Mrta Raises Ticket Prices Again, This Time By 15%

[Bentley 7]

One of the benefits we give to our employees is that we pay for MRTA monthly passes in lieu of parking spaces in the building, this program established as a cost cutting measure 3 years ago is now coming on par with the cost of parking.

When we first started it was a monthly cost of THB 750, a great saving of nearly 50% of the parking space cost in our building, plus no more traffic excuses for being late and generally more relaxed employees. Within 6 months it went to THB800, roughly a year later THB900 and 6 months after that THB 950 and THB 1000 6 months later. Now I have been informed that it will rise from next month a staggering 15% to THB 1150 for unlimited use for 30 days.

I wish our margins and prices would have risen in the same proportion over the same period, instead we did a price freeze and a 10% reduction in some areas of the business.

So what gives these thieves the right to extort the thai public, hurting the salaried workers who are the ones who have had to suffer the brunt of the financial crisis through wage freezes and often reductions.

Considering the cost of a parking space is THB1500 (unchanged after 3 years) the program is close to being abolished and another 30 cars can hit the road again every day and add to the pollution and traffic jams.

Why is that when something good is done in Bangkok or in Thailand some greedy ass sod just can't help but to go and rape the hel_l out of it. MRTA's costs haven't increased they run on electricity and not oil, they got plenty of customers. I suspect they are funding their new line developments with present cash flow rather than future earnings. What a great business tactic, how I would love to expand our business with increases in prices and profits generated today to pay for my expansion, my clients would run to my competitors without a doubt.

To add injury to insult isn't it partially government run, how could they do this to their own people and more importantly the same group of people who pay legitimate taxes in Thailand, straight from their pay cheques every month.

I'm sure there won't be any protests or refraining from using the service, it will be accepted and in another six months it will go up again. I recall in the west an increase of 5% was considered horrific but here it's standard practice.

How long can the average Thai keep the fat cats rolling in greedy excess, before they break?

[bkkjames]

Good letter, why not send it to the BK Post or the Nation letters section as well.

[TheVinylMan]

What other major city can you travel unlimited on the underground for approx 20GBP (1150thb) for one month???? I know for a fact your gonna be spending AT LEAST 100GBP (5500thb) a month for the same in london!!!!!!!!!

another thing why give them unlimited travel??? i bet some of your people only live a couple of stops from the office and it works out cheaper to just buy the daily rate ticket!!!

i used to travel queen sirikit to lumpini and the 2 tickets per day was 36 baht x 20 working days = 720 baht compared with 1000 baht for the monthly ticket!!! just an observation

[Bentley 7]

The staff who are provided this benefit live further away and park their cars at Chatuchuk or Ladproa stations at their own expense at THB 1000 per month, thus the savings are real for them too. It was estimated they were spending upto THB 4000 to get to work prior to the program being initated, even with the Company paying for parking.

In comparison with the costs of similar services in western countries, your probably correct, it may be cheaper, but as a percentage of salary for the average Thai office worker it is probably higher. The distances travelled are probably further too considering I think the MRTA is only 43 kms long end to end.

The point being I wonder if the UK metro increased it prices 15% in 6 months or over 40% over 3 years would the public be outraged or would the government intervene?

[samran]

I'd debate whether their costs haven't risen.

Sure they use electricity, which in turn comes from, in the main, gas fired generators in Thailand, or the BLCP power plant which is coal fired. Electricity prices in Thailand are pretty liberalised, meaning, they go up and down with the market. The alternative is, a government controlled pricing regieme which would cap prices, leading to under-investment in the electricity generation system.

Coal prices are twice their historical highs, even with this economic downturn. Gas pricing, as far as I understand it, is linked to oil prices, which, although not at the $100 and whatever 2008 highs, are still historically high. When the financiers did their price forecasts for the underground, I guarantee that they didn't bet on higher than historical average energy costs. No doubt their bottom line would have taken a massive hit over the past year.

The MRTA are also undergoing expansions...with the red line. No doubt their cash flows could be beefed up in advance of this new line. I'm sure SRT is also via its black box is trying to cross subsidise a little bit the new airport line.

Finally, as far as my experience goes, the trains are packed most of the time. They have a captive audience as people learn that travellng by train is the better way to go. You can still notch the price up a little more, and not lose too many passangers, if any.

All I'd say to you is this. Offer your staff a choice of parking versus train. It is going to cost you the same not matter what. I guarantee that most, if not all would stick to the train given the convienence it brings over a car and the massive time savings over driving. Time, in itself, has an inherent value.

[hhgz]

"it will rise...a staggering 15% to THB 1150 for unlimited use for 30 days."

Wow, an increase of 6THB/day. Hold the <deleted>' presses.

[givenall]

One of the benefits we give to our employees is that we pay for MRTA monthly passes in lieu of parking spaces in the building, this program established as a cost cutting measure 3 years ago is now coming on par with the cost of parking.

