High-end hotel operators are preparing to increase room rates during the upcoming high season as tourist numbers are expected to rise in the next few months, while mid-tier and lower-tier hotels continue to face challenges, according to the hotel operator sentiment index.
Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), reported that the average occupancy rate in September was 55%, down seven percentage points from August and lagging behind the same period in 2019, which saw a rate of 63.4%.
He noted that recovery rates vary by hotel segment, with three-star hotels and lower achieving only 45% occupancy in September, whereas four-star hotels and above recorded 58.7% occupancy.
Regionally, the occupancy rate for hotels in the North dropped from 50% in August to 25.7% in September, primarily due to severe flooding in key areas across several provinces. In contrast, hotels in the central region achieved the highest occupancy rate at 64.4%, followed by the East at 57.1%. Lodging in the South and Northeast both recorded occupancy rates of 49%, according to Mr. Thienprasit.
He stated that most hotels plan to capitalize on the high season by adjusting their room rates, although these increases are expected to be under 10%.
Mr. Thienprasit added that only four-star hotels and higher have the prospects of raising their room rates by more than 20%, supported by a more optimistic performance in the third quarter, particularly for hotels in the central, eastern, and southern regions.
So far in October, hotel operators have recorded a 55.6% occupancy rate and anticipate guest numbers will increase by 5-10% during the fourth quarter, according to THA estimates.
Regarding the Chinese market, 35% of hoteliers do not foresee an increase in arrivals during the high season, while 27% believe the numbers will decline by 10%. Approximately 38% anticipate a rise in Chinese guests of 10-20%, primarily at four-star hotels.
Hotel operators remain pessimistic about domestic bookings, with 65% expecting either stable or declining numbers during the quarter. Among these respondents, 19% believe the decline will surpass 10%.
Mr. Thienprasit expressed concern about the floods and urged the government to implement relief measures and stimulus schemes to support recovery in time for the high season. He emphasized that even though flooding issues have been resolved in several provinces, tourism activities cannot quickly resume due to transportation disruptions, along with the severe impact on many tourism-related companies and supply chains.
“Soft loans and measures to alleviate utility costs are crucial for the tourism recovery in the fourth quarter,” Mr. Thienprasit stated.
Photo by Alexi Van Damme CEO and Founder AX Media Thailand
Location: Mandarin Oriental
