Bangkok:The Ministry of Transport has identified third-party travel agencies as the primary factor behind the surge in airfares between Bangkok and Chiang Mai during the Yi Peng lantern festival, with some prices exceeding 20,000 baht ($590).
According to Thai News Agency, Deputy Transport Minister Siripong Angkasakulkiat explained that the Civil Aviation Authority of Thailand (CAAT) regulates price ceilings on airlines, limiting one-way fares on this route to 5,000 baht for low-cost carriers and just over 7,000 baht for full-service airlines.
Siripong noted that the issue is exacerbated by a reduction in flights—by about 60 daily—to avoid interference from sky lanterns released during the festival, coupled with high travel demand. Airlines often sell ticket quotas to Online Travel Agencies (OTAs) and traditional travel agencies, which then increase prices during peak demand periods. Since many OTAs are foreign-registered, they operate outside Thai jurisdiction and are not bound by domestic fare caps.
To mitigate the problem, CAAT has formally requested the Ministry of Commerce to introduce legislation requiring OTAs to register in Thailand and adhere to maximum price ceilings. The ministries of Transport and Commerce, along with the Office of the Consumer Protection Board (OCPB), aim to establish this regulatory framework by next year.
In the interim, Siripong encouraged travelers to book directly through airline websites or locally registered travel agencies. He also mentioned that passengers overcharged on direct airline bookings have the option to file formal complaints, emphasizing that unchecked fare increases during festivals could deter domestic tourism.