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3 Apr 2019

Thai Economy

Songkran 2019: Spending in BKK to reach THB25 billion Hot weather affects spending lifestyle of each generation (Current Issue No.2976)

            KResearch projects that during the Songkran Festival in 2019, Bangkokians will spend THB25 billion, up 3.6 percent from the previous year. Of the total, THB9.6 billion will be spent on party supplies (food and beverages), THB6.65 billion on accommodation/travel, THB4.6 billion on shopping, THB2.05 billion on merit making and the other THB2.05 billion on gift money to senior members in the family, leisure trips, sightseeing passes/movie & music and water splashing activities. Higher spending is attributed to the fact that Songkran break this year covers 5 public holidays.

Moreover, air pollution in the northern region, especially in Chiang Mai, which is a popular tourist destination for Songkran, has prompted Bangkokians to adjust their travel plans to avoid the polluted area and stay in Bangkok or travel to nearby provinces such as Chon Buri, Phra Nakhon Si Ayutthaya and Rayong instead. Therefore, businesses, i.e., retail, lodging and dining, in Bangkok and these provinces are likely to benefit from the change in people's travel plans during this Songkran Festival.

            KResearch's survey finds that 56 percent of Bangkokians have chosen  to stay in Bangkok this year, up from the previous year.  It is noted that preferred activities vary among different generations. Businesses should target Gen Y and Gen X who are  working age because they pay attention to recreational activities such as partying and shopping during the Songkran Festival, thus generating income for businesses.

 To penetrate this target group, businesses must provide reasonable prices with special promotions/privileges to attract them. Business operators who are likely to chiefly benefit from higher tourism receipts are department stores because they can address the demands of every consumer segment in one place. For example, customers can avoid the outdoor heat by strolling in the air-conditioned arcade that offers various dining and shopping options to them.  

             KResearch views that due to the different lifestyles of the different generations, business operators should focus on marketing activities that are customized to suit the preference of each customer segment in order to present the right goods and services to match their needs. ​




Thai Economy