Thai Airways Considering Drastic Steps

[SantiSuk]

Thai wife tells me all the time

If no people use it must be to cheap = can not be any good

Increase the price = must be better = more people will buy

Don't we just love their logic

Sorry but this constant bickering about the Thai mentality over demand and prices is typical Western cultural arrogance based on observed norms in a Western culture where competition is the dominant force. Thai culture is group based and if all participants in the market think and act on a group basis then the answer to reduced volume is to increase prices. Unfortunately where the product in question is international in nature the theory breaks down.

The Western answer is for market players to keep cutting the prices until they all go out of business.

Stop sniggering and think outside your cultural stereotypes

[jackr]

Although it's not a great scenario, I can't help but smirk at the rip-off merchants who will hopefully be getting a little worried. Although saying that, JJ and his band of thugs will probably charge 80k per sting instead of the usual 40!

[dhrobertson]

Thai wife tells me all the time

If no people use it must be to cheap = can not be any good

Increase the price = must be better = more people will buy

Don't we just love their logic

Sorry but this constant bickering about the Thai mentality over demand and prices is typical Western cultural arrogance based on observed norms in a Western culture where competition is the dominant force. Thai culture is group based and if all participants in the market think and act on a group basis then the answer to reduced volume is to increase prices. Unfortunately where the product in question is international in nature the theory breaks down.

The Western answer is for market players to keep cutting the prices until they all go out of business.

Stop sniggering and think outside your cultural stereotypes

So it's a cartel!

snigger, snigger

[ChangMaiSausage]

I've stopped travelling with Thai as they do not offer a better service and they are over priced. Increasing the cost is not the solution it's a competative market unless your flying to Samui which is the biggest scam.

[Eurod]

Thai wife tells me all the time

If no people use it must be to cheap = can not be any good

Increase the price = must be better = more people will buy

Don't we just love their logic

Actually, this is a recognized and valid economic model. Economist call it a 'veblen good'- some types of high-status goods, such as high-end wines designer goods and luxury cars, are Veblen goods, in that decreasing their prices decreases people's preference for buying them because they are no longer perceived as exclusive or high status products. So a price increase may increase that high status and perception of exclusivity, thereby making the good even more preferable.

Singapore airways is a good example i think- they offer a product at a higher price than competitors and get away with it.

The problem for Thai air is their product is not at the same quality level as Singapore air.

Nor are most products that this logic is applied to !

[ESB7]

The Thais are really still just emerging from a total farming nation, hence the farmer mentality.....bad crop = increase.....same as less customers = increase....sooner they start thinking/acting business like they may make more profit and bring the country into the 21st century.

[Redsunset]

The Vleben effect is never going to work for them on the CNX route - running dodgy old A300s at double the ticket price of Air Asia's nice new A320s.

Agreed. If TG had a premium product- new airplanes, TVs in economy seats, younger air hostesses - then they could probably increase their prices even in the current market and go for the buisnessman/ premium tourists traveler. But they dont.

What has the age of the air hostesses to do with it?

I personally prefer older experienced well trained ones instead of beautiful chicken.

Hahaha! Thai airways has some of the oldest most unappealing air hostesses in Asia. It's okay if you are older and competent. But when you are older and think the world owes you, and service is not part of the job, then it is time to retire. Singapore Airlines has it right. They understand the busienss traveler. Their air hostesses are lovely, competent and a joy to behold! But honestly.... Thai Airlines service, food and its planes are God awful.

[wileycoyote]

Never mind the Veblen effect ,

if I use Air Asia to connect with our international flights :

I get rooked by the difference in baggage allowances .

I can't interline (Star Alliance Airlines) which was important when there was the disruption of the ash

And finally I have got all the hassle of giving longer "waiting"time between flight ,to ensure I don't miss connections

[retarius]

Bloody amazing...you hike the fare by 46% or 64% and less people booked flights on your airline...I'm shocked...who'der ever thunk that?

Definitely Harvard MBAs developed the price hike strategy...they teach thinking outside the box at Harvard...brilliant.

