"Zero dollar" tours still causing headaches for Chiang Mai tour operators

 

Picture: TNews

 

CHIANG MAI: -- Chinese companies undercutting tour operators using the "zero-dollar" tour scheme are causing trouble for tourist businesses in Chiang Mai.

 

So much so that after inactivity by officials who have promised action a representative of the operators has appealed to the Thai media to demand action.

 

Sirichok Sirisisakun, secretary of a tour group association in the northern city spoke to Tnews about the problem yesterday.

 

Some 80 per cent of Chinese visitors were booking tours through two companies under the same umbrella, he said.

 

They used the websites "Thai Pao" and "Lang Mao" in China.

 

Tours that are charged 800-1000 baht in Thailand are offered for 105 Yuan or as little as 550 baht.

 

This is causing considerable difficulty to the Thai operators, he said.

 

This has been going on for two years but nothing has been done despite promises to crackdown from the authorities.

 

Elsewhere in Thailand people have been charged and jailed for running the zero-dollar tours and sports and tourism minister Kobkarn Wattanavarangkul made it her mission last year to stop the practice to protect the Thai tourism industry.

 

Source: TNews

 

-- © Copyright Thai Visa News 2017-09-12

So the corruption will occur between the two named Chinese companies and local officials and civil servants who approve and issue the various permits, title deeds, company registrations, etc. almost certainly using local proxies and intermediaries.

 The money the Chinese tourists are spending (no matter the amount) are going in a Thai pocket somewhere. But it seems that a few Thai companies complain about the way the pie is being shared. A lot of people always go for the cheapest price when buying. That usually is the name of the game.

30 minutes ago, missoura said:

 The money the Chinese tourists are spending (no matter the amount) are going in a Thai pocket somewhere. But it seems that a few Thai companies complain about the way the pie is being shared. A lot of people always go for the cheapest price when buying. That usually is the name of the game.

True,  not sure what law has been broken.  Having a website is legal and so is charging for a service.  Is this happening in Myanmar, Laos, Cambodia and other countries, or only in Thailand.  Is this where Thailand is special again ?

What's wrong with competing on price and service?

 

If the Thai tour operators had great websites, great marketing, Chinese speaking staff and their prices were competitive then they would have more customers.

 

Compete, not complain.

"Tours that are charged 800-1000 baht in Thailand are offered for 105 Yuan or as little as 550 baht."

 

I read a few things into this:

 

1st: If the Chinese tour operators are managing to make a profit on 550 Baht, then the Thai operators are taking the piss.

 

2nd: If my 1st observation is accurate, I would suggest that the Thai operators charge less than 550 Baht (econmic competition and all 

8 minutes ago, SABloke said:

"Tours that are charged 800-1000 baht in Thailand are offered for 105 Yuan or as little as 550 baht."

 

I read a few things into this:

 

1st: If the Chinese tour operators are managing to make a profit on 550 Baht, then the Thai operators are taking the piss.

 

2nd: If my 1st observation is accurate, I would suggest that the Thai operators charge less than 550 Baht (econmic competition and all 

One glaring fault in your post stands out.

You are making the big mistake of applying 'logic'.

1 hour ago, overherebc said:

One glaring fault in your post stands out.

You are making the big mistake of applying 'logic'.

 

Less customers, so increase prices. That appears to be the predominant logic.

Lots of them in Pattaya

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550 B per day for what?

 

They sleep in the Jungle and eat insects?

Cheap guest house is around 400THB (and I don't think Chinese go there, as most now want 4* at 900 THB lol) , how do they make a Tour at 550???

14 minutes ago, blackcab said:

 

Less customers, so increase prices. That appears to be the predominant logic.

Always has been in my experience.

Can rember the crash in 97 when the baht went through the floor and all 'services' around Soi 4 almost doubled. 

The wholesale price of beer stayed the same but bar prices went up 'because the dollar and sterling were stronger' 

BF and ST almost doubled in a week and never went back down. Obviously at one point later the cost of imported drinks went up but the prices in the bars on already imported and paid for stuff went double immediately and never dropped again.

Love the hair!

5 hours ago, overherebc said:

One glaring fault in your post stands out.

You are making the big mistake of applying 'logic'.

well, western logic

3 hours ago, blackcab said:

 

Less customers, so increase prices. That appears to be the predominant logic.

that is exactly how thai business people think; never do they wonder and resolve why they lost or never drew customers 

The same used to be a big problem in Hong Kong and Taiwan.

As I understand it the tours are so cheap because they include stops

at gem shops and souvenir shops that give kickbacks to the tour

companies. The Chinese tourists pay inflated prices. (ripped off)

Thai tour operators and upset because they want the kickbacks from

the shops, Thai souvenir shops are upset because the tours stop at

Chinese owned shops.  

And then they take all the breakfast smorgasbord leftovers to feed themselves on their day tours forcing some hotels to offer a Le carte breakfasts in response 

Competition sucks but thats life. Perhaps drop the price or get out of the game.