TOURISM & HOTELS
Chinese put squeeze on Pattaya's hotels
Chinese travel agents demand big cuts on room rates
15/07/2015
Chadamas Chinmaneevong
Several Pattaya hotels that are struggling to survive are being pressured by Chinese travel agents to reduce their room rates by 30-40%.
Hoteliers in the resort city have been relying mainly on Chinese tourists after the sharp fall in European tourists, particularly Russians, due to the economic recession in their countries.
Locally run Pattaya hotels have faced an oversupply since last year and the situation is getting worse as room rates are being pushed lower by Chinese travel agents with strong bargaining power.
The Thai Hotels Association (THA) Eastern Chapter said some local hotels, which may not have strong marketing networks and cash flow like big international chains, had slashed their room rates after a lot of pressure.
Many five-star local hotels sell their rooms at 2,200 baht per night to survive, while four-star hotels charge about 1,400 baht and lower-grade hotels charge only 800 baht.