Many hotels keep current rates

[inaktive]

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.

you can only do that if there is a shortage of rooms/Tickets/etc because of the High Season. If you can get cheap and good Rooms at every corner raising the prices will just make the potential Guests go there. If not the first Time then for sure they will not return for a second time.

10 Years ago finding decent free hotel in Phuket for Christmas was hard because most was booked month before. Now they did open so many new Hotels pretty much all have at least 30% free rooms even in High Season !

But yeah that Thai behavior to raise prices when business runs bad to cover the costs is very common all over the country and not only in the Hotel business and it may work ok short term because ONCE you can do that with customers but they will not return for a second time. Seen that with Restaurants, Bars and Hotels too many times to count and it always ended with the Shop going under after such a move. And to be honest i have never seen it done like that in other countries

[cracker1]

I believe the Hotel Association but suggest before the end of the year we will have a statement from TOT telling us that tourist arrivals this year have set a new high record.

[kimamey]

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.

I think that's if they are busy. Not the same if there's a lack of customers. It often happens that at times like Christmas there are more customers so the price can go up so if the trade isn't there prices need to be adjusted down regardless of the date.

[Basil B]

What about lowering the rates to keep the rooms filled?

I doubt even a 50% cut in hotel rates will fill hotels...

Thailand is getting bad press overseas with crime, corruption, human rights issues being reported daily.

Unfortunately those who can do something about it are in a state of denial.

[Thailand]

Tourism is tanking but at least they are not raising prices to compensate-yet!

Low quality tourists must be the cause, what else can it be?

[ChrisY1]

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)

I can certainly understand that in the 2 places you mention....)

[gandalf12]

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.

Don't forget that due to the economy in China the rich are moving their money into other countries which will increase the downturn in the Chinese economy

[gandalf12]

I believe the Hotel Association but suggest before the end of the year we will have a statement from TOT telling us that tourist arrivals this year have set a new high record.

TOT or TAT?

[stoneyboy]

I believe the Hotel Association but suggest before the end of the year we will have a statement from TOT telling us that tourist arrivals this year have set a new high record.

TOT or TAT?

TIT for TAT more like.

[pmugghc]

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.

Not a chance in hell! It will take a looong time for Burma to get the # of hotels, attractions, infrastructure etc. Just look at a map: how many nonstop flights are there from Europe to Burma? Compare to Thailand. Have you ever been to Burma?

[pmugghc]

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.

Suggest you try it first for a few months.

[stickylies]

Just had a 800thb room reduced to 600 without even having to ask for discount. When I asked if they could do 500 per night if we stayed 2 nights they instantly agreed. We were the only clients... Living the life.

[pmugghc]

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.

Check the official stats, in 2014 Burma had just 1M tourists, Thailand had some 27M or so. Care to calculate the CGR you need for Burma to be comparable to Thailand in 5 years?

Source:

http://www.myanmartourism.org/index.php?option=com_content&view=article&id=368&Itemid=359

Edited December 26, 2015 by pmugghc

[White Christmas13]

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?

Your answer

[trogers]

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?

Your answer

homeless.jpg

My guess - more are staying in vacant condo units than in hotel rooms...?

[Sayonarax]

Maybe of you invested in providing a quality service, then you might have 90% occupancy. I know plenty of the major brands aren't struggling at this time of year and there room is up by 50%-70%. Thai operated hotels are run by children, so is it any wonder their businesses are failing. All ways blaming something for their lack of success.

[DogNo1]

Well, my hotel hasn't gotten the word. The management raised their price for this year 17% over last year and they say that the price will increase another 10% next year!

[siliconvalley]

Wow.

Last year I was dumped a guesthouse in Patong with everything broken.

With zero experience as a hotelier. As of this Nov.- Apr. is a narrow bell shape.

60% - 100% - 80% - 50% occupancy.

My rates are the lowest in the area, only meters from Bangla Rd.

My greatest advantage is my staff. I don't book chinese because they have no spend power. My masssage shop last year had chinese customers, now, 15%. Thankfully, my bar integrates the whole.

To compete, value is what all my customers want, second to cleanliness, comfort, security.

This seems fairly easy now...Just listen to the customer

[spidermike007]

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...

Maybe. But it is dusty, dirty, and as of now, you get a lot less hotel for the money, the food is average at best, and there is not that much to see, other than Bagan and Mandalay. Bangkok absolutely blows away Yangon on every single level. They have a very long way to go.

[RubbaJohnny]

Low Quality Hub alert

[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...

Maybe. But it is dusty, dirty, and as of now, you get a lot less hotel for the money, the food is average at best, and there is not that much to see, other than Bagan and Mandalay. Bangkok absolutely blows away Yangon on every single level. They have a very long way to go.

I would tread very carefully on the roads there. My last trip to Rangoon was 23 years ago, and there were lots of right hand driven cars running on left hand driven roads...

