By Charles Tan
Compulsory charges refer to mandatory fees that hotels require guests to pay during special seasons or festive periods—most commonly bundled with the room rate. Typical examples include:
- New Year’s Eve Gala Dinner
- Christmas Eve Dinner
- Songkran events or special festival programs
In the past, compulsory charges were widely accepted and almost considered an industry norm in major destinations such as Bangkok, Phuket, Pattaya, Samui, and Chiang Mai. They helped hotels:
- Secure guaranteed revenue during peak seasons
- Control attendance for special events
- Create a unified guest experience
However, the travel market has evolved dramatically.
Today’s Guests Think Differently: Compulsory Is No Longer Automatically Accepted
Modern travelers—both domestic and international—are more selective and more price-conscious. Many hotels have therefore reduced or removed compulsory charges for the following reasons:
- Higher Price Sensitivity
Guests want freedom of choice and do not want to pay for experiences they don’t need.
- Greater Transparency
OTA platforms show full pricing clearly; any unexpected surcharge drives guests to competitors instantly.
- Stronger Market Competition
When competitors drop compulsory charges, their prices appear more attractive, forcing others to follow.
- Western and Asian FIT Travelers Prefer Flexibility
Many foreign guests prefer to explore restaurants outside the hotel and dislike the feeling of “mandatory add-ons.”
Compulsory Charges Are Not Disappearing — They’re Being Redefined
Instead of being a forced add-on, compulsory events today must deliver real value and feel worth paying for. Leading hotels now:
✔ Enhance value
- Premium dinner menus
- Entertainment, shows, or special performances
- Free-flow soft drinks or privileges
✔ Offer flexible options
- Optional pre-booked event tickets
- Early-bird discounts
- Different pricing for adults, children, and families
✔ Position the event as an experience
Not merely a fee—but a signature moment of the stay.
Market Trends Today (Thailand & International)
3–4 Star Hotels
Most have removed compulsory charges to stay competitive and price-friendly.
5-Star & Luxury Hotels
Still use compulsory charges—but elevate the experience through premium dining, entertainment, and exclusive beachfront or rooftop events.
Family Resorts & All-Inclusive Concepts
Continue using compulsory charges for operational control and guest consistency.
Recommendations for Thai Hotels
1) Use compulsory charges only when necessary
For high-impact events such as New Year’s Eve.
2) Make it genuinely worth paying for
Enhance menus, add entertainment, and create a strong experience.
3) Communicate clearly
State all compulsory fees on the website, OTA listings, and offers—no surprises.
4) Allow flexibility whenever possible
Optional or pre-booked models generate healthier guest sentiment.
5) Use compulsory events strategically
Incorporate them into revenue forecasting and seasonal planning—not as an arbitrary surcharge.
Conclusion
Compulsory charges are not obsolete, but they must be used more intelligently.
In today’s market, they should:
- Deliver clear value
- Enhance the guest experience
- Be transparent and flexible
- Reflect modern traveler expectations
Hotels that adapt quickly—and communicate openly—will maintain both revenue and guest satisfaction in an increasingly competitive environment.
