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					Travel and Tourism - Thailand




Euromonitor International : Country Market Insight

June 2010
Travel And Tourism                                                                                                                                                      Thailand




List of Contents and Tables
         Executive Summary ................................................................................................................................................ 1
         Huge Drop in Arrivals for First Time in A Decade................................................................................................... 1
         Domestic Politics Caused Havoc .............................................................................................................................. 1
         Tat Stimulated Domestic Tourism But Unable To Compensate for Inbound Loss .................................................... 1
         Low Cost Carriers Is Top Choice Amongst Travellers During Economic Slowdown ............................................... 1
         Thai Tourism Anticipates More Stable Growth Over Forecast Period ..................................................................... 1

         Key Trends and Developments .............................................................................................................................. 1
         Impact of the Global Recession................................................................................................................................. 2
         H1n1 Flu Pandemic .................................................................................................................................................. 3
         Government Rescue Plan To Boost Tourism............................................................................................................. 4
         Political Violence Resulted in Thai Tourism Slump.................................................................................................. 5
         GDP 2009 Contracted .............................................................................................................................................. 6
         Online Technology Changed Consumers’ Behaviour ............................................................................................... 7

         Demand Factors ...................................................................................................................................................... 7

         Balance of Payments ............................................................................................................................................... 8

         Market Indicators ................................................................................................................................................... 8
                 Table 1           Leave Entitlement: Volume 2005-2009............................................................................. 8
                 Table 2           Holiday Demographic Trends 2004-2009 ......................................................................... 8
                 Table 3           Holiday Takers by Sex 2004-2009 .................................................................................... 8
                 Table 4           Holiday Takers by Age 2004-2009.................................................................................... 9
                 Table 5           Length of Domestic Trips: 2004-2009............................................................................... 9
                 Table 6           Length of Outbound Departures: 2004-2009 ..................................................................... 9
                 Table 7           Seasonality of Trips 2005-2009......................................................................................... 9

         Market Data .......................................................................................................................................................... 10
                 Table 8              Balance of Tourism Payments: Value 2004-2009 ........................................................... 10

         Definitions.............................................................................................................................................................. 10
         Tourism Parameters................................................................................................................................................ 10
         Travel Accommodation ........................................................................................................................................... 13
         Hotel Price Platforms ............................................................................................................................................. 14
         Transportation ........................................................................................................................................................ 15
         Car Rental............................................................................................................................................................... 17
         Travel Retail ........................................................................................................................................................... 18
         Travel Retail Online Sales ...................................................................................................................................... 19
         Tourist Attractions .................................................................................................................................................. 20
         Health and Wellness ............................................................................................................................................... 21
         Internet Sales .......................................................................................................................................................... 21
                   Summary 1             Research Sources............................................................................................................. 22




 Euromonitor International                                                                                                                                             Page        i
Travel And Tourism                                                                                          Thailand




TRAVEL AND TOURISM IN THAILAND

EXECUTIVE SUMMARY
Huge Drop in Arrivals for First Time in A Decade
Thai tourism enjoyed positive growth in tourism flows inbound over the review period, but 2009 was the first
year it encountered a tremendous loss in arrivals, particularly from neighbouring Asian markets. Total arrivals in
2009 fell to below the level of 2006. 2010 prospects will depend on the rate of the global economic recovery.
Furthermore, political issues may also ensue, causing challenges to potential growth over the forecast period.

Domestic Politics Caused Havoc
The closure of Suvarnabhumi and Don Muang international airports was the first indicator of troubles and a
setback for Thailand’s tourism. Loss of confidence amongst global travellers created a huge impact, resulting in
enormous loss of revenues during the start of the high tourism season in December 2008. Many tourists
cancelled flights, hotels, car rental bookings and other tourism activities. Thai travellers were unable to fly back
home, and international tourists were unable to go back to their countries. This resulted in another two quarters
of a quiet period for Thai tourism. Asian travellers from Japan and China seemed to be the most sensitive to this,
as they were the first groups of travellers who made flight and hotel cancellations.

Tat Stimulated Domestic Tourism But Unable To Compensate for Inbound
Loss
The Tourism Authority of Thailand (TAT) has allocated huge marketing budgets to awaken Thai travellers to
consider helping domestic tourism rather than flying abroad. Many luxury and mid-priced hotels have offered
spectacularly discounted room rates previously unavailable over the review period. Five-star hotels rarely cut
their room rates more than 50%, but they had to offer big discounts rather than leave rooms empty. Fourth night
free or eighth night free offers have been seen more often from many hotels in Bangkok and southern Thailand.
Thai travellers have enjoyed these attractive discounts and promotions. However, domestic tourism alone could
not compensate for the big revenue loss.

Low Cost Carriers Is Top Choice Amongst Travellers During Economic
Slowdown
The global economic slowdown did not really have a lot of impact on the Thai economy compared to the USA,
the UK or Japan; however, it seemed that travellers were more limited in spending as they felt insecure about
their jobs. Short-haul destinations seemed to be the first destinations to choose, as travellers postponed their
long-haul destination holidays to a later time. Low cost carriers became the first choice of transportation, as they
saved consumers money which could be used on the trip. This reduced demand for normal scheduled flights,
most notably with Bangkok Airways and Thai Airways International. Therefore, these carriers had to turn their
focus to long-haul or unique destinations instead or else find partnerships with other airlines to prevent a
worsening in market share and company income.

Thai Tourism Anticipates More Stable Growth Over Forecast Period
Thai tourism reached a low in 2009 as three major factors together hit the industry very hard: The global
economy made international tourists hesitate in making trips to Thailand; domestic political instability scared
potential tourists; and the H1N1 virus stopped travellers from flying across the country. Luckily, all the negative
factors faded out before the peak of tourism in the fourth quarter of 2009. Thus, there is lots of hope that there
will be no other interfering factors occurring over the forecast period, and that Thai tourism should be a strong
magnet attracting global tourists to Thailand smoothly. However, if the domestic chaos continues in 2010, it
would definitely have further negative impact on tourism performance throughout the year.


KEY TRENDS AND DEVELOPMENTS

 Euromonitor International                                                                                Page   1
Travel And Tourism                                                                                         Thailand




Impact of the Global Recession
The rebound effect of the global economic recession saw its real impact on Thai tourism in 2009 when there was
a huge drop of tourism flows inbound into the Kingdom. Even this could not be blamed totally on the global
economic situation due to other negative factors happening during the same period like domestic political
turmoil and the H1N1 flu outbreak. However, there was lower tourism flows inbound into the Kingdom, as
international tourists considered shortening their trips and looking for lower hotel prices. Many hotels reported a
severe decline in occupancy rates and offered bargain prices and free nights to build up their demand.

Current impact

The Bank of Thailand (BOT) reported that GDP declined by 2% in 2009, which was its first year of negative
growth since 1999. However, in 2009, the government allocated an ad hoc budget to Ministry of Tourism and
Sports of Thailand to prevent the further disruption of domestic tourism. Apart from this government remedy
plan, the domestic tourism industry had to heavily promote itself to restore confidence and revive tourism
revenues.

The TAT, with cooperation from hotels, airlines and travel retailers, implemented a plan to stimulate domestic
tourism which aimed to compensate for the dropping international demand. For example, they have offered
special packages in order to indulge travellers; luxury hotels offered more than 50% discounts on hotel nights to
attract middle-class customers, as well as a fourth night free and free round trip transfer. The accommodation
prices and package tours in 2009 offered a really good deal for travellers who had strong financial status to
enjoy the high-class services at an affordable price.

Outlook

The global recession would not by itself have so much impact on travel and tourism, because Thailand is
perceived as a value-for-money destination; but instead, other factors like political chaos and the H1N1 flu
outbreak tended to slow down tourism demand. It should take until at least 2010 to see a better prospect for Thai
tourism, because the building up of tourists’ confidence cannot happen overnight. However, even with the
economic slowdown, the cost of living in Thailand is a lot cheaper than European or USA destinations and
Thailand is perceived as a better choice to escape from the winter.

