Tourists in traditional Thai costumes at the Temple of Dawn in Bangkok in April. Varuth Hirunyatheb
Hotels and airlines remain cautious about the potential end of the Middle East conflict as the positive impact could be delayed due to a steep slowdown in purchasing power, particularly among domestic tourists, during this low season.Nuntaporn Komonsittivate, head of commercial at Thai Lion Air, said the average load factor for June and July has fallen year-on-year, as travellers are exercising greater caution with their spending in the off-peak season after shelling out for holidays in April and early May.
Even though a brighter outlook is expected if the US and Iran sign a ceasefire on Friday, Mrs Nuntaporn said fuel prices will not immediately return to pre-war levels, unlike crude oil prices, which have fallen to nearly the same level as before the war.
Most airlines have to wait until a deal is signed and transport routes are fully restored before adjusting their plans, such as increasing flight capacity and resuming some suspended routes, she noted.
Thai Lion Air has reduced seat capacity by 15% since the war in the Gulf erupted and needs to assess how lower fuel prices could affect airfares from next month, said Mrs Nuntaporn.
