Government Approves CAAT Plan to Tackle Soaring Ticket Prices

[koolkarl]

All governments say inflation is falling and under control.  Airfares and most foods have doubled in price.

Gov. uses the price of used furniture to calculate CPI.  So this gov. pays you 1% per year on deposits with annual

inflation 10% plus.  Everyone is losing money. And the baht should fall off a cliff if it wasn't being manipulated.

Airlines are trying to make back money lost from covid.  They should send their bills to china. 

[thailand49]

Tough to ask airlines  outside of Thailand control. You got gas prices up then you might want to look at the adjustment of what Thailand is charging Airlines for Gates,  landing fees,  since post covid. 

[RichardColeman]

3 hours ago, bbbbooboo said:

Maybe more people should not be willing to pay these inflated prices and find alternative transport . I wont be.

Yeah , right, I'll plan my next trip to the UK with that in mind !

[kennw]

16 hours ago, ukrules said:

You would think so but I guess that depends on how much the airports and government are demanding in payments and commitments from the airlines to use the airports.

 

When one operator runs the airport you can expect high landing fees etc, Similarly for the so called "duty free" shopping areas.

[bradiston]

Over 50% of the ticket price goes in taxes and fees. My last round trip to Manila cost 10,335 THB, 6785 for the ticket, and 3550 in taxes and fees. And there is a totally Byzantine method for calculating seat prices. See below:

 

https://simpleflying.com/how-airline-ticket-pricing-works/

 

and here's a link to US taxes and fees:

 

https://www.google.com/amp/s/thepointsguy.com/guide/taxes-and-fees-airline-award-ticketthepoints

[Grusa]

CAATs solution:-

 

[spidermike007]

A small part of what we are seeing is based on increased demand and costs. 

 

A much larger part is unprecedented greed and a generational opportunity to engage in highly toxic profiteering, using the pandemic as an excuse. It is a sad example of the lower nature of mankind, and the moral bankruptcy of modern day corporations. 

Edited April 8, 2023 by spidermike007

[Kalasin Jo]

Ticket prices are insane compared to pre COVID But how to change that? How? 

If one looks at the breakdown of a ticket price a large chunk is for various additional charges and surcharges on the core ticket price.

Contrary to what some are suggesting in the normal business world with high demand prices rise and so in the airline business ticket prices rise, low demand they fall. I used to run a holiday let business and busy times with high prices compensated for quiet times with few or no bookings. 

 

But that's not happening with airline tickets. Perhaps because it's not just foreign tourists flying in and out of Thailand but Thai tourists flying out and back? Many  many more with the money and the inclination to see the world these days. So what is traditionally low season and not very nice weather here is from May to September high season in Europe. Just a thought. A look around your fellow passengers would provide a clear  answer.

Until the airlines start competing with each other for bums on seats again I don't see this changing. At the moment searches reveal they are all costly, but not always full if you get as far as  choosing your seat.

 

[Puccini]

7 hours ago, Andycoops said:

Unfortunately neither Too or CAAT understand basic economics, that of supply and demand.

Anything controlled by a government rather than private business is doomed, just look at all the tax payers money lost at Thai airways as a example.

I know that CAAT it the Civil Aviation Authority of Thailand, but what is "Too"? I already asked ChatGPT but its answer was not helpful.

 

Quote

 

Question to ChatGPT:
What does "Too" mean in the forum post https://aseannow.com/topic/1291505-government-approves-caat-plan-to-tackle-soaring-ticket-prices/?do=findComment&comment=18004388

 

Answer:
In the forum post https://aseannow.com/topic/1291505-government-approves-caat-plan-to-tackle-soaring-ticket-prices/?do=findComment&comment=18004388, "Too" is used to express agreement with the previous comment. The person who posted the comment is saying that they also think that airline ticket prices are too high and they support the CAAT's plan to address the issue.

 

 

[Chongalulu]

5 hours ago, ThailandRyan said:

Can you explain in general terms how supply and demand eally works in Thailand versus the rest of the world. Have you not seen the price increases when there is to much supply and low demand because of the prices. It seems to be a strange reversed way of thinking in the minds here.  If I had fewer customers and locations were not being flown to as they were not popular and I was loosing money, I would slash my prices to load up the plane, but not here prices have increased on many unpopular routes. The article points out to giving possible subsidies to the airlines, well why not subsidize the passengers with incentives and thus the need to subsidize the airlines would not be necessary. 

The reality is that Thailand’s attempt in certain instances to buck those  rules doesn’t in fact work. Product remains unsold/ sells less until a financial crisis dawns on the consciousness of the vendor. However that isn’t how the majority work. I’ve just returned from a stay in Phuket (same time as last year) where the Central owned apartment was double what I paid last year because of the much higher demand. That said , I got a cracking deal (well below normal rates) back then (they responded to poor demand)and this year was closer to normal.

In the end no one is ever insulated from economic reality . 

[Will B Good]

Prices will rise until they become destructive and sales fall off.....then prices will be readjusted to ensure maximum profits......lack of competition and the government allowing monopolies are the biggest problems by far........free and fair competition is essential.

[Chongalulu]

6 hours ago, Pink Mist said:

Is that not the way things are done in Thailand for restaurants selling items or even shops? Less customers and prices are usually jacked up to make up for losses.

 

I understand what your saying I really do and I agree that's how it works in the real world. Yet this article is about Thailand. Above I posted an investopedia article and link. Tell me how in principal that this is how things are done here on Thailand. It's the inverse here as I see it, but then that's my humble opinion.

