Centara Hotels and Resorts is prioritizing the maintenance of room rates and the introduction of new guest experiences as part of its strategy to bolster revenue, steering clear of significant discounts in the latter half of this year amid the ongoing conflict in the Middle East.
Michael Henssler, the company’s chief operating officer, noted that tourism revenue in key destinations such as Bangkok, Phuket, and Samui has experienced a decline of approximately 6-7% over the past two to three months since the onset of the Gulf war, largely due to disruptions in long-haul flights.
In contrast, hotels in second-tier locations, including Ayutthaya and Nakhon Ratchasima, have maintained stable performance, thanks to the support from domestic and short-haul markets.
Despite the drop in arrivals from long-haul markets and the meetings, incentives, conventions, and exhibitions (MICE) segment during the second quarter, Mr. Henssler highlighted that significant markets like China and India have helped mitigate the downturn.
The company is witnessing signs of recovery for the third quarter and is optimistic that the fourth quarter will yield improved results with the approach of the high season. “We are looking at a disrupted but still good year,” Mr. Henssler remarked, emphasizing Thailand’s resilience as a tourist destination that continues to attract global travelers.
Centara’s strategy involves keeping appropriate room rates while ensuring guest safety, security, and quality experiences without resorting to heavy discounts. Any promotional discounts will be short-term marketing strategies.
In addition, Centara has introduced new brand touchpoints for its four-star segment, focusing on enhancing the guest experience. David Martens, vice-president of operations at Centara, stated that the brand is evolving to cater to a diverse range of guests seeking comfortable accommodations and meaningful local interactions.
Operating 28 hotels within Thailand and internationally, Centara boasts the largest footprint of its 55 hotels in operation. Mr. Martens detailed the new brand touchpoints, which include six unique experiences such as the “Welcome Wish” ritual, where guests can apply gold leaf to elephant statues, reflecting a cherished Thai tradition, alongside tailored designs for hotel welcoming areas.
A children’s check-in experience and daily surprises such as complimentary snacks or discount vouchers for hotel services are also part of the offerings. To enhance guest comfort, Centara is introducing personalized pillow selections, mindfulness playlists, and a variety of teas.
Furthermore, the hotel chain is partnering with local businesses to enrich its services, incorporating local menus in its buffet offerings, organizing workshops, and featuring exhibitions by local artists.
In the first quarter, Centara Hotels and Resorts reported revenue of 3.75 billion baht, marking a 5% increase year-on-year, with a net profit of 845 million baht. The company also achieved an average occupancy rate of 78% across its portfolio, with revenue per available room standing at 5,359 baht, a 6% rise from the previous year.
Source: Bangkok Post
