Many hotels keep current rates

[rooster59]

Many hotels keep current rates

SUCHAT SRITAMA
THE NATION

BANGKOK: MANY hotel room rates in Bangkok have remained unchanged this high season as operators faced many negative factors, according to major hotel players.

Chanin Donavanik, chief executive officer and managing director of Dusit International, said many hotels in Bangkok could not raise their room rates by 5-10 per cent as they used to in October, ahead of the high season between November and February. He said only a few hotels had adjusted their rates.

"The big problem is more low-quality tourists coming, and that is reflected by four- and five-star hotels being unable to increase room rates," he said.

"This year, the tourism industry faced difficulties from the (sluggish) European market and the aviation-safety problem. But I hope the tourism situation will get better next year."

Chanin expects the tourism sector to grow by 10 per cent in 2016 but that there will still be no adjustment of room rates. According to the Thailand Hotel Industry Survey of Operations conducted last year by Horwath HTL, occupancy rates across the board dropped by as much as 21 per cent, with the bulk of hotels in the Bt1,500-Bt5,500 category suffering most. Demand for the highest and lowest rate segments was most unaffected in 2014.

Occupancy rates generally declined everywhere across the country, but this trend was most evident in Bangkok, where hotels were badly hurt by political turmoil.

Despite the general industry downturn, top-tier hotels in Phuket, as well as those in the various other locations, achieved a reasonable increase in occupancy.

As for this year, Surapong Techaruvichit, president of the Thai Hotels Association, said the average occupancy at hotels nationwide during the New Year holiday period would be around 70 per cent, a slightly lower than last year.

He said hotels had received fewer bookings from Western markets, forcing operators to maintain the same room rates and packages as last year.

"The average room rate at hotels in Bangkok is already lower than in many other cities in the region. If there is no price adjustment this year, our hotel rates will be even extra lower (in comparison)," he said.

However, more tourists from China and other markets in Southeast Asia are expected to arrive this month to celebrate Christmas and New Year's.

Source: http://www.nationmultimedia.com/business/Many-hotels-keep-current-rates-30275720.html

-- The Nation 2015-12-26

[Thian]

What about lowering the rates to keep the rooms filled?

[Inn Between]

Didn't I just read about another glorious government achievement of attracting a record 30 million tourists here this year?

Breaking records: 30 million visited Thailand this year

(http://news.thaivisa.com/thailand/breaking-records-30-million-visited-thailand-this-year/125818/)

So where the heck are they staying if not in hotels?

Edited December 26, 2015 by Inn Between

[Prbkk]

Didn't I just read about another glorious government achievement of attracting a record 30 million tourists here this year?

Breaking records: 30 million visited Thailand this year

(http://news.thaivisa.com/thailand/breaking-records-30-million-visited-thailand-this-year/125818/)

So where the heck are they staying if not in hotels?

Yes, some of the big Bangkok hotels have done deals with the wholesalers for the Chinese market ( and to a lesser extent the Korean market). Others have resisted that temptation , presumably on the basis that once that segment is entered , it's quite difficult to revert to the traditional model.

In any case room rates are the lowest they have ever been, inflation adjusted

[pedro01]

"The big problem is more low-quality tourists coming, and that is reflected by four- and five-star hotels being unable to increase room rates," he said.

My low quality heart bleeds....

[cheeryble]

Didn't I just read about another glorious government achievement of attracting a record 30 million tourists here this year?

Breaking records: 30 million visited Thailand this year

(http://news.thaivisa.com/thailand/breaking-records-30-million-visited-thailand-this-year/125818/)

So where the heck are they staying if not in hotels?

You did indeed just read that

You also read that capacity constraints such as at airports meant a rise next year was almost impossible which makes it odd that the head of Dusit expects a ten % increase in tourism next year.

[zaphod reborn]

And this is the downside of padding tourism arrival statistics with Chinese tourists. The Chinese will only come in discounted group packages. They occupy discounted blocks of rooms and never pay rack rate. Hoteliers will have to get used to dealing with consolidators to get their rooms filled. The days of filling up those deluxe rooms and suites are over, even during high season.

[Just1Voice]

The one thing I've noticed here in Chiang Mai this year is the ABSENCE of tour bus convoys. In the past you could see 6 - 8, or more, in a convoy heading somewhere. So far this year the "convoys" have been 2 busloads of people, and not many of those. My wife's cousin is one of the head honchos at the Bosang Umbrella Factory. She said their business if less than half so far this year of what it was 2 years ago. She said they might get 4-5 busloads of Chinese on a good day, but that the Chinese get off the bus, look around, watch the umbrellas being made, then get back on the bus and leave, without purchasing a single thing. I don't care what TAT says, or boasts about, the money speaks for itself, and the money just isn't there.