More than half of tourism flows inbound to Thailand are from Asian countries with the fastest growth in the
number of tourists from China, India and the Middle East where the TAT has also helped to stimulate demand
by organizing trade shows as well as setting up TAT offices to provide information and help facilitate travelers’
visits to Thailand. The TAT aims that Asian tourists could be key customers generating a lot of revenues in
Thailand. Because Thailand is a short-haul destination for these tourists, they are able to fly to Thailand more
often in a year, and a lot of low cost carriers offer cheaper prices within Asian routes.

Future impact

The global economy has already passed the bottom and started growing gradually in a sustainable way.
Therefore, global tourism, including Thailand, will see slight expected growth over the forecast period. The
country’s national resources of beautiful beaches, historical buildings and sites and warm hospitality have
helped to support and stimulate tourism growth.

However, the most important thing to help stimulate sustainable tourism growth in the country would be from
support amongst tourism organisations, the government and the Thai population. Thailand has more unrevealed
attractions waiting to be developed and promoted. The advantage of Thailand is that these different regions have
their own characteristics and those could be magnets to attract different styles of travellers. They already explore
the beautiful beaches in the south, historical buildings and shopping activities in the central part and unique
cultures in the north of Thailand, whereas the northeast and east have a lot of unseen attractions waiting to be
explored. In addition, the government project on road improvement and public transportation development
throughout the country will help to build up a stronger and more sustainable tourism situation over the forecast
period.




 Euromonitor International                                                                                Page   2
Travel And Tourism                                                                                         Thailand




H1n1 Flu Pandemic
The H1N1 flu outbreak has had a negative impact on Thai tourism, even though this virus outbreak did not have
severe widespread consequences throughout the country compared to other developing countries. The Ministry
of Public Health, Thailand has revealed that there were around 160 deaths from H1N1 in Thailand by September
2009. The number had gradually increased since April 2009 but seemed to be slowing down under the control of
the government.

This disease caused panic, as Thai residents hesitated to book any trips out of the country or even domestic trips.
Shopping centres and movie theatres were quieter and saw fewer customers during May to June 2009.
International tourists also felt a lot of panic, which seemed to be more widespread amongst Asian tourists than
European tourists. There were a lot of cancellations in hotels, flights and package tours to Thailand from
Chinese, Japanese and Hong Kong, Chinese travellers during May to June 2009.

Current impact

The spread of H1N1 flu in Thailand was publicised when there was a report of the first fatality in the country
during the second quarter of 2009. Even this virus outbreak in Thailand was unlikely to be a serious situation
compared to in other countries; however, this epidemic caused a lot of international tourists to cancel their trips
to Thailand. In particular Chinese and Japanese travelers were the most sensitive group to all the negative
factors as they had more concerns about their safety and security. The Tourism Authority of Thailand (TAT) has
revealed that more than 90% of Chinese and Japanese tourists called off their trips to the Kingdom. The Indian
government has requested the Thai government to impose exit screening measures with Thai citizens before
they travel to India.

There were no real statistical data revealed on the impact of this viral epidemic on the loss of tourism revenues.
The TAT anticipated that this H1N1 flu outbreak could make tourism revenues of all related sectors like travel
retail, transportation, tourism spending, health and wellness as well as tourism employment slow down around
3-4%, equivalent to Bt200 billion, in 2009. Fortunately the Ministry of Health has been able to control the viral
epidemic in the Kingdom, which then should create more tourism confidence amongst both domestic and
inbound travellers. Otherwise, the aim to create Thai as a medical tourism hub in Asia is unlikely to happen in
the forecast period.

Outlook

The H1N1 virus outbreak was not the first time an epidemic happened within that decade. The SARS outbreak
in 2003 was the first indicator that awakened countries around the globe to start to learn how to handle
widespread epidemics. In April 2009, the viral disease started to be reported in Thailand, and the number of
infected patients continued to increase, including Thai residents and international tourists. The government, with
the cooperation of the Ministry of Public Health, allocated Bt850 million to buy vaccines and drugs for H1N1
flu prevention in July 2009. The virus outbreak started to come under control; a smaller number of infected
patients was reported, and some were able to recover from this disease.

Thailand started to see a better tourism situation in the fourth quarter of 2009, the peak tourism season, and
travellers have more confidence in travelling and residents are tending to demand taking their trips outside the
country, especially during the long holidays at the end of this year. However, the winter season in the last
quarter is still perceived as posing a risk that this outbreak could awaken again. Over the forecast period, it is
expected that a drug should be developed which will be able to eliminate this disease and prevent another round
of outbreaks. However, there is no guarantee that over the forecast period a new disease will not be discovered.
The experience from the SARS outbreak has taught many governments around the world how to handle a global
disease epidemic. However, when it comes to new outbreaks of disease, they will definitely have a negative
impact on the economy and tourism at first, which should slightly fade when people learn to control these
diseases.

Future impact

The outbreak of disease has had the result that many people have higher health awareness and are looking for
something to build up their bodies’ immune system. Health and wellness centres in Thailand are amongst the
tourism sources which have reported more local customers coming in as well as visitors from other countries.



 Euromonitor International                                                                               Page       3
Travel And Tourism                                                                                           Thailand




Whilst value sales of Health and Wellness tourism fell in 2009 as a result of the slowdown in tourism, the
growing interest in Health and Wellness meant that there is more aggressive competitive within the sector and
among this sector and a variety of health programmes and holistic centres opened up. Medical institutions in
major cities like Bangkok have advanced diagnostic medical equipment as well as many credentialed doctors
from American or European medical schools to guarantee their expertise. This outbreak has helped to stimulate
growth in particular to medical tourism in Thailand, and it is anticipated that the aim to promote Thailand as a
medical hub of Asia will not be so difficult to reach over the forecast period.

Government Rescue Plan To Boost Tourism
Many negative factors have affected Thailand, starting with the global economic downturn, then the political
instability and last but not least. the H1N1 flu outbreak. It is undeniable that all these negative factors have
attacked Thai tourism and resulted in its sudden economic contraction. The number of tourism flows inbound in
2009 declined to about the same level as in 2005-2006, around 12.5 million international travellers.

In order to prevent the further decline in the number of inbound travelers, the Thai government has set up a
remedy plan to stimulate the tourism industry. The stimulus package includes funding compensation to
international tourists and residents during the airport closures; an ad hoc marketing promotion budget to recover
Thai tourism’s image; reduced airport landing fees and a reduced tax rate on tourist-related businesses as well as
exemptions from visa application fees. The government aims to restore tourists’ confidence in the Kingdom
quickly; otherwise Thailand might lose its loyal customers to other regional destinations.

Current impact

The exemption from the visa fee was first put into effect from March to September 2009; however, tourism was
still in a slowdown period. Hence, the Thai government announced it would extend the exemption period until
March 2010. The visa exemption applied to normal visa applications at Royal Thai Embassies and consulates
abroad, as well as to all applicants for visas on arrival at all international airports. Reducing the visa barrier to
entry into Thailand aims to bring a lot more new travelers who would like to explore Thailand.

The airport landing fee reduction has helped indirectly to lower airfares to Thailand and bring competitive
airfares back. Suvarnabhumi Airport has one of the most expensive airport landing fees in the region. The
government announced it would reduce landing fees around 50%, applied to state-run airports only, including
Suvarnabhumi, Don Muang, Phuket, Chiang Mai, Chiang Rai and Had Yai airports.

The tourism industry lost a substantial amount of income in implementing this remedy plan. However, Thailand
aims to gain in terms of reputation and revisiting tourists instead. Tourism confidence is hard to restore. It will
take time to compensate for the huge loss in the number of inbound tourists in 2009, and probably not until at
least 2012 will Thailand approach 15 million inbound travelers as it did during the review period.

Outlook

The global economic recession contracted demand amongst USA and UK travelers, whereas domestic political
instability prevented Asian travelers from China and Japan from traveling to Thailand. Therefore, the Tourism
Authority of Thailand (TAT) should aim to target new potential markets instead: for example, Scandinavia, the
Middle East and Russia. Those three markets are amongst the top-spending countries, because Scandinavian
tourists tend to have long breaks from the winter season for more than a week, the tourists from the Middle East
usually come with a whole family and spend a lot on shopping, and Russian tourists are big spenders and like to
experience luxury styles, entertainment and dine-in hotels.

