Airbnb has not made as big a dent in the Thai hotel sector as expected, says hotel consultancy JLL.
The finding is based on data collected from more than 11,200 accommodations offered by Airbnb and hotels in Bangkok, Phuket and Chiang Mai.
The company analysed demand sources based on key price determinants from a range of utility-based attributes such as location, room characteristics, amenities and reputational signals.
The preference for traditional hotels to home-sharing accommodations is reflected in the higher number of hotel guest reviews. In Bangkok, for example, traditional hotels and Airbnb accommodations receive an average of 664.2 and 31.3 reviews respectively, according to JLL.
"It is evident for Thailand that most travellers still prefer traditional hotel accommodations, particularly those operated by brands they are familiar with and which offer more confidence in terms of security and level of services," said Chakkrit Chakrabandhu Na Ayudhya, senior vice-president for the hotels and hospitality group at JLL.
Affordability is another factor that has helped traditional hotels maintain their competitiveness.
"Most people would expect that staying at an Airbnb is cheaper than booking a hotel room," Mr Chakkrit said. "However, unlike most countries, hotels in Thailand are surprisingly more economical than Airbnb and thus have remained more competitive."
JLL found the average price per night for hotel accommodation to be lower than for Airbnb across all three markets, especially in Phuket, where the average price per night at a hotel is less than half the average price of Airbnb.
In Bangkok, the two types of accommodation are closely priced, with Airbnb being slightly more expensive. But since Airbnb primarily offers larger accommodations, the direct price comparison is not entirely accurate.
"The price comparison between Airbnb accommodations and traditional hotels is a challenge," said Pichayut Vacharavikrom, an analyst at JLL's hotels and hospitality group. "Since hotels often have many rates for the same type of rooms, our research looked at the lowest rate available. In addition, Airbnb offers much larger spaces through offerings that include entire villas, houses, apartments and bungalows, which can accommodate a larger number of guests than hotel rooms."
The study also found that a one-point increase in customer review ratings could on average translate to a price increase of 13.8% in Chiang Mai, 16.4% in Bangkok and 23% in Phuket.