[WhizBang]

Not so. I am going to Pattaya for 3 days in early January. So I called my usual hotel (a nice 3 star just off beach road) for a reservation last week. No problem they have rooms available, in all categories. Great. Then the bombshell dropped. There would be a 500 baht/night surcharge (about 35% of the daily rate) per room (I was booking 2 rooms). When I asked why, I was told surcharge from Dec 15 to Jan 15 for the holidays.

I told them no thanks, I will go elsewhere. I booked into the hotel next door for less money per night and NO surcharge.

Typical Thai business practices.

[trogers]

"The big problem is more low-quality tourists coming, and that is reflected by four- and five-star hotels being unable to increase room rates," he said.

However, more tourists from China and other markets in Southeast Asia are expected to arrive this month to celebrate Christmas and New Year's.

A very polite way to point a finger by starting and ending a report on effect and cause...?

[ChrisY1]

Not so. I am going to Pattaya for 3 days in early January. So I called my usual hotel (a nice 3 star just off beach road) for a reservation last week. No problem they have rooms available, in all categories. Great. Then the bombshell dropped. There would be a 500 baht/night surcharge (about 35% of the daily rate) per room (I was booking 2 rooms). When I asked why, I was told surcharge from Dec 15 to Jan 15 for the holidays.

I told them no thanks, I will go elsewhere. I booked into the hotel next door for less money per night and NO surcharge.

Typical Thai business practices.

A common belief by many Thai hoteliers is that lowering their prices to fill rooms is bad business........they just don't get it !

[dean008]

As I read it:

Chanin Donavanik, chief executive officer and managing director of Dusit International, said

"The big problem is more low-quality tourists coming, and that is reflected by four- and five-star hotels being unable to increase room rates,"

great PR to refer to any tourist as "low-quality"

[trogers]

Not so. I am going to Pattaya for 3 days in early January. So I called my usual hotel (a nice 3 star just off beach road) for a reservation last week. No problem they have rooms available, in all categories. Great. Then the bombshell dropped. There would be a 500 baht/night surcharge (about 35% of the daily rate) per room (I was booking 2 rooms). When I asked why, I was told surcharge from Dec 15 to Jan 15 for the holidays.

I told them no thanks, I will go elsewhere. I booked into the hotel next door for less money per night and NO surcharge.

Typical Thai business practices.

A common belief by many Thai hoteliers is that lowering their prices to fill rooms is bad business........they just don't get it !

This is a philosophy that was taught to them by those big chain western hoteliers...

[HenryB]

"The big problem is more low-quality tourists coming, and that is reflected by four- and five-star hotels being unable to increase room rates," he said.

My low quality heart bleeds....

Maybe these 4 or 5 star are only 3 stars in other counties My mother told me if you can not brush you teeth with water from the sink than you are in a 3 star hotel at most, This was fifty years ago

[simon43]

My mother told me if you can not brush you teeth with water from the sink than you are in a 3 star hotel at most

That so? In that case, I will increase my little resort star-rating from 2 to 3 stars

[Kasset Tak]

"could not raise their room rates by 5-10 per cent as they used to in October"

What are those 5-10% they are talking about, I have seen many hotels that in the past have been raising their room rates with 50-200% during the high season or maybe that is just the price for us foreigners!

[dageurreotype]

The one thing I've noticed here in Chiang Mai this year is the ABSENCE of tour bus convoys. In the past you could see 6 - 8, or more, in a convoy heading somewhere. So far this year the "convoys" have been 2 busloads of people, and not many of those. My wife's cousin is one of the head honchos at the Bosang Umbrella Factory. She said their business if less than half so far this year of what it was 2 years ago. She said they might get 4-5 busloads of Chinese on a good day, but that the Chinese get off the bus, look around, watch the umbrellas being made, then get back on the bus and leave, without purchasing a single thing. I don't care what TAT says, or boasts about, the money speaks for itself, and the money just isn't there.

Exactly the same on Phuket. Thank God.

[trogers]

The one thing I've noticed here in Chiang Mai this year is the ABSENCE of tour bus convoys. In the past you could see 6 - 8, or more, in a convoy heading somewhere. So far this year the "convoys" have been 2 busloads of people, and not many of those. My wife's cousin is one of the head honchos at the Bosang Umbrella Factory. She said their business if less than half so far this year of what it was 2 years ago. She said they might get 4-5 busloads of Chinese on a good day, but that the Chinese get off the bus, look around, watch the umbrellas being made, then get back on the bus and leave, without purchasing a single thing. I don't care what TAT says, or boasts about, the money speaks for itself, and the money just isn't there.

