THE ANALYSIS ON COST AND RETURNS OF HOMESTAY BUSINESS IN PHRA NAKHON SI AYUTTHAYA PROVINCE
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Abstract
The objectives of this research were 1) to study marketing mix strategies, problems and obstacles that affected the cost and returns of the homestay business in Phra Nakhon Si Ayutthaya Province and 2) to analyze the cost and returns on investment of the homestay business. This research was a mixture of qualitative and quantitative research by using in-depth interviews with 3 homestay entrepreneurs who have certified by Thai homestay standards. The quantitative data collected from 415 visitors.
The results of the study about for marketing mix strategies that are problems and obstacles affecting the cost and return of the 3 homestays businesses are mainly the marketing promotion which should be a promotion through website media / Applications as well as a discount on accommodation prices for customers who have used the service and billboards for accommodation through various agencies.
Regarding to cost and returns analysis, the findings presented that the present value of net return (NPV) of Sai Noi Homestay was equal to 27,364,695.08 baht while Ko Kerd Homestay was 40,542,413.99 baht and Khlong Rang Jorakae Homestay was equal to 1,471,287.22 baht. The investment of all 3 homestay businesses showed the NPV value greater than 0. meaning that it was worth to invest. Internal rate of return of the business (IRR) showed that Sai Noi Homestay was 46.88 per cent and Ko Kerd Homestay was 329.64 percent while Khlong Rang Jorakae Homestay was 33.66 percent, which every IRR was greater than the discounted rate of 6.95 percent, indicating that all 3 homestays were worth to invest. For a payback period analysis on the Koh Kerd Homestay showed the minimum payback period of 6 months and 9 days while Khlong Rang Jorakae Homestay was 3 years and 8 days followed by Sai Noi Homestay was 3 years, 3 months, 15 days, indicating that all 3 homestays had more return than the cost. As such, the relationships between cost and return on investment will be in the same direction in all 3 targeted locations.
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