Overpricing for rooms at big hotels.

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nevets
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Overpricing for rooms at big hotels.

Post by nevets »

Have you ever thought about the amount you hand over to stay at a resort or hotel chain , the big names you know who they are . The price they charge is the same as in Europe in most cases and the wage bill and food bill and liquor bill is all local so very inexpensive . The Thai workers get paid around 5000bhat or 8000bhat with overtime, moor shifts, and room is 6000 baht or 8000bhat a night food extra, and costs a lot and we know how cheep it is to eat in Thailand . My point is the locals could be paid moor and have a better standard of living which would suet me ,or the prices could be better for the tourist .
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Post by buksida »

Agree with you, when I used to work at one of the large five star hotels in Hua Hin (which will remain nameless) I was shocked to find out what my Thai colleagues were earning. They also get very little in the way of time off, usually one day during the week and rarely a weekend or public holiday.

Then the hotel has the cheek to demand that customers pay half a months salary of their Thai staff for their gala dinner on new years eve.
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Post by Winkie »

The price of the big hotels is high only in comparison to the local ones.

The prices charged, with reference to the excellent service and facilities that they offer, I think is outstanding, by European (and especially UK) Standards.

Do a simple comparision with other regional countries like Malaysia or Singapore, and then add some UK hotels (5 Star, on the primest of prime locations, in a fully booked tourist destination).

Prices are high, but you get exactly what you pay for, and sadly I cannot say the same for European Hotels.

Sure, salaries are local, but I'm also sure that the complete package given to an employee is better than that of a local hotel.

Local Hotels don't run elaborate webistes, have Rewards programs, brochures, full maintenance facilities, just to name some expensive differences.

I think, by the fact that they 5 Star hotels are often fully booked, is a clear indication that they are offering good valaue for money.

As a comparison, a locally assembled Mercedes is more than twice the price of a Mercedes purchased in Germany, and the quality and reliability is notably less. On the other hand, 5 Star Hotels in Thailand are far superior to their European Counterparts, yet offer much better facilities and levles of Service.

Try thinking again
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buksida
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Post by buksida »

I think you've missed the point - the OP was complaining about how badly Thai staff are treated at these places - not how high their prices are. That was my take on it anyway, could have been wrong.
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Post by Winkie »

I think the message contains clearly 2 points, just look at the title and the first twon Sentences of the OP.

Also in my post, I have stated that I beleive that the locals get a better 'overall package' working for the big 5 Stars, than they would at the local 'more modestly priced' hotels.

In addition, other considerations apply, local liqour prices, if you consider wine, are exorbitant compared to Europe. Last night I ate in L'Opera in BKK, a well known and long established Italian Restaurant. They had a magnum of Brunello De Montelchino on the menu for Euro 760, in Italy its only around Euro 300 (For your info, I just happened to know tis info, I don't normally drink magnums of Euro 300 wine, although it is a stunning concept!)

I can't say from personal knowledge of the hotel business, but if you consider a 5 Star Hotel simply to be an International Company trading in Thailand, then I have sound personal experience.

I think my post is totally relevent to the original OP
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Post by buksida »

Horses for courses, I still think they're overpriced and the staff are treated like crap.
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Post by Stu-Pot »

Cannot agree that 5 star hotel staff in Hua Hin or indeed Thailand are treated badly.

Average wage is roughly 7,000
Service charge is paid direcly to staff and can be as much as 15,000 in busier months
Free accomadation and meals are provided by the hotels (accomadation for those who do not own houses in town)
Annual health checks
Medical insurance
Annual Bonus
Investment schemes
On line training programs

I do have conisderable experience in this field, and can assure you that ANY staff member of the bigger chain hotels are FAR better off than the staff of some locally owned hotels

Some properties in BKK and Phuket have 5 day weeks. Not sure about HH.
As for weekends and public holidays off???? not a chance in ANY hotel in ANY country. Time off is taken at other times

People are queing to join these hotel

My 5 cents worth
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Post by buksida »

Not going to argue this one as its just my thoughts on the matter and I can't backup my argument with oodles of "personal knowledge" or "considerable experience". A hotel paying their staff for a month what they charge a punter for one night doesn't seem like fairplay to me.

Just thinking aloud folks.
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Post by Big Boy »

My son-in-law (Thai) took a job at one of Hua Hin's best hotels. He was expected to work with just 2 days off per month, and was often expected to work several concurrent shifts - up to 36 hours at a time.

He was employed as a mini-bus driver, which in itself must say something about the ludicrous expectations of the hotel.

He lasted 2 weeks.
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Post by chelsea »

In reply to the original title of the post (Overpricing of Rooms), I have stayed at the Sofitel both in Hua Hin and Bangkok and compared to what you pay here in Australia the price, value and service is by far better in Thailand than Australia.

