Jump to content
BANGKOK
rooster59

Price-cutting not on agenda as THAI seeks turnaround in fortunes

Recommended Posts

I thought the discounting had already started. Current Heathrow - BKK fares are the lowest I've seen them in quite some time, with even Eva and BA seemingly attempting to match them, or at least not far off.

Share this post


Link to post
Share on other sites
1 hour ago, lapamita said:

for an flagship carrier the wrong way, and would result in deeper looses. 

TG is competetive already in pricing. many say overpayed executives hmm... salarys are not that high MOBs  getting btw 400-1,4 mb THb... a fraction like in the west

Problems  are deeper....

1. to many groundstaff

2. maybe bad hedging of oil ( if cut increasd costs out , the balance would be already  near break even)

3. load factor is good, but RPK to low, increase in fares, is not a big option at the moment

4. Domestic routes are a major problem 

 

Resolution

Cutting ground staff,better hedging of oil, upgrade in service quality on international routes , reducing services on dometsic routes ( pricing change like..full eco tickets,eco tickets at lower pricing excl services,( LH done it succesfully) standby promos,cutting low cabin load flights on domestic routes,extension on copperation with other airlines to cut costs,Review the option of outsourcing dif. segments

 

..lower pricing and cut in salarys , is not the option ,and contraproductive.

 

Point 5 might be to reduce the number of types of planes it runs which would allow a rationalisation of pilots (typically pilots are not certified to fly on multiple aircraft types), spare-parts inventory, maintenance crews, etc. 

 

I'm not sure it was smart to shelve plans to buy new aircraft either. If you look at budget airlines, they are typically leasing new, fuel efficient planes and keeping them in the air as long as they can to optimise revenue. Thai's fleet is very old by regional standards (ands it shows on the rare recent occasions I have flown with them). 

 

Finally, the customer experience is way short of rivals like Cathay Pacific and even the revitalised Vietnam Airlines. On short-distance flights they would be better to not even offer food instead of handing out heated, packaged fish dishes with an expiry date almost 12 months out from the date of the trip....  

Share this post


Link to post
Share on other sites
6 hours ago, rooster59 said:

THAI will continue with its transformation plan next year, which includes focusing on earning ancillary revenue, creating satisfactory customer experiences and effective human resource management.

It's paying passengers that you need... 

  • Like 1

Share this post


Link to post
Share on other sites

Thai Airways reminds me of a Thai Sports Store in a big Mall in Chiang Mai.  I was looking for some golf gear when we first lived there and we took a look in there - their prices were OK - but a little high so I didnt buy.  A few months later we looked in there again and the prices had gone up a little, so again we didnt buy - and I noticed that there were less customers than before. You probably already guessed it - every few months we would go and look and it was the same - the prices were going up and up and the customers were down and down (and less staff playing 'facebook' each time).  Over a period of at least a year we went there every few months, until one day - it was closed.  I learned something about Thai business mentality then - I had assumed that they must eventually drop their prices and I thought that there would be some serious bargains - but I was wrong - very wrong.  Different worlds - different realities.

Share this post


Link to post
Share on other sites
7 hours ago, Creasy said:

They want to be competitive, but won’t cut their fares to compete

The Thai way of doing things when busuiness is slow, double the price.

Share this post


Link to post
Share on other sites

I have said this before Thai needs to be run as a private entity.  Then it will be able to survive.

Share this post


Link to post
Share on other sites
2 hours ago, legend49 said:

THAI will cooperate with the Tourism Authority of Thailand to hold a joint marketing campaign in order to boost in-bound tourism and increase national revenue.

 

So they have failed before the start by partnering the group who cant count tourists into the country!

Don't knock them. TAT are very imaginative with their counting. Could double passenger numbers at a stroke (of the pen).

 

As for reducing prices, it's Thai economics 101. As passenger numbers fall, prices go up. It's all about equilibrium. Westerners just don't understand the concept.

Share this post


Link to post
Share on other sites
8 hours ago, Creasy said:

Thai Airways books will be just like the great Split Enz song,

’I See Red’ I see red. I see red.

for the foreseeable future.

 

They want to be competitive, but won’t cut their fares to compete 🤨

 

4 hours ago, fforest1 said:

And whats the FIRST thing 85-90% of people take into consideration when looking for  a flight?....Thats right the PRICE.....

 

If price was not important every one would be flying 1st class.....

 

Thai airlines consistently cost 100s of dollars more than other airlines....In fact I have never flown with them once over many many trips to Thailand.... 

 

 

 

Share this post


Link to post
Share on other sites

A little bit better (than the others) and a little bit cheaper – together with an internal restructure for efficiency – will make the turnaround.

 

Becoming a budget airline will be extremely difficult with the existing infrastructure of an old type air carrier company. Furthermore, many folks are in general heading towards better quality.

 

Therefore, focus on quality before price; when the customers want a product they don't care that much about price, and then the customers shall be happily surprised when they realize that they also can afford it.

 

Seems like Thai's idea is right, the major challenge is the internal restructure...🙂

Edited by khunPer

Share this post


Link to post
Share on other sites

Have a family funeral to attend back in the UK in the next couple of weeks and Thai are almost a third more expensive than BA and EVA for my wife, young child and myself and way more expensive than the single stop carriers.

They'll never be on my shopping list I'm afraid.

 

Share this post


Link to post
Share on other sites

My question is: Will we be offering them the same advice this till next year?  My guess is the government will step in and inject some cash so the likelihood is yes.  We can't have the national carrier going belly up,  can we???

Share this post


Link to post
Share on other sites

Last week...business class to Paris for 2..B235K.....this week B135K.....about the same as others.

They will have to cut fares to survive......but this has nothing to do with survival, it's the status of having a national carrier and a play thing of the elite.

Every government enterprise loses...same same!

Edited by ChrisY1

Share this post


Link to post
Share on other sites
24 minutes ago, edwinchester said:

Have a family funeral to attend back in the UK in the next couple of weeks and Thai are almost a third more expensive than BA and EVA for my wife, young child and myself and way more expensive than the single stop carriers.

They'll never be on my shopping list I'm afraid.

 

Thats part of the problem they have.

 

Very few people have brand loyalty when it comes to airlines. You go onto Expedia do a search for the route you want and you pick the lowest fare.

 

All the BS about 'Customer Experience' is just that, BS.

 

Southwest, and it's clone in Europe, Ryanair repeatedly are ranked as the most hated airlines, yet people fly with them in droves because of the price.

 

You are, in Economy at least going to spend xx hours of your life in a metal cylinder eating God awful food, so you might as well make it as cheap as possible.

 

The discussion of TG and how to turn it around will be ongoing long after all of us have turned to dust, since business fundamentals seem somewhat lacking the the TG boardroom!

  • Like 1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...