King Power in line to manage duty free, commercial areas at leading provincial international airports

[webfact]

King Power in line to manage duty free, commercial areas at leading provincial international airports

By The Nation

 

 

King Power Duty Free has won the bidding to manage the duty free and commercial areas at three provincial international airports – Chiang Mai, Had Yai and Phuket – Airports of Thailand senior .executive vice president Wichai Bunyu said at a press conference on Monday.

 

He said King Power offered a higher return to AOT than the other two bidders: a joint venture between Bangkok Airways and Lotte Duty Free, and a joint venture of the Royal Orchid Hotel (Thailand) group.

 

“The winner offers more revenue to the AOT than the other competitors, and also a return higher than the AOT’s earlier estimate,” he said.

 

He added that the AOT bid committee would propose King Power as the bid winner for the company’s revenue review committee’s consideration on Wednesday.

 

If approved, that panel will submit the proposal to AOT’s board for final approval on June 19.

 

As to the final scores, King Power was awarded 96 out of 100 by the bid committee, followed by the Royal Orchid Hotel (Thailand) joint-venture group with 86, and the Bangkok Airways JV group with 84, Wichai said.

 

Source: http://www.nationmultimedia.com/detail/breakingnews/30370855

 

-- © Copyright The Nation 2019-06-11

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[Chang_paarp]

46 minutes ago, webfact said:

He said King Power offered a higher return to AOT than the other two bidders: a joint venture between Bangkok Airways and Lotte Duty Free, and a joint venture of the Royal Orchid Hotel (Thailand) group.

Maybe they should look at how King Power could afford such rents. 

[harada]

As predicable as the election outcome.

[ezzra]

King power is a powerhouse of money, they can and have trumped all other contenders because they can pledge so much money to kill all hopes of others to win the concessions, for them to lose is to uproot all their setups and walk away losing many more millions in the process is not an option...

[Orton Rd]

How can they call their out lets duty free when you can sometimes see things cheaper in Tesco?

[mikebell]

Thailand; The Hub of Monopolies.

[legend49]

Just keep your money in your pocket for your final foreign destination airport.

[quadperfect]

Thailand where you know exactly what to expect..

 

[neeray]

41 minutes ago, Orton Rd said:

How can they call their out lets duty free when you can sometimes see things cheaper in Tesco?

Smoke and mirrors. It's all about the FAKE illusion of a discount.

[bluesofa]

1 hour ago, Orton Rd said:

How can they call their out lets duty free when you can sometimes see things cheaper in Tesco?

Dead easy: Never underestimate the gullibility of your customers.

[hotchilli]

4 hours ago, webfact said:

King Power in line to manage duty free, commercial areas at leading provincial international airports

King Power monopoly reigns in Thailand.

About time passengers had a choice at airports instead of just one provider....

give us some other product choices & some competition would do the market a favour!

[alant]

It matters not to me. I find King Power duty free to be more expensive than other retail outlets so I try not to get stuck with no option than buying in an AOT duty free outlet.

[Khun Paul]

Land of Scams especially when it comes to King Power, always cheaper outside and that will include VAT 

[madmitch]

I read a very interesting piece about King Power written by a well-known Scottish self-exiled journalist yesterday. I won't link but it's worth a read if you know where to look.

[Sydebolle]

37 minutes ago, madmitch said:

I read a very interesting piece about King Power written by a well-known Scottish self-exiled journalist yesterday. I won't link but it's worth a read if you know where to look.

 

I second that; an excellent thread on Vichai Raksriaksorn, from rags to riches and how it happened! Everything else is purely co-incidental or related to brown Manila paperwork of the thicker kind?

[Misterwhisper]

7 hours ago, webfact said:

“The winner offers more revenue to the AOT than the other competitors, and also a return higher than the AOT’s earlier estimate,” he said.

And from whom does that "higher revenue" come, i.e. who is going to generate it? Of course the passengers who mistakenly believe they purchase "duty free" products at a favorable price. In the end is is them who will have to pay for King Power prevailing over the other two bidders.  

[JSixpack]

5 hours ago, Orton Rd said:

How can they call their out lets duty free when you can sometimes see things cheaper in Tesco?

