Operators putting quality first
Tour operators want to improve the quality of tourism products to battle fierce price competition caused by a variety of global and domestic headwinds.
Operators have to improve service quality and introduce new tourism products to stay competitive among heated competition, as many countries now depend on tourism to support economic growth, said Chamnan Srisawat, chief executive of Srisawat Travel and Tour in Krabi.
He said digital marketing is an essential tool to represent brands and engage global visitors directly, whether at online travel agencies or on social media.
More tourists tend to rely on online reviews because of the influence of the internet, meaning operators must ensure the availability of services that meet the demand of tourists.
On the macro level, creating a strong impression on visitors with standardised services, diverse attractions, safety, up-to-date facilities and a well-managed immigration process at the airport will help increase the number of return tourists.
Tassanee Kiatkamchornchai, director of Eiam Tour and Transport, said there is more room for tourism to grow every year, but tour operators must adapt quickly to disruption.
Players in the tourism industry include not just online platforms, but also airlines providing one-stop tourism services; influencers and bloggers who create tours by themselves; and independent tourists who go their own way.
The strong baht, which is expected to drop below 30 baht per US dollar next year, also presents a major challenge for planning tour prices this year.
Ms Tassanee said operators have to deliver value-added products beyond tourists’ expectations and find new segmentation to make their businesses stand out from others.
Her company found that using targeted incentives for tourist groups could provide a higher-quality product and avoid a price war.
Chotechuang Soorangura, associate managing director of NS Travel and Tours, said he has seen declining spending from the corporate market since the second quarter of this year.
Consumer confidence will continue to dip from the weak economy and unstable political situation, which could intensify the price war and make it more difficult to do business, Mr Chotechuang said.
Operators have to seek reliable wholesale partners who can provide reasonable prices and quality products to maintain their businesses after the collapse of some wholesale companies in Thailand in 2019 due to price wars, he said.
In terms of support from the government, Mr Chotechuang would like to see more effective and inclusive measures from tourism-related agencies, instead of using prices to boost tourism demand.
He said lower prices, especially for luxury products, might not work as intended and could lead to tourism being more reliant on price than quality.