REMINDER: Those Service Charges At Thai Hotels Are Shared With Employees

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When you make a booking for pretty much any hotel in Thailand, you usually see a line for government tax that is 7.7% and a service charge that is 10%.

Four Points Bangkok

You might wonder what happens to this 10%? Is it shared with the employees or if it is just pocketed by the hotel owners/operators?

You can access Four Points Bangkok’s website here.

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Well. At least in Thailand this service charge is indeed shared with the employees and is large share of their remuneration package. The employer may deduct expenses such as lunches from it though.

I was bit surprised, however, that a Starwood property would share on their public (HR) Facebook page their June amount. This one popped up in my Facebook feed last night. The 11,200 THB is roughly $330.

Conclusion

This service charge basically doubles the salary of entry level hotel employees in Thailand. Not sure why it couldn’t be baked in the daily rate though? Now the employees are partially carrying the risk of the hoteliers on their pay check.

I am not huge fan of this Four Points hotel. It was good when it first opened when it offered complimentary happy hour and breakfast for Platinum members. These benefits, however, were later withdrawn and the hotel is also playing games with room categories. I would assume that they are mainly filling up the rooms with tour groups.

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  • Marshall

    Many Asian countries have a 10% charge for employees, not just Thailand.