The tourism and hospitality industry is a major economic driving factor not only for Thailand, but also for many other Asian nations. Therefore, the beginning of this report deals with the regional development after the terrorist attacks. This way the reader will get an understanding of the current situation in Asia and the general impact of 9-11. After a general overview of Thailand, the first class hotel market of Bangkok will be analyzed by its occupancy, ADR and RevPar development. These performance related information create the backbone of this report and support further assumptions and findings. For validity reasons, the results are then compared to two independent surveys. The fourth section is made up of the changes in travel patterns, tourism demand and strategies, followed by a comparison of the two best performing individual hotels and their advantages over competitors. A short outlook for the first-class hotel market and the survey’s limitations and a conclusion complete this report. The key aspects of this paper are backed up by extensive research on the topic by the author and a number of interviews with various hotel professionals from first-class Bangkok hotels and professors of local universities. All performance related information is obtained from the “Bangkok Hotel Performance Variance” Report, a document that looks at the monthly performance of the upper 39 hotels in Bangkok. Each participating hotel provides the relevant information for the internally used report.
Table of Contents
1. Introduction
2. The International Tourism Industry and Thailand under the Impact of 9-11
2.1 The International Tourism Industry and Armed Conflicts
2.2 The Impact of 9-11 on the International Tourism Industry
2.2.1 The International Tourism Industry Six Months after 9-11
2.2.2 The Impact of 9-11 on the Asian Tourism Industry
2.2.3 The Impact of 9-11 on the Hospitality Markets in Asia
2.3 Thailand
2.3.1 Thailand and its Economic Performance
2.3.2 Thailand’s Tourism Sector
3. Bangkok and its First-Class Hotel Market
3.1 The Bangkok Hotel Market in the Years after the Economic Crisis
3.1.1 The High-End Hotel Market in Bangkok
3.2 High-End Hotels in Bangkok Performing under the Influence of 9-11
3.2.1 Occupancy Development for the First-Class Hotel Market
3.2.2 ADR Development for the First-Class Hotel Market
3.2.3 RevPar Development for the First-Class Hotel Market
3.3 The Major Findings
3.4 The Author’s Findings Compared to Other Surveys
3.4.1 The Horwath Asia Pacific Summary Market Report Bangkok
3.4.2 The Andersen Hotel Industry Benchmark Survey – 2002, Asia Pacific
3.5 A Brief Comparison with Hong Kong
4. The Resulting Change in Travel Demand and Patterns
4.1 Safety and Security - Newly Perceived Influences of the Tourism Industry
4.1.1 The Aviation Industry
4.1.2 The Hospitality Industry
4.2 The Thai Government and the Tourism Authority of Thailand (TAT)
4.2.1 The Thai Government
4.2.2 The Tourism Authority of Thailand
4.3 Growing Cost Awareness in Corporate Headquarters
4.3.1 Effects of the Growing Cost Awareness
4.4 Changes in Travel Patterns
4.4.1 Short-Haul and Domestic Travel Influence Business and Nationality Mix
4.4.2 Changed Travel Patterns and the Effects on the First Class Hotels
4.5 Lead-Time of Booking – A Technical Approach
4.6 Strategic Adjustments and Reactions by Individual First-Class Hotels
4.6.1 Leisure vs. Corporate Travel
4.6.2 Discounts, Promotions and Relationships
4.6.3 Loyalty Programs
4.6.4 Cost Saving Strategies in the Hospitality Industry
4.7 An Integrated Approach
5. The Two Top Performing Hotels of the First-Class Hotel Market in Bangkok
6. Outlook for Thailand and the First-Class Hotel Market in Bangkok
6.1 Safety and Security Influence Future Growth
6.2 Economic Uncertainty and Confidence
6.3 The Competitive Situation
6.4 The Comparative Advantage
6.5 Change Brings Opportunity
7. Limitations
7.1 Time Constraints
7.1.1 First Quarter of 2002
7.2 Different Measures of Occupancy
7.3 An Overemphasis of the September Attacks
8. Conclusion
Objectives and Topics
This report examines the impact of the September 11, 2001 terrorist attacks on the first-class hotel market in Bangkok, Thailand. It evaluates how this exogenous shock, combined with existing economic challenges, influenced performance metrics such as occupancy rates, Average Daily Room Rate (ADR), and Revenue per Available Room (RevPar) for 14 leading Bangkok hotels between January 2000 and March 2002.
- Analysis of the international and Asian tourism industry response to the 9-11 attacks.
- In-depth evaluation of performance indicators for 14 first-class hotels in Bangkok.
- Assessment of shifts in travel patterns, corporate cost-consciousness, and booking lead-times.
- Strategic responses of hotels regarding marketing, pricing, loyalty programs, and cost-containment.
- Comparison of research findings with industry benchmarks from Horwath and Andersen.
