THAI revamps ticket sales operations to boost revenue

[webfact]

THAI revamps ticket sales operations to boost revenue
By English News



BANGKOK, Sept 20 – Thai Airways International (THAI) has announced a major structural shakeup with a revamp of its sales operations to turn around the company’s poor performance.

THAI president Sorajak Kasemsuvan said yesterday that the Board of Directors’ decision on restructuring was the most crucial in the past decade aiming for sustainable sales growth given the national flag carrier’s recent expansion of its fleet.

It is vital that THAI improve its marketing system to compete with low-cost and other airlines worldwide, he said.

The responsibility for sales operations, involving Bt170 billion revenue from ticket sales, solely rests on the vice president for sales, resulting in management inefficiency, he said.

Under the new structure, sales will be divided among four vice presidents. The first section concentrates on sales in the domestic and Indochina markets, and sales through call centre and ticket counters, which generate a combined revenue of Bt50 billion. Emphasis will be given to improving the call centre service.

The section on sales in Asia involves Bt60 billion revenue, and the section on Europe, Australia and Africa will have to deliver Bt60 billion in revenue.

The digital commerce section, which concentrates on ticket sales through the Internet and social media, is projected for a revenue increase from Bt18 billion at present by 15 per cent this year and 20 per cent next year.

By next year, revenue from ticket sales through the Internet must reach Bt30-36 billion, said Mr Sorajak, expressing confidence that the restructuring would generate sustainable revenue and end the company’s financial losses.

A report on THAI flight TG679 which skidded off a Suvarnabhumi Airport runway and a review of Mr Sorajok’s management performance were postponed to the next Board of Directors’ meeting next month.

Board of Directors chairman Ampon Kittiampon said the panel approved opening four new routes from Bangkok to Chongqing, Changsha, China and Luang Prabang, Lao PDR, to be operated by Thai Smile, THAI’s sister airline.

The new route between Bangkok and Sendai, Japan, will be operated by THAI. (MCOT online news)


-- TNA 2013-09-20

[LuckyLew]

Maybe they can ask the spirits and the ghosts for guidance and for some good business tips

For one thing they should stop giving away free tickets to so called VIP ... their families and friends

[rkidlad]

I have nothing against Thai except they're too expensive. I can Fly with the likes of Etihad and BA at Christmas for 36,000 return to London. Thai were quoting 50k up. Even if Thai were the same price, I'd still choose the likes of Etihad.

You're supposed to pay for what you get in life, but with Thai you simply don't get what you're paying for. I can speak about economy only.

[tomross46]

The best flight I had on THAI, was when Mr. Wonglee was the CEO. He was a business man, not an appointed politician.

[Wavefloater]

I must admit to only skimming through this piece, but am I right in assuming that this guy is basically pointing the finger of blame for Thai Air's poor recent financial situation at the way tickets are sold? Seriously? He doesn't think there's a bigger problem with over-priced flights on poorly maintained planes or safety concerns? Oh well, I don't use their service anyway (unless ABSOLUTELY necessary).

Besides, once the "bad spirits" are appeased, won't all of Thai Air's problems just melt away?

[jbrain]

Under the new structure, sales will be divided among four vice presidents. The first section concentrates on sales in the domestic and Indochina markets, and sales through call centre and ticket counters, which generate a combined revenue of Bt50 billion. Emphasis will be given to improving the call centre service.

The section on sales in Asia involves Bt60 billion revenue, and the section on Europe, Australia and Africa will have to deliver Bt60 billion in revenue.

The digital commerce section, which concentrates on ticket sales through the Internet and social media, is projected for a revenue increase from Bt18 billion at present by 15 per cent this year and 20 per cent next year.

By next year, revenue from ticket sales through the Internet must reach Bt30-36 billion, said Mr Sorajak, expressing confidence that the restructuring would generate sustainable revenue and end the company’s financial losses.

Let me guess.............they gonna raise the prices?

[laurentbkk]

That it mean the service will increase on board ? the biz class will be as good as any other airline ? the price of ticket will be lower ? Not that I dont believe in Santa but let see ....

