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Why are Hotels so Cheap in Thailand? Check Out What We Found!

By: Swena Kalra

Edited By: Scott Sidders

Updated on November 6, 2023

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Thailand is renowned for its stunning beaches, clear turquoise waters, and lush tropical jungle. But there's so much more to this Southeast Asian country than meets the eye. Thailand is a land of contrasts, where ancient traditions and contemporary culture collide. From the vibrant city life of Bangkok to the laid-back islands of Phuket and Koh Samui, Thailand has something to offer everyone.

Whether looking for an adventure-filled vacation or a relaxing beach getaway, Thailand is the perfect destination. This is especially true when it comes to finding affordable accommodation. In Thailand, hotels are incredibly cheap, and even luxury resorts can be booked for a fraction of the price you would pay in other countries.


There are several reasons why hotels in Thailand are so much cheaper than in other parts of the world. Here are just a few:

1. Competition is fierce

Luxury Hotel Paresa in Phuket, Thailand

With the globalization of the hospitality industry, competition among hotels has never been more fierce. Hotels must offer competitive rates and provide a wide range of amenities to attract guests. As a result, many hotel chains have expanded their operations into new markets, including Thailand. The Thai hotel market is highly competitive, with numerous international brands competing for business. However, this intense competition has driven down prices, making Thailand one of the most affordable destinations for leisure travel.

2. Location!

Tropical Luxury Resort pool with palm trees and ocean in the background, Phuket, Thailand.

Thailand is a country located in Southeast Asia, a region known for being relatively inexpensive. Additionally, Thailand is a popular tourist destination, which means great competition among hotels, driving prices down. That is why hotels in Thailand are typically relatively cheap. However, it is essential to note that the location of a hotel can also impact its price. For example, hotels in remote or rural areas are often cheaper than those in major cities. You can find some of the best hotel deals in Thailand by searching less-touristy sites.

3. The Thai Baht is Relatively Weak

Thai Baht currency

The Thai Baht is currently one of the weakest currencies in Southeast Asia. As a result, prices for goods and services are relatively low in Thailand compared to other countries in the region. For example, a typical hotel room in Thailand will cost a fraction of what it would in Singapore or Malaysia. This makes Thailand an attractive destination for budget-minded travelers. However, it is essential to remember that the weak Thai Baht can also make it more expensive to purchase imported goods. So, while you save money on your hotel room, you may pay more for imported groceries and other items not produced locally.

4. Lower Labor Costs

Construction workers working on a construction site.

Lower labor costs are often cited as the reason behind low prices for goods and services. In the case of hotels in Thailand, this is undoubtedly a factor. With wages in Thailand being relatively low, hotel operators can offer rooms at much lower rates than in other countries. Of course, other factors contribute to the low cost of hotel rooms in Thailand, such as the country's ample supply of hotel rooms and intense competition among operators. However, it is fair to say that cheap labor is a significant factor in making Thailand an attractive destination for budget-minded travelers.

5. Government Incentives

Young woman walking up the stairs of the temple, Doi Suthep in Chiang Mai, Thailand

The Thai government offers several incentives to hotel developers, which helps to keep hotel prices low. These incentives include tax breaks and subsidies, making it cheaper for developers to build hotels in Thailand than in other countries. That is why hotels are so cheap in Thailand. However, these incentives are not available to all hotel developers. To receive the benefits, developers must meet specific criteria, such as investing a certain amount of money in the hotel's construction. As a result, not all hotels in Thailand are eligible for the same level of government support. Nevertheless, the government's involvement does help to keep overall prices low, making Thailand an attractive destination for budget-minded travelers.

6. There are Fewer Amenities in Some Thai Hotels

A View Of A Bedroom With An Open Luggage On The Bed

Another reason why hotels are so cheap in Thailand is that some have fewer amenities than those found in other countries. For example, many Thai hotels do not have swimming pools or fitness centers. While this may not be ideal for some travelers, it can help to keep hotel prices down. In addition, Thai hotels typically have fewer rooms than other countries. This allows them to offer lower rates while maintaining a healthy profit margin. As a result, travelers looking to save money on accommodation can often find great deals at Thai hotels.

Now that you know some of the reasons why hotels are so cheap in Thailand, you can start planning your trip. Before you do that, here are a few ways to find the best hotel deals.

How to Find the Best Hotel Deals in Thailand?

Luxury Resort Villa Trisara, Phuket, Thailand

There are a few ways to find the best hotel deals in Thailand. Here are some tips:

1. Use a travel agent

Travel agents have access to special rates and can often get you a better deal than you could find on your own. However, it is essential to remember that not all travel agents are created equal. Some may have more experience booking hotels in Thailand than others. It is also a good idea to ask around for recommendations before selecting a travel agent.

2. Consider Your Travel Dates

Hotel prices can vary depending on the time of year. For example, prices tend to be higher during the high season, which runs from November to April. If you are flexible with your travel dates, you may be able to find a better deal. This is especially true if you are willing to travel during the shoulder or low season.

3. Compare Prices Online

Several websites allow you to compare hotel prices. This is a great way to find the best deal on your accommodation. Simply enter your travel dates and location, and you can see a list of available hotels. You can compare prices and amenities to find the perfect hotel for your needs.

4. Ask About Discounts

Many hotels in Thailand are family-run businesses, so developing a personal relationship with the owner can sometimes get you a discount. Just be sure to ask nicely about any available discounts before you book your room.

These are just a few tips to help you find the best hotel deals in Thailand. With a little effort, you can find an affordable place to stay that meets your needs. So, what are you waiting for? Start planning your trip today! Consider checking out our article dedicated to the best family-friendly destinations in Thailand.

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