I'm guessing (hoping) the people (are they political appointees?) that run this airline, have salaries commensurate with their business acumen...but then again, it's probably Thaksin's fault...he's probably had his terrorist red shirts mount barricades to stop all those people that wanted to pay the higher fares from booking on Thai Airways, if he didn't do that then the price hike would have worked wonderfully well....

[Redsunset]

The Thais are really still just emerging from a total farming nation, hence the farmer mentality.....bad crop = increase.....same as less customers = increase....sooner they start thinking/acting business like they may make more profit and bring the country into the 21st century.

I agree. This farmer mentality is also responsible for our crisis today. These farmers just want money. They do not deserve it, but because it is handed out to them, they do not realize that you have to actually add more value to get paid more! So they think the world owes them for doing the same lowly chore.... it's like if your secretary all of a sudden felt she should be paid like the CEO for doing her secretarial job... Sorry, NADA!!!!

[Redsunset]

Why Thai airways is much more expensive than many other regional airlines ? If they want to sell more they should lower their prices. I had experiences a huge difference in a one way ticket for some friends who were stuck in Thailand because of the Iceland volcano. The difference was amazing with Singapore air or Malaysia Airlines. That remind me the Toll way to Don muang , from 55 baht it went to 85 baht ,less customers and higher prices to avoid losing turn over. Change policy , have better service ,newer planes etc ... and people will come back.

Are state operated businesses required to show a profit

THAI has truly become a toilet airline over the past couple of decades. The food taste like shit, the service is lousy and the planes old and dirty... a disgrace... shows you that people all over the world are the same when they are corrupt, do not care and have lousy attitudes. Shameful.

[KKvampire]

Another example of Thai madness (list is endless) Business is bad so they put the prices up. If it wasn't for foriegn investment and trading the country would have been down the tubes faster than its already going due to the political situation.

Reminds me a while ago when I flew with Sri lanka airlines out of Bangkok and was told at check in the flight was overbooked and would I accept a Thai aiways flight 6 hours later(plenty of room on board, no surprise). I told the check-in staff "No way , I wouldn't fly them even if you offer me an upgrade to business or first class"

"We understand" was the response, with a smile. Guess it common knowledge about The National airline of Thailand.

Edited May 3, 2010 by KKvampire

[Redsunset]

Bloody amazing...you hike the fare by 46% or 64% and less people booked flights on your airline...I'm shocked...who'der ever thunk that?

Definitely Harvard MBAs developed the price hike strategy...they teach thinking outside the box at Harvard...brilliant.

I'm guessing (hoping) the people (are they political appointees?) that run this airline, have salaries commensurate with their business acumen...but then again, it's probably Thaksin's fault...he's probably had his terrorist red shirts mount barricades to stop all those people that wanted to pay the higher fares from booking on Thai Airways, if he didn't do that then the price hike would have worked wonderfully well....

Actually, the more I think about it the more pissed off I get... totally morons run that airline.. .Corrupt morons, who don't give a rat's *ss about the passenger. All they care about is their own money. Greedy selfish farmers pretending to be business men!!!

[Redsunset]

Another example of Thai madness (list is endless) Business is bad so they put the prices up. If it wasn't for foriegn investment and trading the country would have been down the tubes faster than its already going due to the political situation.

You are dam_n right!!! Without external help, Bangkok would be a giant rice paddy!

And it seems that is what is happening anyway with the reds protest!

[sootybrown]

The words "p*ss up" and "brewery" spring to mind.

[sootybrown]

More apt for Thailand, "Orgy in a Brothel".

[Redsunset]

For all you women out there... let me give you a dose of reality. No matter what people say, the bulk of the full fare paying travelers are business men, and 99.99% of them prefer great service from great looking women under 200 kilos. Sorry to say that, but anyone who disagrees is living in fantasy land or is lying!!!!

[KKvampire]

Thai wife tells me all the time

If no people use it must be to cheap = can not be any good

Increase the price = must be better = more people will buy

Don't we just love their logic

Sorry but this constant bickering about the Thai mentality over demand and prices is typical Western cultural arrogance based on observed norms in a Western culture where competition is the dominant force. Thai culture is group based and if all participants in the market think and act on a group basis then the answer to reduced volume is to increase prices. Unfortunately where the product in question is international in nature the theory breaks down.

