Rate rebuilding back on track amid market rebound but operators preach caution
By Ollie Quiniquini and Sirima Eamtako
BERLIN Asean destinations, led by Thailand and Indonesia, are rebuilding rates that had dropped to momentous lows last year.
Most Thai hoteliers are aiming for a five per cent increase for the November 2010/October 2012 season for the German market. Banyan Tree Bangkok is looking at an eight per cent increase on rates that had fallen by 10 per cent in 2009, said sales and marketing director Sunee U-Thaikittisup.
Centara Hotels and Resorts is also aiming for a four to five per cent rate hike for its Thai hotels. Senior vice president sales and marketing Chris Bailey said: “We haven’t increased our rates for the last two years.”
Khiri Travel CEO, Ashok Kapur, said the rate increases were acceptable so long as they did not hurt demand, which remained rather fragile still. “The market is coming back so increases are understandable. But hotels have to be cautious and flexible in the terms attached to the rates.”
Indonesia is watching the signals from the Thai camp closely. In Bali, hotels catering to the European market were, by and large, sticking to last year’s rates, said Pacto director of business development Umberto Cadamuro.
Marintur Indonesia executive director Ismail Ali noted that rates were going up 12 to 18 per cent, particularly among four-star hotels. “Rates at properties catering to the Australian market have shot up due to strong demand. The increase is less at hotels targeting Europeans.”
Prices are likewise inching up in the Philippines (three to eight per cent) and Malaysia.
Asian Overland Services assistant director for business development, Noor. M, expects four-star rates to go up by 12 per cent; five-star, 15 to 20 per cent.
“The market is just coming back, and 2011 will be even harder as it’ll reflect the impact of 2009’s troubles. Hotels cannot be overconfident. Tacticals won’t help us much for the European market as (the former) are likely to be last-minute and we won’t be able to get them to the market in time.”
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