Thailand hotel room rates soar by 15% amid travel demand surge
Hotel room rates in Thailand increased by an average of 15% from 2023, as reported by SiteMinder, an e-commerce platform assisting hotels with direct and third-party bookings. This growth distinguishes Thailand as the only country with double-digit expansion.
The Hotel Booking Trends report from SiteMinder, which analysed over 125 million reservations, indicates that the average daily rate (ADR) in Thailand rose to 5,377 baht from 4,648 baht in 2023.
Rates peaked in December at 6,460 baht per room, an 11% increase from the previous year’s same period.
SiteMinder attributed this growth to Thailand’s response to increased international travel demand.
Thai hotels led Asia in foreign arrivals, with international guests constituting 77% of check-ins, surpassing the global average of 48%. Only Austria had a higher percentage of foreign check-ins.
Additional insights from the report revealed that travellers booking Thai accommodations planned their stays further ahead, with an average lead time of 27 days, the longest in Asia and close to the 29-day booking window seen in 2019.
Thailand strengthened its reputation as a top leisure destination, with properties ranking fifth globally for long stays. Over 15% of bookings were for three nights or more, exceeding the 11% global average and following Portugal (21%) and Colombia, Mexico, and Spain (18% each).
While December remained the busiest month, Thai hotels relied less on it for annual arrivals. Visitor numbers increased during the cool months of 2024 compared to the previous year, indicating a more balanced peak period distribution.
Thriving tourism industry
Country manager for Thailand at SiteMinder, Supakrit Phansomboon, noted that the rise in average room rates and international guests suggested a prosperous year for Thai hotels and a thriving local industry. He highlighted the importance of dynamic strategies and the potential for revenue optimisation through longer booking windows, extended stays, and steady visitor volumes.
Supakrit emphasised the significance of leveraging market intelligence to capitalise on the high interest in event-related travel and experiences. By doing so, Thai hoteliers can adapt to industry changes and maintain success.
The top 12 hotel booking sources for Thai properties in 2024, by total gross revenue via SiteMinder, were Booking.com, Agoda, direct bookings on hotel websites, Expedia Group, Trip.com, Hotelbeds, Tiket.com, Goibibo & MakeMyTrip, Traveloka, WebBeds, Klook, and TBOHolidays.
The growth in international check-ins, largely driven by Asian guests, propelled Klook into the top revenue-generating channels. It is popular among travellers from Singapore, Hong Kong, Taiwan, and the Philippines.
Trip.com’s performance underscored China’s status as Thailand’s largest source market, supported by new visa exemptions for Chinese visitors in early 2024.
Hotel websites regained a top-three position, surpassing Expedia, and aligning with SiteMinder’s global findings. These sites generated an average of US$519 per booking (around 17,500 baht), 8.5% higher than the previous year, and outperformed online travel agents’ average booking value of US$320.
Supakrit noted that direct bookings typically involve higher-value rooms, longer stays, and added extras, presenting opportunities for hotels to offer exclusive deals. He stressed the importance of balancing direct and third-party channels, as the latter provides unique reach and simplicity, reported Bangkok Post.
He concluded by highlighting the necessity for hotels to offer an easy booking experience, complete with secure payments, mirroring the efficiency of third-party channels.
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