Hong Thai Travel said it had suspended all branch services until further notice, to cut costs during what it described as a "dark tunnel with no end in sight".

An announcement on its website said the branches had been closed since August because of the pandemic. But the travel agency explained on Wednesday that it is trying to minimise costs to stay afloat.

The travel agency said the government's decision to replace mandatory hotel quarantine with three days of medical surveillance last month had brought a bit of hope for the tourism sector, but added the move was not enough.

"After more than two years of [the] pandemic, the travel industry seems to have entered a dark tunnel that has no end in sight," Hong Thai said in a statement.

It pointed out that a lack of income has forced many staff to leave the industry, adding that many travellers now prefer to plan their own trips.

The company said it will run at the lowest cost possible until all border restrictions are lifted.

It added that affected employees will be put on furlough.