Thai Airways Considering Drastic Steps

[Sisaketmike]

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

Ozzieman your way of thinking isn't really cool. They're smartter in many ways than you are.

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

Thanks, couldn't agree more.

[Sisaketmike]

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

“I love my Thai wife’s thinking,

driving me mad, but I love it anyway.

You seem to be very uneducated.

There are many westerners like you who have chosen to live with a Thai wife, but lots of them will always be in the dark what their wives are really thinking.”

[warfie]

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

Wow, your take on economics is pretty sad.

Wow, you sense of humour is pretty sad.

[TheItaliann]

Who says that raising the price resulted in less customers? If you have 100 people buying a ticket, but 10 choose not to after you raise it 65%, you are still making more money.

THAI Air appears to be using a very lousy business model and I would never fly with them locally or on a 2 hour hop as its much cheaper to fly Air Asia.

[warfie]

Who says that raising the price resulted in less customers? If you have 100 people buying a ticket, but 10 choose not to after you raise it 65%, you are still making more money.

THAI Air appears to be using a very lousy business model and I would never fly with them locally or on a 2 hour hop as its much cheaper to fly Air Asia.

...and hope for the best...

3 hour delay, missed connection... tough titties...

cancelled flight... no refund...

lost luggage... no reimbursement... (not even an apology)

Edited May 3, 2010 by warfie

[Lorin]

Hmm, BangkokAir is 50% cheaper to fly to Phuket than on TG, and that one regarded as "expensive boutique" airline, no comments.

[warfie]

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.

Think you may be on your own on this one mate...

Agreed tomster... anyone can fetch me a beer, even a young 'beautiful chicken'. I don't need any help with anything else.

[TheItaliann]

Who says that raising the price resulted in less customers? If you have 100 people buying a ticket, but 10 choose not to after you raise it 65%, you are still making more money.

THAI Air appears to be using a very lousy business model and I would never fly with them locally or on a 2 hour hop as its much cheaper to fly Air Asia.

...and hope for the best...

3 hour delay, missed connection... tough titties...

cancelled flight... no refund...

lost luggage... no reimbursement... (not even an apology)

Ive never had a problem.

[warfie]

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.

Think you may be on your own on this one mate...

Indeed, beautiful clumsy chicken thanks

'beautiful clumsy chicken' young and devastatingly beautiful SingAir hostess slipped while fetching someone else's bag from overhead, falling right on-top of me... in the confusion while trying to help her regain her feet, I copped an accidental feel... honest, accidental...

Tell me again why you prefer the 'older/more experienced types' --> Edit: @ H90

Edited May 3, 2010 by warfie

[edwinchester]

Who says that raising the price resulted in less customers? If you have 100 people buying a ticket, but 10 choose not to after you raise it 65%, you are still making more money.

THAI Air appears to be using a very lousy business model and I would never fly with them locally or on a 2 hour hop as its much cheaper to fly Air Asia.

Well the OP says that Thai themseleves have admitted to losing 10-20% of customers in only the last fortnight.

Add that to the decline over the last year and I think you will see the result of their high fares.

[KhunDave]

Who says that raising the price resulted in less customers? If you have 100 people buying a ticket, but 10 choose not to after you raise it 65%, you are still making more money.

THAI Air appears to be using a very lousy business model and I would never fly with them locally or on a 2 hour hop as its much cheaper to fly Air Asia.

...and hope for the best...

3 hour delay, missed connection... tough titties...

cancelled flight... no refund...

lost luggage... no reimbursement... (not even an apology)

The impression that Air Asia in un-punctual is out of date IMO. They did bring the perception upon themselves due to over-ambitious expansion a couple of years ago, but if you take a close look the vast majority of their flights are actually very punctual now.

I've been monitoring Air Asia flights for a few months - ok perhaps I've got too much time on my hands - and the 80/90% on-time performance that they claim on their website is pretty much correct I think. The Air Asia mobile website has a flight status page, and the accuracy of the information that they post on there can be cross-checked with the airports' own websites. Overall, there are very few delays, and big delays are extremely rare. Most flights arrive early or on time.

[Jimi007]

My wife and I flew One to Go from HKT to Don Muang, last month. RT for both or us was cheaper than for one RT on Thai. I have to go to Bangkok again next month I may try Air Asia as they have more flights per day. I can go in the morning and return that evening at less than half the price of Thai Air. The only time I fly Thai Air now is when I am arriving on an international flight and I can check my two bags through to Phuket at the international baggage weight for no "extra" charge. Just the increased airfare normally associated with Thai Air. That flight was almost an hour late as they had an old Boeing 747, almost full from BKK to HKT.

