At the end of the morning session on Thursday, the share price of The Erawan Group Public Company Limited (SET: ERW) grew by 3.88% or THB 0.08 to THB 2.14, with a trading value of THB 32.95 million.
The share price of ERW extended gains from an upward trend shown on Wednesday following speculative buying activities on the expectation that the company will benefit from the “Half-Price Thai Travel 2025” scheme.
Registration for the program begins 1 July 2025, with benefits available from 4 July to 31 October 2025, covering both accommodation and food coupons or tourism services. This lifted ERW’s share price in the previous session to a high of THB 2.08 before closing at THB 2.06, up THB 0.07 or 3.52%, with a trading value of THB 49.14 million.
ERW revealed to ‘Kaohoon Turakij’ that the company expects to benefit from the “Half-Price Thai Travel 2025” initiative, particularly in the low season during the third quarter, as domestic tourism is expected to compensate for the usual decline in foreign visitors during the rainy months.
This is anticipated to support the occupancy rate (OCC) and average room rate (ARR), both of which remain in line with the company’s forecasts for hotels under both primary and secondary brands.
The ERW group operates more than 5,000 Hop Inn hotel rooms nationwide, ready to serve the “Half-Price Thai Travel 2025” initiative, and more than 11,000 rooms in total when including major hotel brands, spread across locations such as Bangkok, Pattaya, and Phuket.
Regarding purchasing power and a sluggish economic environment, the company will closely monitor the situation, recognizing continued consumer caution. ERW also sees potential improvement in the tourism atmosphere if the government reallocates the budget to further stimulate Chinese tourism.
As for the business outlook, ERW expects 2Q25 earnings to hit the year’s low, as the period traditionally marks the off-season with weaker foreign tourist numbers, compounded by the impact of an earthquake in the first quarter, which reduced tourist arrivals.
Nonetheless, the company maintains its revenue growth target from services at 6–8% for 2025, compared to total service revenue of about THB 8 billion in 2024. In 1Q25, ERW recorded service revenue of around THB 2.1 billion and anticipates the “Half-Price Thai Travel 2025” project to support domestic tourism in the second half of the year.
According to Bualuang Securities (BLS), the “Half-Price Thai Travel 2025” scheme is expected to deliver a short-term positive sentiment for ERW, especially for secondary city hotels priced below THB 6,000 per night, as the entitlement covers both food and services (with a further update on listed companies participating expected soon).
The scheme is projected to help support local tourism during the off-season, although the overall quantitative impact may be limited by the number of entitlements and conditions.