The Western answer is for market players to keep cutting the prices until they all go out of business.

Stop sniggering and think outside your cultural stereotypes

Im Not sniggering I'm laughing at your comment

[andrew55]

That's just Economics 101 - Decreased Demand = Increased Price OR was it the other way around - oops

No problem, just do like that furniture store I heard about, selling at 10% below cost to beat the competition and drive all the customers to his store. When asked about taking a loss on each sale, the owner said he would make it up on volume.

McLovin' it! Is this called an economy of scale?

[Motoon]

Sorry but this constant bickering about the Thai mentality over demand and prices is typical Western cultural arrogance based on observed norms in a Western culture where competition is the dominant force. Thai culture is group based and if all participants in the market think and act on a group basis then the answer to reduced volume is to increase prices. Unfortunately where the product in question is international in nature the theory breaks down.

The Western answer is for market players to keep cutting the prices until they all go out of business.

Stop sniggering and think outside your cultural stereotypes

Don't want to dispute your statement about bickering and sniggering, although the part about "typical Western culture arrogance" is the same stereotyping you complain about...

Anyway, I think as a value customer you can expect that price increases are done transparent and applied logically, only then will you be willing to absorb it and maintain loyalty. The latest price increase by TG does not fit in. If the customer feels forced to compensate for the blatant mismanagment in the past while VIP's (including families) are shuttling around foc, the response will not be a positive one - group based culture or not.

[landofthefree]

Thai wife tells me all the time

If no people use it must be to cheap = can not be any good

Increase the price = must be better = more people will buy

Don't we just love their logic

Sorry but this constant bickering about the Thai mentality over demand and prices is typical Western cultural arrogance based on observed norms in a Western culture where competition is the dominant force. Thai culture is group based and if all participants in the market think and act on a group basis then the answer to reduced volume is to increase prices. Unfortunately where the product in question is international in nature the theory breaks down.

The Western answer is for market players to keep cutting the prices until they all go out of business.

Stop sniggering and think outside your cultural stereotypes

So, John Maynard Keynes got is wrong all those years ago, eh? Obviously the more Thai airways puts up its prices the more customers they'll have. I think someone must have been on the Laoscow!

[ozzieman05]

Thai wife tells me all the time

If no people use it must be to cheap = can not be any good

Increase the price = must be better = more people will buy

Don't we just love their logic

Actually, this is a recognized and valid economic model. Economist call it a 'veblen good'- some types of high-status goods, such as high-end wines designer goods and luxury cars, are Veblen goods, in that decreasing their prices decreases people's preference for buying them because they are no longer perceived as exclusive or high status products. So a price increase may increase that high status and perception of exclusivity, thereby making the good even more preferable.

Singapore airways is a good example i think- they offer a product at a higher price than competitors and get away with it.

The problem for Thai air is their product is not at the same quality level as Singapore air.

El Correct O

[andrew55]

Thai wife tells me all the time

If no people use it must be to cheap = can not be any good

Increase the price = must be better = more people will buy

Don't we just love their logic

Sorry but this constant bickering about the Thai mentality over demand and prices is typical Western cultural arrogance based on observed norms in a Western culture where competition is the dominant force. Thai culture is group based and if all participants in the market think and act on a group basis then the answer to reduced volume is to increase prices. Unfortunately where the product in question is international in nature the theory breaks down.

The Western answer is for market players to keep cutting the prices until they all go out of business.

Stop sniggering and think outside your cultural stereotypes

Hope I,m not bickering, sniggering or failing to think outside my cultural stereotype, but in many countries organizing prices to avoid competition is called a restrictive trade practice and deemed illegal. That said, as an economist I'm a pretty good blacksmith. I love Thailand and fly Thai a few times a month. Have Gold card and find their service great. Rarely have a in seat screen on Bkk to Sing or Kl runs. Not a big deal for 2 hour flight, but other carriers do provide this for slightly less. I'm of Scottish ancestry and was married to a Jew for 15 years but still pay the extra to the carrier of this wonderful kingdom that allows me to spend most of my time here.