Thai tourism still benefits in terms of being a value-for-money destination, which can easily convince travelers
to visit Thailand. However, safety and security are top-priority factors, and the Thai government has to make
sure that there will be no risks of violence happening again, which could push tourists to other destinations over
the forecast period.

Future impact




 Euromonitor International                                                                                  Page   4
Travel And Tourism                                                                                         Thailand




This government rescue plan is a short-term commitment to boost travel and tourism. However, Thai tourism
should aim towards long-term growth because it is a major source of the country’s revenues and employs almost
10% of the labour force in the country.

The new potential markets would help to stimulate tourism flows inbound during this slow tourism season;
however, other prospective tourism flows inbound besides top markets Malaysia and Japan are other regional
markets, in particular China and India. Chinese tourism flows inbound showed outstanding growth over the
review period but showed a large drop in 2009. The TAT has also planned to open up new more Thai tourism
offices in China and India. Thailand is now popular amongst wedding parties and honeymooning couples from
India. Therefore, it is expected that the huge populations from those two countries will help to generate a lot of
revenues to Thailand over the forecast period.

Political Violence Resulted in Thai Tourism Slump
Many countries have talked about the global economic recession and H1N1 flu outbreak as the causes of the
severe declines in their own tourism situations. However, Thailand had another real cause for its tourism slump
in 2009, which was the political turbulence. The deterioration of tourists’ confidence in Thailand began in
December 2008 when international airport closures included Suvarnabhumi and Don Muang airports after the
invasion by “yellow shirt” antigovernment protesters for about a week.

December usually is the peak tourism season and generates the highest income to the country because it is the
longest holiday period. The occupancy rate is able to reach 100% easily and hotels can mark up their rates to the
highest price. This month is normally a happy time for Thai tourism. After the airport closures in this peak
tourism season, all related tourism industries showed severe declines. Many tourists cancelled their fights and
accommodation bookings because they were worried about their security. International tourists were unable to
fly back and Thai travellers could not return to the country at the same time.

Current impact

This airport closures did not cause a severe drop of revenues in December 2008 only. Tourism was unable to get
back on track easily after the protesters left the airports. Because tourists’ confidence had already deteriorated,
the slowed-down tourism situation persisted in the first quarter of 2009. When the yellow shirts calmed down
and the country had a new government, then the opposite group, the “red shirts”, started to cause other problems
in the country and tourism suffered for one more quarter, in particular in April 2009.

April is normally the peak domestic tourism season due to the long school break and the Thai New Year or Song
Karn Festival. However, the red shirt group had blocked many roads in Bangkok as well as broken into an Asian
Leaders Summit in Pattaya. The hotel industry in Bangkok could not recover for one more quarter and the
occupancy rate dropped to lower than 30%, below the normal rate of 60-70%. The bad thing was the
international media had broadcast the real-time political situation throughout the world and had already scared
Asian travelers away from Thailand. The Chinese government announced it would prohibit Chinese tourists
from visiting Thailand during this turmoil.

Outlook

The antigovernment protesters seemed to be fading out when the new H1N1 flu outbreak started in Thailand in
the second quarter. The global outbreak of disease brought new attention to Thailand around the world but left
Thailand’s political chaos slightly in the background. The country's situation became more quiet in the third
quarter but this viral outbreak still prevented domestic tourists from traveling abroad, and demand amongst
international tourists for inbound trips tended to slow down.

The government has approved measures to help stimulate Thai tourism in 2009. Examples of these measures
include exemption from the visa application fee; reductions to the airport landing fees; loans to tourism
operators; and reduction of the tax rate on tourism-related activities. It was hoped that this measure would bring
back a lot of inbound tourists, but the country's tourism situation was unable to get back on track suddenly.
Therefore, it is anticipated that after 2010, the country will start to see renewed tourism growth after all the
negative factors gradually fade out.




 Euromonitor International                                                                                Page      5
Travel And Tourism                                                                                            Thailand




Future impact

The Thai government and TAT have made a lot of effort to restore the tourists’ confidence in the Kingdom. The
three-year short-term strategy plan until 2012 aims to improve all domestic public facilities and road surfaces
throughout the country, which would definitely help to build stronger and sustainable growth to Thai tourism.

However, there are likely to be challenges to prospects if the domestic political situation continues to mar
stability. The red-shirt protesters who support ex-Prime Minister Thaksin Shinnawatra gathered again in 2010 to
put pressure on the Prime Minister Abhisit Vejjajiva to resign from his position. This depressed the travel and
tourism industry, especially as the protesters caused damage in one of Bangkok’s key business districts. If this
continues, the worst case scenario could see the closing down of hotels, spas, travel retailers and other tourism-
related businesses. It will then take a longer time to bring back inbound travelers to Thailand.

GDP 2009 Contracted
The Thai economy during the first quarter of 2009 showed the severest situation since the Asian economic crisis
in 1997. The data were confirmed by the National Economic and Social Development Board (NESDB) and
Bank of Thailand (BOT). The NESDB revealed that the Thai GDP during the first three months of 2009
dropped by 7.1%, which was the second consecutive quarter of economic slowdown after the fourth quarter
2008 decline of 4.3%. BOT reported that Thailand’s economy experience negative GDP growth at 2% in 2009
compare to a positive growth of 3% in 2008.

Current impact

According to the NESDB, many hotels revealed that their occupancy rate showed a huge drop from the normal
70% to 80% during the first quarter to around less than 30%. This data underlined that the airport closures in
December 2008 had already damaged international tourists’ confidence and the whole Thai tourism industry.

Normally, Thailand tourism revenues represent around 7-9% of GDP and generated tourism employment of 2.5
million jobs. Tourism is the one of the major engines that push the Thai economy. The GDP contraction reached
bottom in the first quarter and slightly picked up after May 2009. The tourism situation was gradually better in
particular in August and September, during the school breaks and long holidays in Europe, and more booking
queries came in the last quarter of 2009.

Outlook

The Bank of Thailand has estimated that if there had been neither airport closures nor ongoing political turmoil,
the number of inbound tourists should have increased to 16 million in 2009. Therefore, tourism is the crucial
source of income to in strengthening the Thai economy.

The negative factors slightly faded and the domestic situation seemed to be more stable after the third quarter of
2009. If international tourists have no worries about political factors and security, they will start to recover their
confidence to fly back to Thailand. Tourism flows inbound should start to show sustainable growth after 2010.
Inbound tourists are a major source of income because they spend large amounts on air transportation,
accommodation and food. They tend to stay in mid- to high-end hotels, whereas Thai consumers would rather
spend nights in mid- to low-end hotels and their major transportation is by car. This is the reason that even
though the Tourism Authority of Thailand has tried very hard to generate revenues from domestic tourism, this
income is unable to compensate for the huge loss from arrivals.

Future impact

The positive aspects of Thai tourism are that Thailand is a value-for-money destination, with warm hospitality
and a variety of styles of traveling, which can be a destination for backpackers, couples, familes or group tours.
Supportive actions from the TAT and the Thai government should expect to recover tourism flows inbound to
reach nearly 17 million travelers at the end of the forecast period.

The Thai economy is also another indicator for outbound tourism. A booming economy and stronger baht
should lead more Thais to demand outbound tourism, and it would be more likely to be in that direction since
2009 already showed positive growth in tourism flows outbound. Accommodation should anticipate this trend



 Euromonitor International                                                                                  Page    6
Travel And Tourism                                                                                            Thailand




with more new international chains entering the market over the forecast period to take a big share of revenues,
especially in Phuket and Bangkok.

Online Technology Changed Consumers’ Behaviour
The Internet is the most important factor for consumers in travel and tourism. The benefits of the Internet have
made consumers able to access information anytime and anywhere. Travellers tend to have less time to prepare
for trips, whereas last-minute holidays have increased due to instant booking and confirmation and online
payment. But the most crucial reason is get the best deal. Meanwhile, suppliers like hotels, car rental and spa
services providers are able to access their websites anytime to update information, discounting and promotions.

