Thai government backpedals on dual hotel pricing idea
The Thai tourism ministry is trying to put in perspective its recently announced plan to introduce a dual-tariff structure at local hotels for foreigners and Thai nationals in order to boost tourism income.
The idea has triggered an intense debate whether it is administratively viable altogether and to what extent it would adversely affect tourists’ perception of Thailand and the country’s image as a holiday destination.
Under the dual price structure, foreigners would be charged hotel rates similar to pre-pandemic days while locals would continue to enjoy discounted rates.
Hoteliers have expressed concerns about the government’s plan, saying the move is “impractical” and demanding the administration rather roll out effective promotions to spur tourism sentiment in an effort to increase room rates instead.
Some wondered on which legal basis such an order could be given to private enterprises and criticised the plan as “not very well thought out,” apart from conveying “discrimination” between different customer groups.
“Impractical idea”
The idea of dual pricing is impractical as room rates shift dynamically based on market conditions, said Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association. Hotels in each tier also use different strategies to set prices, she said, adding that if demand increases to support hotel occupancy, then the rates will automatically increase.
Responding to the dual pricing proposal, Charintip Tiyaphorn, president of the tourism council of Krabi, said this “sensitive issue” could create a negative tourism image because everyone needs to be treated equally and clear communication is essential.
Demand too weak to raise prices
Suksit Suvunditkul, president of the Thai Hotels Association’s southern chapter, said it is “common” for hotels to offer discounted rates for Thai residents and normal rates for foreign visitors, but hoteliers could not just raise the prices to levels tallied in 2019 because demand is too weak.
Tourism minister Phiphat Ratchakitprakarn, faced with the backlash, said the government would not “force” hotels to implement the much-debated dual pricing proposal.
There is no mandatory order on the issue, he said, instead the ministry wants to “encourage” hotels to shift room rates based on the market. It wants to “avoid overpricing, support cash flow and maintain the service standards of hotels,” he added.
The Thai tourism ministry is trying to put in perspective its recently announced plan to introduce a dual-tariff structure at local hotels for foreigners and Thai nationals in order to boost tourism income. The idea has triggered an intense debate whether it is administratively viable altogether and to what extent it would adversely affect tourists’ perception of Thailand and the country’s image as a holiday destination. Under the dual price structure, foreigners would be charged hotel rates similar to pre-pandemic days while locals would continue to enjoy discounted rates. Hoteliers have expressed concerns about the government’s plan, saying the move...
The Thai tourism ministry is trying to put in perspective its recently announced plan to introduce a dual-tariff structure at local hotels for foreigners and Thai nationals in order to boost tourism income.
The idea has triggered an intense debate whether it is administratively viable altogether and to what extent it would adversely affect tourists’ perception of Thailand and the country’s image as a holiday destination.
Under the dual price structure, foreigners would be charged hotel rates similar to pre-pandemic days while locals would continue to enjoy discounted rates.
Hoteliers have expressed concerns about the government’s plan, saying the move is “impractical” and demanding the administration rather roll out effective promotions to spur tourism sentiment in an effort to increase room rates instead.
Some wondered on which legal basis such an order could be given to private enterprises and criticised the plan as “not very well thought out,” apart from conveying “discrimination” between different customer groups.
“Impractical idea”
The idea of dual pricing is impractical as room rates shift dynamically based on market conditions, said Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association. Hotels in each tier also use different strategies to set prices, she said, adding that if demand increases to support hotel occupancy, then the rates will automatically increase.
Responding to the dual pricing proposal, Charintip Tiyaphorn, president of the tourism council of Krabi, said this “sensitive issue” could create a negative tourism image because everyone needs to be treated equally and clear communication is essential.
Demand too weak to raise prices
Suksit Suvunditkul, president of the Thai Hotels Association’s southern chapter, said it is “common” for hotels to offer discounted rates for Thai residents and normal rates for foreign visitors, but hoteliers could not just raise the prices to levels tallied in 2019 because demand is too weak.
Tourism minister Phiphat Ratchakitprakarn, faced with the backlash, said the government would not “force” hotels to implement the much-debated dual pricing proposal.
There is no mandatory order on the issue, he said, instead the ministry wants to “encourage” hotels to shift room rates based on the market. It wants to “avoid overpricing, support cash flow and maintain the service standards of hotels,” he added.
