Why are Thai tourism products so expensive?

I used to travel to Thailand because of its close geographical location and high cost performance. "It's much more expensive now. If Thailand has no price advantage, I will reduce the number of trips to Thailand or move to other places.

"It is an indisputable fact that the price of tourism is higher now than three years ago." Many people in the tourism industry are not surprised by the price increase of products.

According to the data of Tongcheng Research Institute, the overall average price of group tour products has increased significantly compared with that before the epidemic, with an increase of about 30%.

Yang Yang, general manager of Beijing Spring and Autumn Tourism, pointed out that the main reason affecting the price of outbound travel is still the supply of flights. Although international routes have recovered to about 15% before the epidemic since mid-February, there is still not much flight capacity to serve tour groups. "For example, there were two flights to Bangkok the day before, and now there is only one flight a week, so the itinerary of the tour group may be extended from five or six days to seven or eight days, and the total cost of accommodation and food will rise."

In addition, Yang Yang pointed out that after three years of epidemic, the overseas reception system for tourists in China has actually disappeared and needs to be rebuilt. For example, many local Chinese tour guides in Thailand have switched careers or returned to China, and Chinese-served shopping malls, restaurants and other facilities are also facing closure or incomplete opening, which in itself has correspondingly pushed up costs.

In fact, in June this year, 5438+ 10/2, the Tourism Authority of Thailand pointed out that due to the shortage of the market, the price of Thai tourism products targeted at China tourists increased by 20% on average compared with that before the epidemic. In addition, on February 14, Thailand announced that it would levy entry fees on foreign tourists from June.

When domestic tourism enterprises approached overseas suppliers and land agencies, they also found the increase in product quotations.

Jia, CEO of "Six-person Tour", an outbound customized tour company, said that in contact with suppliers from Southeast Asian countries, the costs of accommodation, transportation and tour guides have all increased to varying degrees. For example, the ground connection has increased by 5% in Thailand and 20% in Singapore.

"During the epidemic, the global tourism market is unstable, and all aspects of tourism also hope to make up for the losses during the epidemic by raising prices after opening up."

In addition to external reasons, Jia believes that because the domestic tourism market has not yet fully recovered, overseas suppliers will also wait and see the market and be short of manpower in the short term. "The land agency does not dare to expand the team at once, fearing that the market will be unstable in the future and the cost will naturally be high."

Yang Yang also pointed out that at present, China tourists' outbound travel has not formed scale effect, and everything is slowly being rebuilt and restored. Therefore, there are not many suppliers who can choose the optimal cost, and they have not yet reached the optimal process and cost.

It is worth mentioning that, in addition to the changes in the tourism market itself, consumption cost's climb is also related to the local price increase. Since last year, Thailand's prices have continued to rise due to the rising global energy prices and the shortage of raw materials caused by the conflict between Russia and Ukraine. In June of that year, the inflation rate rose to the highest since 14.

"In recent years, global floods and high prices have affected markets including Europe, America and Southeast Asia." Yang Yang said.

However, according to the latest data of Thailand, its inflation rate in June 2023 was the lowest level in nine months. As the global energy price situation has eased compared with 2022, the inflation rate may further improve in the future.

Taking all factors into consideration, Yang Yang said frankly that it will take at least half a year or even one to two years for the Southeast Asian tourism market to reach the original level of tourism supply from reconstruction to real recovery.