BANGKOK: Thailand’s transport ministry is proposing fare controls for online travel agencies (OTAs) following a sharp rise in Bangkok–Chiang Mai airfares to more than THB20,000.
Speaking at parliament, Deputy Transport Minister Siripong Angkasakulkiat said the Civil Aviation Authority of Thailand had written to the Ministry of Commerce requesting legislation requiring OTAs to register in Thailand and legal measures to enforce maximum fares.
Some countries had already introduced such controls, although they were not applied worldwide.
Siripong attributed the high prices partly to agencies taking advantage of strong demand and fewer flights.
Airlines sold tickets to OTAs and travel agencies under quota arrangements, while the foreign OTAs concerned were not registered in Thailand and were not covered by legislation regulating their fares, according to the deputy minister.
The recurring problem on routes to Chiang Mai was also linked to the Yi Peng festival, when members of the public, including local residents, release sky lanterns.
Flight schedules had to avoid certain periods when lanterns were in the sky, resulting in about 60 fewer Bangkok–Chiang Mai flights a day.
The Ministry of Transport and the aviation authority oversee airline fares and safety standards.
Siripong put the maximum one-way fare for low-cost flights between Bangkok and Chiang Mai at THB5,000, with prices varying according to promotions, and cited full-service fares in the THB7,000-plus range.
Travellers were advised to book directly with airlines, where legal fare ceilings applied, or use Thai travel agencies that could be regulated.
Customers could complain if fares on airline websites did not comply with the limits.
Siripong suggested that the Office of the Consumer Protection Board and the commerce and transport ministries could work together to prevent similar problems.
Work on regulating OTAs had been under way for some time, and the aviation authority had been urged to expedite its submission to the Commerce Ministry, which the deputy minister believed could be sent immediately.
The regulatory mechanisms also needed to be examined, with Siripong aiming to complete this work in time for the following year to address fare spikes.
Describing the fare pressures as a matter of supply and demand, the deputy minister wanted realistic, reasonable prices to encourage domestic tourism.
The concern was that inadequate oversight could reduce interest in travelling within Thailand. - The Nation/ANN
