Concerned by a drop in European arrivals and low confidence due to fuel shortages among local travellers, hotel operators have started to offer discounts of 20-40% to attract tourists during the upcoming Songkran holiday.
The Thai Hotels Association said European guests, who normally account for 30% of all visitors to Chiang Mai at this time of year, continue to cancel their bookings for April as they are unable to catch flights to Thailand.
He said this market is expected to feel the impact for at least six months, as travellers would lack confidence to book new trips in the near future.
In the short term, there are no new bookings from the European or Middle Eastern markets.
Bookings for next month's Songkran holiday have also dropped to 55-60% from 60-70%, he added.
In a normal year, the festival is able to attract international and local guests, pushing the occupancy rate up to 90%.
Also, Thai travellers are still reluctant to take long-distance road trips due to fuel concerns.
The association said most three‑star and lower‑tier hotels have already dropped their prices, some by 40%.
On average, room rates in this segment have decreased by 20%, while four‑ and five‑star properties still keep their existing rates.
