Perspectives on current tourism and hospitality sector trends, and how Siam Seaplane has adapted during the COVID-19 pandemic

Dennis Keller

Travel is back. While it had never really gone during the COVID-19 pandemic, it now looks quite different and will remain so for the foreseeable future. Many people might question the fact that travel did not disappear during the pandemic, yet it depends on how we look at it – there were months during lockdown and international travel restrictions when no foreign tourists arrived in Thailand. Yet, during the whole of 2020, Thailand saw more than 130 million domestic tourists.

What has been different since then is the focus of travellers. Health and privacy were of the utmost importance to many people. This resulted in a surge of private jet travel during the pandemic. While business jets were often associated with top executives and VIPs only, according to the consultancy firm WINGX, they now account for a quarter of the United States’ flights, which is approximately twice the pre-pandemic share — similar to other parts of the world. McKinsey & Company also estimated that before the pandemic, only 10 per cent of those with the means to travel privately, did so.

While Thailand certainly also has private jet offers, Siam Seaplane saw a niche for premium private travel that sits in between typical business class offerings and the ultra-luxury jet market. Not only can this connect smaller airports and private runways that cannot be served by either airlines or private jets, the unique ability to land on water adds another dimension to cutting travel time and arriving in style at holiday destinations — a gamechanger for tourism in Thailand. This was recognized also by the related authorities. For example, as Mr. Yuthasak Supasorn, Governor of the Tourism Authority of Thailand (TAT), put it: “Siam Seaplane is part and parcel of the recovery plan for Thailand.”

“ Health and privacy were of the utmost importance to many people. This resulted in a surge of private jet travel during the pandemic.”

Another trend that already existed pre-COVID is becoming increasingly more prevalent now – it comprises travellers who are seeking experiences, memories and an ever-more unique lifestyle. A nice hotel room on its own just doesn’t cut it anymore.

COVID has also brought about a change in demographics for the tourism market in Thailand now. While this may rebound in the future, the current segmentation is something to which the hospitality world must adjust. For example, Chinese tourists made up nearly one-third of pre-COVID Thailand tourism. Now that number has virtually become zero. Instead, a large influx now of Russian and Indian tourists often calls for different types of activities, locations and preferences. New markets have opened up, such as with the affluent Saudi Arabia connection. An increased focus is on wellness and health attracts different tourists, and the recent liberalisation of Cannabis further supports this change.

In addition, COVID-19 has caused remote/flexible work and technology usage to become de facto standards. A larger reliance on technology and mobile phones means businesses, aviation and hospitality are included in that reaction. Therefore, they need to ensure their social media game is top notch, and that their apps and digital strategy not only “just exist” but are up-to-date. Are you on Tik Tok yet?

At Siam Seaplane, we have been building our business almost entirely during the COVID-19 period. It has allowed us to adjust to these trends well. COVID showed us new opportunities — such as the focus on wellness, privacy, health and, most importantly, premium experiences — to reiterate that the path we have been on is the right one. While close collaboration with the authorities has slowed down due to the pandemic, it meant more awareness of new and different types of services. The official Thai tourism strategy has doubled down on seeking to attract premium tourists.

Last, the impact of the pandemic and changing trends in travel has showed us the need for better connectivity, not only for landing on water – which will be launched within 2023 – but also for ground-to-ground connectivity. As such, Siam Seaplane recently launched a sister brand, Siam Scenic, to offer premium and personalised private charter and sightseeing flights. They are comparable to private jet comfort, but at an accessible price. The first aircraft is now in Thailand, and the company’s service is getting ready to start.

Siam Seaplane has remained acutely aware of the new trends in tourism and hospitality, as outlined above. This has made it possible for the company to adapt to, and move with, these trends alongside many partners –ranging from luxury resorts to experience providers – in offering travellers unique memory makers, privacy when needed, healthy and sustainable solutions, and a larger diversity of options for going forward.

Siam Seaplane is excited about the trend of tourism and hospitality in Thailand going forward, and it remains convinced that Thailand will remain at the top of the list when it comes to being a leading global holiday destination.

Dennis Keller Chief Business Officer

Contact details: Ms. Khemjira Thakamwong Siam Seaplane Co., Ltd. Senior Associate, Partnerships Tel: +66 6 419 58579 khem@siamseaplane.com www.siamseaplane.com