You could say that some of the staff training is not as intense in Thailand compared to other countries, but that is made up by the enthusiasm and kindness of the staff i have come across. Nothing was to much for them, from the cleaners up to the management.

Go to any 5 star here in Perth and you get none of the kindness from the staff that I encountered at the Sofitel.

In relation to wages, if you compare wages to the cost of living that people encounter in Thailand, perhaps the staff there are not so bad off.

For a hotel cleaner here in Perth who may earn between $10-15 per hr for a 40hr week. At the most they will gross 600 a week. In Perth at present the median house rent price being around 300-350 a week you could also argue that things are much the same here.

A normal room in 5 star here would be the equivilant of 5000 baht upwards ($200-250), so really the same can apply here as well, and most other countries in the world.

Just my thoughts on what was posted
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Post by Stu-Pot »

I understand the points of view expressed on the pay rates etc of hotel staff.

Imagine the plight of the caddies at you favourite Golf course!!!

What are they paid in comparison to the charge to you, the customer??

The majority of hotel staff are OK. Some get a bit fooloish with the salaries and purchase expensive houses or cars, and then seem to struggle up to the gills in debt. A familiar story amongst most nations!!!

Cash tips are a nice earner for many in the hotels
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Post by webmaster »

Stu-Pot wrote:Cannot agree that 5 star hotel staff in Hua Hin or indeed Thailand are treated badly.

Average wage is roughly 7,000
Service charge is paid direcly to staff and can be as much as 15,000 in busier months
Free accomadation and meals are provided by the hotels (accomadation for those who do not own houses in town)
Annual health checks
Medical insurance
Annual Bonus
Investment schemes
On line training programs

I do have conisderable experience in this field, and can assure you that ANY staff member of the bigger chain hotels are FAR better off than the staff of some locally owned hotels

Some properties in BKK and Phuket have 5 day weeks. Not sure about HH.
As for weekends and public holidays off???? not a chance in ANY hotel in ANY country. Time off is taken at other times

People are queing to join these hotel

My 5 cents worth
I agree with all that, but also want to add a bit more.

Since most of the big hotels try to get more agents sell their rooms instead of selling the rooms on their own, there are different levels of pricing.

Some of the levels are below:

1 - The most expensive rate will be called the walk-in/shelf rate which is the hotel’s own rate for the public.

2 -Then there is the local rate for the local agents.

3 - Internet and offline booking rate

4 - Major Internet Agency rate (similar to sawadee dot com with no real offices to walk in and buy)

5 - Bulk/Charter/Package Travel agency rate, mainly EU or Russian agents

Those prices also have different piers related to the season, country origin of the guest.

As a summary; 6,000 THB room/night listed on a 5 star hotel room can be easily purchased (from one of the tiers above) as low as 1,500 THB.

In that sense, it really depends on where you buy the room/night to call it expensive.
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Thank you posters your in put was very good.

Post by nevets »

I agree with most that was said , and i to have a little knowledge of the industry and have worked in hotels as a silver service waiter for my ex wife in her business when let down by staff . And one of my 4 children is a banqueting and conference manager for the I.C.C. in Birmingham UK. But my point was with a top payment of 200bhat for a days pay, not including any overtime, this would be for most of the staff and we already know how cheep it can be to eat . The the staff wages compared to the money pulled in for the sale of the room the staff are exploited in Thailand , In the uk there is a minimum wage i think it is £5.50 about 375 bhat and the price of a room is the same as in Thailand , so they sometimes pay above the minimum, in Thailand i would say not.
And now we are back to what i said before the hotels are making lots of money out of the people in Thailand and could afford to pay more. And of course there is a long line to get a job its better than working the land.
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Post by Rhodiebkk »

I was pleasantly surprised by the quality of staff at the Hilton recently.
I got a good rate thru the internets and was upgraded on arrival.
I had forgotten how pleasant it is to pick up a phone and ask a question/make an order and receive what I ordered or asked for.
A pleasant & rather novel experience not having ones expectations continually dashed.
The staff appeared motivated & willing to help - signs of good management and of feeling valued.
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Post by brewingcompany »

Rhodiebkk wrote:I was pleasantly surprised by the quality of staff at the Hilton recently.
I got a good rate thru the internets and was upgraded on arrival.
I had forgotten how pleasant it is to pick up a phone and ask a question/make an order and receive what I ordered or asked for.
A pleasant & rather novel experience not having ones expectations continually dashed.
The staff appeared motivated & willing to help - signs of good management and of feeling valued.
I have to agree, i thought the service was wonderful when i stayed in the hilton last year although food is expensive and not any better then the cheaper establishments throughout the town
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