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Are Thailand Hotels Too Cheap?

Category: Hotels, Posted:06 Apr 2015 | 06:00 am

There continues to be a debate amongst hotel owners and operators that Thailand hotels have fallen into a bottomless pit of underachievement in terms of hotel rates.
Last week Asiatraveltips.com ran an article on the latest Hotels.com Hotel Price Index (HPI) which documents the trend that Thai travelers will pay 75% more for hotel room when going abroad compared to the rates they pay in domestic destinations.
Internationally the average room rate Thai -based travelers paid was THB4,740 versus THB2,707 for local stays in a 2014 round up.
Over the past few years, Thailand has seen a mass exodus of domestic trade going to Japan and Korea.
Visa free travel is certainly one of the leading proponents of the shift, though the recent aviation crisis that may limit airlift to North Asia could stem the tide.
Interestingly the recent C9 Hotelworks Hua Hin Market Update showed that over 70% of visitors to the legacy destination were Thai's and in fact hotel rates were shifting upwards.
While the Chinese market is often blamed as driving down room rates, this fact remains that Bangkok hotels which are some of the best in the world have been underpriced for a least two decades.
Chinese travelers continue to pay premiums for Hong Kong, Singapore and even Bali so why does Thailand continue to focus on quantity over quality?
The mystery of Thailand's 'same same but different' no doubt looks sent to continue through the volatile days of 2015.

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