Current impact

Consumers usually spend around eight hours per day during working days in front of the computer and most of
them are able to access the Internet. Travelers are able to compare information about hotels, airlines, car rental
prices and entrance fees to tourist attractions in order to design and plan their trips and select the best options for
them more easily than in the past. Low cost carriers in particular usually update the latest discounting
promotions via their home webpages and allow customers to make bookings and go through payment systems at
the same time. Hotels will update information and promotions either on their own homepages or via online
travel retail providers like expedia.com, agoda.com and wotif.com. Most of the websites are designed in an easy
format to help customers make bookings within a short period of time.

Those sources of online technology have resulted in consumers demanding last-minute holidays more often.
They tend not to prepare a trip in advance like in the past; but instead, if they can find attractive
accommodations with reasonable prices and have no worries about visas, then they go on these trips more
easily.

Outlook

The trend towards online technology is still growing and should become more powerful over the forecast period.
Blogs, online communities and chat forums are open for everyone to visit and make comments. They are very
useful and influential in decision making for new customers who have never been to those locations. The
travelers’ experiences would be beneficial both to new travelers and to service providers who have direct
responses from their customers on both positive and negative aspects.

Online technology should help create Customer Relationship Management (CRM) programs for tourism
providers to be more efficient. E-mail will be direct to end users and communicate the latest information and
promotions and get customer feedback simultaneously. It should help to send messages faster, more often and
more precisely to individual customers. This will be one way to retain customers and make them loyal to the
company.

Future impact

As online technology becomes more popular, the traditional travel retailers will be slightly edged out or have to
adapt accordingly. Fewer brochures will be provided by travel retailers, but all information will be available
through websites. Apart from online technology development, mobile phones will have more influence in this
area than in the past. Smart phones became popular so suddenly when the iPhone and Blackberry were
introduced in Thailand in 2009. Mobile providers like DTAC have developed faster mobile Internet service with
adapted 3G technology. Mobile devices can be also be used for payment transactions, money transfers and the
receipt of regular updated promotions. Therefore, computers will not be the only source of information; mobile
devices should move faster and should be the crucial intermediary that tourism providers will rely on over the
forecast period.


DEMAND FACTORS
The total number of public holidays in 2009 was higher than in the previous year. Thais were able to enjoy 29
leave entitlement days, which was a good stimulator of domestic tourism. Normally, the long weekend is the
best time for Thai travellers to escape to tourist destinations, and tourist destinations are always packed during



 Euromonitor International                                                                                   Page   7
Travel And Tourism                                                                                      Thailand




these periods. Because of the slowdown of tourism in 2009, the Thai government considered offering extra days
off. For instance, 6 July 2009 was announced to be an extra day off in order that Thais could enjoy a long
weekend break from 4 to 8 July. This was one of the government’s policies to help stimulate domestic tourism.

The consumer demographic trends of holiday takers were not so different from the past trends, apart from that
Thais tended to shorten their holiday periods. Thais usually make domestic trips of around three days, and make
trips of more than three days but less than a week within the Asian region, whereas demand for longer trips of
more than a week was diminishing. Women showed a continuous increase in demand for holidays over the
review period because more women workers are entering into the economy and they can live independently and
enjoy themselves more with friends rather than looking to set up a family at an early age as in the past.


BALANCE OF PAYMENTS
The tourism receipts balance of payment in Thailand enjoyed a surplus one more year as Thailand gained in
terms of incoming tourist receipts more than it lost in outgoing tourist expenditures abroad. This was thanks to
tourism flows inbound being almost three times greater than tourism flows outbound in 2009. Even the Thai
currency got stronger by around 20% compared to 2008, and Thailand lost huge revenues from the 14% tourism
flows inbound decline. However, balance of payments showed a positive number of around Bt340 billon in
2009. This number was down 20% from Bt427 billion in 2008.


MARKET INDICATORS
Table 1              Leave Entitlement: Volume 2005-2009

number of days
                                                         2005          2006              2007              2008

Paid Holiday                                              10.0            10.0           10.0              10.0
Public Holidays On Working Days                           12.0            16.0           16.0              15.0
Public Holidays Not On Working                             4.0             5.0            5.0               2.0
  Days
Leave Entitlement                                         26.0            31.0           31.0              27.0
Source:       Euromonitor International



Table 2              Holiday Demographic Trends 2004-2009

% number of people
                                            2004          2005    2006           2007        2008          2009

Holiday Takers                               90.0          91.3    90.8          91.2           91.5       92.0
Non-Holiday Takers                           10.0           8.7     9.2           8.8            8.5        8.0
Source:       Euromonitor International
Note:         Holiday takers as % of total population



Table 3              Holiday Takers by Sex 2004-2009

% number of people
                                            2004          2005    2006           2007        2008          2009

Male                                         59.9          57.2    56.4          54.6           54.1       54.0
Female                                       40.1          42.8    43.6          45.4           45.9       46.0
Source:       Euromonitor International
Note:         Sex of national tourists (domestic and outbound)




 Euromonitor International                                                                             Page   8
Travel And Tourism                                                                                 Thailand




Table 4              Holiday Takers by Age 2004-2009

% number of people
                                             2004         2005      2006       2007       2008       2009

0-14                                          3.0          3.2       3.1        3.7        3.0         2.9
15-24                                         8.4         16.6      15.8       14.0       13.7        13.5
25-34                                        30.7         30.8      31.4       32.0       32.4        32.5
35-49                                        38.0         37.8      37.3       38.0       38.3        38.5
50-64                                        16.6          8.6       9.2        9.2        9.3         9.3
Over 65                                       3.3          3.0       3.2        3.1        3.3         3.3
Total                                       100.0        100.0     100.0      100.0      100.0       100.0
Source:       Euromonitor International
Notes:        Age of national tourists (domestic and outbound)



Table 5              Length of Domestic Trips: 2004-2009

'000 trips
                                             2004         2005      2006       2007       2008       2009

7 Days                                       742.7       783.3      940.9      924.8      968.7      905.5
4-7 Days                                   2,692.3     2,811.7    2,613.4    2,709.4    2,781.7    2,968.0
0-3 Days                                  42,984.9    45,703.2   41,915.3   42,905.3   44,209.5   46,432.1
Total                                     46,419.9    49,298.2   45,469.6   46,539.5   47,959.9   50,305.6
Source:       Euromonitor International



Table 6              Length of Outbound Departures: 2004-2009

'000 people
                                             2004         2005      2006       2007       2008       2009

Over 7 Days                                  940.4     1,125.0    1,169.9    1,431.5    1,519.1    1,584.7
4-7 Days                                     942.3     1,014.8    1,100.4    1,303.9    1,375.4    1,435.9
0-3 Days                                   1,054.0     1,020.6    1,111.2    1,282.3    1,331.0    1,357.1
Total                                      2,936.7     3,160.4    3,381.5    4,017.7    4,225.5    4,377.6
Source:       Euromonitor International



Table 7              Seasonality of Trips 2005-2009

% number of people
                                                          2005      2006       2007       2008       2009

January                                                    6.8       6.8        6.8        6.8         6.8
February                                                   5.8       5.9        5.8        5.7         5.8
March                                                      7.9       7.8        7.9        7.8         7.8
April                                                     11.6      12.0       11.6       11.6        12.0
May                                                        9.1       8.9        8.9        8.8         9.0
June                                                       7.1       6.8        7.0        7.0         6.9
July                                                       8.2       7.8        7.9        7.9         7.2
August                                                     7.2       7.3        7.2        7.2         7.2
September                                                  4.2       3.7        3.7        3.7         3.7
October                                                   10.7      10.9       10.8       10.9        10.8
November                                                   8.6       9.2        9.0        9.1         9.0
December                                                  12.8      12.9       13.4       13.5        13.8
Total                                                    100.0     100.0      100.0      100.0       100.0
Source:       Euromonitor International
Note:         For national tourists (domestic and outbound)




 Euromonitor International                                                                       Page   9
Travel And Tourism                                                                                          Thailand




MARKET DATA
Table 8              Balance of Tourism Payments: Value 2004-2009

Bt million
                                                               Receipts         Expenditure              Balance

2004                                                         391,632.4              83,865.0           307,767.4
2005                                                         372,702.8              80,723.2           291,979.6
2006                                                         491,933.9              96,084.9           395,849.0
2007                                                         555,963.6             100,475.5           455,488.1
2008                                                         543,318.4             108,087.0           435,231.4
2009                                                         463,031.8             112,678.2           350,353.6
Source:       Euromonitor International




DEFINITIONS
This report analyses the market for travel and tourism in Thailand. For the purposes of the study, the market has
been defined as follows:
•   Tourism flows inbound
•   Tourism flows outbound
•   Tourism flows domestic
•   Travel accommodation
•   Transportation
•   Car rental
•   Travel retail
•   Tourist attractions
•   Health and wellness tourism

Travel and tourism is an industry encompassing markets as diverse as transportation (airlines, rail and ferry
companies), travel retail, travel accommodation, tourist attractions, health and wellness, car rental as well as
standard tourism parameters.

