Demand for Hotels in Thailand Continues to Grow
Recent research has shown that the hotel industry has enjoyed steady growth globally since the middle of 2016.
This has been noted across Europe and the Asia Pacific with Thailand noticing significant rises, thanks in the most part to the increased number of tourist coming from China and other parts of Asia. Although many countries have experienced weakening GDP, demand and occupancy rates in hotels have remained high.
According to research, a shift in demographics has played a significant role in the rise in demand. It appears that consumers no longer crave physical goods preferring not to opt for quality experiences. Older generations have always tended to favour spending large proportions of their income on leisure activities, including holidays but it now seems that millennials are following suit. Their desire for travel and to experience new things has increased demand for hotels even further.
The increasing number of online booking platforms has undoubtedly played a role in increasing demand. It is now far easier for consumers to book hotel rooms through sites such as Agoda and Booking.com and review sites such as Trip Adviser means many travellers know exactly what to expect before they arrive at their destination. All of these sites have increased in popularity in Thailand over the last few years with resorts such as Pattaya and Phuket benefitting the most.
The hotel sector has responded well to the threat that was posed by AirBnB, a site that offer low-to-mid end accommodation on a short term basis. Of course, this type of rental is technically illegal in Thailand although the law isn’t generally enforced. The hotels have fought off the competition by increasing the number of services that they offer as well as increasing their standards and charging lower rates when occupancy levels are down – something that would have been unheard of a few years ago.
Of course, it is not just the tourist resorts that have seen an increase in demand for hotel rooms. Bangkok has experienced its highest occupancy rates and Average Daily Rates for many years. Tourist numbers are increasing at 8% year on year and this has unquestionably contributed to these figures, not just in Bangkok but across the country as a whole.
Developers, many of whom had previously concentrated on building condominiums, are now building hotels at a phenomenal rate. Indeed many developers and hoteliers have teamed up to offer investors the opportunity to purchase units in hotels complete with guaranteed rental returns that can run for anything up to 20 years.
It is hard to question the fact that hotels are enjoying a healthy period of growth at the present time.
In fact, Thailand’s hotel industry is one of the few sectors that is still experiencing steady growth with demand still on the increase with no sign of any let up. Many in the industry are excited by these results although some analysts still question whether owners and operators can raise rates whilst still enjoying the existing growth rates.<?p>