At the TDM Global Summit Bangkok 2026, a CEO fireside chat between Gary Marshall, CEO, Travel Daily Media and Kittiphong Sansomboon, COO Thai Airways International explored a defining question for the travel industry in a volatile year: how does regional tourism grow when fuel prices soar, margins tighten and travellers are becoming more selective?
Held at the Amari Bangkok, the conversation, themed The Future of Regional Tourism: A United Front for 2026, moved well beyond aviation strategy. It became a broader discussion about resilience, premium demand, network strategy and why the future of tourism in Asia may depend as much on regional cooperation as on global demand.
Against the backdrop of elevated oil prices, geopolitical uncertainty and rising operational costs, one theme ran through the discussion: the next chapter of tourism growth will be defined less by scale alone and more by value, connectivity and smarter collaboration.
From Volume to Value
Marshall opened with the issue hanging over every airline balance sheet — fuel. With prices surging sharply this year and Thai Airways’ fuel hedge protection expected to ease by the end of June, he posed a blunt question: in an era where serving the mass market is increasingly expensive, how does an airline fill seats profitably rather than simply fill them?
For Sansomboon, the answer lies in discipline and a sharper focus on yield. Rather than chasing traffic indiscriminately, Thai Airways is concentrating on what he described as choosing “the right customer,” prioritising profitable revenue over pure volume.
That philosophy sits at the heart of the carrier’s “Elevated by Heartware” strategy — a proposition designed not simply to attract premium passengers, but to align airline economics with the broader hospitality ecosystem that increasingly depends on high-yield travellers. Sansomboon described demand in layered segments, with essential travellers, business-critical passengers and higher-yield discretionary travellers each requiring different responses.
The objective, he suggested, is not about abandoning volume but about moving from revenue growth to profitable growth. In an environment where fuel costs can quickly erode margins, that distinction matters.
Why Product Consistency Matters More Than Ever
The discussion then turned to fleet strategy and Thai Airways’ investment in 16 new Airbus A321neo aircraft joining the fleet this year, with 32 on order. Marshall noted that these aircraft are more than narrow-bodies; fitted with premium “Throne Seats,” they represent a rethink of regional travel.
The question was whether short-haul flying can genuinely deliver a luxury proposition consistent with long-haul expectations. Sansomboon was clear: premium travel should not end in Bangkok. For him, luxury is not segmented by route length but defined by continuity across the entire journey.
A traveller flying from Europe to Bangkok and onward to Singapore, Delhi or Taipei should not feel a drop in service, product or experience once they transfer to a regional leg. That is where the A321neo fleet becomes strategically significant. It is not simply about fuel efficiency, he argued, but about product integrity.
In a market where premium travellers increasingly expect seamlessness, maintaining service consistency across networks has become a competitive necessity. The aircraft, in this view, are as much a commercial tool as an operational asset.
Regional Tourism’s Future May Be Built on Short-Haul Premium
One of the stronger messages to emerge from the session was the growing importance of short-haul premium travel. Historically, luxury aviation has often been associated with long-haul journeys. But as Asia’s affluent travellers take more frequent regional trips — often combining business, leisure and wellness — the short-haul premium segment is becoming strategically more important. Thai Airways is betting that premium regional connectivity will be central to this evolution.
Routes such as Singapore, Taipei, Delhi, Beijing and destinations across the CLMV corridor are increasingly part of that vision.
The strategy reflects a broader shift in tourism thinking: regional travel is no longer secondary to long-haul growth; in many cases, it is becoming the growth engine itself.
Tackling the 90/10 Tourism Challenge
The conversation then moved from aircraft cabins to destination strategy. Marshall raised what he called the “90/10 challenge” — the concentration of 90 percent of travellers in just 10 percent of destinations. Could Thai Airways, with its expanding fleet, help change that? Could secondary cities become genuine international gateways rather than simply feeders into Bangkok?
Sansomboon framed the question through a broader vision rooted in connectivity.
Drawing inspiration from the Silk Road, he spoke of aviation not simply as moving people, but as linking economies, cultures and opportunities. Within that framework, Bangkok remains a crucial hub, but secondary cities represent untapped value.
He argued the case for dispersing tourism is becoming stronger for three reasons: overcrowding in primary cities, underutilised assets in secondary destinations and the commercial opportunity of bringing overlooked destinations into the mainstream.
But success, he noted, depends on more than launching routes.
Secondary destinations need alignment around connectivity, positioning and demand creation if they are to become sustainable tourism plays.
For Thai Airways, the question is not whether provincial gateways have potential, but how to make them commercially viable.
Beyond Bangkok
The discussion suggested a subtle but significant shift in thinking. For decades, Bangkok has functioned as the dominant entry point for international tourism into Thailand. But with infrastructure maturing and demand diversifying, there is growing appetite to strengthen direct international access into provincial destinations. That could have implications far beyond aviation. For tourism boards, hoteliers and investors, improved air access could reshape how “hidden gems” are developed, marketed and monetised.
And for a country seeking to distribute tourism benefits more widely, that could be transformative. What Happens if High Costs Become Permanent? Marshall closed the session with a provocative scenario. What if the current high-cost environment does not normalise? What if $200-plus fuel and elevated airfares are not temporary shocks, but structural realities? How, in that world, does Thailand remain a must-visit destination rather than one priced out of reach?
Sansomboon’s response pointed again to value. Competitiveness, he implied, will not come from trying to be the cheapest destination, but from ensuring the visitor experience justifies the spend. That places a premium not just on aviation strategy but on destination quality, service standards and collaboration between airlines, tourism stakeholders and hospitality players. If travel becomes more expensive structurally, destinations will have to work harder to prove their value.
A United Front for Regional Tourism
If the fireside chat had a defining message, it was that tourism resilience in 2026 will depend on unity as much as strategy. Whether discussing premium demand, secondary cities or fuel shocks, the underlying theme was collaboration. Airlines cannot solve these pressures alone. Nor can hotels, destinations or governments.
Regional tourism’s next phase, the speakers suggested, may depend on a united front — one where aviation, hospitality and destination strategy work in concert.
For Thai Airways, that means shifting from volume to value, strengthening product consistency and expanding connectivity beyond traditional hubs.
For Thailand, it may signal a broader tourism model — one built not simply on arrivals, but on yield, distribution and resilience. And in a year defined by uncertainty, that may be the clearest route forward.
