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This research aimed to study the current situations of small hotel business in the digital economy. A qualitative research approach was used to collect data by in-depth interview with structured and observation from 50 small hotel entrepreneurs or hotel executives in the top 10 tourist provinces rated by Tourism Authority of Thailand (TAT). An analysis though SWOT analysis based on the concept of management factors (4M: Man, Money, Materials and Management). Then synthesize a competitive environment by making a TOWS matrix based on the Five Forces Model. The research result of current small hotel business situations by using SWOT analysis as follows: The strength was the business owners themselves managed as their family business model. The room rate is not expensive compared with decorate and the materials high quality. The weakness is the business owner lacked of information technology knowledge and lacked of professional experience in the hotel management. External opportunities were backed by state policies. The travel cost decrease (low cost airline) and travel agency are increasing so competition to reduce prices. The outside barriers as threats were the unclear small hotel criteria and many competitors.
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