Tourism Parameters
Arrivals

Refers to international tourists, ie any person visiting another country for at least 24 hours, for a period not
exceeding 12 months, and staying in collective or private accommodation. Each arrival is counted separately
and includes people travelling moret than once a year and people visiting several countries during one holiday.
Euromonitor International’s arrival figures exclude same-day visitors and transit and cruise passengers as this
can distort arrival figures in important border crossings and cruise destinations respectively. It also excludes
those in paid employment abroad. Students that stay in a country for a period of more than 12 months are
excluded from arrivals data and are considered as residents of the country of temporary residence. The country
of origin of the inbound arrival is referred to as the source country and reflects the country of residence rather
than nationality of the visitor.

International arrivals (given in terms of number of people) is not the same as international trips because during
the course of one trip abroad, there may be numerous visits to different countries which would then be recorded
separately in the international arrivals figures of each country visited. Therefore, one international trip does not




 Euromonitor International                                                                                Page    10
Travel And Tourism                                                                                             Thailand




equal to one international arrival. Military personnel are excluded, along with displaced people because of war
or natural disasters. Arrivals are measured in ‘000.

Data is constructed from different sources in order to provide the overall number of arrivals. Key sources
include border statistics collated, border surveys and registered guests at accommodation outlets primarily
sourced from national tourist offices and national statistics offices.

Arrivals by city

International arrivals by city includes those visitors that arrive at the city as their first point of entry, but also
includes those visitors to the city that arrived in the country via a different point of entry, but then go on to visit
the city in question.

Departures

Refers to the number of residents that travel abroad from their country of residence to another destination
country for leisure or business purposes. Residents include students residing abroad for a period of over 12
months. Departures by country of destination reflect departures recorded at each leg of the journey during an
international trip. For example, a UK resident on a trip to Rome with a stop-off in Paris would be recorded
under UK departures as two departures, ie one departure to France and one departure to Italy. Data includes
foreigners residing permanently in the country of departure including students residing for over a period of one
year.

Euromonitor International’s departures figures exclude same-day visitors, transit passengers and cruise
passengers (apart from at the initial point of departure from the country of residence) as this can distort
departure figures in important border crossings and cruise destinations respectively. Departures are measured in
‘000.

Military personnel are excluded, along with displaced people because of war or natural disasters.

Leisure

Tourism for leisure purposes includes leisure, visiting friends and relatives and other (such as sports, education,
medical reasons etc).

Leisure arrivals by type is broken out into backpackers, organised tour groups (including school trips and
organised sport trips), singles, families, friends, couples (including gay couples) and others. Others include
travelling for a wedding etc. Where singles, families or couples go on organised tours or are backpacking then
they are considered to fall under the latter. If singles, families or couples are not back-packing or part of an
organised tour group, then they are counted in their respective category.

Business

Tourism for business purposes includes all business trips which are taken primarily for business purposes
including unmanaged and managed. If business travellers choose to add on a leisure extension to their trip, the
arrival or departure would still be considered as business as that’s the primary motive for the trip.

MICE

Refers to meetings, incentives, conventions and exhibitions where these are organised events run by third parties
on behalf of companies, either onsite or in hotels or conference centres.

Incoming tourist receipts

These are classified as payments by international inbound tourists, including fares paid to national carriers for
international transport and any other prepayments made for goods or services received in the country of
destination. This includes receipts from day visitors from abroad, although there are exceptional cases that are
recorded separately. Excludes spending by students that stay in a country for a period of over 12 months. Air
fare paid to foreign carriers is excluded.



 Euromonitor International                                                                                   Page   11
Travel And Tourism                                                                                         Thailand




For incoming tourist receipts split by business and leisure, business includes group, MICE and
independent/transient business expenditure. Leisure includes expenditure by all leisure visitors including those
visiting friends/relatives and others.

Outgoing tourism expenditure

This is expenditure by outbound tourists abroad, including their payments to foreign carriers for international
transport. This includes expenditure on day visits abroad, except in certain cases when these are recorded
separately. Data thus excludes international transport fares purchased within the country of origin.

Leisure departures by type is broken out into backpackers, organised tour groups (including school trips and
organised sport trips), singles, families, friends, couples (including gay couples) and others. Others include
travelling for a wedding etc. Where singles, families or couples go on organised tours or are backpacking then
they are considered to fall under the latter. If singles, families or couples are not back-packing or part of an
organised tour group, then they are counted in their respective category.

For outgoing tourism expenditure split by business and leisure, business includes group, MICE and
independent/transient business expenditure. Leisure includes expenditure by all leisure visitors including those
visiting friends/relatives and others.

Domestic tourists

This refers to the number of stays by residents within their normal country or residence and is measured in terms
of the number of trips which differs from the number of actual resident tourists (measured in terms of people)
spending one night or more away from home within their normal country of residence. Most national statistics
on domestic tourism expenditure exclude that on travel to and from the destination.

Domestic trips

The number of trips taken by residents of the country within the country. The definition of the length of a trip
varies from country to country. Within a trip, multiple destinations may be included, however, the overall
destination is the final point of arrival. Trips are measured in terms of ‘000 trips.

Domestic tourist expenditure

The spending on travel and tourism services by domestic visitors on the overnight trips, including travel within
the country.

For domestic tourism expenditure split by business and leisure, business includes group, MICE and
independent/transient business expenditure. Leisure includes expenditure by all leisure visitors including those
visiting friends/relatives and others.

Spa target market

The number of inbound or outbound visitors who visit and use spas during their stay.

Holiday takers

The number of people within the population who take holidays. For holiday takers, it shows how many people
actually take holidays, either abroad or within the country, For example, even if some people have time off, they
may not take holidays.

Tourism spending

This analyses tourism spending by foreign and domestic tourists on the following sectors:
•   Accommodation: includes all forms of travel accommodation namely campsites, hotels, motels, self-
    catering, chalets, guesthouses, hostels, private accommodation and other. Includes spending on
    accommodation by students visiting for a period of less than 12 months.




 Euromonitor International                                                                              Page      12
Travel And Tourism                                                                                             Thailand




•   Entertainment: includes evening entertainment and tourist attractions such as casinos.
•   Travel within the country: includes spending on all local transport such as rail, bus/coach, ferry, air,
    chauffeur driven car, cruise etc.
•   Excursions: within the country; may be for one day or over. Golf trips are organised and paid for in
    advance.
•   Food: spending on retail food as well as foodservice; includes full-service restaurants and other foodservice
    formats such as cafés/bars, fast food, 100% home delivery/takeaway, street stalls/kiosks and self-service
    cafeterias.
•   Shopping: includes food and non-food purchases. May also include duty-free purchases.
•   Outbound tourism spending by sector is reviewed separately.

