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If you are in Thailand at this time you have to join the party, there is no escape unless you stay indoors all the time. The crowds, both Thai and foreigners, celebrating Songkran are exuberant and uninhibited. It's unlikely you'll ever be with a happier group of people. And you'll all be wet together. So if you want to experience all the fun and frivolity take yourself to Kaosan Road, Silom Road around Patpong or Soi 4, and the Nana areas in Bangkok and for that real country feel of Songkran there is nowhere better than Chiang Mai the "capital" of Northern Thailand.
The indiscriminate nature of the frivolities and the accompanying festivities which, usually means consuming much alcohol, that can lead to tragic consequences. The road toll at this time of the year is horrendous. Statistically it is young people affected by alcohol, on speeding motorbikes, on roads made slippery by water, who are the main victims. Water being thrown into the face of oncoming vehicles is considered "fun". So while it may be fun it has serious consequences. There have been some moves to curtail the excesses but these have generally been unsuccessful.
While shops in the main centres will be open albeit with reduced staff, banks, government offices and most commercial businesses can be closed for 5 days. The Money Changing Exchanges of the banks, however, will be open.
Pattaya celebrates the water throwing part of Songkran a week later than the rest of Thailand. This may be to give people a chance to escape it within the country.
http://www.squidoo.com/thailand-songkran
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Loy Krathong is as old as Thai heritage and represents a close bond between Thai culture and water. The festival takes place on the full moon night of the twelfth lunar month when the water level is high and the climate is cooler. Participants ask water spirits to sail away their troubles in their krathongs, which are containers traditionally made from banana leaves and carrying offerings of incense, lotus flowers and small money.
http://www.thaiworldview.com/feast/kratong.htm
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