Thailand is one of the first countries in Asia to see tourism rebound from the pandemic, driven by positive signals from both foreign and domestic travellers, according to Agoda.
"Thailand is leading Asia in terms of inbound tourists, but it has not yet reached 2019 levels," said Omri Morgenshtern, chief executive of Agoda, an Asia-focused online travel platform.
Even though the inbound search rate in August was 39% lower than the same period of 2019, the rate has been rising since the beginning of 2022.
It will take about 3-6 months for inbound search rates to return to pre-pandemic levels if major inbound markets such as Japan, mainland China or Hong Kong fully open up, said Mr Morgenshtern.
Meanwhile, domestic travel search rates increased by 50% in August from those in 2019, thanks to state stimulus schemes such as "We Travel Together" and Agoda's collaboration with the Thai government and tourism sector.
According to Agoda's data, Thais mostly travelled to secondary cities and upgraded their bookings to more luxurious hotels than usual.
However, outbound search rates remained almost 50% lower than those in 2019, as Japan, the most popular destination for Thai tourists, still has restrictions on entry, leading people to opt for destinations such as Singapore, South Korea, the US and Europe.
He said another reason behind the trend is people in Asia are still living with post-pandemic trauma.
For example, most people in Thailand and South Korea are still wearing face masks, even though Covid-19 regulations have been lifted, compared with attitudes in the US or Europe.
"It will take a little bit more time before the outbound line goes up, and that's true for everywhere, including in Asia," said Mr Morgenshtern.
He said when outbound trips fully return, domestic tourism will suffer as people will have more travel choices. As a result, the Thai government needs to be smart when incentivising inbound tourists to support the industry, said Mr Morgenshtern.
For 2023, he emphasised the importance of technology in Agoda's strategies. For instance, it will let business-to-business partners use its online platform to sell all-in-one trip packages, along with offering price-freezes and low-cost cancellations.
During the past two years, Agoda launched booking packages for hotel quarantine and a Phuket sandbox landing page that allowed tourists to search and book certified hotels.
Agoda is owned by Booking Holdings, which also operates Booking.com, Priceline.com and Kayak.
