Travel uncertainty continues

Travel uncertainty continues

Despite the rapid change in the tourism market, there has been an upward trend in domestic tourism since February.(Photo by Pattanapong Hirunard)
Despite the rapid change in the tourism market, there has been an upward trend in domestic tourism since February.(Photo by Pattanapong Hirunard)

The coronavirus pandemic has caused more uncertainty for domestic trip planning and booking, according to the latest report from SiteMinder.

The domestic segment contributed 29% of overall tourism revenue for Thailand in August of last year, but the same month this year saw the figure rise to 95%, said Bradley Haines, regional vice-president of the Sydney-based distribution hospitality platform provider.

Despite the rapid change in the tourism market, there has been an upward trend in domestic tourism since February.

The "Changing Traveler Report", which interviewed 579 Thai residents, showed that 42.5% planned to travel domestically within the next three months, 31.7% by the end of this year and 16% by next year.

The impact of the pandemic added more uncertainty to trip planning and bookings.

The report also found that 59% of guests would make their accommodation reservation less than a month before travelling. Most domestic travel planning is centred on public holidays.

"This last-minute buying behaviour will pose challenges for hotels' short-term planning," Mr Haines said.

He suggested hoteliers ensure they are bookable up to the last minute, as well as introduce extended-stay deals and new pricing strategies applicable to international tourists.

The extended-stay strategies could include late checkouts or discounted room rates for guests during the last night.

The three most prioritised factors in determining the choice of accommodation during this period consisted of well-promoted health and safety practices, free cancellations or booking modifications, and low prices.

Big chain hotels remained the preferred type of accommodation in Thailand due to their credibility and trust, while boutique hotels saw a decrease due to weaker purchasing power.

But smaller accommodation may have the advantage of being more agile compared with large-scale hotels, which are pressured to meet the standards of new service practices.

Mr Haines said the impact of Covid-19 on SiteMinder was that some hotels on the platform halted all services. Instead of shutting down these accounts, SiteMinder froze the hotels in the system, where they can be re-activated easily once back on track.

He said there is existing domestic demand that will emerge once hotels adapt to new-normal strategies and standards.

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