Phuket's Next Wave of Profitable Resort Demand | HSMAI APAC
At HSMAI and Phuket Hotels Association 2026 Resort Marketing Conference, industry leaders explored the emerging source markets, guest segments and commercial strategies shaping the future of resort profitability.
More visitors do not automatically translate into more profitable business. For Phuket’s resorts, the challenge is increasingly about attracting the right guests, understanding what they value and capturing greater revenue across the entire guest experience.
These questions formed the basis of The Resort Marketing Reset panel at the Resort Marketing Conference in Phuket on 7 October 2026. The discussion highlighted several opportunities for the destination, from India’s evolving outbound travel market and growing interest in wellness to the potential of business events, celebrations and experience-led travel.
India offers opportunity beyond volume
India represents a significant opportunity for Phuket, supported by an expanding middle class, increasing spending power and improving international flight connectivity, however, the opportunity extends well beyond traditional group travel.
Higher-spending leisure travellers, multigenerational families and guests seeking premium experiences are becoming increasingly important segments. Large family groups, sometimes requiring 10 or more rooms, also offer considerable potential for resorts that can accommodate different generations and travel preferences.
Indian demand has also helped support Phuket during periods of softer demand from other international markets, nevertheless, rising airfares remain an important consideration, particularly for midscale and upscale travellers whose total holiday budgets are more sensitive to transportation costs.
For resort commercial teams, the opportunity lies in understanding the different segments within the Indian market rather than treating it as a single source of demand. Hotels that align their offerings, experiences and distribution strategies with specific traveller needs will be better positioned to capture profitable business.
Celebrations and wellness create new reasons to travel
Phuket’s future growth opportunities extend beyond traditional beach holidays. Celebration travel is one area with considerable potential. While destination weddings are already an established segment, anniversaries, milestone birthdays, family reunions and gatherings of friends offer additional opportunities to attract visitors.
These occasions can encourage repeat visits, particularly when hotels develop distinctive experiences that give travellers a new reason to return.
Wellness is another promising segment.
Phuket already offers many of the attributes sought by wellness travellers, including natural surroundings, established hospitality infrastructure, international accessibility and a growing selection of specialised wellness experiences.
The opportunity is to position wellness as part of a broader destination proposition, appealing to travellers seeking relaxation, preventative health, personal wellbeing and longer stays.
Culture, local experiences and special-interest travel can also help Phuket broaden its appeal across different generations and traveller profiles.
MICE value goes beyond the room rate
Meetings, incentives, conferences and exhibitions (MICE) represent another opportunity for Phuket, particularly during traditionally quieter periods, however, attracting this business requires a destination-wide approach.
Event organisers evaluate much more than hotel accommodation. Reliable transportation, appropriate venues, destination activities, local partnerships and alternative arrangements during the rainy season all influence destination selection.
The Thailand Incentive and Convention Association (TICA), led by President Prachoom Tantiprasertsuk, plays an important role in helping the industry develop this business. Through trade shows, roadshows, lead generation, familiarisation trips and industry education, TICA helps connect destinations and hospitality businesses with international event organisers. TICA also emphasises the importance of relationships, sales training and presenting the complete destination experience rather than competing on facilities and price alone.
For hotels, the commercial value of MICE business also deserves a broader assessment. A group booking may generate substantial revenue through food and beverage, meeting facilities, activities and other services. Evaluating that business solely through average daily rate (ADR) or revenue per available room (RevPAR) risks overlooking its full contribution.
Total revenue per available room (TRevPAR) provides a more comprehensive perspective, helping commercial teams understand the value generated across the property.
Loyalty should be measured through profitability
As customer acquisition costs continue to influence hotel profitability, loyalty and repeat business deserve greater attention. Attracting new guests often involves distribution expenses, marketing investment and promotional activity. Returning guests can provide opportunities to reduce some of these costs while generating additional revenue over time.
For resort operators, this makes loyalty more than a marketing initiative. Understanding the profitability of returning guests, their spending behaviour and the cost of securing their business can help hotels make better commercial decisions. It also reinforces the importance of moving beyond traditional room revenue indicators when evaluating performance.
Occupancy, ADR and RevPAR remain important, but they do not provide a complete picture of the profitability of different customer segments.
Phuket must continue to deliver value
Despite its established international reputation, Phuket faces increasing competition from destinations across Southeast Asia, including Bali and emerging tourism destinations in Vietnam.
Travellers have more choices, and digital discovery is making alternative destinations increasingly visible. At the same time, Phuket’s international price positioning creates high expectations for the overall visitor experience. Infrastructure challenges, particularly traffic congestion, can affect visitor satisfaction and the destination’s competitiveness.
For business events, air connectivity, transportation costs, visa requirements, suitable facilities and ease of organisation remain important considerations. Addressing these challenges requires collaboration between hotels, industry associations, destination stakeholders and government. Phuket must also continue developing experiences that appeal to changing traveller preferences.
Younger generations are increasingly discovering destinations through social media and seeking experiences beyond traditional tourism attractions. This creates both competitive pressure and an opportunity for Phuket to showcase lesser-known aspects of the destination.
A broader definition of profitable demand
For Phuket’s resort commercial teams, the discussion highlighted an important shift in how future growth should be approached. The opportunity is not simply to attract more visitors, but to identify and develop the guest segments that contribute the greatest long-term value.
That means understanding emerging source markets, recognising the potential of celebrations and wellness, strengthening the destination’s MICE proposition and evaluating revenue across the entire guest experience. It also means balancing revenue growth with acquisition costs, operational considerations and the overall profitability of each segment. Phuket already benefits from strong international recognition, established hospitality infrastructure and a diverse range of experiences.
Its next wave of profitable demand will depend on how effectively hotels and destination partners translate those advantages into compelling experiences, stronger commercial performance and sustainable growth.
