Dual pricing coming to Thai hotels?

[Gaybutton]

One of the more common complaints from foreigners in Thailand is dual pricing - one price for Thais, a different, always much more expensive price for farang - sometimes as much as 10 times the price Thais pay. Now that same type of dual pricing may be coming to Thai hotels, courtesy of Thailand's Tourism Ministry.

Agree or disagree with the logic (or lack thereof), here's why:
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Thailand May Get Pricier for Tourists With Dual Hotel Rates

by Patpicha Tanakasempipat, Bloomberg News

July 6, 2022

(Bloomberg) -- Foreign tourists may soon find Thailand a more expensive destination than in the past two years with the country now planning to raise hotel rates to pre-pandemic levels to support a faster recovery of the industry.

Thailand’s tourism ministry plans to ask hotel operators to implement a dual-tariff structure under which foreign visitors may be charged rates similar to pre-pandemic days while locals may continue to enjoy discounted rates, Traisuree Taisaranakul, a government spokeswoman said in a statement on Wednesday.

“This is to maintain our standards of rates and services for foreign tourists, which affects the perception of country’s tourism brand,” Traisuree said. “Rates that have been reduced during Covid-19 will be maintained for Thais to sustain the momentum of domestic tourism.”

Hotels in tourism hotspots such as Bangkok, Phuket, Krabi and Koh Samui continue to offer huge discounts to draw back visitors after the pandemic pushed room occupancy rates to about 30%.

While there was no immediate response to the proposal from hotel operators, the tourism ministry and the Tourism Authority of Thailand will soon hold talks with the Hotel Association of Thailand about the dual pricing plan, according to Traisuree.

While the Southeast Asian country has scrapped all Covid-related travel restrictions, the tourism sector is still reeling from heavy losses accumulated during the pandemic. Thailand expects 9.3 million foreign arrivals this year, a fraction of the 40 million tourists it received in 2019.

https://www.bnnbloomberg.ca/thailand-ma ... -1.1788376

[Undaunted]

The above article is consistent with Thai thinking…raise prices to make up for lost business but adds a new dimension giving special treatment to it’s own citizens via discounted rates, just imagine if any popular western destination did the same!

[Gaybutton]

Someone has to be the person who first came up with this stroke of genius, just when Thailand needs to be attracting tourists.

I agree with Undaunted. Typical Thai logic. Not making enough money, therefore raise the prices. To me that makes about as much sense as telling the boss, "I'm sorry I came to work late, but I'll make up for it by leaving early."
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Govt plans to charge foreigners more than Thais for hotel rooms

6 July, 2022

Foreign tourists may soon find Thailand a more expensive destination than in the past two years with the country now planning to raise hotel rates to pre-pandemic levels to support a faster recovery of the industry.

The Tourism and Sports Ministry plans to ask hotel operators to implement a dual-tariff structure under which foreign visitors may be charged rates similar to pre-pandemic days while locals may continue to enjoy discounted rates, Traisuree Taisaranakul, a government spokeswoman said in a statement on Wednesday.

“This is to maintain our standards of rates and services for foreign tourists, which affects the perception of country’s tourism brand,” Ms Traisuree said. “Rates that have been reduced during Covid-19 will be maintained for Thais to sustain the momentum of domestic tourism.”

Hotels in tourism hotspots such as Bangkok, Phuket, Krabi and Koh Samui continue to offer huge discounts to draw back visitors after the pandemic pushed room occupancy rates to about 30%.

While there was no immediate response to the proposal from hotel operators, the ministry and the Tourism Authority of Thailand will soon hold talks with the Hotel Association of Thailand about the dual pricing plan, according to Ms Traisuree.

While the country has scrapped all Covid-related travel restrictions, the tourism sector is still reeling from heavy losses accumulated during the pandemic. The government expects 9.3 million foreign arrivals this year, a fraction of the 40 million tourists who arrived in 2019.

It was not immediately clear how the government's new plan to attract more foreign tourists to Thailand - by raising prices and charging them more than Thais - would impact foreigners living in the kingdom.

https://www.bangkokpost.com/business/23 ... otel-rooms

[Gaybutton]

"He's going to do it. He's really going to do it."
- William Holden (Shears), 'The Bridge on the River Kwai'

And it looks to me like they are really going to do it. Of course, if they let us out of that 800,000 baht requirement, then I won't complain about dual pricing. Until then, I'm complaining . . .
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Thai government to set dual accommodation pricing for foreign tourists at similar rates to pre-pandemic period

By Nop Meechukhun

7 July, 2022

The Thai government is planning to set dual pricing of hotel rooms for foreign tourists at the same rate as the pre-pandemic period as the Covid-19 situation is resolving.