[brahmburgers]

Wow, let's take the family to vacation at Phuket.

Great place to get extorted by a jetski punk for 60,000 baht - for a little scrape on the plastic that's been there for many months. That same scrape could get repaired with some glue and fibers for about 250 baht.

Also, watch out for angry taxi drivers. Hope you don't get your knees cracked by an angry driver blindsiding you with an umbrella pole.

On second thought, I think I'll relax up here in Chiang Rai. Friendlier people, and everything's half the price of Phuket.

[britmaveric]

Lower prices would be a good start!

[gemini81]

Lower prices would be a good start!

boycotting the insulting prices by flying another airline is even better!

[souvenirdeparis]

what happens with the BKK/Phuket bus fares then ? and the BKK / CM train fare ?

[noahvail]

It is entirely possible to get a deeply-discounted fare on TG.

I'm going to NZ in September, bought a ticket last month, using my brilliant travel agent in NZ. I had checked the internet, found what I figured was a decent baseline (TG way over the top), and called and told her to do what she could.

She booked me on TG at 54% off. How, you may ask? Simple...the booking was on Malaysia Air, operated by TG! Same flight...code-shared...for less than half the price.

Unfreakingbelieveable!

And I bet if the flight is canceled for some reason, Malaysia Air will actually refund my ticket.

[jackr]

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

You're very green, my friend, if you think it's any more than grabbing. The Thai mentality is to screw what's left for a profit, while the Western one is to forgo profit in an attempt to attract more.

[Johpa]

It is a pretty big stretch of the imagination to classify an airline seat as a "Veblen good" but ya gotta admit that Thai society does provide some comfort to those of us who have long been fans, and have actually trudged through the writings of that great Norske-American Thorstein Veblen. Veblen's opus really hits the mark in Bangkok.

[warfie]

Who says that raising the price resulted in less customers? If you have 100 people buying a ticket, but 10 choose not to after you raise it 65%, you are still making more money.

THAI Air appears to be using a very lousy business model and I would never fly with them locally or on a 2 hour hop as its much cheaper to fly Air Asia.

...and hope for the best...

3 hour delay, missed connection... tough titties...

cancelled flight... no refund...

lost luggage... no reimbursement... (not even an apology)

The impression that Air Asia in un-punctual is out of date IMO. They did bring the perception upon themselves due to over-ambitious expansion a couple of years ago, but if you take a close look the vast majority of their flights are actually very punctual now.

I've been monitoring Air Asia flights for a few months - ok perhaps I've got too much time on my hands - and the 80/90% on-time performance that they claim on their website is pretty much correct I think. The Air Asia mobile website has a flight status page, and the accuracy of the information that they post on there can be cross-checked with the airports' own websites. Overall, there are very few delays, and big delays are extremely rare. Most flights arrive early or on time.

My wife and I operate a Home Stay and personally collect guests from the airport. Every time we're told that the guest is arriving on Air Asia we look at each-other and roll our eyes... in the past three years, Air Asia has been on-time once.

But maybe we're just unlucky...

[warfie]

Whoops, double post

Edited May 3, 2010 by warfie

[KhunDave]

Who says that raising the price resulted in less customers? If you have 100 people buying a ticket, but 10 choose not to after you raise it 65%, you are still making more money.

THAI Air appears to be using a very lousy business model and I would never fly with them locally or on a 2 hour hop as its much cheaper to fly Air Asia.

...and hope for the best...

3 hour delay, missed connection... tough titties...

cancelled flight... no refund...

lost luggage... no reimbursement... (not even an apology)

The impression that Air Asia in un-punctual is out of date IMO. They did bring the perception upon themselves due to over-ambitious expansion a couple of years ago, but if you take a close look the vast majority of their flights are actually very punctual now.

I've been monitoring Air Asia flights for a few months - ok perhaps I've got too much time on my hands - and the 80/90% on-time performance that they claim on their website is pretty much correct I think. The Air Asia mobile website has a flight status page, and the accuracy of the information that they post on there can be cross-checked with the airports' own websites. Overall, there are very few delays, and big delays are extremely rare. Most flights arrive early or on time.

My wife and I operate a Home Stay and personally collect guests from the airport. Every time we're told that the guest is arriving on Air Asia we look at each-other and roll our eyes... in the past three years, Air Asia has been on-time once.

