Elite Card Fee Could Rise To B1.5 Million

[pgrin]

Elite Card fee could rise to B1.5 million

CHATRUDEE THEPARAT

Rapee: Benefits are also being reduced

Thailand Privilege Card Co, the operator of the Elite Card programme, is considering raising its lifetime membership fee by 50% to 1.5 million baht.

The new rate would be applied starting next year and could be gradually increased to three million baht within 10 years, according to president Rapee Moungnont.

Lifetime fees are currently one million baht.

The company also planned to cut its card privileges, with golf and spa services limited to 24 visits per year for new members, instead of the unlimited-use privileges.

He acknowledged that the restrictions could reduce the attractiveness of the programme, but noted that a survey by the firm showed that 80% to 90% of its members used its services fewer than 24 times per year.

The Elite Card programme was launched by former prime minister Thaksin Shinawatra in 2003 as a high-end loyalty programme to draw wealthy tourists and businessmen.

The programme, which promised fast-track immigration privileges, long-term property leases and discounts at luxury spas, golf courses and hotels, originally aimed to attract one million cardholders by 2008.

But the Elite Card programme has been a spectacular bust, with only 2,185 members as of June 30, and the state-owned company posting hundreds of millions of baht in annual losses.

The company recently retained a research centre run by Thammasat University to study ways of improving its viability. The report proposed that TPC increase membership fees, cut incentives and improve management.

Bases on the new fee, TPC is expected to generate about 1.25 billion baht by 2008, and rise to 2.6 billion baht in 2016. Net losses should drop from 255 million baht in 2008 to 145 million in 2009. Losses this year are estimated at 290 million baht.

''Cash flow would improve from about 750 million baht this year to 1.5 billion baht next year,'' Mr Rapee said.

In 2009, cashflow could rise up to 2.3 billion baht and reach 14.2 billion baht in 2016 under the new business model, which still requires cabinet approval.

TPC seeks to earn a 40- million-baht profit in the next three years, and up to 1.35 billion baht in 2016.

During the first six months of this year, it signed up 168 new members. Its full-year target is 500 new members. ''We've planned to freeze the number at 20,000 in the next 20 years to assure service quality,''he said.

[endure]

The company recently retained a research centre run by Thammasat University to study ways of improving its viability. The report proposed that TPC increase membership fees, cut incentives and improve management.

I thought Thammasat was one of Thailand's best universities? Who wrote the report? The cleaning lady?

[JimsKnight]

It beggars belief that folk want to shell out hard-earned coin for a very limited service.

Now with the fees going up and up this could be the end of it (hopefully)

[dr_Pat_Pong]

it is dead in the water.

[Hampstead]

Elite Card fee could rise to B1.5 million

CHATRUDEE THEPARAT

Rapee: Benefits are also being reduced

Thailand Privilege Card Co, the operator of the Elite Card programme, is considering raising its lifetime membership fee by 50% to 1.5 million baht.

The new rate would be applied starting next year and could be gradually increased to three million baht within 10 years, according to president Rapee Moungnont.

Lifetime fees are currently one million baht.

The company also planned to cut its card privileges, with golf and spa services limited to 24 visits per year for new members, instead of the unlimited-use privileges.

He acknowledged that the restrictions could reduce the attractiveness of the programme, but noted that a survey by the firm showed that 80% to 90% of its members used its services fewer than 24 times per year.

The Elite Card programme was launched by former prime minister Thaksin Shinawatra in 2003 as a high-end loyalty programme to draw wealthy tourists and businessmen.

The programme, which promised fast-track immigration privileges, long-term property leases and discounts at luxury spas, golf courses and hotels, originally aimed to attract one million cardholders by 2008.

But the Elite Card programme has been a spectacular bust, with only 2,185 members as of June 30, and the state-owned company posting hundreds of millions of baht in annual losses.

The company recently retained a research centre run by Thammasat University to study ways of improving its viability. The report proposed that TPC increase membership fees, cut incentives and improve management.