I'd also suggest that the western model of competition does not put all out of business. The strong survive and prosper.The weak do not. Not always a good thing accepted. Guess it's a grey old world mate.

[andrew55]

Way off topic, but I just lost newbie status! Yeehah!

[citizen33]

About time you took to the air again. The last time I flew Thai (in January) they had new A330s with TVs in the back of the seats in economy.

It isn't the best airline in the world, but it's sure better than Quaint Arse. Not that it's much competition.

Well, last Wednesday the Thai 747-400 to LHR was sans seat-back TVs as usual. Some might also say that Qantas, which paid for hotels and food for passengers stranded by ash, came out looking better than Thai, which did not. Thai's parsimoniousness and general inefficiency in the crisis certainly helped marketing!

[ozzieman05]

Thai wife tells me all the time

If no people use it must be to cheap = can not be any good

Increase the price = must be better = more people will buy

Don't we just love their logic

Sorry but this constant bickering about the Thai mentality over demand and prices is typical Western cultural arrogance based on observed norms in a Western culture where competition is the dominant force. Thai culture is group based and if all participants in the market think and act on a group basis then the answer to reduced volume is to increase prices. Unfortunately where the product in question is international in nature the theory breaks down.

The Western answer is for market players to keep cutting the prices until they all go out of business.

Stop sniggering and think outside your cultural stereotypes

I love my Thai wifes thinking

drives me made but I love it any way

you seen very aggressive

there are many western men who have chosen to live with a Thai wife

and all the ones I know just bend with the punches

[RAZZELL]

Actually, this is a recognized and valid economic model. Economist call it a 'veblen good'- some types of high-status goods, such as high-end wines designer goods and luxury cars, are Veblen goods, in that decreasing their prices decreases people's preference for buying them because they are no longer perceived as exclusive or high status products. So a price increase may increase that high status and perception of exclusivity, thereby making the good even more preferable.

Singapore airways is a good example i think- they offer a product at a higher price than competitors and get away with it.

The problem for Thai air is their product is not at the same quality level as Singapore air.

Last time I checked, flying Singapore from the UK was nearly the same price as Thai. (I checked today for a theoretical date in June - it was £200 cheaper to fly Singapore to Singapore than Thai to Bangkok...although this might be because of recent "events" )

The problem is...Thai Airways "try" to position themselves as a "Premium" product and price themselves accordingly. The reality is anything but...

RAZZ

[misterme]

The Discount airlines came to Thaiand and captured a market that chose other ways to get around. Those that have been here a while will remember.

The discount airlines took from the untapped price sensitive market (both domestic Thai & visitors) that only chose to fly or even travel when it was cheap. They also heavily dug into the the bus, and train markets.

The airlines thoughts are that now that they have this bigger market, they can raise the price. But it's not going to work. I will pay the going rate when I come and go from the country. But the many (many, many, many) domestic flights I take at 1400THB or 1650 (with the occasional Air Asia 799 sale) will be cancelled.

They will still capture our needed trips, but all the optional ones are now shelved.

People vote with their wallets. I know I will, and I'm less price sensitive than many.

[Sisaketmike]

That's just Economics 101 - Decreased Demand = Increased Price OR was it the other way around - oops

I guess it's just the beginning of other strange actions in the LOS. Land Of Silhouettes.

[h90]

The Vleben effect is never going to work for them on the CNX route - running dodgy old A300s at double the ticket price of Air Asia's nice new A320s.

Agreed. If TG had a premium product- new airplanes, TVs in economy seats, younger air hostesses - then they could probably increase their prices even in the current market and go for the buisnessman/ premium tourists traveler. But they dont.

What has the age of the air hostesses to do with it?

I personally prefer older experienced well trained ones instead of beautiful chicken.

Hahaha! Thai airways has some of the oldest most unappealing air hostesses in Asia. It's okay if you are older and competent. But when you are older and think the world owes you, and service is not part of the job, then it is time to retire. Singapore Airlines has it right. They understand the busienss traveler. Their air hostesses are lovely, competent and a joy to behold! But honestly.... Thai Airlines service, food and its planes are God awful.

OK that is a bad combination......