BANGKOK, 9 June 2025: Safety concerns have dominated headlines about the decline in Chinese tourists to Thailand, but a senior executive from Fliggy, Alibaba Group’s travel platform, says that rising travel costs are also contributing to the weakening demand.
Fliggy Area General Manager – Southeast Asia, Jason Lu, made the observations to TTRW on current booking trends on the sidelines of the Thailand Travel Mart+ (TTM+) 2025, held in Chiang Mai from 4 to 6 June 2025.
He noted that while destinations such as Japan, Malaysia, Vietnam, Singapore, and South Korea are showing strong growth in the region, at 30 to 40% year-on-year, Thailand has experienced a noticeable decline in demand over the same period.
“IP views, which indicate travel interest, have dropped for Thailand by about 2.6%. In contrast, Japan tripled its numbers in the same period,” the executive explained. “Fewer people are searching, and that translates into fewer bookings.”
Rising hotel costs have played a significant role. Compared to 2019, hotel prices in Thailand have increased by at least 30%. Lu cited his company’s corporate outings as an example, noting that some four-star resorts in Phuket were quoting net prices of THB6,500 to THB7,000. This level becomes difficult to justify for group travel.
He noted that the company employs around 240,000 staff, and Thailand had long been a popular choice for team-building trips.
By contrast, similar destinations such as Danang in Vietnam and Kota Kinabalu in Malaysia were offering nearly 60% lower rates for comparable experiences, making them increasingly attractive for corporate travel and drawing attention and budgets away from the Kingdom.
However, the outlook isn’t all bleak. Lu believes the market will self-correct, with hotel prices likely to decrease later this year — especially if July and August, typically the high season months, remain soft.
“Travel isn’t a once-in-a-lifetime thing — it happens every year,” he noted.
Despite the downturn, Fliggy continues to promote Thailand as part of its broader 618 mid-year campaign.
“Last year, during this period, we focused solely on promoting Thailand because demand was strong. However, this year, we need to diversify by including other destinations like Malaysia and Singapore to maintain traffic and engagement.” the executive said.
Fliggy, unlike traditional online travel agencies (OTAs), benefits from Alibaba’s integrated ecosystem, which is fundamentally a shopping platform that is demand-driven by price-conscious consumer habits shaped by years of online shopping behaviour.
“In the end, our users want value for money. And when the price is right, they’ll come back,” the Figgy executive concluded.
