TO DISCUSS YOUR PROJECT OR LEARN MORE ABOUT OUR SERVICES:

  • This field is for validation purposes and should be left unchanged.

When a Bed Is a Bed is a Bed

Category: Hotels, Posted:29 Jul 2009 | 06:50 am

I was recently reading comments from an industry magazine on the issue of a hotel owner complaining why rates at his hotel which were over $100 dollars a year ago, and are now just $60 dollars. It's interesting to view the upscale and midscale hotel performance of the past 6 months in Phuket and see the dramatic discounting of hotels which have created chaos in hierarchy or little differentiation between standard of hotels. Rates rule and travelers are shopping like never before for the cheapest prices or best deals.
Conclusions reached by the writer were that while brands, architects, designers and operators all look to create DNA (differentiators, nuances and attributes) for individual hotels, that at the end of the day rooms are commodities. A hotel bed is a hotel bed, like it or not and while travel remains high on peoples agenda, rates sensitivity is on the rise. When a commodity pricing philosophy is adopted, it not only affects the hotel room you are selling but the entire market of hotel rooms.
In a protracted downturn as we are currently experiencing the domino theory of pricing impacts rates starting from top to bottom could not be more evident when viewing the current results of Phuket's hospitality assets. Unfortunately as we are moving into a high season horizon, feedback from many hoteliers and sales executives point to sentiment by wholesalers and individual bookings asking for highly discounted prices. For now, hotels look to be stuck on a ledge of commodity pricing which will undoubtedly reach far into 2010.

Other News

Read more

Bid Now. Only 8 Days Left For the PHAB Great Travel Auction

Category: Hotels, Posted:04 Jun 2024 | 07:52 am There are only 8 days left to bid on this year’s non-profit Phuket Hotels Association online charity travel auction. Amazing travel stays from London, Australia, Bali, Dubai, Paris, Maldives, and of course Phuket, Bangkok, and Koh Samui. There is even a vacation stay in Bhutan. All of the proceeds go to support the hospitality scholarship […]
Read more

Dusit Ties Up With Layan Verde Phuket Branded Residences

Category: Hotels|Real estate, Posted:26 May 2024 | 16:53 pm Thai hospitality group Dusit International has signed a deal with VillaCarte Group for their upcoming Layan Verde project in Bangtao Phuket. The agreement covers 633 units under two brands – Dusit Residences and a Dusit Collection Hotel. An opening is planned in 2027 with a key highlight being an EDGE environmental certificate. VillaCarte Group has […]
Read more

Koh Samui Gets New Daily Direct Flights From Singapore

Category: Tourism, Posted:14 May 2024 | 09:32 am In a major boost for Koh Samui tourism, Singapore’s Scoot Airlines has commenced daily flights. Currently, there is a daily flight, with a second flight expected to be added in June of this year. Scoot is a subsidiary of Singapore Airlines. The airline is using Embraer E190-E2 aircraft which accommodate 112 passengers on the route. […]
SiaJai logo

Thailand's Leading Homecare Marketplace