Hoteliers take a chance with price fluctuation

Rates vary widely based on seasons as operators seek to avoid deep discounts, writes Narumon Kasemsuk

- Narumon Kasemsuk

Room rates surged during the recent tourism high season, sparking criticism among some travellers who viewed Thai hotels as being more expensive than those in neighbouring countries.

Now mired in the low season, fewer arrivals has some hoteliers fearing the competition could trigger a price war in certain areas.

RISING CHALLENGER

Thienprasit Chaiyapatranun, president of Thai Hotels Association (THA), said the average room rate of Thai hotels in March 2025 rose by 8% year-on-year to US$157, based on industrial data gathered by HotStats, a profit and loss benchmarking company.

Mr Thienprasit said when compared with emerging destinations such as Vietnam, which attracted more Chinese tourists than Thailand for the first time in the first quarter this year, the average rate for Thai hotels was higher.

The average room rate of hotels in Vietnam was $129 in March 2025, an increase of 4% year-on-year.

He said an influx of tourist demand this year drove the average occupancy rate in Thailand up to 72% in March 2025 from 69% year-on-year.

For the period, Vietnam's occupancy rate rose to 60% from 55% year-on-year.

In the luxury segment, Thai hotels recorded a 69% occupancy rate in 2024, compared with a 61% occupancy rate in Vietnam.

According to Lighthouse, a commercial platform for the travel industry, Thailand ranked second in Southeast Asia in terms of average room rates during the high season last year.