'Cause there's no Tesco in the airport and Tesco isn't paying for an airport concession?

[JSixpack]

1 hour ago, Misterwhisper said:

And from whom does that "higher revenue" come, i.e. who is going to generate it? Of course the passengers who mistakenly believe they purchase "duty free" products at a favorable price. In the end is is them who will have to pay for King Power prevailing over the other two bidders.  

Simple-minded analysis. Passengers, yes. In many cases the goods are in fact cheaper or unavailable elsewhere in some convenient location. In other cases, the passengers know but don't really care if they're not cheaper, as the goal isn't necessarily to find a bargain. A lot of higher-end items you rarely if ever even see elsewhere. Often the item is a gift for a non-passenger. Finally the passengers are by no means as naive and stupid as you think they are for your purpose of bashing the bidding process and winner of the process. They've all got phones, wifi's free, and they probably already know what's available at what price where, so if they wish they can easily compare prices. King Power acts about the same as other duty-free concessionaires. In the States I can always find that same bottle of Jack Daniels much cheaper at Costco that at the airport. Duh.

Edited June 11, 2019 by JSixpack

[CGW]

5 hours ago, Orton Rd said:

How can they call their out lets duty free when you can sometimes see things cheaper in Tesco?

Duty free, Not profit free! - permission to charge outrageous prices - all the paperwork in place and approved at the highest level, never been able to understand people actually shopping there when prices for most items are cheaper in their own country.

I had a recent trip out and remembered I had forgotten my electric shaver, I thought - no problem, buy new at the airport, there not so expensive - wrong! three times the price I could get outside, when I complained the assistant stated "this is duty free you know" he had no idea of the irony of the statement! they have the right to charge want they want, wont be rushing back for any more duty free bargains!

I used to occasionally buy the odd box of cigars there, price acceptable, but the cigars invariably had never been stored properly and were always dried out!

[rkidlad]

30 minutes ago, JSixpack said:

Simple-minded analysis. Passengers, yes. In many cases the goods are in fact cheaper or unavailable elsewhere in some convenient location. In other cases, the passengers know but don't really care if they're not cheaper, as the goal isn't necessarily to find a bargain. A lot of higher-end items you rarely if ever even see elsewhere. Often the item is a gift for a non-passenger. Finally the passengers are by no means as naive and stupid as you think they are for your purpose of bashing the bidding process and winner of the process. They've all got phones, wifi's free, and they probably already know what's available at what price where, so if they wish they can easily compare prices. King Power acts about the same as other duty-free concessionaires. In the States I can always find that same bottle of Jack Daniels much cheaper at Costco that at the airport. Duh.

You seriously overestimate passengers' understanding, ability or will to check stuff online to see if it's cheaper elsewhere. Many people do assume it's cheaper as it's called 'duty free'. 

 

Please give us some of the many examples you talk of where King Power's products are cheaper than supermarkets, etc. Maybe cigs are but certainly not alcohol. 

 

 

[JSixpack]

42 minutes ago, rkidlad said:

You seriously overestimate passengers' understanding, ability or will to check stuff online to see if it's cheaper elsewhere. Many people do assume it's cheaper as it's called 'duty free'.

If they lack the will, then it's not that important. I'd say most of them are already aware of what the goods cost on the ground, at least roughly, IF they're available. No, they know "duty free" means what it means; and they are duty free, not profit free. Doesn't mean necessarily cheaper, and most know that quite well. Nor do I need to assume passengers are stupider than I am simply to build my own ego. Yes, many passengers DO buy for various reasons even though they know it's cheaper outside the airport. They aren't quite the bargain shoppers our pensioners are here, avoiding the restaurants and searching for a food court. Yes, they may blow money. Maybe they've got it to blow or maybe it's a vacation splurge or maybe they want that gift from the duty-free showing they thought about that special someone while traveling. Stupid? To a tightwad, certainly, but not to them.

 

Quote

Please give us some of the many examples you talk of where King Power's products are cheaper than supermarkets, etc. Maybe cigs are but certainly not alcohol.