The article you posted is a good explanation,and I’m repeating the same reply I gave to another poster to which the only addition I’d make is to note that there is a larger incidence of monopolies/cartel allowed in Thailand ( Tesco ,Big C ,7-11 ,Makro  all under one ownership) which would be disallowed by MMC (UK) or equivalent in western type economies.

The reality is that Thailand’s attempt in certain instances to buck those  rules doesn’t in fact work. Product remains unsold/ sells less until a financial crisis dawns on the consciousness of the vendor. However that isn’t how the majority work. I’ve just returned from a stay in Phuket (same time as last year) where the Central owned apartment was double what I paid last year because of the much higher demand. That said , I got a cracking deal (well below normal rates) back then (they responded to poor demand)and this year was closer to normal.

In the end no one is ever insulated from economic reality . 

[Chongalulu]

25 minutes ago, Puccini said:

I know that CAAT it the Civil Aviation Authority of Thailand, but what is "Too"? I already asked ChatGPT but its answer was not helpful.

 

 

You’ve exposed one of the limitations of ChatGPT. "TOO" refers to Uncle Too ,I believe, the nickname for our esteemed leader .. ???? 

[ThailandRyan]

54 minutes ago, Puccini said:

I know that CAAT it the Civil Aviation Authority of Thailand, but what is "Too"? I already asked ChatGPT but its answer was not helpful.

 

 

Reading into his post would tell me he is talking about the PM known also as Uncle Too...buy then that's my view. 

[Toby1947]

We're being totally ripped off in all walks of life, the greed is unbelievable all down to those horrible dirty little b#st#rds who started Kungflu. Recently quoted £550 to CHANGE a one way flight I'd already paid for Thai Airways ridiculous stuff em. 

Edited April 8, 2023 by Toby1947

[Puccini]

7 hours ago, ThailandRyan said:

Reading into his post would tell me he is talking about the PM known also as Uncle Too...buy then that's my view. 

Thank you.

 

The web search with Thai prime minister uncle Too I did just now came up with one or two results in English language newspapers in Thailand and Wikipedia for:

—  Uncle Tu

—  Uncle Tuu

—  Uncle Too

—  Lung Tu

 

I hope that by having typed this here, my generally poor memory for names will recognise the various romanised nick names for prime minister Prayut if they crop up again on this forum.

[bradiston]

2 hours ago, Puccini said:

Thank you.

 

The web search with Thai prime minister uncle Too I did just now came up with one or two results in English language newspapers in Thailand and Wikipedia for:

—  Uncle Tu

—  Uncle Tuu

—  Uncle Too

—  Lung Tu

 

I hope that by having typed this here, my generally poor memory for names will recognise the various romanised nick names for prime minister Prayut if they crop up again on this forum.

Or

Fishstop Moon O'Tea

which is the literal translation of each syllable of his name.

[Jaggg88]

On 4/8/2023 at 4:36 AM, Trip Hop said:

Basic rule of supply and demand. They’ll continue to sell at as much as possible until people are no longer willing to pay it and won’t come. The problem is that the post Covid surge is there but most of the airlines are yet to reinstate their pre-Covid timetables. 

Correct. Airlines have not brought all their aircraft back in to service yet as they made most of their staff redundant and now have to employ and train new staff. Demand is outstripping supply and forcing prices up. The last quarter of last year Thai Airways tripled its profit compared to the third quarter. My friend from the UK came for a 3 week holiday last September and paid £470 return with Turkish airlines and now a flight on the same date is £790.

[Chongalulu]

On 4/8/2023 at 2:33 PM, Toby1947 said:

We're being totally ripped off in all walks of life, the greed is unbelievable all down to those horrible dirty little b#st#rds who started Kungflu. Recently quoted £550 to CHANGE a one way flight I'd already paid for Thai Airways ridiculous stuff em. 

What’s probably happened is you got an administrative charge (usually £100) for ticket change but got hit by the difference in fare between the 2 dates. What you paid then when booking well in advance vs the price for booking at short notice for the new date which is imminent?

[BangkokReady]

On 4/7/2023 at 4:16 PM, snoop1130 said:

According to Deputy Transport Minister Atirat Ratanasate, the ministry has informed Prime Minister Gen Prayut Chan-o-cha on the progress as well as future steps to combat soaring ticket prices caused by demand increases after the Covid-19 outbreak.

Surely if demand is simply going back to what it was, then the price should go back to what it was?  What is the other factor?  Greed?

[StayinThailand2much]

On 4/8/2023 at 4:36 AM, Trip Hop said:

The problem is that the post Covid surge is there but most of the airlines are yet to reinstate their pre-Covid timetables. 

Not to mention, less pilots available, and those who are have way less aeronautical experience...

Edited April 10, 2023 by StayinThailand2much

[zzaa09]

On 4/7/2023 at 9:05 PM, spidermike007 said:

A small part of what we are seeing is based on increased demand and costs. 

 

A much larger part is unprecedented greed and a generational opportunity to engage in highly toxic profiteering, using the pandemic as an excuse. It is a sad example of the lower nature of mankind, and the moral bankruptcy of modern day corporations. 

Yeah. And a sad reflection of us giving in, instead of practicing our protest. 

[spidermike007]

3 hours ago, zzaa09 said:

Yeah. And a sad reflection of us giving in, instead of practicing our protest. 

You make a very good point. If people just said NO, I do not think so, little of these ridiculous price hikes would have occurred. 

[Adumbration]

On 4/8/2023 at 5:09 AM, bbbbooboo said:

Maybe more people should not be willing to pay these inflated prices and find alternative transport . I wont be.

You are obviously a very strong swimmer.  Others are not so fortunate.

[Dazkkk]

Good luck with getting airlines to drop their prices if demand is high. ????????????