When we first started it was a monthly cost of THB 750, a great saving of nearly 50% of the parking space cost in our building, plus no more traffic excuses for being late and generally more relaxed employees. Within 6 months it went to THB800, roughly a year later THB900 and 6 months after that THB 950 and THB 1000 6 months later. Now I have been informed that it will rise from next month a staggering 15% to THB 1150 for unlimited use for 30 days.

I wish our margins and prices would have risen in the same proportion over the same period, instead we did a price freeze and a 10% reduction in some areas of the business.

So what gives these thieves the right to extort the thai public, hurting the salaried workers who are the ones who have had to suffer the brunt of the financial crisis through wage freezes and often reductions.

Considering the cost of a parking space is THB1500 (unchanged after 3 years) the program is close to being abolished and another 30 cars can hit the road again every day and add to the pollution and traffic jams.

Why is that when something good is done in Bangkok or in Thailand some greedy ass sod just can't help but to go and rape the hel_l out of it. MRTA's costs haven't increased they run on electricity and not oil, they got plenty of customers. I suspect they are funding their new line developments with present cash flow rather than future earnings. What a great business tactic, how I would love to expand our business with increases in prices and profits generated today to pay for my expansion, my clients would run to my competitors without a doubt.

To add injury to insult isn't it partially government run, how could they do this to their own people and more importantly the same group of people who pay legitimate taxes in Thailand, straight from their pay cheques every month.

I'm sure there won't be any protests or refraining from using the service, it will be accepted and in another six months it will go up again. I recall in the west an increase of 5% was considered horrific but here it's standard practice.

How long can the average Thai keep the fat cats rolling in greedy excess, before they break?

I have same problem with my rent of my business. I really do not understand economy in Thailand. In these bad times I would think my cost also would stay the same although was hoping it would go down the same as my income. But my expense keeps going up. I have decided to stop investing in Thailand all together and sell as much as possible and reinvest back home

[kyb789]

I am not familiar with the "unlimited rides" per month pass. However, I use regularly the 30day-30trip pass at 650baht. You can also buy a 30day-40 trip pass much cheaper than an unlimited pass. Why not give them the 40-trip pass? That would cover all trips in a 5-day work week.

[teatree]

What other major city can you travel unlimited on the underground for approx 20GBP (1150thb) for one month???? I know for a fact your gonna be spending AT LEAST 100GBP (5500thb) a month for the same in london!!!!!!!!!

another thing why give them unlimited travel??? i bet some of your people only live a couple of stops from the office and it works out cheaper to just buy the daily rate ticket!!!

i used to travel queen sirikit to lumpini and the 2 tickets per day was 36 baht x 20 working days = 720 baht compared with 1000 baht for the monthly ticket!!! just an observation

You can't really compare the London Underground system with what Bangkok has. The MRT is very limited whereas on the LU you can travel from a satellite town on one side of London, right the way through London to another satellite town on the other side.

[kyb789]

I am not familiar with the "unlimited rides" per month pass. However, I use regularly the 30day-30trip pass at 650baht. You can also buy a 30day-40 trip pass much cheaper than an unlimited pass. Why not give them the 40-trip pass? That would cover all trips in a 5-day work week.

I just noticed you are talking about MRTA. My comment was regarding BTS. My mistake.

[yabaaaa]

What other major city can you travel unlimited on the underground for approx 20GBP (1150thb) for one month???? I know for a fact your gonna be spending AT LEAST 100GBP (5500thb) a month for the same in london!!!!!!!!!

another thing why give them unlimited travel??? i bet some of your people only live a couple of stops from the office and it works out cheaper to just buy the daily rate ticket!!!

i used to travel queen sirikit to lumpini and the 2 tickets per day was 36 baht x 20 working days = 720 baht compared with 1000 baht for the monthly ticket!!! just an observation

Yes salaries in Bangkok and London are so similar.

[tuky]

I'd debate whether their costs haven't risen.

Sure they use electricity, which in turn comes from, in the main, gas fired generators in Thailand, or the BLCP power plant which is coal fired. Electricity prices in Thailand are pretty liberalised, meaning, they go up and down with the market. The alternative is, a government controlled pricing regieme which would cap prices, leading to under-investment in the electricity generation system.

Coal prices are twice their historical highs, even with this economic downturn. Gas pricing, as far as I understand it, is linked to oil prices, which, although not at the $100 and whatever 2008 highs, are still historically high. When the financiers did their price forecasts for the underground, I guarantee that they didn't bet on higher than historical average energy costs. No doubt their bottom line would have taken a massive hit over the past year.

The MRTA are also undergoing expansions...with the red line. No doubt their cash flows could be beefed up in advance of this new line. I'm sure SRT is also via its black box is trying to cross subsidise a little bit the new airport line.

Finally, as far as my experience goes, the trains are packed most of the time. They have a captive audience as people learn that travellng by train is the better way to go. You can still notch the price up a little more, and not lose too many passangers, if any.

