Cheap Rates Aren't The Answer

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Posted: 27 Feb 2012 | 6:00 am

Looking down the road a few months to the start of the gentle cusp and decline into low season on Phuket, rates look to be at their most vulnerable.

I read a good piece in Hotels Magazine online recently that cried out in anguish "lower hotel rates don't generate demand."

Nothing could be more true and looking at the sustained flat trading of room rates in Phuket it's a great unsolved mystery why hoteliers and owners are not more aggressive in unlocking the value of quality products in a high demand destination.

Over the past decade we've seen Bali, Singapore, Kuala Lumpur and other markets that used to undersell themselves must rates up - but Phuket things remain static.

How to break the spell remains a mystery, at the moment.

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