Bases on the new fee, TPC is expected to generate about 1.25 billion baht by 2008, and rise to 2.6 billion baht in 2016. Net losses should drop from 255 million baht in 2008 to 145 million in 2009. Losses this year are estimated at 290 million baht.

''Cash flow would improve from about 750 million baht this year to 1.5 billion baht next year,'' Mr Rapee said.

In 2009, cashflow could rise up to 2.3 billion baht and reach 14.2 billion baht in 2016 under the new business model, which still requires cabinet approval.

TPC seeks to earn a 40- million-baht profit in the next three years, and up to 1.35 billion baht in 2016.

During the first six months of this year, it signed up 168 new members. Its full-year target is 500 new members. ''We've planned to freeze the number at 20,000 in the next 20 years to assure service quality,''he said.

Interesting that 2 moderators have replied to this thread, when another one is already in motion on this subject.

Even more interesting is the continued used of bangkok post articles on this subject.

[bendix]

Interesting that 2 moderators have replied to this thread, when another one is already in motion on this subject.

Even more interesting is the continued used of bangkok post articles on this subject.

I agree.

The OP's speechlessness is catchy. I'm truly speechless we need another new bloody thread on a subject which is being discussed two topics below this as I type.

[lazeeboy]

Interesting that 2 moderators have replied to this thread, when another one is already in motion on this subject.

Even more interesting is the continued used of bangkok post articles on this subject.

I agree.

The OP's speechlessness is catchy. I'm truly speechless we need another new bloody thread on a subject which is being discussed two topics below this as I type.

greed

[chanchao]

Still, it's so hilarious that I think it deserves a place of its own.

I mean, honestly, does anyone keep their diapers dry reading stuff like:

He acknowledged that the restrictions could reduce the attractiveness of the programme, but noted that a survey by the firm showed that 80% to 90% of its members used its services fewer than 24 times per year.

(Quite obviously a large percentage were given away free of charge to celebreties or presumed VIP's or members otherwise found they have no need for any of the alleged 'benefits'.)

The idea in itself isn't bad, but it was placed in the market WAY above what absolutely any sane person could possibly imagine any service or benefit in Thailand to be worth; so it fit into Thaksin's dream of what an imaginary 'quality tourist' would be able to spend, without realizing that quality tourists don't really go to Thailand for any length of time or any great number of repeat visits. (They have boats on the Cote d'Azur and the like).

Again, the idea in itself I like; if it was placed at a price level where typical repeat visitors could afford it AND gain appropriate benefits from it then it might just work. And don't forget that a lot of benefits don't really need to cost money, i.e. there could be visa benefits or limited property-ownership benefits; those things would bring MORE money in because members could then gain a secure enough status to actually buy & build a house in Thailand.

Of course there'd be the issue as to what any promise or plan from a Thai government is worth, seeing they can throw out ALL laws on a whim as demonstrated by the recent coup. At this time of course nobody would believe any kind of promise, law or regulation so indeed it's dead in the water until Thailand can gain re-gain it's prestige enough to be considered a somehwat stable country. So another 15 years, at least.

Edited July 11, 2007 by chanchao

[TAWP]

He acknowledged that the restrictions could reduce the attractiveness of the programme, but noted that a survey by the firm showed that 80% to 90% of its members used its services fewer than 24 times per year.

I wonder if anyone working with these cards have any MBA or have ever successfully created any business...ever.

A perk of a membership only ever becomes a problem if the average usage is above the set budgeted threshold of uses per year. If they are below you can continue to have 'free usage', knowing that the majoritys usage will be low and the minority that overuse it won't offset the average so you will be accumulating a loss.

It seems that they either ran out of money and are now trying to justify their added limit as 'most people wont use it and wont get affected' - which ofcourse will only mean that the active members will be punished/limited and will be upset. I guess the whole membership for life-part is really screwing up their priority, since they don't have to care about returning customers/annual extensions...