Exactly the same on Phuket. Thank God.

Economic downturn in China started around mid of last year and their stock market busted early this year. The lag time for lack of cash has just caught up on their people...

Seen this happened in 1991-2, on the Nippons.

[seajae]

problem is their so called 4 and 5 star hotels are not what they state. Yes some are definitely great but many have a sh*tful service, rooms are not up to scratch and they seem to resent helping their customers. If there are chinese customers in the hotels, breakfast is nearly impossible as they push in front of you, take all the food and simply have no manners, they will take your things off a table if they want to use it while you are off getting something. With a combination of this and the attitude of the hotels no wonder people are not booking into them, they will be off looking at quieter hotels that actually offer a better service and do not do the bulk chinese market.

[Just1Voice]

Over a year ago I stated: "Give Myanmar 5 years, and they will leave Thailand in the dust when it comes to tourists." I still believe that.

[spidermike007]

I think it is safe to say, that many tourists from around the world, as quite afraid, and spooked by the little guy. They are afraid of getting arrested for liking a post, that the government does not like. They are afraid of being arrested on fake charges, while a murderer runs free on dark tao. They are afraid of being arrested for lese majeste charges, for saying something that is not intended in any way to insult a great man, but rather just something they have created to suit some warped purposes. And many are simply afraid of, or do not care to visit a country with a junta in control, that pays no attention to issues like traffic safety, tourist protection, consumer protection, and many other areas of concern to travelers. Tourism will continue to decline as long as there is a power hungry man in control.

[daveAustin]

Over a year ago I stated: "Give Myanmar 5 years, and they will leave Thailand in the dust when it comes to tourists." I still believe that.

Yes it will happen one day. So much potential there.

[trogers]

Tourism will continue to decline as long as there is a power hungry man in control.

I thought this had happened since 2003...

[slipperylobster]

Ask for a discount. We usually get one, if on a weekday and the parking lot is fairly empty. The manager/owner will lower a 900 baht room to 800. Also, can get better than that for long term. Our two last trips were successful with this. (Chiang Khan and Nam Nao)

[2fishin2]

Not so. I am going to Pattaya for 3 days in early January. So I called my usual hotel (a nice 3 star just off beach road) for a reservation last week. No problem they have rooms available, in all categories. Great. Then the bombshell dropped. There would be a 500 baht/night surcharge (about 35% of the daily rate) per room (I was booking 2 rooms). When I asked why, I was told surcharge from Dec 15 to Jan 15 for the holidays.

I told them no thanks, I will go elsewhere. I booked into the hotel next door for less money per night and NO surcharge.

Typical Thai business practices.

Nope not typical thai practices. Its done all over the world in every country. High season is always more expensive than low season in tourist areas. Airlines, hotels, parks you name it raise prices. Has nothing to do with specifically Thailand.

[trogers]

Over a year ago I stated: "Give Myanmar 5 years, and they will leave Thailand in the dust when it comes to tourists." I still believe that.

Yes it will happen one day. So much potential there.

Potential can be both positive and negative. Enjoy your holidays in Myanmar, but don't get sick or meet a mishap...

[retarius]

Over a year ago I stated: "Give Myanmar 5 years, and they will leave Thailand in the dust when it comes to tourists." I still believe that.

I have been toying with the idea of moving to Myanmar to live. Some beautiful unspoilt beach spots which I am told are very reasonably priced. I promised myself that if there was peace after the election then I would look into visas to retire there. My NY's resolution.

[Seelow]

Over a year ago I stated: "Give Myanmar 5 years, and they will leave Thailand in the dust when it comes to tourists." I still believe that.

I have been toying with the idea of moving to Myanmar to live. Some beautiful unspoilt beach spots which I am told are very reasonably priced. I promised myself that if there was peace after the election then I would look into visas to retire there. My NY's resolution.

[Seelow]

I don't know about Myanmar but I am happily holed up in a beautiful beach resort in Da Nang Vietnam which is claiming 85% occupancy,100% over New Year and Chinese New Year, mostly Westerners with a few Koreans and Japanese.

We have spectacular beach, sun loungers and unbrellas,and waiter service from the stalls behind us . I remember when we had that in Phuket a few years ago,but we gave up on that when the tuk tuks got crazy, the jet skis annoying and the prices ridiculous.

Added bonus is a one hour shorter flight from Hong Kong,and most of the people we have been speaking to are Phuket "refugees".

[simon43]

I promised myself that if there was peace after the election then I would look into visas to retire there.

Right now, you might be looking for a long time. There is as yet, no retirement visa option. AFAIK, it is either a tourist visa or a business visa, And unlike Laos, I don't think you can get a WP and business visa if you're not actually working.