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Thursday, May 23, 2024

Songkran festival sparks 33% jump in Thailand’s hotel room rates: SiteMinder

It was a lucrative Songkran festival for Thai hotels as the average cost of a hotel room surged by 33% during the festival period in April. This is according to data from SiteMinder, the name behind the only software platform that unlocks the full revenue potential of hotels.

Between April 11-18, the average daily rate in Thailand increased to THB 5,421 (US$148), from THB 4,087 (US$120) in the corresponding period last year. The increase was also significant when compared to the rate of THB 4,949 (US$135) during the week prior to Songkran, which further highlights the holiday’s influence on the local hotel and travel industry.

“Hotels in Thailand stood tall during the country’s largest and most important cultural event,” says Bradley Haines, market vice president of Asia Pacific at SiteMinder. “Not only did they generate more revenue than ever before, as seen in the rise in the average daily rate, but their performance this year clearly demonstrated the benefit of optimising revenue based on real-time demand. This is particularly evident when we compare the rates during the previous Songkran period and the week prior to the celebrations.”

SiteMinder’s data also shows that revellers booked their stays for Songkran further in advance this year, as the average lead time extended to 42 days – an impressive 56% increase compared to the 27 days seen last year.

Furthermore, domestic travellers in April reached their highest levels since October of 2023. Domestic guests accounted for 23% of total check-ins, up from just 13% in January and February of this year. Meanwhile, international travellers who stayed at SiteMinder’s Thai properties during Songkran mostly originated from the UK, Germany, Indonesia, France and Australia, in that order.

“Despite the rise in hotel costs, the strong influx of domestic and international travellers at Thai hotels last month underscores the widespread and enduring appeal of Songkran. This is also seen from the 15-day increase in booking lead time, which further demonstrates the build-up of excitement surrounding the festivities. As more and more travellers are scheduling and booking their stays around major events well in advance, hotels must stay ahead of demand-driving tourism trends. They can capitalise on revenue opportunities by dynamically pricing rooms based on forecasts or offering upgrades and extras even before guests check in,” shares Haines.

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