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Business >> Friday August 01, 2008
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HOTELS

High-end tourists in focus

CHADAMAS CHINMANEEVONG

Tourism-related businesses are urged to offer excellent services and unique products to meet the demand of high-end tourists, a segment that is expected to keep growing in face of the prevailing slump, says an executive of lebua Hotels & Resorts. Cash-rich travellers will continue to visit Thailand because they need to relax and get away from work pressures while prices are not their concern.

Deepak Ohri, the hotel's CEO, said that when business was down, these millionaires just seized the opportunity to travel more for relaxation.

''Tourism-related businesses should focus on this segment because it has been affected by the current economic circumstances only slightly,'' he said.

Besides, Mr Ohri said the world travel scenario had changed. Where people used to go to the Maldives and Mauritius, they now prefer Bangkok, Samui and Phuket because Thailand is a great hub for tourists where they can travel to Cambodia, Bhutan or New Zealand.

Aware of the importance of networking under such a circumstance, lebua has recently joined with Preferred Hotel Group, an international marketing group, to promote its hotel and attract more high-end tourists.

After becoming a member of Preferred Hotel Group, lebua expected to add 2,000 room nights to the hotel per month.

Mr Ohri said when Preferred signed an agreement with the Imperial Hotel, it gave 3,000 room nights and with Fullerton in Singapore, it contributed 2,500 room nights.

Lebua's occupancy in the first half of this year was 75% and the average room rate was 6,600 baht per night, compared to 70% and of 4,400 baht a night in the same period last year. He expects the occupancy rate in the second half will be 76% and the average room rate 7,000 baht a night.

Mark Simmons, the Asia Pacific marketing director for Preferred Hotel Group, said the agreement was a win-win situation. ''While we help the hotel member grow, it is going to help us grow our brand in Thailand as well,'' he said.

The main targets of Preferred are high-end travellers and corporate and incentive clients.

Mr Simmons said that this year some middle to lower-middle tourist markets showed a decline due to the impact of higher travelling costs.

But the high-end segment is growing in Asia, particularly in China and India, while those in Japan and South Korea are flat.

''Political problems are not a major issue because every country has this kind of thing. But the question is how the government finds its feet and tries to work out the best solutions for the country,'' Mr Simmons said.

The US-based Preferred Hotel Group has five brands. Its affiliated properties have more than 115,000 guests and 650 hotel members in 75 counties. It also has global sales offices in 28 cities.

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