I got back from Kata 4 days ago. Little mermaid has its bungalows full and the Danish Inn on the corner was fully booked.
The vibe was really nice and the people were wonderful. I give it 5 stars - I only wish I could go back today.
Your folks should definatly check out the Mellow bar in Kata for a drink or twelve and some civilized company.
www.mellow-phuket.com