Expensive domestic air tickets: Causes and solutions

The rising prices of air tickets on domestic routes, especially near major holidays and festivals, have become one of the main obstacles to the full recovery of the tourism industry, one that requires immediate attention from both the authorities and private operators, observers say.

Ticket prices for local trips during the upcoming New Year holidays have jumped about 25% compared with the prices before Covid-19 pandemic, creating a worrying trend for domestic tourism, an industry expert told Post Today on Friday.

He looked into the problem and speculated three main causes for expensive domestic tickets.

1. Imbalance between demand and supply 

The number of aircraft in service is currently 25% lower than before Covid-19, while passenger demand for travel has rapidly increased, inevitably putting pressure on ticket prices. 

2. Rising operational costs

Airlines are facing higher operational costs across various aspects, including fluctuating fuel prices, aircraft maintenance, and rising operational expenses due to inflation.

3. Dynamic pricing system 

Airlines use a dynamic pricing system to adjust ticket prices based on market demand, causing prices during peak seasons or periods of high demand to increase significantly.

To address the problem, the Transport Ministry and the Civil Aviation Authority of Thailand (CAAT) have rolled out measures to alleviate travellers’ ticket costs. For example: 

• Increase seats on board during holidays and festivals: 73,388 extra seats will be added between December 26 and January 5, with focus on popular routes such as Chiang Mai and Phuket
• Offer special discounts up to 30% for 50,000 seats in December
• Expand opening hours of major airports and improve ground services

The expert said passengers can also follow these tips to book air tickets at lower prices: 

• Plan your trip in advance and book tickets one or two months before departure date 
• Reserve tickets with the airline directly to avoid additional fees
• Use mile-accumulation rewards or credit-card privileges to gain discounts on tickets
• Select travel dates outside the holidays or festivals

However, these are just short-term measures, said the expert. To fix the problem in long-term in a sustainable manner, authorities and private operators are urged to explore these measures:

Infrastructure development

• Improve and expand airports and facilities to accommodate increasing passenger numbers
• Develop transportation systems connecting the airports 
• Invest in technology to enhance service efficiency 

Promote fair competition

• Maximise opportunities for new airlines to enter the market 
• Regulate pricing to ensure fairness 
• Support the development of new flight routes to provide options to passengers  

Alternative travel options

• Promote the development of high-speed rail systems 
• Improve intercity bus transportation
• Enhance connectivity among different modes of transport 

Addressing the issue of expensive airfares requires collaboration from all sectors, including the government, airlines and passengers, said the expert. 

Continuous implementation of both short-term and long-term measures will help create an efficient and fair air transport system for all parties, leading to the sustainable development of Thailand's aviation industry in the future, he said.