Big reaction to rising airfares from Bangkok

[hotchilli]

7 hours ago, webfact said:

Suvarnabhumi airport these past few days has experienced a big increase in traffic both inbound and outbound due to the relaxing of Covid regulations.

That could have started back in January, but the government was too slow to make a decision. Now rocketing prices coupled to inflation will make people think hard before spending on long haul flights.

[Cadan]

Higher demand than supply - very simple - have to wait until competition starts again to fill up flights 

[malthebluff]

It's not just Thailand flights all around the world have risen due to fuel increasing in price and them trying to recover some lost fares due to covid. It's nothing to do with Russian airspace most have avoided that long before the war

[Chongalulu]

5 hours ago, hydraides said:

To be honest the demand was still there, Thailand was one of the few SE Asian countries with entry and (Phuket sandbox). Dec was the start of high season , so crazy of BA to scrap flights then

 

But even then, why scrap flights for such a long period of time? All other major airlines like Qatar, Emirates, Thai Airways never took this step.....why not be flexible and just say - we will restart flights when demands picks up ...........In a business sense....it still makes no logical sense atoll

 

 

I would venture your business sense ,as demonstrated,is significantly below that of the BA commercial managers . I know people that work at BA and completely understand their business model regarding Thailand. I would look to better inform yourself economically to gain a greater understanding.

[Chongalulu]

1 hour ago, happydreamer said:

Ya but if they bought fuel for today on futures markets a while ago, what are they buying now for 9 months from now?  

That’s exactly the point- airlines can lose millions (as they did pre Covid) if buying fuel on the futures market which then goes down. Their commitment to that purchase in volume and price still stands even if they have to stop flying! 
It is economically illiterate to accuse them of price gouging when the demand equation turns in their favour when they are subject to the downside too. The same applies to energy companies…. And really everything else !

[xr399]

4 hours ago, mushroomdave said:

The Canadian reply you report in the story is a bit far-fetched.  I just paid $1,281.00 Cdn for a late September round-trip flight  (nothing even near the reply of $4,000.00 Cdn). It was from Montreal, not Toronto, but they are only 330 miles apart. 

Plus, I have flown out of Toronto over 20 times to Bangkok, and I can tell you one thing......NEVER, EVER, you would have gotten a ticket for $600.00, that's for sure.....maybe too much Singha Beer by one of the members that day!!  LOL!!!

Well, in fact we just flew Thai and Air Canada BKK to Victoria B.C. for $625 each... tickets bought on Air Canada Website April 22.  One way.

[Chongalulu]

5 hours ago, hydraides said:

Why the hell did BA Cancel all flights to Thailand until October, when surely the demand is there? makes no business sense whatsoever

 

Anyway In my opinion 50 -100 years airtravel may be made completely redundant for at least Europe - Asia.......Once a real hyperloop track gets built within the next 10 years, development will snowball and there will probably be continuous/many hyperloops tracks connecting Europe - Asia

 

Far Greener, More Comfortable, More Profitable for companies in the long run (No need for a driver or cabin crew etc)

 

 

I can tell your forte/experience is not commerce. The reason air travel is fundamentally cheaper than rail is that track is very,very expensive to build and then to maintain. All an aircraft needs is a site to take off from and one to land on. Long haul exaggerates this equation even further 
Regard this as basic economics lesson 1 ! 

Edited July 4, 2022 by nchuckle
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[tomazbodner]

8 hours ago, richard_smith237 said:

The conventional routes - such as direct with Thai Air, Eva and BA never did fly over Russian or Ukrainian Airspace. Neither do the Middle Eastern Airlines; Emirates, Etihad, Qatar etc... 

The rest I agree with but the highlighted bit: It was Thai, Lufthansa, Singapore Airlines and many others that flew over Ukraine just before Malaysia Airlines got shot down.

 

Additionally, Qatar flights from Doha to US were flying over Russia just months back, during Russian invasion of Ukraine, but have since rerouted to fly over Saudi Arabia and Israel, following warming of relations in the Middle East.

 

So while I agree with the rest, the above bit is factually wrong.

[Andrew Dwyer]

I booked a flight, about a month ago,  BKK - MAN - BKK on Qatar for mid Aug, paid roughly twice as much as i normally would.

Could have found cheaper options with long layover or travelling Saudi Air .

