Thai To Raise Airfares In October

[peter991]

THAI to raise airfares in October

According to the Bangkok Post, Thai Airways will be raising its economy class airfares by three to four percent in October.

The changes are a part of a new strategy aimed at boosting the airline’s revenue by six to eight percent annually. It is estimated that the sale of economy class tickets make up some 75 to 80 percent of THAI’s total annual revenue.

“The strategy will encourage passengers who fly the more popular routes to fill in seats on routes that aren't popular,” a THAI executive told Bangkok Post. “The only difference between these two routes is the flight time.”

According to the new business plan, THAI is expected to increase its fares twice a year, by about three to four percent each time.

“Thai Airways' economy class seats will also be on par with other airlines once a new fleet of aircraft is in service,” the airline executive added.

Peter

[tigerbeer]

THAI to raise airfares in October

According to the Bangkok Post, Thai Airways will be raising its economy class airfares by three to four percent in October.

The changes are a part of a new strategy aimed at boosting the airline’s revenue by six to eight percent annually. It is estimated that the sale of economy class tickets make up some 75 to 80 percent of THAI’s total annual revenue.

“The strategy will encourage passengers who fly the more popular routes to fill in seats on routes that aren't popular,” a THAI executive told Bangkok Post. “The only difference between these two routes is the flight time.”

According to the new business plan, THAI is expected to increase its fares twice a year, by about three to four percent each time.

“Thai Airways' economy class seats will also be on par with other airlines once a new fleet of aircraft is in service,” the airline executive added.

Peter

too bad for thai airways. budget airlines are better anyways.

[bdenner]

.............

According to the new business plan, THAI is expected to increase its fares twice a year, by about three to four percent each time.

.................

Peter

Now that idea will draw the punters, by any Thai standard that certainly is some business plan!

[chinthee]

It's an especially good marketing strategy to telegraph your intention to consumers of your intent to raise fares twice a year. It allows us all to make alternate plans in advance to change our loyalty programmes.

[lazeeboy]

It's an especially good marketing strategy to telegraph your intention to consumers of your intent to raise fares twice a year. It allows us all to make alternate plans in advance to change our loyalty programmes.

mre passengers for nok air,asia air ,and one to go ...........

[chinthee]

It's an especially good marketing strategy to telegraph your intention to consumers of your intent to raise fares twice a year. It allows us all to make alternate plans in advance to change our loyalty programmes.

mre passengers for nok air,asia air ,and one to go ...........

I was thinking of the effect on other medium and longer haul international routes. Combined with all the other effects underway, for frequent international flyers based in Thailand, it's probably a good time to look at changing your main international carrier, Cathay or Singair.

[chavy]

Yes, he certainly put his foot in his mouth when revealing a price increase twicw a year

Anyway, how much is it nowdays for an economy return flight to/back , let's say..England...for example?

[Gary A]

For what it's worth, I have a friend who flies regularly between Bangkok and Krabi. He says the airlines counters are VERY busy with the exception of Thai. They have already priced themselves out of the local market. It's the same old strategy, when business is bad raise the prices to make up for the lack of customers.

[chinthee]

Thai universities really do need to have a mandatory "Econonics 101" course for all students.

[Carmine6]

Here's the correct link: http://www.bangkokpost.com/breaking_news/b...s.php?id=121300

I'll be a lone voice and say I think this is a good plan. Their passengers are not that price sensitive. Even without the price increases, there already are lots of significanlty cheaper options yet many people fly Thai. Their cabin factor (% of available seats filled) for the second quarter was at a record level of 80.4%. That compares to 76.7% for the same quarter in 2006, and the record 75.4% for the whole year. Their first quarter was also above last year.

"THAI will start by re-adjusting fares for routes that are particularly popular with passengers, ..." Code for economy on some flights is full, so we're going to charge them more.

If customers are willing to take a less popular flight earlier in the day, later in the day or through a different city, that was a seat that wasn't going to sell anyway, but they'll likely find someone else to buy that original seat. If they don't sell that original seat, they're still better off because everyone else is paying more. They'd have to net lose more customers than the price differential covers to have less revenue. For example if 100 people usually fly a flight and are now paying 3% more, they'd have to lose more than 3 people to lose revenue.

What he isn't saying but is probably expecting to happen is that more people will opt to upgrade to premium economy. Last flights I flew, economy was packed, yet premium economy was empty. If economy is full, the only way to make more money is charge more or get people to upgrade.

I do think they should go the next step and drop premium economy a bit to really make it attractive.

[Ricardo]

"THAI will start by re-adjusting fares for routes that are particularly popular with passengers, ..." Code for economy on some flights is full, so we're going to charge them more.

If customers are willing to take a less popular flight earlier in the day, later in the day or through a different city, that was a seat that wasn't going to sell anyway, but they'll likely find someone else to buy that original seat. If they don't sell that original seat, they're still better off because everyone else is paying more. They'd have to net lose more customers than the price differential covers to have less revenue. For example if 100 people usually fly a flight and are now paying 3% more, they'd have to lose more than 3 people to lose revenue.