[Bagwan]

"The responsibility for sales operations, involving Bt170 billion revenue from ticket sales, solely rests on the vice president for sales, resulting in management inefficiency, he said.

Under the new structure, sales will be divided among four vice presidents. The first section concentrates on sales in the domestic and Indochina markets, and sales through call centre and ticket counters, which generate a combined revenue of Bt50 billion. Emphasis will be given to improving the call centre service."

The current VP for sales obviously wasn't up to the job so lets have 3 more then we get management by committee.- a typical Thai solution.

[worgeordie]

Maybe if they stopped the nepotism,in the company, and employed people

who can do the job,instead of getting the job because they know a relation

already working there,or even buy there job, this practice goes from the

top down,

regards Worgeordie

[ChrisY1]

The only way Thai will ever regain market share and public confidence, is to remove all the cronies and parasitic plebs that have been installed there by PT over the past 2 years, and replace with qualified, able personnel.

Sent from my GT-I9100 using Thaivisa Connect Thailand mobile app

[nong38]

It seems to me that and its been touched upon earlier that THAI is symbol of Thailand. It is also as mentioned a free flight for many govt employees and associates, ordinary passengers come down the list of importance, they are the icing on the cake and pay for it, as best you can by sudsidising the "freebooters".

My first and most expensive flight here ever was with THAI, since then I have not, they are just not competitive on price and value, someone at THAI needs to understand this. There is competition out there, anyone with brain would look what the competiton are offering for what price and react to that, its simple really and I expect, as usual, "Thailand knows."

But not how to run an airline profitably, well it was never taught at school.

[metisdead]

A nonsense trolling post has been removed.

[hellodolly]

I just checked their flight from Bangkok to L,A. and was a bit confused.

The price for Premium Economy and Economy class were the same.

What is the difference in the two classes?

They might want to consider a little remodeling in side the planes. It has been quite a while since I flew first class or Business not sure if there is a difference Bangkok to Chiang Mai but it seemed as if the interior was a bit drab. kind of dated.

[Ron19]

I have nothing against Thai except they're too expensive. I can Fly with the likes of Etihad and BA at Christmas for 36,000 return to London. Thai were quoting 50k up. Even if Thai were the same price, I'd still choose the likes of Etihad.

You're supposed to pay for what you get in life, but with Thai you simply don't get what you're paying for. I can speak about economy only.

I have to agree with what you have said and tell others about some very bad service that I've had on some thai flights and when I brought it to the attention of the thai office in perth,they just weren't interested saying it is up to bangkok so send a letter to bangkok. Edited September 20, 2013 by Ron19

[planr]

I have nothing against Thai except they're too expensive. I can Fly with the likes of Etihad and BA at Christmas for 36,000 return to London. Thai were quoting 50k up. Even if Thai were the same price, I'd still choose the likes of Etihad.

You're supposed to pay for what you get in life, but with Thai you simply don't get what you're paying for. I can speak about economy only.

There will always be a premium being based in "captive hub," in this case meaning that TG will charge more for BKK-LHR-BKK than LHR-BKK-LHR, but it has gotten ridiculous on long haul flights in both business and economy. If they dropped the premium from 20-25% to 10-15% I would be more inclined to give them my business, as I'm sure many others would, particularly frequent fliers. Unfortunately, I'm sure the chances of that happening are slim to none, regardless of how many VPs of Sales they have...

I just checked their flight from Bangkok to L,A. and was a bit confused.

The price for Premium Economy and Economy class were the same.

What is the difference in the two classes?

They might want to consider a little remodeling in side the planes. It has been quite a while since I flew first class or Business not sure if there is a difference Bangkok to Chiang Mai but it seemed as if the interior was a bit drab. kind of dated.

Premium Economy between LAX and BKK has been gone for some time, there is only economy now. Perhaps the new VP of Sales for digital commerce will have someone get around to updating TG's numerous misleading websites.

[sms747]

Easier way- deal with over staffing, cut back on all the people getting free flights and improve the disgusting food. Answereing emails and phone calls would not be a bad idea either.

[jonclark]

Under the new structure, sales will be divided among four vice presidents. The first section concentrates on sales in the domestic and Indochina markets, and sales through call centre and ticket counters, which generate a combined revenue of Bt50 billion. Emphasis will be given to improving the call centre service.

