Jump to content

Why Are Air Tickets More Expensive From Bkk?


julie_f

Recommended Posts

My guess is that the sort of people in Thailand who can afford to take trips to places like the UK are generally the very wealthy and therefore have more disposable income. In Economics terminology is known as price discrimination and airlines are the experts at this. Price discrimination is charging each customer depending on their ability/willingness to pay therefore they reason that most of the people who live in Thailand who are going to travel abroad to places like the UK are rich and therefore will be willing to pay these higher fees.

Although i have just got a degree in Economics so that means that I am probably totally wrong.

Link to comment
Share on other sites

Forex rates, demand and supply. I would assume that there is no one from UK buying at the moment so they discount heavily. Same going on in other european countries at the moment. First time i remember in past 10 years that you can get cheaper ticket from europe than from BKK...

Link to comment
Share on other sites

Julie "The Undescore" F is correct. Air fares ex-UK are much cheaper than ex-BKK.

I've heard 2 reasons postulated. I don't think they are the true reasons but here goes.

1. Travel agents in the UK buy banks of tickets at discount rates so tickets can be sold more cheaply.

2. Like the mid-market and up-market hotels in Pattaya, Samui & Phuket, airlines charge Thais more as they tend to drop more litter, use sheets [hotels] and blankets [aeroplanes] as cleaning rags, take anything that is free, shampoo [hotels], toothpaste [hotels] & [aeroplanes], drinks [aeroplanes], etc. and do not spend money on ancillary services such as restaurants [hotels] or duty-free [aeroplanes].

Link to comment
Share on other sites

Have shopped around but so many sites show the prices minus taxes etc so the actual price is much more. And the amounts of tax have varied a lot too!

Just annoying. Pity I can't book the reverse, just doing my return journey first. Don't think they'll let me though!

Link to comment
Share on other sites

Julie's correct. The fares out of here are outrageously high. Something's askew (big surprise for Thailand). This is not an efficient market at work.

Some would say you needn't use all the words you did. Thailand is not efficient would have been enough.

I have noticed this price gouging (sp?) practice. But what's new???? This is Thailand eh? LOS (Lack of Sanctions.

Link to comment
Share on other sites

My guess is that the sort of people in Thailand who can afford to take trips to places like the UK are generally the very wealthy and therefore have more disposable income. In Economics terminology is known as price discrimination and airlines are the experts at this. Price discrimination is charging each customer depending on their ability/willingness to pay therefore they reason that most of the people who live in Thailand who are going to travel abroad to places like the UK are rich and therefore will be willing to pay these higher fees.

Although i have just got a degree in Economics so that means that I am probably totally wrong.

Although, this concept would go against the other economic principle -- what the traffic will bear...at least in terms of the overall population. I would guess another factor would be the class of Thai that would be able to get a visa for a Western counry.

But, in my humble opinion, your degree in economics would not mean that you are probably wrong...it would just mean that you do not know when you are correct or when you are incorrect!

Actually, I think economists get a bad wrap because the "laws" of economics are all wrapped up in human eccentricities.

Link to comment
Share on other sites

My guess is that the sort of people in Thailand who can afford to take trips to places like the UK are generally the very wealthy and therefore have more disposable income. In Economics terminology is known as price discrimination and airlines are the experts at this. Price discrimination is charging each customer depending on their ability/willingness to pay therefore they reason that most of the people who live in Thailand who are going to travel abroad to places like the UK are rich and therefore will be willing to pay these higher fees.

Although i have just got a degree in Economics so that means that I am probably totally wrong.

How about elasticity of demand? Just speculating, but I'd guess people departing Thailand for the UK are more likely to be going to the UK specifically. By specifically, I mean they're not selecting the UK among other places to visit, but are going to the UK to visit family, take care of business, etc. Are most people doing that round trip Thai or former UK residents?

Coming the other way, people departing the UK are more likely to be choosing Thailand from among many possible destinations. Generally that round trip isn't for business, but for holiday. So they'd be much more sensitive to the relative price of the ticket.

