More "FIT" tourists - so let's put the prices of hotels up!

[webfact]

More "FIT" tourists - so let's put the prices of hotels up!

 

Picture: Daily News

 

BANGKOK: -- The Thai Hotelier's Association is recommending that its members increase prices from between 5 and 10% as tourists come to the kingdom in greater numbers.

 

The move for 2017 comes as the association recognizes that independent travelers not connected to tour groups are on the rise.

 

These are the so called F.I.T. tourists - fully independent travelers.

 

THA chief Suphawan Thanormkiatphoom said yesterday that FIT tourists are on the rise and would represent 60 per cent of all arrivals by the start of 2018, reports Daily News.

 

Consequently it is a good idea for hoteliers to put their prices up so they can make more money from this group, she said.

 

Apparently less tour groups meant less direct competition in the industry and more opportunities for profit.

 

The association said that figures revealed that tourists to Thailand spent 26% on accommodation, their highest expenditure on a single item. This compares to slightly under 22% on shopping and 20% on food and drink.

 

In tourist hubs like London, Osaka and Seoul the association said that shopping represented 40% of the average tourist's expenditure.

 

Source: Daily News

 

-- © Copyright Thai Visa News 2016-12-07

[GiantFan]

FIT's are more likely to use internet room portals, so overall it will be a wash.

[worgeordie]

I thought the goose that lays the golden eggs,was a little ill

and not laying so many eggs now,it's common practice for

Thai's to rise prices of goods when sales are down,is this

what is happening here ?

regards Worgeordie

[DavidVincent]

Didn't the say in the news there was a problem this year with tourism and money coming from them?

Less customers so let's raise the prices

[madmitch]

Independent travellers already pay more than tour groups.

 

I'm really not sure of the logic here as if hotels lose their tour group income they will be fighting amongst themselves for independent guests to fill their now empty rooms, therefore I'd anticipate seeing lower prices!

 

Perhaps they raise the price then offer an even bigger percentage discount.

[Brer Fox]

So the money saved by tourists on the cost of visas will transfer directly into the pockets of the greedy hotel owners. So what TAT giveth in one hand to tourists the hotels take away with the other. 

Now others are sure to follow and restaurants and souvenir shops in tourist areas will jack their prices to get their grubby hands on the visa discount.

[digibum]

I find it so cute that Thailand always bases their recommendations based on what tourists do in other countries.  Are they seriously going to compare what people spend in London to what they spend in Bangkok or Phuket?  They are fixated on matching the per day spend rates of Hong Kong and Singapore but they offer nothing even remotely close.  And then out of the other side of their mouth they ask tourists, investors, etc to please understand they are a poor country.  

 

 

[Caveat Emptor]

Flimsy excuse to raise prices so what will they do when it doesn't work out because the figures aren't there.

Just revert to the usual Thai practice to raise prices anyway to make up for the customers they don't have ?

I've seen bars have to close because the regulars moved on when the prices went up because the owners weren't making the money they expected but did nothing to attract more custom. The regulars didn't wear it.

[daveAustin]

I know associations worldwide are concerned with profit or they wouldn't be in business, but its the way it is put here. Let's get what we can out of the tourists, yeah. Give me my cake, I want to eat it, ALL! 

[The manic]

8 minutes ago, daveAustin said:

I know associations worldwide are concerned with profit or they wouldn't be in business, but its the way it is put here. Let's get what we can out of the tourists, yeah. Give me my cake, I want to eat it, ALL! 

The same optimization of profits happens in all sectors in all countries at all levels.  Nothing to get neurotic about at all. 

[elgordo38]

1 hour ago, madmitch said:

Independent travellers already pay more than tour groups.

 

I'm really not sure of the logic here as if hotels lose their tour group income they will be fighting amongst themselves for independent guests to fill their now empty rooms, therefore I'd anticipate seeing lower prices!

 

Perhaps they raise the price then offer an even bigger percentage discount.

Tourism sleight of hand. 

[Docno]

So this is what I've learned about Thai economic theory... When demand goes down, you raise prices to make up for lost revenue. And when demand goes up, you raise prices to ride the wave. I don't want to think too deeply about this....

[darren84310]

Hoteliers don't need to be told to raise prices. They're the ones best placed to know if or when to adjust rates. I'm sure they don't need someone who probably has never owned a hotel telling them what to do.

[helloagain]

3 hours ago, GiantFan said:

FIT's are more likely to use internet room portals, so overall it will be a wash.

They are muppets putting prices up

[DrTuner]

Yeah, suck'em dry, the fools only come here to be fleeced anyway. That's the mentality.

[tominbkk]

3 hours ago, GiantFan said:

FIT's are more likely to use internet room portals, so overall it will be a wash.

Not sure about that...I have lots of friends that stay in moderate to luxury places and do all their booking on their own - lots you can accomplish with kayak.com and tripadvisor.

[kingalfred]

As Airbnb is banned in The land of cheating I would advise potential tourists to go elsewhere


Sent from my iPhone using Thaivisa Connect

[BlindMagician]

LoS

Land of scams

[Lingba]

absolutely ridiculous strategy

[trogers]

I recommend doubling their rates and a 75% fall in volume...makes more profit that way...???

 

I know these hoteliers are poor in basic maths...

[bark]

3 hours ago, Brer Fox said:

So the money saved by tourists on the cost of visas will transfer directly into the pockets of the greedy hotel owners. So what TAT giveth in one hand to tourists the hotels take away with the other. 

Now others are sure to follow and restaurants and souvenir shops in tourist areas will jack their prices to get their grubby hands on the visa discount.

Nothing wrong with this.

Capitalist vs Communist which are you ?

[Gillyflower]

My GH where I have been staying for 12 years, has raised the monthly rental by 1000 baht.

[sn1per]

[yellowboat]

Never heard of Thai economic policies being based on anything trivial like facts.  If a hotel enjoys high occupancy, they then decide to increase room rates, expand by renovating, buying or building another hotel.   If they need the Thai Government's help managing their affairs, they should not be in the hotel business.

[Brer Fox]

4 minutes ago, bark said:

Nothing wrong with this.

Capitalist vs Communist which are you ?

I am not complaining. I am not a Thai taxpayer who funded the visa discount. If Thai taxpayers want to give their money to hotels via TAT I am happy for them.

[MAMMartin]

comments from the armchair warriors that have never run a hotel - gotta love 'em

[hdkane]

4 hours ago, worgeordie said:

I thought the goose that lays the golden eggs,was a little ill

and not laying so many eggs now,it's common practice for

Thai's to rise prices of goods when sales are down,is this

what is happening here ?

regards Worgeordie

One reason for the Thailand's popularity is that it is affordable, compared to London and other places...seems stupid to undermine one of the reasons tourists come here in the first place...

[upena]

Except Thai tourism is down. This is the real reason to jack up prices - it is Thai economics. Fewer customers, raise prices.

[Saastrajaa]

I just arrived for a six week visit on Saturday, and my anecdotal experience so far is that tourism is WAY down...I'm staying in the heart of a tourist area, too (Sukhumvit in the 20s).  strangely, though, I got a price on my room that's 300 lower a night than what I paid last December!

[Familyaffairs]

In Thailand hoteliers use this as a translation for FIT: Foreign Individual Traveler, but there are many other explanations of the acronym...