Domestic flight pass considered

Domestic flight pass considered

Subsidy would support airline sector

The government may offer a subsidy for an unlimited travel pass to people who buy domestic air tickets in advance to help struggling airlines in Thailand.

Tourism Authority of Thailand (TAT) governor Yuthasak Supasorn said the redemption rate on airfare for the ongoing "We travel together" stimulus campaign has been slow the past seven months when compared with the 6 million hotel room nights that were used.

There are 1.3 million airline seats left out of 2 million available seats, prompting the TAT to discuss new tactics for the campaign with airlines to accelerate travel demand and help airlines stay in business.

He said among several interesting proposals is the unlimited travel pass, which could be implemented under the same budget.

The government would offer a 2,000-baht subsidy for unlimited passes or "buffet" tickets purchased from local airlines. This method is more flexible as this ticket type allows users to make purchases in advance without a set schedule.

This approach could also increase the frequency of travel as people will plan more trips to maximise the utility of passes, said Mr Yuthasak.

He said the agency plans to propose a new allotment for the hotel room subsidy, as 6 million room nights have been used.

The stagnant market saw five-star hotels discount room rates to extraordinarily low levels, with the price each tourist spent on hotel rooms no more than 2,700 baht. The subsidy was capped at 7,500 baht per room.

"We may lower the ceiling to 2,700 baht in response to data from the first two phases. By introducing a new subsidy amount, the scheme can allocate more rooms for more people," said Mr Yuthasak.

The third-phase subsidy could be extended to September, helping hotels attract more guests during the third quarter, traditionally a low season, he said.

This project also needs a revamp on fraud prevention as the agency is considering changing the consent form for hotels joining this scheme.

Marisa Sukosol Nunbhakdi, president of the Thai Hotels Association, said hotel bookings dropped instantly after the subsidy ran out earlier this month. The government should extend this stimulus package because tourists rely heavily on subsidies when planning trips, she said.

Do you like the content of this article?
COMMENT