Link to comment
Share on other sites

My guess is that the sort of people in Thailand who can afford to take trips to places like the UK are generally the very wealthy and therefore have more disposable income. In Economics terminology is known as price discrimination and airlines are the experts at this. Price discrimination is charging each customer depending on their ability/willingness to pay therefore they reason that most of the people who live in Thailand who are going to travel abroad to places like the UK are rich and therefore will be willing to pay these higher fees.

Although i have just got a degree in Economics so that means that I am probably totally wrong.

How about elasticity of demand? Just speculating, but I'd guess people departing Thailand for the UK are more likely to be going to the UK specifically. By specifically, I mean they're not selecting the UK among other places to visit, but are going to the UK to visit family, take care of business, etc. Are most people doing that round trip Thai or former UK residents?

Coming the other way, people departing the UK are more likely to be choosing Thailand from among many possible destinations. Generally that round trip isn't for business, but for holiday. So they'd be much more sensitive to the relative price of the ticket.

Given the fantastically cheap low cost flights around europe from the UK, are there any countries you could fly to in Eurpope from Thailand where the price gouging isn't so bad? ie is it viable to fly to madrid or paris or frankfurt and then get a low cost flight to the UK? Any suggestions most appreciated as paying for two Thai family to visit is eye wateringly expensive.

Link to comment
Share on other sites

I've just booked (yesterday) Thai Airways flight Bangkok to London Heathrow return for THB 23,635 including tax. Is a superdeal price booked through their website, but if you can be flexible on dates then it may work for you.

Edited by thaiphoon
Link to comment
Share on other sites

As an example, Asiana has a r/t originating in San Francisco, to Bangkok, that goes for under $740 US. They won't even sell you a ticket if you want to originate your travel from Bangkok. I also suspect something other than economics at work here. Why shouldn't I? TIT.

Link to comment
Share on other sites

I have no idea. I've not found it the case with tickets to the U.S.

????

When we flew to the US in April fares were definitely higher on the BKK-California-BKK flights then in reverse, and by a fairly considerable amount. We were flexible on our dates and shopped many airlines and agencies and couldn't get anything for 2 adults and a kid for under about 115K taxes included. If we flew LAX (or SFO) to BKK and back to Cali it would have been about 25% cheaper.

Link to comment
Share on other sites

Girlfriend and I - B70,000 (each) business class with Etihad, if we fly before 30-June - this is the best price I have observed since B76,000 with Emirates 4 years ago...

I consider the Etihad pricing at the moment to be the most competitive in the industry for the routes I fly and they are one of the few with a 180 deg flat bed.

That said, I too have noticed the pricing switch, perhaps not due to elasticity of demand unless this demand has also switched.

Up until the end of last year it was cheaper to fly with Thailand as the origin, now this has switched so that in many cases its cheaper with UK as the origin. Could this be due the Thai Baht maintaining its value ? The Thai economic model being highly questionable ? The UK economic models of each airline being highly competitive ?

Link to comment
Share on other sites

I've just booked (yesterday) Thai Airways flight Bangkok to London Heathrow return for THB 23,635 including tax. Is a superdeal price booked through their website, but if you can be flexible on dates then it may work for you.

Hi Thaiphoon,

Your 'superdeal' with Thai Airways is a very good price. However, these deals are only available days, rather than weeks before travel has to commence. Often they offer a single only, or a return with a fixed date.

Although this is very good if it suits your needs, it is rather a pot-luck way of trying to book / gamble an airfare.

Good for you though!

Frm-Bkk

Link to comment
Share on other sites

I've just booked (yesterday) Thai Airways flight Bangkok to London Heathrow return for THB 23,635 including tax. Is a superdeal price booked through their website, but if you can be flexible on dates then it may work for you.

Hi Thaiphoon,

Your 'superdeal' with Thai Airways is a very good price. However, these deals are only available days, rather than weeks before travel has to commence. Often they offer a single only, or a return with a fixed date.

Although this is very good if it suits your needs, it is rather a pot-luck way of trying to book / gamble an airfare.

Good for you though!

Frm-Bkk

Thais tend to raise prices when demand is low........the opposite of what most people do.

I don't know who is teaching that to Thais, but they really should stop teaching it....maybe read an introductory book on economics.

When demand is low, you should lower prices to attract more customers, not raise them.

