The Battle Between Hotels And Airbnb Accommodations In Thailand

According to a study conducted by Harvard Business School, since the introduction of Airbnb in the United States, hotel industry in the country has suffered a loss of about 1.5 per cent. The same threat is coming to the best resort in Chiang Mai because of the presence of Airbnb in Thailand.

The issue is not just with the difference in prices but the accommodation app is also boasting about the local experiences that their guests could have upon booking. With this in mind, the platform also introduced another app called Airbnb Experiences which aims to give local tours to their users. It was launched in 2016 and in 2017 the brand reported that they are handling over 8,000 bookings every week while around 1,200 requests are coming from those who wanted to host local experiences.

Thailand is currently one of the leading holiday destinations in the globe because of the wide array of tourist attractions. In fact, tourism is responsible for more than 17 per cent of the country’s overall GDP. The domestic economy receives yearly revenue of 2.5 trillion baht.

Krungsri Research released a projection regarding the hotel industry from year 2018 until 2020 and it shows that Airbnb is already taking over 10 per cent of the main attraction in the country including KohSamui, Bangkok, Chiang Mai, Pattaya and Phuket. The research clarified that though it is already well-known the impact is not as big. Still the future remains unclear especially considering the changing preferences of the consumers.

Hotel managers now recognize the importance of giving their guests the best local experience because the accommodation sharing industry is already taking up a large portion of the sector. Therefore large brands are focusing on providing the authentic experiences with regards to the location of their establishments while making sure that their established image remains consistent.

Small brands and those locally hailed including the best resort in Chiang Mai are trying their best to improve their level of competitiveness in order to avoid being left behind. This is one way for them to make sure that they keep their business afloat while putting a distinctive line between them and the accommodation sharing platform.