Phuket Hotels at risk of oversupply launches enabling Thai hotels to expand their customer base online

Travel and Lifestyle Press Releases Wednesday June 23, 2004 10:51
Bangkok--Jun 23--Mind Touch

Dr. Pongsak Hoontrakul, CEO of A2Z Professional Travel Company Limited, the owner of "" travel service provider website revealed that the company is currently expanding its online travel business to Phuket by setting up a new branch office as well as launching "" website.   The company aims to educate the independent owned and operated (IOO) hoteliers in Phuket on the importance of online business, which is the key to reach a wider customer base globally in order to lessen the risk from the vigorous competition in the hotel industry.

Dr. Pongsak said the current situation of hotel business in Phuket is rather risky due to a very high competition in term of the fast increasing number of hotel rooms as well as the tourists moving to new travel destination such as Krabi, Khao Lak and etc.   Many SME hoteliers are presently facing the problem of low occupancy as most of the tourists prefer to stay at well known branded hotels.

"At present, there are over 30,000 hotel rooms in Phuket.   The international chain and branded hotels are more competent in their inventory management whereas the Thai IOO hotels still rely on overseas travel agents leading to problems of forced down price and last minute cancellation when faced with unforeseen incidents such as terrorism in southern provinces, bird flu or even last year SARS."

Dr. Pongsak added that in order to cope with the said issues, Thai IOO hoteliers would have to promptly adjust their strategies in management, marketing and brand building. will emphasize on educating its hotel partners and industry on the importance and the benefit of online marketing, which is a growing channel. Variety of promotions can be designed and offered to satisfy each group of target customers worldwide leading to an effective real time inventory management that reduces the marketing cost by 50%.

Ruth Hotharapavanond, Resident Director of A2Z Professional Travel Company Limited said that will focus on advance technology, on-line management and marketing strategies to gain more competitive edge such as applying dynamic pricing tactics and providing instant booking services. Additionally, it will work closely in alliances with local IOO hotels providing them with advice on their supply management, on-line marketing, buying allotment and roomnight vouchers to optimize its partner values and offering good value proposition and product varieties to its customers.

Ruth added that the company will continue to enhance its business with ongoing marketing and promotional activities such as participating in the important international trade events, deploying destination marketing campaign and organizing academic seminars for the local hoteliers and industrialists to encourage them to promptly adjust to the fast moving market environment in the electronics era.   If the independent owned and operated hoteliers continue to manage and market their business in a traditional style, there will be little or no leeway for them in the future.   They may have to sell their business to the international chain or the major players in the market.

For more information, please contact
Savitree Peungcharoenkun,
Mind Touch Company Limited
tel. 0 26892334-5
fax. 0 26892338   End.

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