Link to comment
Share on other sites

I needed tow round-trip tickets last summer to the US for business. Economy were in the $1400 price range, if I remember correctly. Our Thai travel agent then told us we could get United business class tickets for $2300.  Out of curiousity, I checked online for IAD-BKK-IAD, and from the USA, the ticket was over $4,000.

Link to comment
Share on other sites

I did the same my last trip there due of the long permanence. i live in italy. On my way to thai I took an airberlin dusseldorf-bkk at 320€ the way back a bkk-milan for 450€ with Qatar that's not too bad. Look for some other destinations out uk maybe find some good options, and then a ryan air will take you home. Anyway you're right, the way back is normally more expensive.

Max

Link to comment
Share on other sites

I have no idea. I've not found it the case with tickets to the U.S.

????

When we flew to the US in April fares were definitely higher on the BKK-California-BKK flights then in reverse, and by a fairly considerable amount. We were flexible on our dates and shopped many airlines and agencies and couldn't get anything for 2 adults and a kid for under about 115K taxes included. If we flew LAX (or SFO) to BKK and back to Cali it would have been about 25% cheaper.

I also found it the case with tickets to the U.S. while shopping around about 5 months ago. The only break I found was at the NWA Thailand site, the ticket was a couple hundred dollars cheaper than on the regular NWA site but the catch was you had to be a resident of Thailand and could only buy the ticket with credit card having a Thai billing address. That's another mystery to me.

Link to comment
Share on other sites

I am looking at tickets to go back to the UK for a visit and the difference in price is amazing.

To go from BKK to London return is around 80% more expensive than going London BKK rtn.

Why? Anyone any clue?

Book on line with a UK travel agent and it's usually cheaper than booking in with a travel agent in Thailand.

Link to comment
Share on other sites

I have no idea. I've not found it the case with tickets to the U.S.

????

When we flew to the US in April fares were definitely higher on the BKK-California-BKK flights then in reverse, and by a fairly considerable amount. We were flexible on our dates and shopped many airlines and agencies and couldn't get anything for 2 adults and a kid for under about 115K taxes included. If we flew LAX (or SFO) to BKK and back to Cali it would have been about 25% cheaper.

xBKK/USA tickets in business class run about about 60% the price of xUSA/BKK tickets in business class.

They're usually about the same in economy class, and it's a matter of shopping around.

I typically use United's BKK ticket office on Silom Rd ([email protected]) to ticket the nearly-half-off business-class fares ("D" and "Z" fares), but they'll also ticket the cheap "S" economy fares to the USA if you use them.

United claims to give the discount in one direction and not the other in order to stay competitive on the same route (implying that it doesn't need to do so on the xUSA/BKK fares). Over the years, people who live in the States "abused" this discount meant for people living in Thailand, so UA no longer allows you to book the fares online, you need to book them when you're in Thailand (in theory), but if you establish a relationship with a local office (BKKCTO, for example), they'll book them for you without you sitting there in front of them. Same with ticket offices in Colombo, Brunei, Kuala Lumpur and India -- all of which offer similar discounts (better, actually).

But a common issue is that airlines won't make their cheap xAsia fares available on the Internet, or some Americans (and maybe other countries -- I don't know...) would do a one-time one-way ticket to Asia and buy their remaining Asia tickets xAsia. They're trying to avoid that, and by not putting their cheap fares online where Kayak.com and the likes can pick them up, most Americans don't even know they exist. So... try to get some help from a local ticket office -- they'll be able to see any existing cheap xBKK fares.

For a better understanding of why they price differently, I'd suggest flyertalk.com instead of thaivisa.com. Just in this topic alone I've read some very inaccurate statements.

Link to comment
Share on other sites

I am looking at tickets to go back to the UK for a visit and the difference in price is amazing.

To go from BKK to London return is around 80% more expensive than going London BKK rtn.

Why? Anyone any clue?

Book on line with a UK travel agent and it's usually cheaper than booking in with a travel agent in Thailand.

I believe it's impossible to book a flight through a UK travel agent if your departure point isn't the UK. I'll appologise if I'm wrong.
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.









×
×
  • Create New...