Top 5 Phuket Hotel Trends For 2019 And Beyond
Moving through high season in 2019, hoteliers are starting to look for strategies for the year in order to not be reliant only on volatile mass markets. The following is C9 Hotelworks read on key trends for the year.
- Pressure On Demand – Good Hotels Perform, Others Left Out
Diving into the numbers the reality is that demonstrated hotel performance is not dependent on macro tourism metrics alone but brand, location, and management play a key role in the battle of the haves and the have nots.
- Increased Regional Competition For Mainland Chinese
An onslaught of other Asian destinations are targeting Chinese travelers and putting up incentives like visa-free entry. Brand Thailand is not alone it is quest for numbers.
- Rising Rate Volatility As Hotels Fight For Market Share
Phuket over the past few years has successfully managed to cash in when the going was good, and drive higher rates during periods of high demand. With a China slowdown, appreciation of the Thai baht and growing competition, rates are likely to be under attack in the foreseeable future.
- Accumulating Pipeline Set To Continue Unabated
With surging land prices in Bangkok and other key Asian CBD areas, developers are adjusting their return outlook and continue to either transact properties in Phuket or undertake greenfield developments. A second factor is property development groups looking to mitigate risk in a challenged real estate sector and look at recurring cash flow investment models.
- Niche Products Emerging, Can Buck Macro Trends
No two hotels are created equal and changing travel preferences in terms of properties that offer unique design, best in class wellness offerings or other key demand generators are hitting numbers far ahead of their competitive set.
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