Cheap online tour packages patrolled
Some 44 travel companies and attraction operators have worked closely with the tourism authority to control online operators selling extremely low-priced tour packages to free independent travellers (FIT) from China.
They formed the Online Tourism Club (OTC) in January this year, aiming to seek ways to control online tour operators from selling these cheap packages as well as protecting the Thai tourism industry from being affected by price wars.
During the first quarter this year, the Tourism Authority of Thailand (TAT) found that 2,664 local and Chinese websites sold tour packages to Thailand at very cheap prices to lure Chinese FITs to visit Thailand.
OTC president Nipon Boonmasuwanran said the club is now working with the TAT to try to reduce this inappropriate behaviour.
Online sites in both China and Thailand offer very cheap tour packages to users in mainland China to boost traffic on their websites.
They use these tour packages to get customer information and build their companies’ reputations before seeking to list on the stock market in China, he said. Some want to put their companies up for sale to profit when they have 1 million customers and 1 billion yuan in sales, said Mr Nipon.
“It’s unfair to tour operators selling standard packages. The price war is killing the entire tourism industry, so we need to ease the problem arising from unscrupulous operators targeting FITs,” he said.
Online travel companies in China and Thailand can sell admittance to Thai attractions and services from Thai land travel operators at standard prices. However, some prefer to cut the service fees to rake in a large number of clients rather than offer impressive tour experiences, said Mr Nipon.
This means the online companies shoulder some of the expenses on their own to build up their client list.
“This business model is damaging the structure of the Thai tour business,” he said.
Yuthasak Supasorn, TAT governor, said the government wants to increase highquality tourists from China, not mass-market visitors that like to come on zero-dollar tour packages.
Chinese FITs are on the rise and 60% of them make online reservations for their trips. The TAT projects that figure will rise to 70% soon.
Last year 8.8 million Chinese tourists visited Thailand, 27% of total foreign arrivals, contributing 480 billion baht in revenue to the country.
This year the TAT expects 9.5 million Chinese tourists generating nearly 500 billion baht.
“The TAT is eager to boost quality tourists to the country. Tourism is a key industry to drive the economy, so we must ensure tourism offers sustainable growth and is fair for everyone,” Gen Yuthasak said.
Srisuda Wanapinyosak, TAT deputy governor for marketing (Asia-Pacific), said TAT officials will meet representatives of the China National Tourism Administration and 50 travel companies from China in Chiang Mai at the Thailand Travel Mart Plus fair, which runs from June 13-17.
The TAT plans to organise road shows to Shanghai, Beijing and Guangzhou where online Thai tourism operators can meet up with 10 major Chinese websites to discuss their cooperation.