Many people don’t think about how much profit hotels make. In Thailand, the average hotel has a profit margin of 20%. This means that for every baht earned, the hotel keeps 20 sen. Here’s a look at how this profit margin is generated and where it comes from.
The first and most obvious source of income for hotels is room rates. In Thailand, the average hotel room costs 2,500 baht per night. This rate doesn’t fluctuate too much from season to season, although there may be some slight increases during holidays.Hotel rooms in Thailand are typically priced lower than rooms in other countries because the cost of living is lower here as well. For example, a similar room in Hong Kong would likely cost at least 3,500 baht per night.
Hotels also generate income from ancillary services such as restaurants, spas, and laundry services. These services are typically priced higher than comparable services outside of the hotel because of the convenience factor. For example, a Thai massage at a hotel spa might cost 1,000 baht while the same massage at a stand-alone spa would only cost 500 baht.
Another source of income for hotels is renting out their event venues for parties, weddings, conferences, etc. Prices for event venues can vary greatly depending on the size and location of the venue. A small conference room at a mid-range hotel might cost 5,000 baht per day while a large ballroom at a luxury hotel could cost 100,000 baht per day or more.
Hotels in Thailand have an average profit margin of 20%. This margin is generated from room rates, ancillary services, and event venues. By understanding how hotels make money in Thailand, you can be sure to get the most value for your money when choosing accommodations on your next vacation.