Thai hospitality sector opposes dual accommodation pricing

hotel sector oppose

Many hotels have voiced their opinions over the government’s proposal to adopt dual pricing in the hospitality industry. They described the plan as “impractical” and asked that the government come up with promotions and campaigns to boost tourism instead.

A government spokeswoman said yesterday that hotels would be expected to adopt a dual pricing system where Thais would continue to get lower rates while foreign tourists would be charged pre-pandemic pricing – a two-tier pricing system.

The spokesperson from the Tourism Council of Krabi said that “every customer should be treated fairly and equally.”

“Clear communication is crucial, according to the head of who warned that this sensitive subject could damage the tourism industry’s reputation.”

A spokesperson for Bangkok Marriott Marquis Queen’s Park echoed similar comments.

“I don’t think it’s fair. Whether we are Thai or foreigners, we should all pay the same rates.”

According to the President of the Thai Hotels Association, Marisa Sukosol Nunbhakdi, the idea is unrealistic as hotel costs vary based on the state of the market.

“Hotels at each star level also apply different pricing tactics. Prices will automatically rise as demand rises to maintain the occupancy rate.”

“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.”

A representative for Sheraton Hotels, Guntapitch Rodpun, stated that international companies like Sheraton are unlikely to change their pricing policy based on the nationality of their customers unless they are ordered to do so.

“While several hotels may have implemented a separate pricing structure for Thai nationals and foreigners in the past, we have never had that kind of pricing structure. Although we have not received any direct proposal, our hotels have always featured universal rates for Thai nationals and foreigners alike.”

According to the Minister of Tourism and Sports, Phiphat Ratchakitprakarn, the government would not force hotels to implement the much debated dual pricing proposal.

SOURCE: Bangkok Post | Coconuts     8.July 2022