The hotel business is growing rapidly in Thailand and the domestic travel sector has been identified as the primary reason. The rapid growth of low-cost airlines and an expanding middle class in Asia are the chiefs in a new group of hostel offerings. Hybrids and poshtels are also gradually becoming a major competitors for the economic lodging sector and the fixed budget.

Hostel PhuketWith a daily rate of average 350 THB, the rising number of these Hybrids are taking a bite out of the traditional hotels with an ADR of 1,500 THB on average.

The number of international level hostels in South East Asia stands at 770 with 36,480 beds. The competition keeps growing as hostel owners are continuously coming up with innovating designs and accommodation packages to create a greater and wider appeal.

This market segment is destined to grow more as there is a rise in the number of families and friends that travel together same can be said of school and sporting groups.

Most of the hostels are privately owned by individual investors. They generate income through conversions against newly built properties. The hostel operators of 2016 are running both hostels and standard hotel space with the aim of capturing expanding markets.

The domestic inter- country travel inside most of South East Asia is the most productive growth segment in the economy. Further national integration such as the Asia East Central will prompt growth of more cross-boarder hostel investment.

Key attributes

The cost drivers of hostel offerings apply to the operating cost, properties and quality of the product. While shared rooms with (shared) bathrooms continue to be popular among hostel models, operators have taken steps to expand the number of private rooms that have individual bathrooms. They have innovated design-led facilities with the aim of attracting a wider client base putting the hostels in competition with the mid- sized hotels.

Eco Hostel

The hostel is located in Phuket Town, opposite the old bus terminal of Phuket. Eco hostel have been using the Property Management System of HMS Thailand to keep up with their reservations and guest information. The Cloud based solution enables the management to store all the guest information in one central location with the duration of stay, confirmed room, arrival details, payment details as well as business source and many more.

HMS Thailand has enable ECO hostel to take the full advantage of the online traveller by distributing its rates and availability straight from the Property Management system online with the popular OTA’s such as, Agoda and to name just a few. The property will receive the booking confirmation straight into their Property Management system, which enable them to sell room 24 hours, without maintaining manual update of allotments and rates. With the reservations and sales almost automated, they have allot of free time to take care of their guests.

The management of Eco hostel is currently reviewing to start up a similar platform for their other properties they currently run.

Want to learn more how HMS Thailand can help your business, check out the video here.



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