THE FUTURE OF DOMESTIC TRAVEL IN THAILAND - June 2020 quo-global.com - AMCHAM Thailand
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THE FUTURE OF
DOMESTIC TRAVEL IN
THAILAND
June 2020
quo-global.com
DOMESTIC TRAVEL
BACKGROUND
Amount of visits to cities in Thailand* Visits in April 2020
went down by
19.9 M
20.7 M
19.9 M
18.5M
18.2 M
18.5 M
19.1 M 19.2 M
99.3%
17.9 M
Visits in May totaled
13.2 M
570,000, down by
6.3 M
97% **
130 K
1 million visits are
January February March April
expected in June **
YEAR 2018 YEAR 2019 YEAR 2020
* Ministry of Tourism and Sport ** The Bangkok PostDOMESTIC TRAVEL
BACKGROUND
Most visited cities in Thailand in 2019*
(excluding Bangkok)
y-o-y Δ - 1.45% +1.45% +0.06% +0.31% - 2.07% 1.16%
9.7 M
9.1 M
8.5 M
Visits to Bangkok
7.4 M
6.2 M 40,825,884
4.6 M 2019
41,639,884
2018
Ayutthaya Kanchanaburi Chonburi Songkhla Chiang Mai Nakhon
Rachasima
CENTRAL WEST EAST SOUTH NORTH NORTHEAST
* Ministry of Tourism and SportDOMESTIC TRAVEL IS ON EVERYONE’S MINDS But, what are the facts? QUO has reached out to industry experts and the local market to understand the future of domestic travel in Thailand.
SURVEY METHODOLOGY
DOMESTIC TRAVELLERS HOTEL GMs
LOCATION LOCATIONS
• Bangkok
• Bangkok • Pattaya
AGE • Phuket • Krabi
• Koh Samui • Chiang Mai
31% 53% 14% 2%
20-29 30-39 40-49 50 &
above
PROPERTY TYPE
FREQUENCY OF TRAVEL
Average ~3.3-3.5 trips per year HOTEL RESORT
58
41 41 36 40% 60%
13
1x a year 2x 3x 4x >= 5x9 June
9 June
Thais travelling domestically in droves
amid lockdown easing, prompting Reopening of Thailand’s beaches
authorities to urge caution. and gyms draws huge crowds
There are positive
10 June
signals that travellers
are beginning to
Travel with care, Thais urged
stretch their legs…but are hotels
Domestic tourists are 72%
eager
too eager?
to travel again…
72% respondents
of hotels
planning
expectare
domestic to
the
travel will
tourists within
39%
the next
begin 6 months
travelling in Q3 33%
25%
39% intent to do so in Q4
22%
25% of hotels are expecting
HOWEVER…
travel to ‘normalize’ in Q4
3%
6%
0%
BUT ONLY..
28% won’t travel until 2021
(around 2.9 million people in
3Q20 4Q20 1H21 2H21
3%
Bangkok)
are preparing for 2021
Traveller intent Hotel expectationAN UPLIFT IN TRAVEL SEARCHES
When it comes to intended date of travel, analysis by Sojern, a specialist in traveler path-to-purchase
data, indicates an uptick in June & July - and a surge in November
Hotel searches in Thailand (y-o-y Δ) Travel dates in Thailand (y-o-y Δ)
Origin Origin
APAC APAC
Domestic Domestic
Int’l Int’l
Search Week Commencing Departure Month‘BY CAR’ will still be the
preferred mode of transport
63%
Slight uptick in ‘Car’ as a preferred
55%
choice post-COVID
34%
31%
Only 4% chose “exploring new destinations”
as a reason to travel domestically post-COVID
8%
4%
3% 2%
Plane Car Train Bus
We expect travellers to prefer !
destinations that are i) closer to
home, or ii) they are familiar with
BEFORE COVID AFTER COVIDWhere do travellers
want to go?
Where do hotels see a
rise in domestic travel?
Most preferred type of destination North &
Northeast 21%
Beach Mountain
52% 65% 18% 22% Central
46%
City
South
30% 16% 33%
Before COVID-19 After COVID-19Any change in accommodation preferences?
22%
Int'l brand
28%
18%
Local brand
22%
44%
Independent
33%
Vacation 16%
Rental 17%
Before COVID-19 After COVID-19A shift to ‘Brands’
Preference for branded
international and local hotels
went up by 6% and 4%
respectively
WHILE…
independent boutique hotels
went down by 11%
Before COVID-19 After COVID-19A shift to ‘Brands’ Which factor would influence
you the most when choosing
one hotel over another?
Social impact
Environmental
impact 7%
15%
Brand
22% 56% reputation
Brand
values
78%
believe in a brand’s
reputation & valuesTravellers need to feel assured
55% ranked “Health & Hygiene” and “Safety
of their Family” as their top concerns…
… but generally remain positive about
domestic travel & accommodations
What concerns you the most about travelling in Thailand? How comfortable are you with the following before/after COVID-19?
Health & hygiene 5.6 Weighted Less More
standards Average comfortable Neutral comfortable
Safety of Family 4.2 Travelling in 15% 53% 32%
Thailand
Accomm quality 4.1
Flying 39% 47% 15%
Social distancing 3.9
Travel affordability 3.8 Staying @
Hotels 17% 53% 29%
Transport ease 3.5
Staying @
Increase in Vacation Rentals 34% 45% 21%
documentation 2.9Travellers need to feel assured
55% ranked “Health & Hygiene” and “Safety
of their Family” as their top concerns…
… but generally remain positive about
domestic travel & accommodations
What concerns you the most about travelling in Thailand? How comfortable are you with the following before/after COVID-19?
Health & hygiene 5.6 Weighted Less More
standards Average comfortable Neutral comfortable
Safety of Family 4.2 Travelling in 15% 53% 32%
Thailand
Accomm quality 4.1
Flying 39% 46% 15%
Social distancing 3.9
Travel affordability 3.8 Staying @
Hotels 17% 54% 29%
Transport ease 3.5
Staying @
Increase in Vacation Rentals 34% 45% 21%
documentation 2.9Strategies & Tactics
While majority of them share similar
strategies / tactics, here is where
What is/are being considered to attract the domestic market? (%) they differ for hotels & resorts
Yes No
3%
13%
HOTELS vs RESORTS
51% 49%
54%
64%
70% integrating more digital
tools and technology 41%
97%
87%
49% 51%
46%
36%
71% Improving
staff training 33%
Room rate Promotions & Increase Improve staff Renovate / Integrate more
discounts Packages hygiene training upgrade digital tools
standards facilities and technologyKEY TAKEAWAYS
TRAVEL INTENT IS GROWING A LONG WAY TO GO
Even though travel will pick up in the next 6 Although the local market remains positive
months, hotels need to start thinking ahead to about domestic travel, there’s still a long way
supply future demand in 2021. to go before gaining back the traveller’s trust.
BRANDS: MORE IMPORTANT THAN EVER APPEALING TO A POST COVID
TRAVELLER
More and more travellers are beginning to put While hotels and resorts are implementing
their trust on Brand Names for their personal short-term strategies, they need to create
wellbeing. more innovative and sustainable tactics to
appeal to a post-COVID travellerquo-global.com
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