Method of payment
•   Cash: money in note or coin form which is used to pay for goods and services at the time of purchase.
•   Credit card: a plastic payment card that allows the cardholder to make purchases and to draw cash up to a
    pre-arranged ceiling. The credit granted may either be settled in full by the end of a specified period without
    incurring any interest, or may be settled in instalments with the balance taken as extended credit (ie it offers
    revolving credit)
•   Debit card: this is an instant payment card attached to a current or savings account, which can be used for
    paying for goods and services. Depending on the merchant’s system, payment could be taken
    instantaneously from the customer’s account, or take a few days. No interest is charged on payments. Debit
    cards usually combine other functions such as cash withdrawals from ATMs and cheque guarantee.
•   Charge card: also called Deferred Debit or a Travel and Entertainment card. A charge card is similar to a
    credit card but is a short-term loan that normally has to be paid off within 30 days of billing and does not
    attract any interest charges, therefore there is no revolving credit option. There is usually no upper spending
    limit and customers normally have to pay a high annual fee. Diners Club and most American Express cards
    have a charge card function.
•   Prepaid debit card: a card offered by a service provider that uses a prepaid e-cash card as a payment vehicle.
•   Traveller’s cheques: these are cheques issued by banks, credit card and charge card companies that allow
    the holder to buy goods and services in a foreign country.

Travel Accommodation
The travel accommodation market covers the main types of accommodation used by incoming tourists and
domestic tourists. The market is broken down into nine principal sectors.

Travel accommodation value is measured in terms of the price paid for accommodation by the consumer. It
should not include foodservice (food and drinks) or any other form of revenue that is not directly related to
accommodation such as events and conferences. Travel accommodation volume is measured in terms of number
of outlets, rooms and bednights.

Campsites

Covers areas set aside for camping and caravans.

Chalets

Rented accommodation in mountain or country areas; may include meals; includes lodges and inns.

Guesthouses

Rooms within officially-recognised private accommodation, for the purpose of tourism; rented to tourists on a
nightly or weekly basis; often with breakfast included.




 Euromonitor International                                                                                Page     13
Travel And Tourism                                                                                           Thailand




Hostels

Outlets providing low cost/budget accommodation, often in dormitories; includes youth hostels.

Hotels

Hotel outlets providing lodging and optional meals, includes independent and chained operators as well as all
company owned, leased, managed and franchised outlets. Aparthotels are included. Residences are the same as
aparthotels with the rental of apartments offering the service of a hotel. The word “residence” is not used with
this meaning in English speaking countries. Hotels include French pensions, Spanish hostals and Italian
pensione.

Motels

Roadside hotel accommodation for motorists.

Private accommodation

Privately-owned houses or individual rooms rented to tourists on an unofficial basis and not always authorised
by tourist authorities.

Self-catering apartments

Providing lodging in allocated tourist apartments, not providing meals.

Other

Smaller types of accommodation, such as holiday camps, not listed above but included in country statistics.

Specific data indicators for the travel accommodation market are as follows:

Hotel chains

Hotel operators that run a number of outlets, usually with a degree of specialisation in service or product
positioning. The number of branches required to be termed a chain varies from country to country but is usually
10 or more. The chain usually trades with the same fascia, format and identity. Includes companies such as Best
Western.

If a hotel forms part of a regional or international chain network and has less than ten outlets in a particular
country, it is still counted as a chain.

Hotel independents

Hotel operators that own and operate one or more (but fewer than 10) outlets, but not affiliated to any other
business. Mainly relates to family businesses or partnerships.

Hotel Price Platforms
Luxury hotels include luxury, upper upscale and upscale chained and independent outlets and their
corresponding sales. Includes 4 to 5 stars.

Mid-priced hotels include mid priced chained and independent outlets and their corresponding sales that may or
may not serve food and beverages. Includes 3 stars.

Budget hotels include budget chained and independent outlets and their corresponding sales. Includes 0-2 stars.

Number of bed nights

Refers to the total number of beds in travel accommodation occupied over the year.



 Euromonitor International                                                                                 Page   14
Travel And Tourism                                                                                             Thailand




Occupancy rates

This expresses the relationship between available capacity and the extent to which it is used. It may refer to
either the use of rooms or of beds. Occupancy rates are based on the number of nights of both domestic and
international tourists.

Average Daily Room Rate (ADR)

ADR refers to the average daily room rate that a hotel charges a consumer for staying in a hotel room per day.
ADR is part of the calculation along with % occupancy to generate revPAR (revenue per available room).

RevPAR

This signifies revenue per available room on a daily basis, not annual, in the travel accommodation market. It is
calculated by occupancy multiplied by the average daily room rate per company. RevPAR is based on rooms
available for use by domestic and international visitors. Euromonitor measures system-wide revPAR ie for
company-owned, company operated, licensed and franchised outlets.

Number of rooms

The number of rooms per hotel are counted as what is available for use by consumers, both business and leisure
guests.

Number of bed nights

The number of business and leisure guests that stay overnight in travel accommodation, hotels and other travel
accommodation outlets.

Tourist locations

Refers to the number of mid to premium hotels in tourist locations. Excludes all non-tourist locations such as
hotels at service stations and non city/art or tourist resort locations.
•     Beach: hotels located by the beach or at seaside or coastal locations.
•     Culture: hotels located in cultural destinations such as cities and towns and where the main trip purpose is
      cultural or artistic.
•     Countryside/mountain: hotels based in country, mountain or lakeside locations.
•     Airport: hotels located at airports either within the terminal or in close proximity to the terminal.
•     Others: includes 3-5 star hotels located at non-tourist locations eg service stations, motorways etc.

Transportation
The transportation market covers the mode of transport used by tourists going to their holiday destination and
within the country. It covers sales for outgoing travel by country residents and internal travel by foreign and
domestic tourists. Car rental market is analysed separately.

Transportation value is measured in terms of the price paid (fare) for the mode of transport by the consumer in
the national market. Ancillary revenues on food and drinks etc are excluded.

Air is also measured in terms of the number of passengers carried.

Air

Includes schedule, charter and budget airlines; national flag carriers as well as low cost carriers.

Bus/coach



 Euromonitor International                                                                                   Page   15
Travel And Tourism                                                                                               Thailand




Encompasses overland travel by bus or coach.

Chauffeur-driven car

Passengers driven to their destination by a hired third party. Excludes taxis.

Cruise

Travel by cruise ship. This also may include river cruises. Cruise data includes the amount spent on the cruise
package ie additional transport such as air fares, accommodation, food and entertainment.

Ferry

Travel by ferry.

Rail

Travel by passenger train, excluding freight and car transport.

Specific data indicators for the air sector are as follows:

Airline capacity

Capacity is based on the number of seats available for sale based on the number of potential enplanements.
Transit passengers are excluded.

Airline utilisation

Euromonitor considers airline capacity and utilisation in terms of enplanement over origin-destination, whereby
the number of enplanements are based on scheduled flights, as defined by the airlines and assigned flight
numbers. For example, a passenger whose flight stops mid-route to pick up more passengers but continues with
the same aircraft/flight number would be counted as one enplanement. A passenger who switches flights to
another airline or aircraft with a new flight number mid-journey would be considered as two enplanements.

If an airline operates charter or non-scheduled flights, in addition to scheduled flights, then technically
passengers carried could be in excess of enplanements. Transit passengers are excluded.

Seats sold by distance

Long haul includes flights over 3 hours long.

Short haul refers to flights under 3 hours and includes mid haul flights ie over 1-3 hours.

Air passengers carried by type

Air passengers carried does not include transit passengers, but all those carried on domestic and international
flights from that country.

Air transportation is defined as sales for outgoing air travel by country residents and internal air travel by
foreign and domestic tourists.
•      Schedule: an airline that provides scheduled flights based on the airline’s schedule; tends to refer to
       traditional (national flag) carriers which operate a hub and spoke operation.
•      Charter: an airline that provides charter flights whereby charter flights take place outside normal scheduling
       hours.
•      Low cost carriers: the low cost carriers (LCCs) model is very much based on the Southwest example in the
       US which appeared around 30 years ago. They differentiate themselves from national carriers by offering a
       pared down customer service with no pre-assigned seat allocation, no in-flight catering unless paid for,



 Euromonitor International                                                                                   Page    16
Travel And Tourism                                                                                           Thailand




    short turnaround times, flying to non-hub or regional airports, limited baggage allowance, predominantly
    online booking etc ie “no frills”. As the LCC model has developed there are now differences across the low
    cost tagline, with some companies differentiating by providing some level of allocated seating or paid-for
    in-flight entertainment etc. Low cost carriers tend to operate point to point ie between city pairs, rather than
    via hubs. Predominantly, LCCs fly short haul, however, a new form of long haul low cost carrier is
    emerging.
•   Passengers carried (also known as PAX): number of passengers carried onboard. Includes domestic and
    departure passengers, excluding transit.
•   Revenue Passenger Kilometre (RPK): the number of paying passengers carried multiplied by the distance
    they flew in kilometres.
•   Average load factor: refers to utilisation of aircraft in terms of passengers that buy seats, presented in
    percentage terms.

