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Short-Haul Bookings Continue to Underperform

Short-Haul Bookings Continue to Underperform

Airlines report that bookings for short-haul markets for the rest of the year remain sluggish, contrasting with a more positive outlook for the long-haul segment. Some carriers have also expressed interest in participating in the Tourism Authority of Thailand’s (TAT) stimulus initiative.

Pattaraanong Na Chiangmai, TAT’s Deputy Governor of International Marketing for Asia and the South Pacific, highlighted that tourism in the second half of the year continues to face several challenges.

According to Forwardkeys, an air traffic data provider, forward bookings for all short-haul markets from June to December have declined compared to the previous year. Specifically, bookings to Asia and South Pacific fell by 22% to 849,034 seats, while Southeast Asia, South Asia, and Oceania saw a 16% decrease to 303,325 seats.

The East Asia market contracted by 25%, totaling 528,480 seats, with Chinese routes experiencing the steepest drop of 40%, amounting to 109,676 seats.

In the first six months of the year, Thailand received 16.6 million international visitors, including 11.1 million short-haul travelers—well below the 28.2 million target set for 2025. Conversely, long-haul arrivals remained strong, with 5.5 million travelers in the first half, according to Chiravadee Khunsub, TAT’s Deputy Governor for Europe, Africa, the Middle East, and the Americas. She stated that Thailand is on track to meet its goal of attracting 10.7 million long-haul tourists this year.

Chiravadee added that bookings for the third quarter from these markets stood at 713,491 seats, showing an increase from 677,211 seats during the same period last year. Bookings from Europe, the Americas, and Africa are expected to rise year-over-year, although arrivals from the Middle East are projected to decline by 9% to 97,246 seats, impacted by ongoing geopolitical conflicts.

Pattaraanong mentioned that TAT will soon introduce a 750-million-baht subsidy program called “Summer Blast China & Overseas Market” aimed at attracting over 790,000 visitors within a year.

Nuntaporn Komonsittivate, Head of Commercial at Thai Lion Air, expressed interest in participating in the joint promotional initiative for commercial flights. She noted that there is considerable potential to boost foreign passenger numbers on their existing routes, particularly from Indonesia, India, and China, as Thailand has seen a sharp decline in arrivals since the start of the year. Currently, Chinese flights operated by Thai Lion Air are operating at approximately 60-70% capacity.

Meanwhile, Anlee Do, General Manager for Thailand, Vietnam, the Philippines, and the Mekong Region at Lufthansa Group, indicated that the airline would need to evaluate TAT’s proposal before deciding whether to join. Currently, the group maintains daily flights to Thailand with Lufthansa, Swiss, and Austrian Airlines for the summer season. The group plans to increase flights during the winter high season to meet the anticipated travel demand of European tourists.