So if I currently fly BKK-LHR-BKK, what different Thai Airways route does he suggest, I should switch to ?

And when I fly Thai Airways on CNX-BKK, to connect with my outgoing flight on another airline, and find that they have only 5 flights per day to Swampyboom & that these are all full, they suggest going via Phuket or what ? Seriously.

What I find worrying is that, even at 80% load-factors,which are historically & for the industry very high, they still find it hard to make a profit.

I look forward to the hoped-for return of Nok Air, to the CNX-BKK route, so that I have a reliable carrier at a sensible price. If that ever happens.

[Carmine6]

"THAI will start by re-adjusting fares for routes that are particularly popular with passengers, ..." Code for economy on some flights is full, so we're going to charge them more.

If customers are willing to take a less popular flight earlier in the day, later in the day or through a different city, that was a seat that wasn't going to sell anyway, but they'll likely find someone else to buy that original seat. If they don't sell that original seat, they're still better off because everyone else is paying more. They'd have to net lose more customers than the price differential covers to have less revenue. For example if 100 people usually fly a flight and are now paying 3% more, they'd have to lose more than 3 people to lose revenue.

So if I currently fly BKK-LHR-BKK, what different Thai Airways route does he suggest, I should switch to ?

And when I fly Thai Airways on CNX-BKK, to connect with my outgoing flight on another airline, and find that they have only 5 flights per day to Swampyboom & that these are all full, they suggest going via Phuket or what ? Seriously.

What I find worrying is that, even at 80% load-factors,which are historically & for the industry very high, they still find it hard to make a profit.

I look forward to the hoped-for return of Nok Air, to the CNX-BKK route, so that I have a reliable carrier at a sensible price. If that ever happens.

Not every flight has alternatives. If CNX-BKK flights are all full, then that makes the point. The only way to get more revenue is to raise fares. Doesn't sound like they have a lot of airplanes just sitting around that they could throw in an additional flight.

If they're flying empty then it's crazy to raise fares, but if they're full, why wouldn't they?

[bartender100]

I justed booked Thai lon/bkk/lon for november 425 pounds, i thought it was a good deal

[IMA_FARANG]

THAI to raise airfares in October

According to the Bangkok Post, Thai Airways will be raising its economy class airfares by three to four percent in October.

The changes are a part of a new strategy aimed at boosting the airline's revenue by six to eight percent annually. It is estimated that the sale of economy class tickets make up some 75 to 80 percent of THAI's total annual revenue.

"The strategy will encourage passengers who fly the more popular routes to fill in seats on routes that aren't popular," a THAI executive told Bangkok Post. "The only difference between these two routes is the flight time."

According to the new business plan, THAI is expected to increase its fares twice a year, by about three to four percent each time.

"Thai Airways' economy class seats will also be on par with other airlines once a new fleet of aircraft is in service," the airline executive added.

Peter

Thai normally raises it's fares every October. Like a lot of airlines they use the "fiscal year" method of bookeeping, in which the new year starts on October 1st. Guess it couldn't be expected to be different this year.

I am here in Greece, and I normally fly Athens to BKK. Thai has a direct flight to BKK and back. The cheapest flight is on Gulf Air thru Bahrain, it is 600 Euro cheaper in Business Class than anyone else. Thai is still more expensive. The problem is that Gulf Air requires me to spend about 12 hours in Bahrain going to BKK, and a whopping 30 hours in Bahrain coming back. I have to leave a day earlier from BKK in order to get back to Athens in order for me to get back to work on my scheduled work day.

So I take Thai, just because it is a direct flight, and gets me into Athens early in the morning, so I can catch a flight to Crete where I work on my scheduled work day.

I guess I'll just be spending more.

[Ricardo]

I justed booked Thai lon/bkk/lon for november 425 pounds, i thought it was a good deal

And good for you, but this sort of fare is sadly not available, to those of us who live here, we are expected to pay substantially more, like double. Which is why I can no longer afford to fly internationally with Thai, however much I would like to support the country's national airline.

In effect, inbound tourists are being subsidised, by travellers originating in Thailand.

As to why not increase fares on flights which usually operate full, I would suggest that they are only full because domestic-capacity to BKK is being deliberately restricted, switching most flights and domestic-routes to Don Muang instead, and that this is an abuse of their market position, and inconveniences international-passengers originating anywhere other than the Bangkok/Pattaya area. Eventually Thai will wake up to discover that their formerly-loyal core-customers will refuse to use them, at any price, much as many Brits feel about British Airways.

I would also doubt that Thai are really that efficient, in their aircraft-use, since they seem to take much longer to turn round their aircraft, than the Mickey-Mouse low-cost-carriers here.

Edited September 5, 2007 by Ricardo

[Suszzy]

it's already expensive.

why the need to raise the price?

maybe.. the profits each year are not good enough?

just my opinion!!!