Inflation causing a problem for airlines coming to Thailand

The Thai tourism industry is trying to recover as fewer international flights are now arriving due to inflation as prices of fuel are rising. There are also problems in both Europe and the US with flights being cancelled or with long delays, causing additional travel chaos as the world’s travel and aviation tries to recover. World inflation is also hitting the discretionary spending habits of potential travellers to Thailand at this time.

Thailand is counting on the approaching high season to bring in 8-10 million tourists by the end of 2022.

Numerous airline companies say they are are hesitant to add more routes or increase the number of flights as there are many global challenges affecting their revenue and ability to increase frequency of flights.

They cite higher operating costs caused by rising oil prices and longer flights due to the detours to avoid the war between Russia and Ukraine.

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According to the Tourism Authority of Thailand Governor Yuthasak Supasorn, there are only 30% of international flights flying into The Land of Smiles compared to life before the pandemic. The TAT and Tourism and Sports Ministry have been touting a swift recovery of Thai tourism but are now admitting the challenges to international arrivals which are out of the control of Thai authorities.

“Tourists face higher travel costs, particularly from inflation and airfares, which have increased by 20-40%. The TAT is working with airlines, both scheduled and chartered services, to roll out joint promotions to help offset those costs. However, for Europe’s summer season in August, it might be too late to prepare any stimulus packages.”

The goal should be at least 55% of international flights, and this could be possible once Air Canada and Korean Air have confirmed their plans non stop flights.

From December until April 2023, Air Canada plans to fly its first direct flight between Vancouver and Bangkok with four flights per week using Boeing 787 planes. During its recent trip to Seoul, Korean Air promised the TAT that it will start flying to Thailand again in the fourth quarter.

Both Chinese and Russian travellers will be thin on the ground for at least the rest of 2022.

SOURCE: Bangkok Post