Airfare surge freezes new MICE bookings, threatening Thailand’s 163-billion-baht target

Airfares jump 20%, freezing new bookings

Thailand’s meetings, incentives, conventions and exhibitions industry is facing a sharp slowdown in new bookings as airfares surge by around 20% amid the prolonged conflict in the Middle East.

Although confirmed events have not seen major cancellations, operators say new bookings for events in Thailand have largely failed to turn into signed contracts. The slowdown is starting to affect corporate travel decisions, large meetings and seminar planning, while participant numbers are also showing signs of decline.

Prachoom Tantiprasertsuk, president of the Thailand Incentive and Convention Association, said the impact had already been felt in the second and third quarters of this year, with higher airfares disrupting the MICE market.

“Overall advance bookings have slowed by about 20-30%. Although events already confirmed for Thailand have not seen serious cancellations, the lack of new bookings has put operators in a difficult situation,” she said.

Corporate groups cut participants to stay within budget

Prachoom said the biggest problem was that corporate budgets had remained unchanged while travel costs had risen sharply.

The impact is being felt most clearly in the incentive travel and corporate meeting segments, especially among short-haul markets such as China and India.

Indian corporate groups that previously arranged trips for 200-300 participants are now cutting group sizes to about 150 people to remain within their original budgets.

Some clients are also reducing the number of event days or downgrading accommodation from five-star hotels to three-star hotels to control costs.

Exhibitions and conventions face visitor uncertainty

The exhibitions segment has not yet seen major disruption to organisers’ plans, but operators are increasingly worried that visitor numbers could fall as higher travel costs discourage attendance.

The conventions segment, where contracts are often signed years in advance, is also facing uncertainty over whether delegates will still travel as planned.

Travel has become less convenient for long-haul MICE travellers, especially those from Europe, who often connect to Thailand through Middle Eastern aviation hubs.

Although flights have resumed after previous airspace closures in several Gulf countries, flight numbers remain significantly lower. Some routes that previously operated eight to 10 flights a week have been cut by half, while some airlines have reduced services from five flights to three.

Travellers seeking direct flights that avoid the Middle East face much higher ticket prices.

Operators prepare for rebound after conflict ends

Despite the slowdown, Prachoom said Thailand’s MICE and tourism businesses could rebound quickly if the conflict ends.

She said airlines were likely to cut fares aggressively to regain market share, creating an opportunity for Thailand if operators are ready.

She urged MICE businesses to reskill and upskill staff, improve service standards, review booking policies and prepare clearer cancellation and refund terms. She also called for stronger safety and security measures to rebuild traveller confidence.

Hotels and MICE operators have already begun tightening cost controls, including limiting new hiring, managing manpower more carefully, saving energy and negotiating more flexible payment terms with suppliers.

Prachoom also called for government support to ease business costs, including reductions in land and building tax, import tax relief for trade exhibitions and access to low-interest loans.

Domestic market seen as short-term cushion

In the short term, operators are looking to the domestic market to offset the slowdown in international demand.

However, domestic travel also faces challenges from reduced flight frequencies and higher airfares linked to fuel tax costs.

Prachoom said one possible strategy was to promote “near-home circular travel”, encouraging people in Bangkok and nearby provinces to travel within driving distance to help keep money circulating in the economy.

TCEB still targets 10% growth

Supawan Teerarat, president of the Thailand Convention and Exhibition Bureau, said MICE was not merely part of tourism but a key tool for building Thailand’s long-term economic structure.

Thailand is using MICE events to support future industries, including advanced technology, autonomous robotics, clean technology, energy transition, the creative economy and longevity-focused health services.

TCEB is positioning Thailand as a “Global Asia Trusted Gateway”, focusing on high-value services and sustainable experiences.

For this year, TCEB has set a target for the MICE industry to grow by 10%, attracting 29.4 million MICE travellers. Of these, 28.2 million are expected to be domestic travellers and 1.2 million international travellers.

The industry is expected to generate 163 billion baht in revenue, comprising 92 billion baht from domestic travellers and 71 billion baht from international travellers.

TCEB also aims to raise the MICE industry’s contribution to GDP to 1.77%, up from 1.65%.

Major international events lined up for 2026

Despite current headwinds, Thailand is scheduled to host more than 12 major international MICE events in 2026, with a combined total of more than 5.06 million participants.

Key events include the Amway China Leadership Seminar, with around 12,000 participants; Gastech 2026, with about 50,000 participants; the Spartan Super World Championship, with around 60,000 participants; the Udon Thani International Horticultural Expo, with around 4.9 million participants; and the World Bank Annual Meetings, with around 12,000 participants.

The pipeline underlines Thailand’s continued ambition to remain a regional MICE hub, even as operators warn that rising travel costs are now threatening the industry’s recovery momentum.