[mca]

I would tread very carefully on the roads there. My last trip to Rangoon was 23 years ago, and there were lots of right hand driven cars running on left hand driven roads...

I thought they drove on the right in Myanmar? Oh well live and learn.

Edited December 26, 2015 by mca

[ThaiThaiThailand]

Ridiculous conclusions here. VERY few foreign or local tourists want to spend their vacation in Bangkok. All one has to do is look at the rates and availability of hotels in the tourist destination (beaches) to see the lack of availability of luxury hotels that went for 4 to 5x their low rates. While Thailand may want higher end tourists (who doesn't) Bangkok is not really a family tourists destination spot but simply a hub to pass through or a place single men and working farang spend their time. Even Thais, leave Bangkok during this holiday, their families don't come here. Bangkok is a ghost town from x-mas to New Year.

To further prove the point ... look at flight prices to leave Bangkok this week to places like Phuket. They are 2 to 3x higher than flights coming here. Starting on the first, the prices reverse as people return to Bangkok.

Nothing new - same every year. Who the hell wants to spend their Christmas holiday in Bangkok unless you are looking for cheap girls.

Edited December 26, 2015 by ThaiThaiThailand

[trogers]

I would tread very carefully on the roads there. My last trip to Rangoon was 23 years ago, and there were lots of right hand driven cars running on left hand driven roads...

I thought they drove on the right in Myanmar? Oh well live and learn.

You are correct. The drivers should be seated on the left side of the cars like in the US, thus left hand driven. Unlike in Bangkok, where drivers are seated right side, driving on the left side of the road.

[simon43]

I thought they drove on the right in Myanmar?

They do -poster must be talking about the drunk drivers

[bangon04]

I believe the Hotel Association but suggest before the end of the year we will have a statement from TOT telling us that tourist arrivals this year have set a new high record.

TOT or TAT?

Actually TOT could probably make just as good a job of forecasting tourist statistics as TAT can. It might make the daily press announcement more fun.

[simon43]

Thai operated hotels are run by children, so is it any wonder their businesses are failing

For many Thai-operated hotels in the 1,2 and 3-star rating, I have to agree with this.

When I first started to build hotels at Phuket Airport, there was only one 4/5-star hotel, (Pearl Village). I built the first 'transit' hotel and provided a good service. The hotel was full or almost full, every night of the year. Then local Thais saw my success and every man, woman and dog started to build small hotels on the land that they owned.

Today, according to booking.com, there are about 78 hotels (across the star rating range) in the airport and Nai Yang beach area.

I know many of these hotel owners. The vast majority of the 1-3 star hotels are running at dismal occupancy rates throughout the year, because the service is also just that ==> dismal.

The staff speak little English, do not smile, and the rooms are not 100% clean.

I built a second good hotel about 5 years ago for ex #2 - It was a good and clean hotel under my management. Now, under her full control, it languishes as a so-so hotel.

About 8 years ago, I sold the first hotel that I built. It is now owned/managed by a Dutch guy and is full every night, just like my current little hotel that I own. Why? Because he manages it well, understands his foreign customers, speaks good English etc.

There are occasional 'diamonds' in this morass of 'average' hotels. The hotel for my ex #3 (!) is also full every night. Why? Because ex #3 is educated, speaks very good English and Japanese, keeps her hotel spotless and cares about her customers, (er.... which is more than what she did for her husband lol).

Personally, I don't think people should be allowed to open hotels/guesthouses, unless they are able to meet certain minimum criteria, such as speaking English to an acceptable level, passing a test in 'understanding foreign cultures', and possessing more than 4 brain cells. (You could apply the same rule to taxi drivers - make them pass 'The Knowledge' test)

The mire of so-so hotels and guesthouses that are just 'okay' creates a negative impression on the whole hospitality sector.

When TAT talks about 'quality tourists', I rebuff by saying 'give us quality hoteliers'

Edited December 27, 2015 by simon43

[mikebell]

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.

And Vietnam. Just back from a trip - we were overwhelmed with the courtesy , level of service and quality of English from the staff + no hassle visa.

[cameraman888]

I would like to stay in Thailand longer but thanks to the tight visa rules, I go to Cambodia and Vietnam. Did they ever consider the money they lose thanks to visa rules???? I spend more than Chinese by far....

[WaiLai]

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.

I fully agree on the comment regarding stock market and economic slowdown lag time catching up with the Chinese tourist (and thus Thailand).

Unfortunately Thai tourism officials promise and quote and act on what are essentially "best case scenarios".

The reality is that Chinese tourism officials are already taking actions to keep their Chinese customers home and "within their budget".

There just isn't anything to speak highly of regarding Thai tourism anymore. It's old, decrepit, overpriced and of very low quality. It is unsafe, corruption greets one at every corner and the place is a cesspool of filth.

A complete overhaul of the country with less xenophobia is in order.

The bottom of the pail is just about to corrode completely.

Edited December 27, 2015 by WaiLai