All I'd say to you is this. Offer your staff a choice of parking versus train. It is going to cost you the same not matter what. I guarantee that most, if not all would stick to the train given the convienence it brings over a car and the massive time savings over driving. Time, in itself, has an inherent value.

I tend to side with samran.

The last few years subsidies on oil fuels have been cut by the Thai Gv't, so I must also presume gas and coal subsidies, if they existed have also been cut by the gv't (which started with Thaksin).

So I also presume that subsudies that applied to running public transport have also been cut.

We have yet to produce a perpetual motion engine, so therefore prices do go up as electricity does require fuel.

I do disagree with samran regarding the historically high prices of oil however.

They are at a price that I personally think is quite correct, being employed by the insustry, I would like to see the earlier prices maintained, however we are at a sustainable level now.

Crude Oil $72.42

▼0.05 0.07% 14:45 PM EDT - 2009.09.18

I sure wish I had invested in gold when it was $300 (+) an ounce, which was roughly the same time oil was around $13 a barrel (have I just contradicted myself?).

Anyway, I have contributed exactly nothing to this thread, so therefore, if I was a BKK elite I could still charge a premium for my input.

Edited September 18, 2009 by tuky

[daveh]

Here is a solution. Give your Thai employees 1000 THB extra a month in salary and let them decide how to best get to work. I'm sure those who live close to work would really appreciate finally getting the benefit from the company that other employees who live far from work and near MRT get.

[Rionoir]

Do you have their costs or know what their profit margin is? This doesn't really mean anything without comparing it to that...

[soloman]

I am not familiar with the "unlimited rides" per month pass. However, I use regularly the 30day-30trip pass at 650baht. You can also buy a 30day-40 trip pass much cheaper than an unlimited pass. Why not give them the 40-trip pass? That would cover all trips in a 5-day work week.

I just noticed you are talking about MRTA. My comment was regarding BTS. My mistake.

What is the cheapest way to travel BTS for me. I average 4 trips per day of a distance of just 2 or 3 stations? duration one month plus. I only understand the one day pass, and normal cash tickets. Thanks in advance for any help.

[PattayaBunLover]

One of the benefits we give to our employees is that we pay for MRTA monthly passes in lieu of parking spaces in the building, this program established as a cost cutting measure 3 years ago is now coming on par with the cost of parking.

Why is that when something good is done in Bangkok or in Thailand some greedy ass sod just can't help but to go and rape the hel_l out of it.

How long can the average Thai keep the fat cats rolling in greedy excess, before they break?

After you have spent a couple billion dollars (US) building and operating a city transit system, get back to us.

[losworld]

Hate to say it but get ready for roaring inflation in the coming years particularly if oil continues to be manipulated on the world market. This is just the tip of the iceberg.

[CaptHaddock]

When we first started it was a monthly cost of THB 750, a great saving of nearly 50% of the parking space cost in our building, plus no more traffic excuses for being late and generally more relaxed employees. Within 6 months it went to THB800, roughly a year later THB900 and 6 months after that THB 950 and THB 1000 6 months later. Now I have been informed that it will rise from next month a staggering 15% to THB 1150 for unlimited use for 30 days.

...

So what gives these thieves the right to extort the thai public, hurting the salaried workers who are the ones who have had to suffer the brunt of the financial crisis through wage freezes and often reductions.

...

Here in New York City the cost of a 30 day unlimited metro card is $86 or ฿2898. So, your price seems like a bargain to me.

Also, before you make accusations of thievery, does the MRTA operate at a surplus or a deficit? How much of the cost of the system is covered by fares as opposed to subsidies?

[zig]

I seem to have some foggy memories that when they just started they promised promotional prices for a year or so, with planned price increases in the next years. If these memories are true then they are just following the initial plan. Or was it for BTS?

...

Also, before you make accusations of thievery, does the MRTA operate at a surplus or a deficit? How much of the cost of the system is covered by fares as opposed to subsidies?

[Mercury]

Is it just France which understands (presuming France still thinks this way) that public transport is for the benefit of the economy as a whole and should not necessarily run at a profit ?

I've never been concerned enough to worry about Bangkok transport costs but I guess that the prices are high for the millions who rely on the bus network.

[Travel2003]

Here is a solution. Give your Thai employees 1000 THB extra a month in salary and let them decide how to best get to work. I'm sure those who live close to work would really appreciate finally getting the benefit from the company that other employees who live far from work and near MRT get.

Its a suggestion, but in my opinion not a solution.

Most of the Thai employees will use the money for something else, and then take either their car or the cheapes way of transportation (bus I guess) to work, and the entire point is gone.

Funny to see how some members compare the prices to what they pay here to where they come from.

Anyhow, the MRTa is probably in economic trouble so they do the most logical here, and that is to increase the prices.

[Gary A]

Anyway you look at it, it's still a lot cheaper than owning a car, keeping it maintained and driving through Bangkok every day. Freeze the compensation to what it is now.