How long will Thailand’s occupancy declines persist?
As Thailand battles a third wave of COVID-19, most markets were stuck at single-digit hotel occupancy over the final days of April, except for Pattaya and Bangkok.
Before that, areas such as Huahin/Cha Am and Pattaya, which are known as drive-to markets from Bangkok, showed expected and notable spikes on Saturdays ahead of Songkran.
Surprisingly, Krabi posted the highest occupancy during Songkran (12-15 April), which shows the market was perhaps an alternative beach location while Phuket remains one of the high-risk areas with a 14-days quarantine required. Krabi also showed the highest month-to-date occupancy at 35.1%, followed closely by Hua Hin/Cha-Am.
Immediately after Songkran, the country issued stricter restrictions for two weeks which have since been extended again (on 26 April) to combat the latest outbreak. The rise in cases has led hotel demand to drop drastically—Krabi was the steepest example here.
Powered by STR’s Forward STAR tool, we are able to look into the future to see if the declines will persist for Bangkok. Unfortunately for now, the answer is “yes” as the surge in cases, stricter regulations on domestic flights, and extended quarantine period for travellers are pushing most to delay their plans. Similarly, pickup (difference in bookings from week to week) remains remarkably low from June onwards. With many uncertainties during this period, most are generally still cautious in planning future travel.
Forward STAR is a key tool for hoteliers in measuring recovery, especially with ever-changing marketplace conditions. You can gain these forward-looking insights for free, all you have to do is submit your data in return. You can also help bring this intel to new markets in Thailand, such as Phuket and Koh Samui.
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