Thai Airways Turns Focus On Europe

[george]

THAI airways turns focus on Europe

BANGKOK: -- In a move to boost revenues, Thai Airways International has revised its strategy and is focusing more on Europe than on Asia, which is more sensitive to the swine-flu outbreak.

One of the tactics is to promote its newly opened route from Bangkok to Oslo, where its load factor is as high as 80 per cent.

THAI executive chairman Wallop Bhukkanasut said the airline was planning to introduce promotions to other European countries as well.

Yesterday, the carrier held an anointing ceremony for its two newly acquired Airbus 330-300 aircraft, one of which is being registered as HS-TEN under the royally bestowed name of Suchada and the second registered as HS-TEO under the name Chutamat.

Four more aircraft are scheduled to be delivered this year and two more next year, Wallop said.

The new aircraft will be used on the Japan and Australia routes.

With the Thai tourism industry suffering badly from the global recession, domestic political instability and the type-A (H1N1) influenza outbreak, the government has decided to put the sector on its national agenda and allocated an additional Bt70 million to help rebuild it.

Earlier, three organisations - the Association of Domestic Travel, the Thai-Chinese Tourism Alliance and the Thai-Japan Tourist Association - warned the government about the sector not having enough funds to fight the downturn. According to the Tourism Authority of Thailand, arrivals have already dropped by 19 per cent and the agency is revising this year's target to 12 million visitors.

However, the TAT is confident that it will be able to make a mark in some emerging markets like the Middle East and India as well as China in the second half of the year. It recently launched a marketing strategy that focuses on travellers' interests instead of geographical segmentation.

-- The Nation 2009-07-16

[hansnl]

Now, would this be the first Governmental organisation that finds out that maybe farang tourists bring more money per head to Thailand as Asian tourists?

Edited July 16, 2009 by george

[Orac]

I am no marketing expert but why are they going to promote a route where they are already getting high load factors - surely their sales push should be on routes they are struggling on ??

[Artisi]

I am no marketing expert but why are they going to promote a route where they are already getting high load factors - surely their sales push should be on routes they are struggling on ??

Don't try and apply too much logic to Thai business decisions.

[LaoPo]

Now, would this be the first Governmental organisation that finds out that maybe farang tourists bring more money per head to Thailand as Asian tourists?

They don't have to find out.

Asian tourists -Chinese, Japanese, Korean, HK-tourists for example- bring more money per day than European tourists.

However, EU tourists stay longer but Farang tourists (Europe, N-America, NZ + Australia) to Thailand are in minority, compared to East and South East Asian tourists: who bring more than 60% of the total.

LaoPo

[LaoPo]

THAI airways turns focus on Europe

BANGKOK: -- In a move to boost revenues, Thai Airways International has revised its strategy and is focusing more on Europe than on Asia, which is more sensitive to the swine-flu outbreak.

1. One of the tactics is to promote its newly opened route from Bangkok to Oslo, where its load factor is as high as 80 per cent.

2. According to the Tourism Authority of Thailand, arrivals have already dropped by 19 per cent and the agency is revising this year's target to 12 million visitors.

However, the TAT is confident that it will be able to make a mark in some emerging markets like the Middle East and India as well as China in the second half of the year. It recently launched a marketing strategy that focuses on travellers' interests instead of geographical segmentation.

1. It's funny Thai Airways opens a new route to Oslo although Scandinavian tourists make a large portion of inbound EU tourism to Thailand. But Norway is a small country with just 110.000 tourists to Thailand in 2007.

As far as I know they already have direct flights from Kopenhagen in Denmark and Stockholm in Sweden. Not sure about Helsinki Finland.

tourists in 2007 to Thailand:

Norway: 110.000 Population: 4.660.000*

Sweden: 375.000 Population: 9.000.000

Denmark: 135.000 Population: 5.500.000

Finland: 138.000 Population: 5.250.000 Total population: 24 Million people in Scandinavia (although officially Finland doesn't belong to Scandinavia; sorry Fins ! better: Nordic Region)

Total: 758.000 Nordic Tourists in 2007 which is a staggering high number if one compares the number of -JUST- 746.000 tourists from the UK with it's 61.000.000 people and 537.000 from Germany and 352.000 from France and just 159.000 from Italy.

* Numbers from CIA world factbook, estimated July 2009.

2. This is the first time I read that the TAT -OFFICIALLY- admits that tourism will not reach the 14+ million they talked about last week but will decline to 12 million.

IMO 10 million or below is more realistic but of course, they can't say so because they will probably lose their jobs.