Car Rental
The car rental market covers the hire of passenger vehicles including small vans by both business and leisure
users, and whether from the airport or downtown locations, in the context of the total short-term rental fleet.
Small vans up to one tonne are included. The category excludes businesses that hire cars for long term leasing.
Car rental covers sales to incoming tourists and domestic users including domestic tourists and general
nationals. For longer than average rental periods eg rental of one month, provided the rental is sourced from the
short-term rental fleet then this is included.

Sales are recorded in the country of destination. Car rental also excludes commercial vehicles, trucks and
motorbikes. Local car rental schemes are excluded.

Car rental value covers the price of car hire to the consumer. Volume of car rental is provided by the number of
car hire transactions, fleet size and number of car rental operators.

Sectors
•   Business: for the purpose of a business trip either arranged on behalf of the customer by work or arranged
    personally.
•   Leisure: for personal trip or holiday, visiting friends/family, or any other non-work related activity such as
    moving house.
•   Insurance replacement: where domestic residents use a rental car paid for by an insurance company as a
    replacement vehicle, while their own car is repaired following an accident.

Location
•   Airport: is defined by car rental POS/counters/offices based at an airport either within the terminal or next
    to the airport. This includes POS located in close proximity to the airport, ie everything that is not counted
    as downtown.
•   Non-airport: is what the car rental companies refer to as downtown locations so these include high
    street/retail parks ie everything except POS located in or by airports.

Transactions

Car rental transactions ie rental volume measures the exchange between a rental firm and consumer/business of
a rental vehicle for 1-3 days, 4-7 days, 7+ days for the sectors reviewed: business, leisure, insurance
replacement, excluding all trucks and commercial vehicles.

Transactions can be booked in advance or on the day of usage; booked direct with the car rental firm or through
an intermediary on- or off-line. Transactions exclude the sale of old cars to consumers.

Fleet size




 Euromonitor International                                                                                Page   17
Travel And Tourism                                                                                            Thailand




Fleet size refers to the number of cars at the car rental company’s disposal including all operational cars at the
annual year end for rentals in the business, leisure and replacement market for passenger vehicles. This does not
reflect any fluctuations in size through down/upsizing the fleet throughout the course of the year.

Travel Retail
The travel retail market covers companies that put package holidays together for the general public, companies
that sell them to the public and those that supply foreign currency. The market for travel retail covers sales to
outgoing and domestic tourists and internal use by incoming tourists.

Travel retail value is measured by the price paid by the consumer (leisure and business) for travel retail services
online and offline. Seeing as the price is what the consumer pays for a holiday, this includes fare or flight
supplements, airport tax, booking fees and commissions paid by the consumer direct to the travel retailer as part
of the purchase. Travel retail volume is given in the number of travel retail outlets including the sectors of travel
agents, tour operators and exchange services.

Sales reflect the overall sales to the consumer ie direct sales to the consumer via travel agents, direct sales to the
consumer by tour operators whether online or offline, exchange services excluding tour operator to travel agent
dealings.

Due to the difficulty of establishing sales by sector as a result of the overlap of business between the sectors
above, value by sector is provided at total market level only. Online booking sites are included under the market
value sales for travel retail, however, are not included in the number of outlets as these do not apply.

Travel agents

Retail outlets that sell holidays and holiday services. Travel agents sales are based on sales ie gross revenue and
equal the total transaction value sold to the consumer (ie including the price of the product and commission), not
on pure agent income which includes only commissions (ie gross margins on gross revenue).

Tour operators

Companies that organise holiday packages and sell them either directly to the public, or through travel agencies.
Tour operators’ sales include direct sales to the consumer. Sales of tour operators’ products which are sold
through travel agents direct to the consumer are instead included under travel agents.

Exchange services

This term refers to dedicated currency exchange outlets only. It therefore excludes banks and travel agencies.

Travel retail product breakdowns
•   Accommodation only: sales of accommodation services through tour operators and travel agents including
    hotels, motels, self-catering, guesthouses and all other forms.
•   Adventure/trekking holiday: sales of adventure/trekking holidays via tour operators and travel agents.
•   City break: sales of city breaks through tour operators and travel agents. City breaks differ from a
    traditional package holidays if the package involves a city/town destination, combining travel and hotel
    components, where the main purpose for going is to visit cultural attractions, art, shopping etc for a short
    period of time (tends to be 2-3 days although can be longer). Purchases from travel retailers to a city
    destination where the components are separate and not part of a deal would constitute "free & easy" and
    would be counted under accommodation only and flight only as they are purchased as individual items,
    even though it is to a city destination. Therefore, city break is determined by how it is marketed to the
    consumer and must form part of a fixed deal.
•   Cruise: sales of cruises through tour operators and travel agents. Includes flights and other pre-paid
    products/services such as spas, food, drinks, entertainment etc
•   Spa packages: sales of health and wellness spa packages such as treatments, day packages, overnight stays.
    May include accommodation and food.



 Euromonitor International                                                                                 Page    18
Travel And Tourism                                                                                              Thailand




•   Flight only: sales of airline tickets only (on their own rather than as part of a package deal or city break) via
    tour operators and travel agents.
•   Other transport: other forms of transport excluding airline tickets sold via tour operators and travel agents
    such as rail, ferry, bus/coach. Car rental is included under “others”.
•   Fly-drive: includes the sales of holiday packages which include the return flights and car rental once
    arriving in the destination country through tour operators and travel agents.
•   Package holiday: includes traditional package holidays which are fixed by tour operators and travel agents
    and include transportation, accommodation along with a choice of food options ranging from B&B, mid to
    full board. Also includes dynamic package holidays which are sold online by companies such as Expedia
    which allow the consumer to combine travel components such as transportation and accommodation.
    Traditional package holidays are to sun/sea/sand destinations for a duration of 7, 10 or 14 days involving a
    combination of travel/accommodation components.
•   Traveller’s cheques: traveller’s cheques sold via exchange services which may be located within travel
    agents.
•   Others: others include tourist attraction entrance fees, car rental hire and such products/services. Includes
    travel insurance and foreign currency purchases sold via exchange services which may be located within
    travel agents.

By destination

Travel retail sales by destination includes all product sectors of travel retail, excluding the sectors that apply to
financial services conducted by exchange providers ie excludes travel insurance, foreign currency and traveller’s
cheques.
•   Beach: holidays to beach and coastal areas/resorts.
•   Countryside: holidays to all countryside locations, except mountainous terrain.
•   Mountain: holidays to mountain areas, particularly mountain ranges.
•   Culture: includes city breaks and art trips.
•   Others: such as jungle, rainforest and other locations not covered in the above.

Travel Retail Online Sales
Travel retail online refers to the sales of travel retail services over the Internet. It includes the sales of all travel
products/services of travel accommodation, hotels, transportation, airlines, car rental, tourist attractions, package
holidays and tours, etc via online booking sites as well as travel retailer websites. There will therefore be
double-counting with the intermediaries’ sales of travel accommodation, hotels, transportation, air and car rental
as these are reviewed in their respective sections.

Accommodation only and car rental only sold via travel retailers includes domestic and international sales.
Flight only and other transport only refer to both domestic and international sales as well.

Internet sales

Dynamic packaging

This concept was pioneered by Expedia and was originally the domain of online travel agents but now
traditional travel retailers (direct suppliers) have launched their own versions of dynamic packaging. Essentially
dynamic packaging allows consumers to build their own trips by offering a combination of different travel
components such as flight/hotel/car rental etc at different price levels. Therefore it is dynamic and customised,
rather than fixed or pre-arranged traditional holiday package.