Deputy government spokesperson Traisulee Traisaranakul revealed that the Minister of Tourism and Sports, Phiphat Ratchakitprakarn, and the Tourism Authority of Thailand (TAT) are preparing to discuss with hotel operators in various tourism provinces, including the Hotel Association of Thailand, regarding accommodation prices.

They would introduce the implementation of a dual-tariff condition in which foreign visitors may be charged rates similar to the pre-pandemic period while local tourists may continue to pay at current discounted rates.

Traisulee said: “During this period that the tourism sector is still in recovery, the government must support the travel of Thai people. This [The dual pricing] is to maintain our standards of prices and services for foreign tourists as it could affect the international perception of the country’s tourism brand.”

“Prices that have been reduced during Covid-19 will be maintained for Thai tourists to sustain the momentum of the domestic tourism.” Traisulee concluded.

The proposal has driven widespread outrage amongst some English language forums and discussion groups, notes TPN media.

This plan follows Deputy Prime Minister Anutin Charnvirakul stating earlier this week that Thailand should focus on being a high-end premium brand for quality tourists versus a place known for cheap holidays.

It is unclear if the proposal would allow expats with long-term visas or work permits to get the cheaper Thai pricing, or if they would be lumped in with foreign tourists.

https://tpnnational.com/2022/07/07/thai ... ic-period/

[Gaybutton]

This is certainly encouraging. It turns out the hoteliers themselves are opposed to this stroke of genius. I guess whoever came up with this idea forgot to talk to hotel owners first. I suppose some of them called in and said the equivalent of "Don't do me any favors!"
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Hoteliers deride government proposal for dual pricing

by Dusida Worrachaddejchai

8 July, 2022

Hoteliers have expressed concerns about the government's plan to set dual pricing for foreign tourists and locals, saying the move is "impractical" and demanding the administration roll out effective promotions to spur tourism sentiment in an effort to increase room rates.

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.

If demand increases to support hotel occupancy, then the rates will automatically increase, said Mrs Marisa.

On Wednesday, a government spokesperson said hoteliers will be asked to implement a dual-tariff structure under which foreign tourists will be charged pre-pandemic prices, while discounted rates are maintained for locals.

"Every hotelier would like to operate with higher and fair rates to gain a larger margin, but it is difficult to do so because of heated competition and oversupply. Operators have to use pricing strategy to gain cash flow," said Mrs Marisa.

In addition to a tourism plan for the international market, the government can jointly conduct domestic campaigns with the association to offer special prices for Thais and increase domestic trips, she said.

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 cannot raise the prices to levels tallied in 2019 because demand is too weak.

The current room rates in Phuket are still 30-40% lower than rates in 2019 and a full recovery is not expected in the upcoming high season, he said.

Half of the hotels on the island remain closed, while the volume of tourists has rebounded to only 30% of the pre-Covid level, said Mr Suksit.

He said the government should urge hotel operators to focus on the domestic market as an increase in room rates could drive locals to travel overseas instead.

The "We Travel Together" hotel subsidy scheme needs to continue until the end of the year to maintain domestic tourism momentum, said Mr Suksit.

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.

Krabi hotels have slashed room rates by at least 50% from levels in 2019.

Bookings are expected to reach pre-pandemic levels in the fourth quarter thanks to forward bookings from the Scandinavian market in December and support from domestic guests, she said.

Phiphat Ratchakitprakarn, the tourism and sports minister, said the government did not give a mandatory order about the issue, but wants to encourage hotels to shift room rates based on the market. The administration wants to avoid overpricing, support cash flow and maintain the service standards of hotels.

https://www.bangkokpost.com/business/23 ... al-pricing

[Dodger]

I agree with Undaunted..."typical Thai nonsense".

Ready - Fire - Aim...as always.

I just love it every time a Thai newspaper categorizes something as a "PLAN" when in fact it's just a PROPOSAL which may or may not ever become a PLAN.

If by chance the hotels go along with this I guess I'll just let Jai book our hotel rooms when we travel domestically to get the lower rates.

[Gaybutton]

which may or may not ever become a PLAN.

I'll just let Jai book our hotel rooms when we travel domestically to get the lower rates.

Good idea. Sounds like a plan . . .

[Dodger]

This would have been a great proposal if the intention was to keep tourists from visiting Thailand.

In short, the Hotel Industry at large has told the Tourist & Sports Minister that his idea sucks and refuses to implement this ridiculous proposal. (see video below)

Wise decision by the Hotel Industry. Just goes to show the mentality (and qualifications) of some of these ruling Ministers.