Hotel operators in Thailand are offering discounts of 20–40% to stimulate demand during the upcoming Songkran holiday, as the sector faces a sharp drop in European arrivals and weakened domestic travel confidence due to fuel shortages.
Paisarn Sukjarean, president of the Upper Northern Chapter of the Thai Hotels Association, said European tourists — who typically account for around 30% of visitors to Chiang Mai during this period — have continued cancelling April bookings due to limited flight availability.
He noted that the impact on this market could persist for at least six months, even if tensions in the Gulf ease, as travellers may remain hesitant to make new travel plans in the near term.
Currently, there are no fresh bookings from European or Middle Eastern markets, while forward reservations for Songkran have declined to 55–60%, down from the usual 60–70%.
In a typical year, the festival drives occupancy rates to around 90%, but this year operators are aiming to reach at least 70%, as domestic travellers remain cautious about long-distance trips amid fuel concerns.
Mr Paisarn said uncertainty over fuel availability has already affected domestic travel patterns, with many Thais experiencing difficulties during recent cross-provincial trips over the Qingming Festival.
As a result, travellers are delaying bookings, often waiting until just days before departure, particularly for road trips during Songkran.
To offset weak demand, most three-star and lower-tier hotels have reduced room rates by around 20%, while some properties are offering discounts of up to 40%, lowering nightly rates from around 2,000 baht to approximately 1,200–1,300 baht. Meanwhile, four- and five-star hotels have largely maintained their pricing strategies.
Despite the challenges, Chiang Mai’s tourism outlook may outperform other destinations, supported by a steady influx of Chinese visitors and growing demand from other Asian markets, which are expected to account for 10–15% of total arrivals.
Forward bookings from China for Songkran are rising by 10–20%, reflecting stronger confidence among travellers returning to Thailand.
Local authorities are proceeding with plans to host a 12-day Songkran festival, featuring traditional celebrations and water activities as usual.