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Khao Lak & Phang Nga Hotel Market Update 2018

June 2018

Category: Hotels

Overview

Given the distance to Phuket Airport, wholesale travel agents have been powerful in driving demand to the Khao Lak tourism market. They have been able to market the destination by providing one-stop services for guests by arranging their accommodation, transportation, and activities under single packages.

HISTORICAL KHAO LAK HOTEL PERFORMANCE

Traditionally, wholesale travel agents especially those from the European and Australian markets are key providers. However, the number of free independent travelers (FITs) booking directly to hotels and online travel agents (OTAs) has significantly grown in the past few years. Therefore, this trend is becoming key to hotels seeing a slow migration from traditional wholesalers to OTA’s and in effect, this is impacting seasonal trends with higher occupancy in low months.

Without a doubt the biggest game changer looking forward is the plan for a THB60 billion airport in Khok Kloi Phang Nga. If it materializes, the travel time to the Khao Lak tourism area will be reduced to approximately one hour and will in effect create a far broader mainstream tourism market.

#KhaoLakHotelMarket #PhangNgaHotelMarket #KhaoLakTourism #PhangNgaTourism #ThailandHotelMarket #MICEThailand #ResortMarketThailand #C9Hotelworks

C9 Insider opinions

1
As of February 2018 market-wide occupancy registered 77% as average rates hit THB4,100. Khao Lak hotels tend to focus on occupancy to grow RevPAR versus rate yields.
2
Western European visitors typically are the main market feeder for Khao Lak, accounting for 65% of total international guests.
3
There is increasing demand in the MICE segment which comprises weddings from Europe, India, and Australia together with incentives from Singapore and Hong Kong.

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