Rate recovery still dicey for Thai hotels

THAI hotels are advised to continue with tacticals this year and maintain rates for the next contracting season, with buyers citing a weak economy and currency, especially in Europe, coupled with room oversupply in some Thai areas, as the main reasons.

Hotelbeds’ head of contracting Thailand/Indochina, Alon Miler, based in Bangkok, said it was pointless for them to raise rates, only to roll out stay/pay deals later.

Bangkok-based Go Vacation Thailand’s executive director for product and contracting, Hermann Wegmueller, said the stronger baht against the euro had already caused prices in Thailand to rise by 20 to 25 per cent over the last six months.

Even markets whose economies are stronger are making similar calls. Wettstein Switzerland’s senior product manager Dagmar Waeber said even if Thai hotels were to ask for a small percentage hike, that would translate to a big increase due to the strong baht. “I would suggest hotels to maintain rates, but not drop them, as that would be asking too much,” she said.

– Full report in TTG Asia

By Sirima Eamtako

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