Thailand’s economy relies to a large extent on international tourists. Most passengers travelling through Thailand major international airports are therefore leisure passengers. Compared to business passengers, leisure passengers have a higher price sensitively because unlike corporate travelers, they have to buy their air tickets out of their own pocket. Since travelers to/from Thailand are fairly price sensitive, airfares to/from Thailand are usually fairly low. Other major cities in Asia like Singapore, Hong Kong or Tokyo have a significant amount of business travelers, hence airfares to/from those kind of markets are generally significantly higher.

Another reason why Thailand airfares are fairly low is the high competition on most air routes to/from Thailand. Many popular routes are served by many different airlines so airfares are always under pressure. Nonstop flights usually command higher fares, however, for most destinations,, customers have the option to fly to/from Thailand via a connecting hub, in which case the airfare is usually cheaper.

For a few years now, Thailand has been increasingly served by the region’s low-cost airlines like Tiger Airways or Jet Star who have made a name for themselves for offering rock-bottom airfares. Thailand has also its own league of low-cost airlines, including Thai Air Asia and Nok Air. Fierce competition will ensure that Thailand airfares will continue to be low.
 
Thailand is a popular tourist destination, so demand can be stimulated fairly easily by offering low airfares. Airlines often see fluctuating demand on their global routes. When travel demand is shrinking in some regions, they have to move seat capacity to other markets where they can be filled. Bangkok usually received such excess capacity because airlines know they will be able to will these seats to Thailand by offering good deals on airfares.

Having said all this, it is unlikely that airfares to and from Thailand will see a significant increase in the coming years. Many airlines are expanding their services to Thailand and this added supply of seats will most likely lead to a continued pressure on airfares for years to come. Who profits? The travellers!