While we may know that "martial law" here isn't the old fashioned World War II style martial law where people are shot for little or no reason, the rest of the world doesn't. "Martial Law" doesn't play well in the western press. Numerous conventions and meetings in Bangkok have already been cancelled; and the declaration of martial law is only going to exacerbate the problem, not ameliorate it.

And that's why hotel prices haven't been dropping, IMO. If you're a company which is cancelling a 100 person meeting in Bangkok because of safety concerns, a reduction in hotel rates isn't going to make any difference. It's not a price-driven decision. Same with individuals. If they cancel because of safety concerns, an extra $25 or $50 off the hotel rate isn't likely to influence them.

So from the hotel's perspective, why bother dropping the rate if it's unlikely to increase the number of guests? People who are traveling into a martial law situation are going to come anyway.