Travel packages mired by pricey airfare, slowing tourism recovery
Many that have been eagerly awaiting the full reopening of Thailand and the return of tourism, did not anticipate the severe cost of airfare and travel packages that has come with it. Now, tourism recovery in Thailand is threatened by the staggeringly high cost to fly, pricing many would-be travellers out of the trip.
The president of the Thai Travel Agent Association says that tour packages are skyrocketing in price, mainly as a result of expensive flight tickets driven in part by higher fuel costs worldwide, and higher operational costs. Long-haul flights such as those from the US and Europe are most severely affected by the high fuel costs, as well as shortages of workers as most airlines and related industries constricted severely during the Covid-19 pandemic and are now struggling to balloon back up to meet rising demand.
“Tour companies are promoting Scandinavian packages starting from 150,000 baht or around 170,000 baht per person on average, double the rate in 2019. Only 3% of outbound travellers can afford such pricey outbound trips.”
Some airfare prices doubled from the cost they were in 2019, before the pandemic, and travel agents putting together tour packages are finding increased operational costs across the board. Agents, therefore, have to shift their target demographic to just their top-tier clients who can afford the sharp increase in travel prices and who are less severely affected by the baht’s weak buying power and global inflation. Custom high-end packages and exclusive travel options are their aim to attract travellers wealthy enough to afford the rising prices.
Regional travel may be the one sector that can attract middle-income travellers in and out of Thailand. Trips to nearby destinations are on average 1000 to 2000 baht more expensive, while travel to Europe averaged about 5,000 to 6,000