkok?

Sunday buffets? Member cards?

when thai businesses loose customers they put prices up to try to cover the loses not down to attract more customer

So show us a couple of hotels that actually have put prices up to cover the losses.

Sent from my GT-I9152 using Thaivisa Connect Thailand mobile app

[NoshowJones]

All sounds credible, I am sure it is tough for those caught up and even worse for those losing earnings and jobs. I imagine within the next couple of days there will be tourist bodies saying Chinese new year a success with increase in visitors which I would find hard to believe and perhaps more importantly, can't be good for the workers effected and losing jobs and pay.

Can Suthep and his protesters not see what they are doing to peoples livelihood? I know I keep on going on about this, and although it does not affect me, I keep on thinking back to the miners in the UK around 1970, when they brought down a government, and the new government made the country bankrupt within about four years.

Suthep wants a peoples council to run the country, people should watch what they wish for and go to the polls, and yes I know Yingluck will win. Does anyone know of any country where a government stays popular with the majority of the population throughout their term in office?

[dddave]

This aftenoon TAT will issue statement saying numbers are exceeding goals

Unfortunately but deservedly, TAT has no credibility whatsoever. The sky is always blue and the natives always happy and don't believe anything you read in the negative press over-blowing insignificant disturbances.

Never worry...we will have 25 million visitors next month.

[dutchchiangmai]

I'm sure prices will rise soon, typical Thai way of dealing with declining profits.

Well, if you are in charge of a hotel, what would you do ? Open doors policy ? with free meals 4 all ?

Let me know, I'll come over with the family ......

I can see that with a remark like that, you're fully assimilated into Thai life and economics. Anybody else would lower his prices, put in some good promotional deals and tried to get at least some of the running costs back.Only, and only in this country, people do exactly the opposite. Revenues goes down, prices goes up. Logic....

[h90]

Soon Bangkok will be a ghost town if this madness doesn't stop

I hope both sides will come to an agreement and put the people at the first place , not their ego's

I can't see any compromise possible....one side or the other has to win....

[DGIE]

I'm sure prices will rise soon, typical Thai way of dealing with declining profits.

Well, if you are in charge of a hotel, what would you do ? Open doors policy ? with free meals 4 all ?

Let me know, I'll come over with the family ......

My hotel is not yet built but I will offer free meals for all....who checked-in. But the price of rooms include the free buffet

[PeterA63]

I see a positive side to this in KHao San: no more Russians! I am fed up with their uncivilised behaviour.

[jbaldwin]

....But isn't this exactly what many hotels do every year. Increase staffing in Nov and Dec to cover high season and gradually reduce numbers back to normal often by deciding staff have failed probation. It seems entirely normal that very new few staff will be recruited at the end of Jan or in Feb