Thai Airways Turns To E-commerce

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ONLINE AIRLINE

Thai Airways turns to e-commerce

By Asina Pornwasin

'From now on, the Internet is our main revenue channel' - executive

Flying with Thai Airways is about to become easier.

Within three months, passengers will be able to reserve and buy tickets and instantly complete all the processes required for travel by mobile phone, thanks to the launch of the national carrier's new e-commerce policy.

The director of Thai Airways International's E-Commerce Department, Somchai Suppakitjareon, said the airline's passengers would be able to use mobile phones not only to access flight information, flight schedules and complete check-in, but also book and pay for air tickets instantly.

The move is part of an e-commerce policy that aims to increase the airline's revenue from e-commerce channels from last year's 6 per cent to 15 per cent of total revenue this year. Its total revenue is about Bt130 billion.

"This year the company is focusing on e-commerce and online business, with the aim of aggressively increasing the portion of our revenue generated from that source," Somchai said.

The plan involves providing services via all online channels, included the airline's website, mobile phones and Internet-based kiosks, with the aim of making it easier for passengers to deal with the airline and to travel, leading to an increase in total online transactions.

"We will upgrade our website's online services, increase mobile services and expand our Internet-based kiosks," Somchai said.

The airline's website - www.thaiairways.com - has been renovated and redesigned, giving it full online functions, from flight information to booking, payment and online check-in.

As well, the website will be easier to access and to use, he said. All of the airline's services will be available at the website, including the latest information and real-time prices, all in a user-friendly interface.

"In the past, the website has been an online channel without the mission to become our main source of revenue," Somchai said. "But from now, the Internet is our main channel for generating revenue. We will improve our website to make it a crucial channel for our direct sales.

"This year, our only full marketing effort will be via the website, such as one-to-one marketing, increasing repeat customers and building search-engine optimisation to attract more customers from the Internet," he said.

Somchai said ticket prices would also be made sufficiently competitive to attract online sales at the website, rather than expecting customers to check schedules and prices at the website, then buy tickets from agents. This move is not designed to harm the airline's ticket agents, but is targeted at winning new customers from rival airlines.

"In December 2009, more than 100,000 passengers bought tickets via our website. Sales of tickets via the Internet last year were about US$19 million (Bt629.94 million) per month, from total sales of $315 million per month," Somchai said.

Next, it will roll out more services via mobile phones, beyond providing only flight information, real-time flight status and flight schedules. By the middle of this year, passengers will be able to book and pay for air tickets as well as checking-in for flights via their mobile phones, by accessing m.thaiairways.com.

This service is being designed to serve all GPRS-enabled mobile phones across the five main mobile-phone platforms, including iPhone, BlackBerry, Android, Symbian and Windows Mobile. It aims to attract around 100,000 mobile transactions by the end of this year.

"Our passengers will be able to process their travel arrangements easily, anywhere and anytime, within a few seconds. They will be able to check flight schedules, book, pay, and check-in via mobile phones. Then, they will just have to show up at the fast lane to get a boarding pass, and that's it," Somchai said.

In the second half of this year, the airline plans to expand similar services to Internet-based kiosks located in department stores, shopping centres and public areas. In an initial stage, it plans to deploy around 10 kiosks. Using the kiosks, passengers will be able to access all the services available on the airline's website and on mobile phones.

The airline's E-Commerce Department was set up in the final quarter of last year, in line with its policy of gearing up for online business. It has deployed e-commerce services such as online bookings and payment for air tickets for about five years, but the services have been available without an aggressive supporting policy.

"Revenue from online business has been growing slightly, and amounted to a very small portion of the company's total revenue. Only in 2008 did the online business begin to generate a significant revenue portion - about 3 per cent - and that doubled to 6 per cent last year," Somchai said.

The e-commerce policy is expected to increase both the airline's revenue and convenience for its customers, as well as reducing costs and the manpower needed to sell tickets, meaning that Thai Airways International can improve its competitiveness. As well as increased convenience, customers will benefit from lower prices.

-- The Nation 2010-02-23

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[Langsuan Man]

Typical PR speak, so far every time I have tried to use the site a telephone call to Thai has saved me over $300, not to mention the $100 change fee trying to do it on the web

I guess Thai want's to be the HUB of online travel

[basinboy]

OK there is plenty of PR speak in there and for me at least trying to do anything web based via my Blackberry, is just painful, but maybe that is the third world technology we enjoy in Australia

I cut out the travel agent a year or so ago, when I realised Thai (and other airlines) were actually offering very competitive fares via the web site, previously only a fool would have considered booking this way, a bit like a customer walking in to a hotel and being offered the rack rate.

Now I think the airlines are agressively trying to push out the travel agents, be they real or internet based.

For me there needs to be a good telephone support too, not every journey is A-B.

[KhunDave]

So by the middle of this year we will be able to check in by mobile, and then have to go and stand in a "fast lane" queue to get a bloody boarding pass. Why oh why can't they get their online check in to allow printing of boarding passes??? Most major airlines have had this facillity for years.