LaoPo

[sibeymai]

seems sensible enough. Too many better airlines in this region such as Singapore and Cathay for Thai to take them on successfully. Also Ethihad, Emirates, Qantas and BA doing longhauls into/out of the region to make much gain there. Scandinavia might be their best option for now given the numbers who holiday in Thailand.

[jfchandler]

I like the juxtaposition of these two thoughts below....

Go THAI Go!!!

THAI airways turns focus on Europe

One of the tactics is to promote its newly opened route from Bangkok to Oslo, where its load factor is as high as 80 per cent. THAI executive chairman Wallop Bhukkanasut said the airline was planning to introduce promotions to other European countries as well.

VS.

Four more aircraft are scheduled to be delivered this year and two more next year, Wallop said. The new aircraft will be used on the Japan and Australia routes.

-- The Nation 2009-07-16

[singa-traz]

seems sensible enough. Too many better airlines in this region such as Singapore and Cathay for Thai to take them on successfully. Also Ethihad, Emirates, Qantas and BA doing longhauls into/out of the region to make much gain there. Scandinavia might be their best option for now given the numbers who holiday in Thailand.

For the same price, I would rather go with Singapore Airlines and their A380 than with the outdated planes currently used by TG on those routes.

The only problem for TG, is that Singapore Airlines is actually cheaper!

For 30% less, you can fly with one of those airlines (Ethihad, Emirates or Qatar), again with newer planes than TG.

TG has lost me and my family as customers for the European route.

[chuenjit]

Their prices are too high - If they want to be competative and promote Thailand cut fares by between 25 and 50%

[sanmiguellight]

I dont mind paying 600-700 gbp for a direct flight, but the problem with Thai and Eva for that matter is these priced tickets are generally only 1 month tickets and the price to change them is 100gbp, if they made them 3, 6 or even 12 month open return theyd get my business.

As they dont i'll fly indirect for 4-500 quid with Emirates or Jet airways.

[LaoPo]

I dont mind paying 600-700 gbp for a direct flight, but the problem with Thai and Eva for that matter is these priced tickets are generally only 1 month tickets and the price to change them is 100gbp, if they made them 3, 6 or even 12 month open return theyd get my business.

As they dont i'll fly indirect for 4-500 quid with Emirates or Jet airways.

Don't know where you're from but the majority of tourists from Europe do not stay any longer than -between 9,28 days for Spain and 18,55 days for Austria- average 15,26 days.

You make the exception.

Lenght_of_stay_Average_2007.XLS

LaoPo

[cyborg22]

Their prices are too high - If they want to be competative and promote Thailand cut fares by between 25 and 50%

Get real no airline is going to cut flights by 50%.

Unless it's last minute flights to save flying with empty seats.

[geriatrickid]

I am no marketing expert but why are they going to promote a route where they are already getting high load factors - surely their sales push should be on routes they are struggling on ??

Although an 80% load factor is better than presumed 50-60% load factor on domestic routes, it's still not good enough. Legacy airlines and TG is one of them require a higher load level to make a profit and thereby subsidize the unprofitable domestic routes. They need to get it above 90% and they need to sell the premium seats which are pure profit. Moving from 80% to 90% and making a profit is a heck of alot easier than moving from 50% to 90%.

The move is coming in time to allow preparation for the next "high" season. The concern I have is that high season in the EU will be smack dab at the start of the flu season. The vaccines won't be rolled out and dosed to the demographic that travels until November/December. It's going to be a close fit. If the flu takes off in December-January the plan will fail, not because of poor marketing but an environmental condition beyond anyone's control.

TG is following the same strategy as Delta and Air Canada, targeting those routes that are viable and letting those routes unprofitable wither (e.g. JFK-BKK). It's not original, but is one that works, so at least TG is trying. Unfortunately, with the old planes with uncomfortable seats, malfunctioning or non existant entertainment systems, they will have a big hurdle to overcome. I'm sorry, but after my flight last week on a 330 in business class a couple of days ago (HKT-BKK) in a seat that was 15 years old, no entertainment system and a departure late by 90 minutes, I won't be switching.

[Thai at Heart]

I am no marketing expert but why are they going to promote a route where they are already getting high load factors - surely their sales push should be on routes they are struggling on ??

Although an 80% load factor is better than presumed 50-60% load factor on domestic routes, it's still not good enough. Legacy airlines and TG is one of them require a higher load level to make a profit and thereby subsidize the unprofitable domestic routes. They need to get it above 90% and they need to sell the premium seats which are pure profit. Moving from 80% to 90% and making a profit is a heck of alot easier than moving from 50% to 90%.