The section on sales in Asia involves Bt60 billion revenue, and the section on Europe, Australia and Africa will have to deliver Bt60 billion in revenue.

The digital commerce section, which concentrates on ticket sales through the Internet and social media, is projected for a revenue increase from Bt18 billion at present by 15 per cent this year and 20 per cent next year.

By next year, revenue from ticket sales through the Internet must reach Bt30-36 billion, said Mr Sorajak, expressing confidence that the restructuring would generate sustainable revenue and end the company’s financial losses.

Let me guess.............they gonna raise the prices?

Nah.. Yinglucks just gonna charter more planes (at the taxpayers expense of course) for her overseas holidays official government visits.

Edited September 20, 2013 by jonclark

[Katipo]

Perhaps they could 'revamp' a few of their planes too..... better yet, upgrade and replace them,

[supaprik]

I use Thai frequently and always business class for international, most times they are comparable with other same service options, the one thing I really detest is their web site and booking engine, as far as I am concerned it has to be be one of the most inept booking portals available, yes the in plane service has also dropped over the years but compared with the online stuff that pales. My wish is for the powers that be to engage suitability competent professionals to overhaul their pathetic internet presence. I will not hold my breath

[GAZZPA]

Maybe if they stopped the nepotism,in the company, and employed people

who can do the job,instead of getting the job because they know a relation

already working there,or even buy there job, this practice goes from the

top down,

regards Worgeordie

Nepotism? In Thailand? Surely not!

[drdoom6996]

I must admit to only skimming through this piece, but am I right in assuming that this guy is basically pointing the finger of blame for Thai Air's poor recent financial situation at the way tickets are sold? Seriously? He doesn't think there's a bigger problem with over-priced flights on poorly maintained planes or safety concerns? Oh well, I don't use their service anyway (unless ABSOLUTELY necessary).

Besides, once the "bad spirits" are appeased, won't all of Thai Air's problems just melt away?

I agree completely. I had to fly between Bangkok and Jakarta several times last year. I flew Thai one. Almost twice the cost, and very poor service. I would only use them "if necessary" as the man said.

[spidermike007]

The only way Thai will ever regain market share and public confidence, is to remove all the cronies and parasitic plebs that have been installed there by PT over the past 2 years, and replace with qualified, able personnel.

Sent from my GT-I9100 using Thaivisa Connect Thailand mobile app

True. But what about competitive pricing? In an open and free economy the one who offers the best product and service for the best price usually gets the business, right? Do you suppose this genius has considered making the airfares more competitive? Do you suppose he has commissioned a survey on the competition? Wat they are offering and what they are charging, vs. Thai Airways? He talks about competing with the budget airline, but how can you do that without being competitive? Basic logic, right? In all the times I have compared Thai, either on domestic or international routes, they have ALWAYS been more expensive. Are they offering a truly superior product? The consensus is no. So, what then justifies the lack of competitive pricing, and why is that not being addressed, or even discussed?

[krabileif]

If Thai air want to boost Internet sales, they should take a look at their website. If I want to book a return flight from Krabi to Stockholm.

On Thaiair.com I can only book from BKK or Phuket. This started when they started Thaismile a year ago. But if I try to start on Thaismile.com, I can book from Krabi, but only to Thiasmiles destinations.

I have called Thai in Stockholm, and finally got the suggestion, that if I use multi destination option I could book to Krabi from Stockholm. But I could not start my trip in Krabi on same website.
If I use Thaismile´s multidestination, I can book from Krabi to Stockholm, but the price they come up with in business was 220 000 THB, when I checked same flight BKK Stockholm it was 101 000 THB. Note that the outbound fligth was in "restricted economy" on that date, and the domestic flights were both in economy.

So by adding Thai smile domestic leg from Krabi I should pay 112 000 THB extra. (who would do that?)
Who in Thai management belive that passengers will try to book a return ticket piont to point via Multi destination? And if they do, get prices that dosent make any sense.

I will of course book on a website, that understand that Thailand has more airports than BKK and Phuket.

