The current occupancy rate at Phuket is crumbling, especially since it’s around 40%, which is worse than last year, and the Phuket Hotel Association officials are trying to bring in the best results by creating an online agency specifically for booking.
Most of the time the Phuket resorts receive the blame for these problems because they are slashing the prices very often, and thus the results aren’t that good top begin with. This is what lead to a meeting between the Phuket’s Software Industry Promotion Agency and the Thai Hotels Association with the whole meaning being to find a new, rival booking site to defeat the competitors.
For the time being, the whole 2015 low season seems like long and bleak, and this is mainly due to the poor pricing mechanics that were used here.
But the major downside, pretty much like the southern president of THA said, Kritsada Tansakul, there’s a lot of supply, in fact there’s an oversupply and the only valid method that can be used here is to deal with the illegal accommodation and make the competition work great in this regard.
With more than 90,000 rooms being taken into consideration on the travel market, but many of these are illegal. The issue however comes from the fact that such problems have existed in the good times of these resorts as well, but somehow they have accelerated drastically and now reached their peak, which is definitely a downside. The only methods to help solve these problems are the cooperative willpower and the enforcement which are set to bring in some stunning developments.
With numerous developers were encourages to invest in Phuket and its tourism because there is a boom in this regard, and there are no less than 5 years of continual growth and astounding development, yet the illegal issues are surfacing more and more, with the tipping point actually being reached recently.
The competitive pricing is undermined and the competing destinations should not be dealing with commissions that are too large or with lots of corruption.
The downside is that the whole competitive pricing edge which worked so good in the past is not crumbling, mainly due to the large corruption and the massive commissions.
And since the trend is now to use the last minute booking, Phuket is basically waiting for the online booking agents to bring them the best results. Customers have better deals, but the hoteliers experience losses in this regard.
Europeans are feeling unwanted here, so the people who still come to Phuket are regulars as well as the wealthy veterans.
But the issue is also that there aren’t that many people to actively contribute to the Phuket economy, so cashing in here isn’t a good idea as the prices will most likely rise so that the hoteliers recoup losses. So, while the future is Phuket is uncertain, maybe the meetings will lead to new, better strategies that will allow hoteliers to acquire astounding results as a whole!