Having seen the reports about increasing air fares and expected to pay more, what I wasn’t prepared for was the increase in rental car prices ( U.K.) . Almost 5 times my usual quote !! , with a bit of messing around managed to get it down to twice as much.

The good old days of cheap travel and rentals are gone, wonder if they will return ??

[overherebc]

10 hours ago, richard_smith237 said:

Rubbish...   The only routes which are longer due to avoiding Russia are to the Northern European hubs such as Helsinki - Finn Air.

 

The conventional routes - such as direct with Thai Air, Eva and BA never did fly over Russian or Ukrainian Airspace. Neither do the Middle Eastern Airlines; Emirates, Etihad, Qatar etc... 

 

Flights have long been avoiding Ukraine & Russian Airspace since Malaysia Airlines was shot down - avoiding this airspace is nothing new. 

 

Thus: There is no excuse for ‘additional costs’ due to additional mileage flow. That said, fuel is more expensive, however most of that was purchased on futures markets a while ago when the price of fuel was significantly less. 

 

The only valid excuse for increased prices is a simple business model of capitalist response to excess demand with the profits being masked with Covid costs and elevated fuel...  many businesses are doing the same as if they consider its ‘their time to win back lost profits’... sadly this costs everyone elevated levels of inflation becomes the end result. 

Finnair at one point said 10 to 20 minutes increase due to going slightly further south.  Don't know if it's still the same.

[Jumbo1968]

7 hours ago, Wiggy said:

Hopefully, and I think you’re right as airlines buy fuel on the futures market (as mentioned earlier) and what they’re using now might have been bought at prices 9 months ago. Profiteering to make up for Covid losses is my guess. BA return in October, I think (currently cargo-only flights using a 787). 

We flew back May 2021, 777 from Schipol, less than 20 on the plane the crew outnumbered the passengers, there was a problem with the aircraft, the pilot came and addressed every one personally.

On speaking to one of the cabin crew I asked why they bothered flying when there was no demand, he said they were full up with freight and made more money on freight than they did on passengers.  We eventually had to change aircraft, thought no problem only 20 people nope they transferred all the freight as well, delayed for 3 hours.

i might be wrong but wasn’t crude oil around $150 dollars around 2008 ?

[Jumbo1968]

1 hour ago, Andrew Dwyer said:

I booked a flight, about a month ago,  BKK - MAN - BKK on Qatar for mid Aug, paid roughly twice as much as i normally would.

Could have found cheaper options with long layover or travelling Saudi Air .

Having seen the reports about increasing air fares and expected to pay more, what I wasn’t prepared for was the increase in rental car prices ( U.K.) . Almost 5 times my usual quote !! , with a bit of messing around managed to get it down to twice as much.

The good old days of cheap travel and rentals are gone, wonder if they will return ??

The Car Rental companies got rid of their cars during Covid and now can’t get enough to supply the demand.

[Jumbo1968]

Airlines must stockpiles of fuel as there very few flights during height of Covid ?

[Baron Samedi]

I booked 2 months in advance.

Europe --> Thailand = 500 euros.

That includes 1 domestic flight + 1 international flight combined.

Seems fair to me.

[happydreamer]

1 hour ago, nchuckle said:

That’s exactly the point- airlines can lose millions (as they did pre Covid) if buying fuel on the futures market which then goes down. Their commitment to that purchase in volume and price still stands even if they have to stop flying! 
It is economically illiterate to accuse them of price gouging when the demand equation turns in their favour when they are subject to the downside too. The same applies to energy companies…. And really everything else !

I understand what you mean now.  Agree completely as well ????

[VBF]

5 hours ago, howerde said:

Eva have returned, but only 3 times a week an their fares are not that cheap out july 26 back 16 Aug nearly 2000 pounds economy return , though out Sep back october cheapest 800 return, i don't dare look what xmas is going to show, lets hope prices do fall, time will tell

I agree, however IMO as the situation returns to a pre-pandemic so-called "normal" I think that airlines will start to offer more flights, giving more competition and the pent-up demand will drop . Having said that, fuel prices are at an all-time high and not dropping, plus airports and airlines are experiencing staff shortages due to staff leaving in 2020 and not returning - one example of that here Flight cancellation plan aims to ease summer chaos

 

All in all the situation can best be described as "unstable" and you just know that when certain organisations can profit from that, they will!

Living in interesting times?

[Ty Hareways]

Be careful when you're booking flights with most American and European carriers as they're giving their cheapest option WITHOUT checked-in baggage.