Excerpt from the book
1. Introduction
“Sawasdee Khrap” – welcome to the kingdom of Thailand. A number of valid characterizations such as “The Land of Smiles”, “The Land of Temples and Pagodas” and “Tropical Vacation Paradise” describe Thailand at its best. In addition to these picturesque synonyms, the kingdom gained international recognition through its growing travel and hospitality industry. In 2001 Thailand once again booked the top spot as most preferred tourist destination in South East Asia as well as runner-up position in all of Asia, second only to China.
When Muslim extremists hijacked four domestic U.S. flights and cowardly carried out the terrorist attack of 9-11 on the U.S.A., the global travel sector felt the direct impact of the terrorist attacks like no other industry. From one day to the other tourists decided to stay at or close to home and hotel rooms were left vacant. As major employer and source for foreign exchange earnings, Thailand’s tourism industry was no exception to the threat.
As the brutality and human tragedy of this incident will always be remembered, the following report will focus solely on the implications for the tourism and hospitality industry. In specific, the text will take an in-depth look at the development of the first class hotel market in Bangkok following the September attacks. The report looks at 14 top hotels of Bangkok and their performance from January 2000 to March 2002. Special attention lies on the seven months following the U.S.A. attacks in September 2001, whereas a full year comparison of 2000 and 2001 will also provide valid information.
Summary of Chapters
1. Introduction: This chapter provides an overview of Thailand's tourism sector and establishes the research focus on the Bangkok first-class hotel market following the September 11 attacks.
2. The International Tourism Industry and Thailand under the Impact of 9-11: This chapter contextualizes the global and regional tourism impacts of the 9-11 attacks and details Thailand's economic and tourism performance during this period.
3. Bangkok and its First-Class Hotel Market: This chapter analyzes the performance of 14 specific high-end Bangkok hotels, utilizing metrics like occupancy, ADR, and RevPar, and compares these findings with independent industry surveys.
4. The Resulting Change in Travel Demand and Patterns: This chapter explores how perceived safety, corporate cost-awareness, and shifts in travel patterns forced hotels to adopt new marketing and operational strategies.
5. The Two Top Performing Hotels of the First-Class Hotel Market in Bangkok: This chapter provides an in-depth look at the specific competitive advantages and successful management strategies of the two best-performing hotels in the study.
6. Outlook for Thailand and the First-Class Hotel Market in Bangkok: This chapter offers a forward-looking perspective, discussing potential future growth drivers, competitive situations, and opportunities arising from changes in the market.
7. Limitations: This chapter addresses the constraints of the study, including time factors, measurement differences, and the potential overemphasis on the impact of the September attacks.
8. Conclusion: This chapter synthesizes the report's findings, highlighting the resilience of the Bangkok hotel market and the importance of adaptive management strategies.
Keywords
Thailand, Bangkok, Tourism Industry, 9-11, Hospitality Market, First-Class Hotels, Occupancy Rate, ADR, RevPar, Market Strategy, Crisis Management, Corporate Travel, Travel Patterns, Economic Impact, Hotel Performance
Frequently Asked Questions
What is the primary focus of this study?
The study primarily focuses on the impact of the September 11, 2001 terrorist attacks on the high-end hotel market in Bangkok, Thailand, specifically analyzing 14 selected first-class properties.
What are the central themes of the work?
The central themes include the resilience of the tourism industry during crises, the relationship between economic stability and travel, corporate cost-awareness, and the adaptive strategies hotels employ to maintain profitability.
What is the primary research question?
The research investigates how the 9-11 events and the resulting economic uncertainty influenced the performance indicators and strategic operations of Bangkok's top-tier hotels between 2000 and 2002.
Which research methods were used?
The author utilized extensive primary research, including interviews with hotel professionals and university professors, alongside quantitative data from the "Bangkok Hotel Performance Variance" report.
What does the main part of the report cover?
The main part covers the historical performance of the hotels, detailed metric analysis (Occupancy, ADR, RevPar), comparison with independent surveys, and specific strategies regarding marketing, cost-saving, and loyalty programs.
Which keywords characterize this work?
Key terms include Bangkok, 9-11, Tourism Industry, Hospitality Market, Hotel Performance, RevPar, and Crisis Management.
Why did the author compare "Riverside" and "Downtown" hotels?
The comparison helps determine if geographical location within Bangkok influenced a hotel's ability to withstand or recover from the decline in tourist arrivals following 9-11.
How did "Cost Awareness" impact the hotel market?
Increased corporate cost-awareness led to a shift in booking preferences, where travelers sought better price-value ratios, often moving business away from the most expensive hotels to other high-end but lower-priced alternatives.
- Citar trabajo
- Christian Westbeld (Autor), 2002, The Impact of 9-11 on Thailand's Tourism Industry By Focusing on the First-Class Hotel Market In Bangkok , Múnich, GRIN Verlag, https://www.grin.com/document/185792
