Middle Eastern carriers have cut more than half of their flights, slowing arrivals from Europe. Go Vacation, a tour company specialising in German-speaking markets, said low-season customers travelling to Thailand had fallen by 60-70% from last year because many normally connect through Middle Eastern hubs.
Short-haul Asian routes, including China and India, have also become more expensive, with airfares rising by more than 20%. This has forced some large MICE groups, especially incentive groups, to reduce the number of participants. A group that previously brought 200-300 people may now cut the size to around 150.
Prachoom said the US remains the only market that is still strong and has not been significantly affected by the conflict, both in the MICE and leisure segments.
She said incentive travel had been hit directly by tighter corporate budgets. Companies that previously set aside 2 million baht for a trip may now have to reduce the number of travellers, shorten programmes, cut travel days or downgrade hotels from five-star to three-star properties to stay within budget.
The outlook for the MICE market in the second half of the year is also causing concern. Most bookings for the third and fourth quarters remain at the enquiry stage, with no firm contracts or confirmations.
Exhibition organisers are also worried that higher airfares could reduce the number of buyers and visitors attending events.
However, Prachoom said tourism and MICE operators should prepare for a strong rebound once the war ends. She expects Middle Eastern airlines to launch a price war to regain market share, which could bring airfares down and help Thailand return quickly as a preferred destination.
“Thailand must be ready for the bounce-back, from safety to workforce upskilling. Everything must be ready to welcome tourists back,” she said.