You omitted the 2nd part of my statement: "or unavailable elsewhere in some convenient location." Find me 100-proof Tanqueray in Tesco or at any common Thai outlet. As for price, it depends on what exactly and where. Jim Beam, for example, I recently found cheaper in duty-free than at my local Thai supermarket and in the 1-liter size as well. Yes, I could find it even cheaper in the States but I wasn't in the States. I think you'll find many women's perfumes cheaper at the duty-free than in the department stores as well. Now you can often also find things cheaper online, of course, than in any of the stores--if they're available online and you don't mind the shipping. ????

 

Edited June 11, 2019 by JSixpack

[rkidlad]

43 minutes ago, JSixpack said:

If they lack the will, then it's not that important. I'd say most of them are already aware of what the goods cost on the ground, at least roughly, IF they're available. No, they know "duty free" means what it means; and they are duty free, not profit free. Doesn't mean necessarily cheaper, and most know that quite well. Nor do I need to assume passengers are stupider than I am simply to build my own ego. Yes, many passengers DO buy for various reasons even though they know it's cheaper outside the airport. They aren't quite the bargain shoppers our pensioners are here, avoiding the restaurants and searching for a food court. Yes, they may blow money. Maybe they've got it to blow or maybe it's a vacation splurge or maybe they want that gift from the duty-free showing they thought about that special someone while traveling. Stupid? To a tightwad, certainly, but not to them.

 

You omitted the 2nd part of my statement: "or unavailable elsewhere in some convenient location." Find me 100-proof Tanqueray in Tesco or at any common Thai outlet. As for price, it depends on what exactly and where. Jim Beam, for example, I recently found cheaper in duty-free than at my local Thai supermarket and in the 1-liter size as well. Yes, I could find it even cheaper in the States but I wasn't in the States. I think you'll find many women's perfumes cheaper at the duty-free than in the department stores as well. Now you can often also find things cheaper online, of course, than in any of the stores--if they're available online and you don't mind the shipping. ????

 

Please break up your writing into paragraphs. That was painful to read. 

 

Firstly, ‘duty free’ means there’s no duty to be paid. That means items should be cheaper. They’re not. You can see why people might think they’re paying less. It’s a con. 

 

Secondly. I didn’t omit anything. I asked you to give examples of things that are cheaper in duty free here compared to the local supermarkets, etc. I’m not obliged to counter points I may agree with or don’t care about. 

 

Thirdly, many big businesses make huge profits from the naivety of their customers. That’s why we have consumer protection agencies. If we let businesses do whatever they liked to make money, most would. Hell, they pretty much already do. 

 

You can make up all the excuses in the world why people buy duty free. End of the day, you stop calling it duty free and profits will drop. 

 

 

 

 

[the guest]

Don't buy at these places, it's a total rip-off. I can buy cheaper in my home country where most of these products (non-Thai) come from. If you want to buy Thai home grown items, purchase them inside the country, and put them in your suitcase, it will save you a fortune. 

[JSixpack]

1 hour ago, rkidlad said:

Please break up your writing into paragraphs. That was painful to read.

Improve your reading skills. Spend time w/ Henry James and Proust.

 

Quote

Firstly, ‘duty free’ means there’s no duty to be paid. That means items should be cheaper.

No, not necessarily, though many are, esp. if you consider availability and convenience. I think we've arrived the root your problem of thinking it's a con.

 

Quote

Secondly. I didn’t omit anything.

Yes, you did, the second part of the statement essential to the meaning of what I mean by "many."

 

Quote

Thirdly, many big businesses make huge profits from the naivety of their customers. That’s why we have consumer protection agencies. If we let businesses do whatever they liked to make money, most would. Hell, they pretty much already do. 

We can do without the 99-percenter rants reflecting anti-business bias. Another part of your problem, I take it, insisting adults need nannying.

 

Quote

You can make up all the excuses in the world why people buy duty free. End of the day, you stop calling it duty free and profits will drop.