Traditional package holiday




 Euromonitor International                                                                                    Page   19
Travel And Tourism                                                                                          Thailand




Traditional package holidays are a fixed package, usually all-inclusive, combining transportation and
accommodation components in a resort or location either pre-selected by the consumer or allocated upon arrival.
Traditionally offered by tour operators and travel agents, these are also offered on the Internet by travel retail
direct suppliers, although package holidays differ from dynamic packages in that the consumer has no flexibility
or customisation in the choice of travel (flight, accommodation) components.

Tourist Attractions
The tourist attractions market covers the sites visited by tourists, covering sales and free entry to incoming and
domestic tourists.

Value sales include all entrance fees only, but exclude business to business activities such as hospitality and
conferences. Expenditure on food and drinks is excluded. Tourist attractions volumes are measured by the
number of visitors. Attractions such as Hollywood Walk of Fame are excluded due to difficulties in recording
visitor numbers.

The market consists of the following sectors:

Art galleries

Includes all forms of art galleries including modern, traditional, national, private and avant-garde as well as
contemporary: indoor and outdoor.

Casinos

Includes consumer spending at casinos on gambling, not casino revenues ie what the companies reports as their
earnings. Excludes non-gambling activities services such as hospitality, MICE, foodservice, nightclubs, retail,
spa and entertainment.

Circuses

Includes all forms of travelling and permanent circuses.

Historic buildings/sites

Includes palaces, monuments, castles, historic birthplaces, landmarks, temples, religious sites etc

Museums

Includes all national and privately-owned museums.

National parks/areas of natural beauty

National parks as defined by the government; areas of interest include gardens and areas of natural beauty that
have not been allocated the title of national parks.

Theatres

Theatres exclude cinemas.

Theme/amusement parks

All permanent theme and amusement parks generally found in out-of-town locations. Excludes travelling fairs.

Zoos/aquariums

Includes all national and privately-owned zoos and aquariums. Waterparks are included under theme/amusement
parks.




 Euromonitor International                                                                               Page    20
Travel And Tourism                                                                                          Thailand




Others

Others includes other types such as themed tourist attractions such as wax work museums, Ferris wheels such as
the London Eye which do not fit in the above sectors. Also includes industrial tourism which refers to visits to
past and present factories and company sites, as well as visits to company headquarters, such as power stations,
mines, forestry, factories, businesses etc.

Health and Wellness
Health and wellness includes sales of spa packages, products and services open to international and domestic
tourists.
•   Spas: include destination spas, hotel/resort spas, and others.
•   Destination spas are business establishments which offer all-inclusive programmes and educational courses
    to improve health and well-being, where guests usually reside for at least two to seven nights and attend
    two to seven day programmes, including fitness activities, educational classes and seminars on health and
    well-being, and special interest programmes such as relaxation or yoga. Spa services such as beauty
    treatments and massages are also often included in destination spa services, and meals incorporating healthy
    cuisine are also served.
•   Hotel/resort spas are spa services offered as part of a hotel or resort setting. Spa treatments are purchased à
    la carte, separately from the accommodation and meal price. As such, they may not offer all-inclusive
    packages like destination spas. Spending at hotel/report spas includes only spending at the spa and does not
    include the overall total spend at the hotel or resort therefore excludes accommodation only and additional
    services such as room service etc.
•   Others includes cruise ships, mineral springs, traditional spas (including mineral springs and thermal spas
    such as Bath (UK) and Bad-liebenzell in Germany), medical health and wellness including doctors’
    surgeries, airports, shopping malls etc. Products and services include therapies, treatments, cooking classes,
    dieting, lifestyle classes, meditation etc. Includes medical tourism for healthcare provision. Excludes
    revenues from cosmetic surgery and other medical surgery.

Internet Sales
Value internet transactions include the sales and payment of products and services over the Internet from both
direct suppliers’ web platforms and online intermediaries. If the internet is used only for research purposes only
with the booking made via a call centre and paid over the phone or at arrival at the hotel or car rental place, this
is not considered to be an online transaction.

Direct suppliers

Direct suppliers refer to companies providing a service or product direct to the consumer without the aid of an
online travel agent or intermediary.

Intermediaries

Double-counting occurs for intermediaries’ sales of travel accommodation, hotels, transportation, air and car
rental as these are reviewed in their respective market, but also included in the travel retail market.
•   Travel accommodation direct suppliers: include all accommodation companies such as hotel operators
    (Hilton, InterContinental etc) which offer an online payment system for the reservation and booking of
    hotel rooms over the Internet. Includes national travel accommodation sales only sold to domestic and
    international visitors.
•   Travel accommodation intermediaries: include all third parties such as travel agents, tour operators and
    online travel agencies or specialist accommodation brokers selling travel accommodation products/services
    over the web. Where direct transportation suppliers such as BA sell hotel rooms via its website this would
    be included as intermediary travel accommodation sales. Includes national travel accommodation sales only
    sold to domestic and international visitors.




 Euromonitor International                                                                                Page   21
Travel And Tourism                                                                                               Thailand




•      Transportation direct suppliers: (including airlines, rail companies, ferry companies etc) encompasses
       companies such as low cast carriers, scheduled airlines and national carriers along with other transport
       operators which provide a payment system for consumers to book direct.
•      Transportation intermediaries: include all third parties such as travel agents, tour operators, brokers,
       consolidators and online travel agencies selling transportation or flight-only products/services over the web.
•      Car rental direct suppliers include the car rental companies themselves that provide an online booking
       (involving payment). Includes sale of national car rental companies to domestic and international visitors.
•      Car rental intermediaries: include all third parties such as travel agents, tour operators, specialist car rental
       brokers and online travel agencies selling car rental services over the web. Where direct transportation or
       accommodation suppliers sell car rental, such sales are included here. Includes sale of national car rental
       companies to domestic and international visitors.
•      Travel retail online players: for the purpose of this research includes traditional travel retailers including
       travel agents and tour operators, along with exchange service providers that have a web platform for sales.
       Traditional travel retailers are those that originally started out as bricks and mortar and still predominantly
       have outlets, however, also now provide an internet platform alongside their standard operations. Also
       includes online travel agents, brokers and intermediaries, for example Expedia and Lastminute, which
       began as internet start-ups but may now also have offices in certain locations, however, the main body of
       their sales comes from their online operations. Includes sales of travel and tourism products through online
       travel retailers operating in the country through a national or regional platform. Accommodation only and
       car rental only sold via travel retailers includes domestic and international sales. Flight only and other
       transport only refer to both domestic and international sales as well.
•      Tourist attractions: direct suppliers are attractions that offer a web platform for the purchase of tickets.
•      Tourist attractions intermediaries: are third parties such as travel retailers that offer a web platform for the
       purchase of tickets.

Sources used during research include the following:

Summary 1              Research Sources
    Official Sources                                            Airport of Thailand Co Ltd (AOT)
                                                                Airports Authority of Thailand
                                                                Bangkok Metropolitan Administration
                                                                Department of Business Development, Ministry of
                                                                Commerce
                                                                Department of Highways
                                                                Department of Internal Trade
                                                                Ministry of Tourism & Sport
                                                                National Statistical Office Thailand
                                                                Office of Tourism Development
                                                                Tourism Authority of Thailand
    Trade Associations                                          Association of Thai Tour Operators
                                                                Association of Thai Travel Agents
                                                                Association of Thailand Hotels
                                                                Pacific Asia Travel Association (PATA)
                                                                Thai Car Rental Associations
                                                                Thai Hotels Association
                                                                Thai Spa Association
                                                                Thai Tourism Research Centre
                                                                Thai Travel Agents Association (TTAA)



 Euromonitor International                                                                                     Page   22
Travel And Tourism                                                                       Thailand




                                          Thai Travel Research
                                          Thai Youth Hostel Association
                                          Thailand Incentive & Convention Association
                                          The Association of Domestic Travel
                                          The Federation of Thai Spa Aromavera Co Ltd
 Trade Press                              Bangkok Post
                                          Gold Coast Bulletin
                                          IHT ThaiDay - Manager Online
                                          Krungthep Turakij
                                          Manager News Online
                                          Positioning Magazine
                                          Post Today
                                          PR NewsAsia Thailand
                                          Straits Times
                                          Thai News Service
                                          The Australian
Source:       Euromonitor International




 Euromonitor International                                                             Page   23

				
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