The move is coming in time to allow preparation for the next "high" season. The concern I have is that high season in the EU will be smack dab at the start of the flu season. The vaccines won't be rolled out and dosed to the demographic that travels until November/December. It's going to be a close fit. If the flu takes off in December-January the plan will fail, not because of poor marketing but an environmental condition beyond anyone's control.

TG is following the same strategy as Delta and Air Canada, targeting those routes that are viable and letting those routes unprofitable wither (e.g. JFK-BKK). It's not original, but is one that works, so at least TG is trying. Unfortunately, with the old planes with uncomfortable seats, malfunctioning or non existant entertainment systems, they will have a big hurdle to overcome. I'm sorry, but after my flight last week on a 330 in business class a couple of days ago (HKT-BKK) in a seat that was 15 years old, no entertainment system and a departure late by 90 minutes, I won't be switching.

As for domestic flights, a start to boost revenue would be to make the government officials and all their respective hangers on pay the proper fare.

And yes, in comparison with many other regional carriers, the quality of their planes is without doubt inferior.

[bjderb]

seems sensible enough. Too many better airlines in this region such as Singapore and Cathay for Thai to take them on successfully. Also Ethihad, Emirates, Qantas and BA doing longhauls into/out of the region to make much gain there. Scandinavia might be their best option for now given the numbers who holiday in Thailand.

For the same price, I would rather go with Singapore Airlines and their A380 than with the outdated planes currently used by TG on those routes.

The only problem for TG, is that Singapore Airlines is actually cheaper!

For 30% less, you can fly with one of those airlines (Ethihad, Emirates or Qatar), again with newer planes than TG.

TG has lost me and my family as customers for the European route.

All flights from Uk will struggle to compete with :-) Emirates,Qatar,Etihad who r superb & cheap if you book online.......Bri

[singa-traz]

...

All flights from Uk will struggle to compete with :-) Emirates,Qatar,Etihad who r superb & cheap if you book online.......Bri

If the plane were the same (with same level of service), and the price only a couple of thousand bath more (5-7K), I would be tempted to switch back to TG ... well I would be tempted by the A380 from SG first

[animatic]

I am no marketing expert but why are they going to promote a route where they are already getting high load factors - surely their sales push should be on routes they are struggling on ??

Don't try and apply too much logic to Thai business decisions.

Ditto.

The lands of 'no sun in winter' do send a good portion

of their chronically depressed people out to sunny Thailand

for the Vitamin D therapy.

[Hermano Lobo]

Tell 'em to get some IFE in economy like all the other airlines !

[manuchaomk]

Thai Air team NEED TO FLY DOWN ! They NEED to change something...!

[Priceless]

seems sensible enough. Too many better airlines in this region such as Singapore and Cathay for Thai to take them on successfully. Also Ethihad, Emirates, Qantas and BA doing longhauls into/out of the region to make much gain there. Scandinavia might be their best option for now given the numbers who holiday in Thailand.

For the same price, I would rather go with Singapore Airlines and their A380 than with the outdated planes currently used by TG on those routes.

The only problem for TG, is that Singapore Airlines is actually cheaper!

For 30% less, you can fly with one of those airlines (Ethihad, Emirates or Qatar), again with newer planes than TG.

TG has lost me and my family as customers for the European route.

Ever heard of the concept of direct flights Going to Copenhagen (Denmark) with TG is a direct flight, with SQ you get a stopover in Singapore. SQ don't even fly to Stockholm (Sweden) or Oslo (Norway), but you can make it with two stopovers, Singapore and Copenhagen, and a change of airline in Copenhagen.

I agree with the people saying that Thai has really gone downhill, but I still fly with them because of because of the direct flights. (Scandinavian Airlines is just not an alternative, they are at the real bottom of the barrel. Skytrax rank them along with Aeroflot, Air Namibia, Moldavian Airlines, Myanmar Airways Int'l...)

/ Priceless

[tso310]

In the UK it is really more convenient to fly with the likes of Emirates out of Glasgow, Birmingham, Manchester, Newcastle or even Gatwick than to go via Heathrow. Hardly surprising that this once money spinning route for Thai is running below capacity. For years they've talked about serving Manchester but have never taken it any further.

[catmac]

Classic bad timing by Thai Airways! Just as they decide to concentrate on the Scandinavian market, the Danish authorities have blown the whistle on the BKK airport scam. From other posts in the relevent thread, it would appear that Thailand's image as a tourist destination is being totally trashed in the Scandinavian media.