Lufthansa, SAS, and non airline websites manage to both book and give reasonable prices including Thai domestic, something Thai air has not been able to fix in a year after the invention of Thaismile.
So Thai has other problems than the number of sales directors, they need someone that can fix their websites

[steveyinasia]

They need to start with customer service from the Royal Orchid members, I tried unsuccessful for two days to call the customer service line, no answer as the line always busy. Wrote an email, no answer. Lodged my request to the receptionist at the Swampy Royal Orchid club lounge, no response. This year over 180,000 miles mostly on Thai and still treated like a lower class citizen......get your act together on customer service first Khun Kasemsuvan and the revenue will follow.

[harleyclarkey]

Are they going to black out their Logo??

Edited September 20, 2013 by harleyclarkey

[lujanit]

Why would you fly TG when you could fly SQ? SQ may be a bit more expensive yet their service is way better. Both Star Alliance.

[toolpush]

I have been flying Thai Air regularly once a month since 1988. I started with the Seattle - Bangkok flight. Back then the flight attendants were young, pretty and very attentive. The service and food were excellent. Over the years I have flown to various destinations and the overall service has steadily deteriorated to the point that Thai is one of the worst airlines in terms of service and food. The planes are old, dirty and hay wired together. I have seen toilet seats secured to the toilet with duct tape, etc. The only reason that I still fly Thai is that the alternative is even worse (Air China out of Beijing). Too bad Singapore Airlines or Cathay Pacific don't fly that route direct.

Some of the flight attendants that I flew with in 1988 are still flying with Thai but in business class and they have certainly enjoyed the food supplied by Thai. LOL

[Litlos]

Maybe review their pricing for one way. BKK to MEL, return 40,000B, one way 102,000B. If they had got it right they would have got 2 legs of a 3 leg trip. The prices have just changed again, but I had already booked elsewhere, Jetstar BKK - MEL, 27,000B in business.

The website for bookings and FF are pretty useless. They are not good for answering emails on the ROP side. Ring ROP select English and either get the call dropped, or get a Thai speaker.

Yep looking after the customers number 1 with Thai.

Cheers

[dogeatdog]

If Thai air want to boost Internet sales, they should take a look at their website. If I want to book a return flight from Krabi to  Stockholm.

On Thaiair.com I can only book from BKK or Phuket. This started when they started Thaismile a year ago. But if I try to start on Thaismile.com, I can book from Krabi, but only to Thiasmiles destinations.

I have called Thai in Stockholm, and finally got the suggestion, that if I use multi destination option I could book to Krabi from Stockholm. But I could not start my trip in Krabi on same website. 

If I use Thaismile´s multidestination, I can book from Krabi to Stockholm, but the price they come up with in business was 220 000 THB, when I checked  same flight BKK Stockholm it was 101 000 THB. Note that the outbound fligth was in "restricted economy" on that date, and the domestic flights were both in economy.

So by adding Thai smile domestic leg from Krabi I should pay 112 000 THB extra. (who would do that?)

Who in Thai management belive that passengers will try to book a return ticket piont to point via  Multi destination? And if they do, get prices that dosent make any sense.

I will of course book on a website, that understand that Thailand has more airports than BKK and Phuket.

Lufthansa, SAS, and non airline websites manage to both book and give reasonable prices including Thai domestic,  something Thai air has not been able to fix in a year after the invention of Thaismile. 

So Thai has other problems than the number of sales directors, they need someone that can fix their websites

I can understand your frustration. It seems stupid.

I offer you two explanations for this.

1, Thai smile is a subsidiary company to thai airways (Solely owned I dont know, it can make a difference) and the problem is you are asking them to book inter company legs effectively a "code share" if the legal side has not been settled then they wont and cant offer that sale.

2, There website is just <deleted>! Its possible!

Easiest way to prove this is to go direct to thai airways office and ask to book this sector. By phone that is. Then you will know. But call both places thai airways and then thai smile. If they both say no then its proberbly a legal issue. But one they should address.

Its only just recently in europe its been possible to book inter line via different airlines.

[marcusd]

Ok. I read this 3 times. This ghost whisperer states they will sell more tickets with 4 vips. Because he says so. Well I run a business andmy sales will be 10trilluon next year...because I say so