But maybe we're just unlucky...

I think you must have been, they seem to be very punctual from what I can see. But don't take my word for it have a look for yourself: Flight Status

And don't just take their word for it, the accuracy of their data can be cross-checked here: BKK

[kjhbigv]

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.

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.

From where to where? I find it amazing they use an 18 year old 747-400 on the LHR-BKK route, no seat back TV's.....the plane is ancient BUT they happily use a newish A340 or such on the BKK-CNX route regularly. In fact last year I flew on one that was 3 weeks old as advised by the air hostess.....for a quick 1hr hop....surely it makes sense to use a newer plane on the LHR-BKK route?

[jocko]

I have found that in the last few years Singapore and just about all the other airlines can beat Thai on price on the London -Phuket flight with newer fleet's so it's about time Thai lifted there head out of the sand and smelled the coconuts.

I look forward to the future with my cheap finger poised above my keyboard .

[jackr]

Who says that raising the price resulted in less customers? If you have 100 people buying a ticket, but 10 choose not to after you raise it 65%, you are still making more money.

THAI Air appears to be using a very lousy business model and I would never fly with them locally or on a 2 hour hop as its much cheaper to fly Air Asia.

...and hope for the best...

3 hour delay, missed connection... tough titties...

cancelled flight... no refund...

lost luggage... no reimbursement... (not even an apology)

If you have to make a connection, best to use someone else, but they do stipulate point-to-point only. Have made successful claims on damaged luggage with AA on two occasions.

[nisakiman]

The Veblen Effect in part.....

the snob effect: preference for goods because they are different from those commonly preferred; in other words, for consumers who want to use exclusive products, price is quality;

I think the key word here is different, in a positive way not a negative way as TG' history is perceived by the user.

the bandwagon effect: preference for a good increases as the number of people buying them increases;

It would take a Thai mentality to put the above into practice in the situation of Thai Airways.....

No wonder the country is on the verge of destruction.... but the birght side..... the baht gets stronger.

The Veblen Effect, to paraphrase Oscar Wilde, is knowing the cost of everything and the value of nothing. Thai Air needs to get real and look at what airlines around the world are doing - trying to attract more customers with deals. People these days are looking for value for money.

[yesdavy]

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

Okay, I am outside of my cultural whatever, but I am going to require your help in understanding a business model that, during times of low volume, launches a campaign to drive away customers to competing airlines. Does this same model indicate that hotels should raise rates to drive away tourists to competing tourist destinations in other countries? And, the net objective of this practice is?

Do you think this could possibly be about image or saving face rather than business? Could there possibly be a mindset that is more concerned with appearances than revenues? Does a state owned airline even have to show a profit? What happens if they don't?

As for western economies, never do they all go out of business for the reason you stated. The market adjusts according to supply and demand. Sometimes it is a seller's market and sometimes it is a buyer's market. However, the strong survive, just as in Charles Darwin's 1864 On The Origin of the Species, where he documented the biological process of natural selection, which was coined "Survival of the fittest," by Herbert Spencer as applied to theories on the economy, 146 years ago.

Why are western universities so popular? Could they be a status symbol?

[sarahsbloke]

just as in Charles Darwin's 1864 On The Origin of the Species, where he documented the biological process of natural selection, which was coined "Survival of the fittest,"

I believe it's only a 'THEORY', never been proven so therefore not an actual 'biological process' as such ....... might still have been God, or aliens, or whatever.

..... documented his theory about natural selection .........

Edited May 4, 2010 by sarahsbloke

[whybother]

just as in Charles Darwin's 1864 On The Origin of the Species, where he documented the biological process of natural selection, which was coined "Survival of the fittest,"

I believe it's only a 'THEORY', never been proven so therefore not an actual 'biological process' as such ....... might still have been God, or aliens, or whatever.

..... documented his theory about natural selection .........

It's a reasonably well proven theory.

I think it was aliens myself though.

[steve187]

From where to where? I find it amazing they use an 18 year old 747-400 on the LHR-BKK route, no seat back TV's.....the plane is ancient BUT they happily use a newish A340 or such on the BKK-CNX route regularly. In fact last year I flew on one that was 3 weeks old as advised by the air hostess.....for a quick 1hr hop....surely it makes sense to use a newer plane on the LHR-BKK route?

268 seats on a A340, 375 seats on a 747, They do not have any new large capacity planes available for the LHR flight, that's why Eva do well.

Edited May 4, 2010 by steve187