Revenue management has become an integral part of the hotel business and this fact has managed to truly overturn the industry unlike never before. In the Phuket region though, the average room rates are hitting even if the passenger arrivals are increasing. In fact, according to the Phuket International Airport the arrival rates have managed to double and in some situations it has accessed double digit growth.
Even if the numbers were higher than last year, unfortunately the larger volume didn’t really mean that the hotels had to deal with higher room rates. In fact, all of this has lead to lower RevPAR ratings and some other similar problems.
As you might already know, the Phuket hoteliers have encountered a major decline in the room rates, something that was mostly driven by the geographic demand. The entire wholesale segment seems to be the cause of this trend, but the reality is that many of the world powers are seeing a major economic issues and thus the islands are just feeling the problems from there. In fact, it seems that the winter season will actually be the first that will launch a new business cycle outside the Eastern European contingent which was indeed a trend for the past few years.
According to the professionals, it seems that the location which Phuket has still remains one of the major advantages for the region, and one can only hope that the trend will move on and evolve in the near future, which is indeed a major plus as time passes.
Even if there are plenty of concerns in regards to Bangkok and China, some of the main tourism suppliers in the region, we can always expect Phuket to have a very good surge of tourists, no matter if they are redirected or not.
The issue here however is the fact that the market has a problem when it comes to driving the rates upward, but hopefully this is an issue that will be solved properly in the next few years as the Phuket rates will become more market friendly.
The financial problems throughout Europe and outside it have definitely influences the local tourism, but hopefully the issues will disappear in the next 4-5 years. According to some statistics professionals, some of the new projects in the region, combined with the improvement in the long term infrastructure and the numerous other investments will definitely take the entire revenue management system to a whole new level.
Hopefully, this means that the hotel revenue management system will play a major role in the Phuket region and more people will come here to bring back the immense boost that the industry had in the last few years. How much will that manage to improve in the long run is a little hard to understand, but one thing is certain, the experience will be more than impressive in the industry and there’s a lot of revenue to be had, it all comes to the way revenue management is integrated in the hotel industry as well as the promotional endeavours!