The terms are tucked away in the small print and are approx £50/£75 per leg.

[Chongalulu]

1 hour ago, Jumbo1968 said:

Airlines must stockpiles of fuel as there very few flights during height of Covid ?

They won’t have had their own fuel storage facilities so any unused commitments they would have to have sold on at a loss in the market place. 

[nauseus]

1 hour ago, overherebc said:

Finnair at one point said 10 to 20 minutes increase due to going slightly further south.  Don't know if it's still the same.

Finnair more directly affected than other European airlines trying fly to east Asia, due to Russian airspace restrictions after sanctions due to Ukraine invasion.   

[Chongalulu]

2 hours ago, Andrew Dwyer said:

I booked a flight, about a month ago,  BKK - MAN - BKK on Qatar for mid Aug, paid roughly twice as much as i normally would.

Could have found cheaper options with long layover or travelling Saudi Air .

Having seen the reports about increasing air fares and expected to pay more, what I wasn’t prepared for was the increase in rental car prices ( U.K.) . Almost 5 times my usual quote !! , with a bit of messing around managed to get it down to twice as much.

The good old days of cheap travel and rentals are gone, wonder if they will return ??

Very high Car rental prices are a European wide problem (and probably wider too) and all for the same reason of vehicle shortages - also effecting the secondhand car market prices too.

[mushroomdave]

3 hours ago, xr399 said:

Well, in fact we just flew Thai and Air Canada BKK to Victoria B.C. for $625 each... tickets bought on Air Canada Website April 22.  One way.

Yes very believable, from B.C., not Toronto as the article said someone quoted.  

[NoshowJones]

9 hours ago, PeachCH said:

During the pandemic, airlines had big losses. Quite clear that they have to rise their ticket prices to cover at least some of their losses. 

True, no thought for the customers at all, let them pay for as much of their losses as possible, even them all, typical capitalist attitude.

[overherebc]

53 minutes ago, nauseus said:

Finnair more directly affected than other European airlines trying fly to east Asia, due to Russian airspace restrictions after sanctions due to Ukraine invasion.   

Yep, checking back it looks like at the start not too bad but the closing of russian airspace made the big difference.

[Mac Mickmanus]

17 minutes ago, possum1931 said:

True, no thought for the customers at all, let them pay for as much of their losses as possible, even them all, typical capitalist attitude.

How else should the airlines recoup their losses ?

[Zack61]

14 hours ago, webfact said:

Travel will see a strong resurgence because conditions [for entry] will return to almost pre-Covid normality’ said a CAAT director. 

Even a broken clock is right twice a day. 

[joskeshake]

Last week I booked with Emirates one way on 18 july 2022 and payd 1641€, crazy but true

[Aussieroaming]

6 months ago I flew BKK to LHR and return on Singapore airlines for 68 000 baht return in Business Class. Now its about 5 times that rate at 320 000 baht, totally rediculous.

[hydraides]

15 minutes ago, joskeshake said:

Last week I booked with Emirates one way on 18 july 2022 and payd 1641€, crazy but true

Same here 1300 pounds, its actually risen to 1700 now, ridicolousss

[crouchpeter]

9 hours ago, Cake Monster said:

If the Air Fares are rising from BKK, then they will be rising to BKK also.

This will have a detrimental outcome upon the Tourism Sector for sure.

All people across the Globe now are facing high Inflation, and soaring costs to their way of lives.

When Money gets tight (  as it is for many now ) the first Luxury that gets dumped, is the expensive Holiday. Many people will settle for a Holiday in their own Countries, rather than spend their Money on a Two week trip to a Foreign destination.

With fewer people having the Money to travel, Thailand has to start thinking outside the Box to attract those people.

Gone are the Days when you sat back and just waited for the Money to roll in. Now it has to be worked hard for as so many Holiday Destinations are striving to gain a larger share of a very rapidly shrinking Market.

2 weeks holiday in Australia will probably cost twice as much as 2 weeks in Bali or Thailand, including airfares. Every hotel, country restaurant, coffee shop etc. is a rip-off. The Maggie Beer <deleted> syndrome!

[crouchpeter]

2 hours ago, joskeshake said:

Last week I booked with Emirates one way on 18 july 2022 and payd 1641€, crazy but true

July and August to Europe is high season. Should have waited until September. Much cheaper.