I made up no excuses but merely offered reasons I know true. You can't show them false as you know they're true as well, even while carefully ignoring them. I'll also add the feel-good factor people on vacation feel at splurging in exotic places, which for many includes the duty free. Why do so people buy stuff in Ala Moana Mall, making it one of the most successful in the USA? They've got all that same stuff back in Peoria. Same reason Chinese buy in Thailand what they have at home, much to the bewilderment of TVF posters.

 

End of the day, it's perfectly ethical to describe products that are duty free as what they are, duty free. It'd be ridiculous not to. King Power does what all the duty-free concessionaires do throughout the world. You don't wanna buy, don't. If other people do, it's their business. No doubt many of them are actually smarter than you are. ???? Products not described as duty free also sell well in the airport and make considerable profit even though overpriced.

[HeyHeyHey]

9 hours ago, Orton Rd said:

How can they call their out lets duty free when you can sometimes see things cheaper in Tesco?

They would need to combine it with greed free outlets

[rkidlad]

54 minutes ago, JSixpack said:

Improve your reading skills. Spend time w/ Henry James and Proust.

 

No, not necessarily, though many are, esp. if you consider availability and convenience. I think we've arrived the root your problem of thinking it's a con.

 

Yes, you did, the second part of the statement essential to the meaning of what I mean by "many."

 

We can do without the 99-percenter rants reflecting anti-business bias. Another part of your problem, I take it, insisting adults need nannying.

 

I made up no excuses but merely offered reasons I know true. You can't show them false as you know they're true as well, even while carefully ignoring them. I'll also add the feel-good factor people on vacation feel at splurging in exotic places, which for many includes the duty free. Why do so people buy stuff in Ala Moana Mall, making it one of the most successful in the USA? They've got all that same stuff back in Peoria. Same reason Chinese buy in Thailand what they have at home, much to the bewilderment of TVF posters.

 

End of the day, it's perfectly ethical to describe products that are duty free as what they are, duty free. It'd be ridiculous not to. King Power does what all the duty-free concessionaires do throughout the world. You don't wanna buy, don't. If other people do, it's their business. No doubt many of them are actually smarter than you are. ???? Products not described as duty free also sell well in the airport and make considerable profit even though overpriced.

Thanks for breaking up the post. If the authors you suggested will help people read long posts that aren’t written properly, I’ll give them a miss. 

 

The root of my thinking was always it’s a con. You said there are many items which are cheaper or can’t be found elsewhere. I asked what are these ‘many’ items that are cheaper. I didn’t ask about the items that can’t be found elsewhere because that is of no interest to me. Are you now saying there aren’t ‘many’ items that are cheaper? 

 

I never said anyone needed nannying. I said that many people will assume it’s duty free when you tell them it is. Here most items are not. This is deliberately misleading in order to make profit. When businesses lie to or mislead their customers they typically get fined. This keeps business more honest. 

 

If you think people are happy paying over the odds because they want a souvenir or they’re lazy, you don’t understand people. People who know they’re paying over the odds only usually do so cos they have to. They have little choice. They certainly don’t gladly do it. 

 

 

[Nobbie49]

How can they call their out lets duty free when you can sometimes see things cheaper in Tesco?

Duty free, not profit free


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[Jim1000]

Not only do the  Thai airport duty free outlets not offer much of a bargain .... they don't offer the latest perfumes either .   I bought my wife the latest perfume  ( as instructed ! )  at a small island airport and thought  I would  compare the price at Bkk airport  duty free.

They didn't have it . !

 

 

[Youlike]

18 hours ago, Orton Rd said:

How can they call their out lets duty free when you can sometimes see things cheaper in Tesco?

Thai duty free sometimes costs double of real duty free like in Dubai....welcome to Scam Land.

[Airalee]

I love the duty free at LAX.  

 

I know it’s more expensive, but a few of my Thai friends love See’s Chocolates.  I really don’t like the idea of having to make a special trip through LA traffic to a See’s store and probably wouldn’t if that was my only option. For $5 a box more ($26 vs $21) I’m a superstar with my friends.  Small price to pay for the convenience.

 

What I don’t understand is the people who buy higher end watches (or really any of the luxury shopping) in the airport shops.  But duty-free, for a box of chocolates or bottle of cheap perfume is a sweet deal.