Connect with us

Tourism

Digging into the Phuket hotel data

Published

 on 

by Bill Barnett, c9hotelworks

As Phuket’s hotel operators and owners face a disruptive 2019, we thought it was time to do a deep dig into the island’s accommodation performance metrics.

Global hospitality data and analytics group STR was the logical resource, so we spoke to their Area Director Asia Pacific, Jesper Palmqvist. The following are key takeaways from the highly focused look at Thailand and Phuket’s hotel sector:

To set the stage for the declining numbers this year it’s important to cast an eye backward into 2018 and understand the first quarter of 2018 for Thailand including Phuket well eclipsed the previous two years. Call it a high water mark, but it’s important to understand the benchmark was set exceedingly high.

For Mainland Chinese arrivals into the country 2017 by percentage topped a three-year trend (2016-2018) and in fact if for the first four months of this year, 2019 is above the same period is 2017.

By now, you have to be wondering what this all means?  In a nutshell, one could say that perhaps market expectations from 2018 have created unrealistic expectations and that after a long night of binge drinking, the current hangover is somewhat self-imposed.

Still, Mainland Chinese as of the first four months of this year, represents 40% of the international market, with Russia at 12% and 5% for Australia. On the airlift front yes, three airlines have ceased service but five more have entered the fray.

Digging into the Phuket hotel data | News by Thaiger

As we have written in our new Phuket Hotel Market Update Mid-Year Edition, RevPAR (Revenue Per Available Room) for the high-performance months of January through April 2019 was down 12%, but again be reminded this is a year-on-year comparison against the epic 2018 uptick.

What has to cause concern though and is a tell-tale sign of a slowdown is that over a 12-month period the market has registered a consistent pattern of lower demand. That reality is now a fact, and one hoteliers are  now coming to grips with.

Another question mark was performance in May this year which despite being a traditional low-period, was even more pronounced. Is this the new normal, with a return to more seasonal trading swings or just a blip in trading? Only time will tell.

One interesting takeaway is that softening rates market-wide have largely followed demand drop but for properties outside Patong the rate swing has generally been more significant. On a seasonal scale, Phuket hotels in the three months of December through February have over the past five year even able to gain high rates, particularity in periods when occupancy hits 80% an above, hotels have been able to cash in.

The summer months of July and August this year are capturing everyones interest and while demand is expected to rise, it will be hard for rates to recover.

One of STR’s key comparisons is to Phuket’s symbiotic resort cousin Bali. The Island of the Gods has seen occupancy move upward the past few years after a period of tremendous new supply growth. There is only a 2% occupancy difference presently. If you go back three years, Bali trailed by 13% lower occupancy so there is little doubt that Southeast Asia is a more competitive landscape.

Looking into the crystal ball there are signs of tourism markets across the region softening in 2019. Where are the opportunities? Source markets like India, MICE and niche segments and the shoulder season. Though there is growing apprehension what October will bring, operators and owners need to understand the need for improved management and sales and marketing strategies in the year ahead.

Digging into the Phuket hotel data | News by Thaiger

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Bill Barnett has over 30 years of experience in the Asian hospitality and property markets. He is considered to be a leading authority on real estate trends across Asia, and has sat at almost every seat around the hospitality and real estate table. Bill promotes industry insight through regular conference speaking engagements and is continually gathering market intelligence. Over the past few years he has released four books on Asian property topics.

Follow Thaiger by email:

Events5 mins ago

Travis Scott to headline Rolling Loud Thailand festival

Thailand7 mins ago

9 year old boy rescued after falling into 2-metre deep well

Thailand9 mins ago

Thailand News Today | Sexy Thai model exposed as an identity thief and transwoman

Sponsored1 day ago

Top 5 Backlink Agencies in Bangkok for Your Business

South16 mins ago

Whale washes up on beach in South Thailand

Transport52 mins ago

Last jumbo – the last Boeing 747 leaves the gate

Weather53 mins ago

Bangkok could hit lows of 18°C next week

Join the conversation on the Thaiger Talk forums today!
Thailand1 hour ago

Geminids meteor shower predicted to hit Thailand on December 14 

Crime1 hour ago

Kuwaiti overstayer busted in Koh Pha Ngan, Thailand

Thailand1 hour ago

What next for Bali as Indonesia bans sex?

Thailand2 hours ago

Jailed politician erects billboard to wish voters Happy New Year

Thailand2 hours ago

Beastly reptile crocs the world of small village in southern Thailand

Pattaya2 hours ago

Pattaya officials continue to struggle with homeless problem

Thailand3 hours ago

Thaiger Unfiltered Ask Us Anything

Crime3 hours ago

Fifteen drug smugglers shot dead after gunfight with Thai soldiers in Chiang Mai

Lifestyle3 hours ago

Bird watching event coming up at Thai forest park

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending