Thai 'Transport Company' loses bus passengers to budget airlines

[webfact]

State bus company loses business opportunities to budget airlines



BANGKOK: -- The state-run Transport Company is to undergo major business revamp of its public transport strategies after losing 30 per cent in passengers to budget airlines.

The company’s chairman Anusorn Saengnimnual admitted significant drop of passengers due to fierce competition from budget airline services.

He said bus passengers have shifted to low cost airline services on long distance routes because of lesser travel times.

For instance from Bangkok to Hat Yai, Chiang Mai and other destinations in some northeastern provinces which saw the significant drop in passengers by 30 per cent, he said.

Travel time to these long distance destinations takes 8-10 hours by bus, he said.

Apart from budget airlines, there is also rising concern of further decline if high speed train projects to the provinces start to commence services, he said.

This prompted a need for the Transport Company to revise its role and to revamp its business opportunities for survival, he said.

He said a seminar will be called end of this month to address a long term business strategy to make the bus service competitive and generate the highest benefits.

He admitted that the company has anticipated gradual fall in revenues as more competitors are entering the market, not just low cost airlines, taxi vans but also high speed trains.

The business revamp might involve downsizing business to lower operation cost but with better efficiency, and to also cut unnecessary expenditures, he said.

Source: http://englishnews.thaipbs.or.th/state-bus-company-loses-business-opportunities-to-budget-airlines

-- Thai PBS 2015-06-22

[webfact]

Transport Co says low-cost airlines cause its customers to drop by 30 per cent
The Nation

BANGKOK: -- Anusorn Saengnimnual, the chairman of Transport Co's board of directors, said passengers of the state firm's air-conditioned buses have dropped by 30 per cent because travellers turned to use services of low-cost airlines, especially for long travels from Bangkok to Hat Yai, Chiang Mai, and some northeastern provinces.

Source: http://www.nationmultimedia.com/breakingnews/Transport-Co-says-low-cost-airlines-cause-its-cust-30262816.html


-- The Nation 2015-06-22

[Bluespunk]

"This prompted a need for the Transport Company to revise its role and to revamp its business opportunities for survival, he said."

Survival?

Yep, that's the key word when travelling.

[ezzra]

In deed, and if you book early enough, it gets even cheaper, all that with the added bonus

of not getting turned over, crushed or stuff nicked from you while you're sleeping...

[bangkokfrog]

There is not much they can do other than face reality. There are some business models that may have been fine in the past but just can't survive into the future, Long distance bus services will find it almost impossible to compete in terms of time, cost (and in Thailand safety) with budget airlines and (one hopes) high speed trains.

[JOC]

As per usual: Complain about the pesky competitors instead trying to improve the own product!!

Sober/non-drugged drivers

Clean and well-serviced buses

Concentrate on routes, where you can compete (100-500 km)

But I guess, it is easier to complain...................

[CNXBKKMAN]

I think the long distance buses will always be around and more so if Thailand builds some motorways in the future. Air travel in thailand is very cheap. When its not too busy you can buy a ticket for the next day or even the same day and get a low airfare on the busy routes with lots of flights. This situation may not last forever. Airlines consolidate, oil prices go up, governments add taxes and it might not be so cheap and easy in the future meaning some people may choose the bus.

Compare the same domestic journeys to other countries. UK turn up on the day or book the day before for a flight between Scotland or Manchester and Heathrow. You will be very lucky if you pay 5000 baht but could be more like 10000 baht on BA. Book well in advance and you get the "lowest" price about 3500 baht if you are lucky. Its the same in the USA. As Thai people become more wealthy the airlines will charge more. Right now airfares and domestic travel is as good as it will ever be but it wont stay like this forever.

[DLock]

...and maybe soon you'll have pesky fast trains to deal with.

Might be time for a strategy meeting.

[Cuchulainn]

Competent, considerate drivers who don't flee the scene might be a start.

[smutcakes]

Any competent CEO would have foreseen the growth in cheap alternate sources of travel years ago and taken steps to improve their service to compete.

Unfortunately the people in the cushy top jobs of many state enterprises have got their through nepotism and cronyism and lack the skills of someone who understands the business and the requirements to stay relevant and profitable.

Far to happy to sit back and take the pay cheque and perks of the position than actually carrying out the role in a meaningful and positive manner.

[FloridaExport]

When you add in all the buses and customers lost to accidents, it's a surprise they have any left at all.

[JAG]

I wander what is the private long distance bus operators view - outfits like Nakon Chai Air.

[zakk9]

When total cost for society is considered, long distance buses can never compete with trains and planes. Roads cost money, even if the bus companies don't pay for them, there are more accidents, they pollute more and the journey takes longer time and is less comfortable. Their business model is simply unsustainable in a modern society, except to destinations where train lines and airports are too far away.

[seajae]

it doesnt help when there are so many buses crashing due to faulty brakes, unlicensed drivers, drunk/drugged drivers, passengers belongings being pilfered by the drivers lackies in the luggage compartments etc and then charging more than the airlines to take you. Clean, roadworthy, serviced buses with licensed drivers with a zero alcohol/drug intake and a realistic price would go a long way to restoring consumer confidence but that would mean dropping some of the profits, a real no no to the owners, easier to blame the competition of the airlines. Why is it that they can charge low prices when buses cant especially considering the overheads of the airplanes, hmmmm

Edited June 22, 2015 by seajae

[Manbing]

Booked a flight for udon thani for 1300bht return. Cheaper than the bus.

If the bus companies cut profits they can improve customer base.

[Gunna]

It would help if their Bus Terminals where near public transport rather than having to use taxis whose fare often ends up more than the bus fare,

Bangkok - Ekkamai is in a great position near the BTS station but Mochit is not near the BTS or MRT stations.

They should have a bus station more central ie Makassan whiich has SRT & MRT stations or Bang Sue which has severail train lines and an MRT station

[dageurreotype]

As per usual: Complain about the pesky competitors instead trying to improve the own product!!

Sober/non-drugged drivers

Clean and well-serviced buses

Concentrate on routes, where you can compete (100-500 km)

But I guess, it is easier to complain...................

I used to (and still do) much prefer the 24 seat VIP bus from Phuket to Bangkok bus, if time allows. Big comfy seats with plenty of room to stretch out, just hop on one end and disembark the other. No hanging around for hours in dreary overpriced airport lounges thronging with Chinese/Russian hordes, being treated like cattle, barked at at the Immigration desks and then having to pay the price of the flight to a bloody taxi driver to get you to and from the airport. As to safety, you aware of the latest red flag against Thai aviation?

[Cuchulainn]

Immigration desks on the way to Phuket?

[Ricardo]

One advantage that the LCCs don't have, the bus drops-off & picks-up along-the-way.

[Naroge]

As per usual: Complain about the pesky competitors instead trying to improve the own product!!

Sober/non-drugged drivers

Clean and well-serviced buses

Concentrate on routes, where you can compete (100-500 km)

But I guess, it is easier to complain...................

He's not complaining at all. He just realize there is a new busniness environment and plan to take the relevant steps to adapt.

I see nothign wrong with that.

[nakhonsawan]

I tried one of these buses... On the way..... brake Down 2. times, so the trip took more than 6 hours extra.. Not the first time... The drivers do not care... about the passengers...

[amerasianex]

I remember several years ago the bus stopped in the middle of the road

At night. During a heavy rain storm. I had no idea why. Untill everyone got of the buss and started chasing the thousands of frogs hopping around. In the bus headlights. We rolled at walking speed for awhile till. I guess everyone was tired. Can't do that on a train or plane......lol

[BuaBS]

Some seem to forget how terrible airports are. I will always choose the bus over an airplane. No need to show ID , no pesky security , no metal detectors , no groping . I feel safe on the overnight bus. High speed train will have the peskey security too.

I hate authority and airports are full of them.

[roamer]

I think the long distance buses will always be around and more so if Thailand builds some motorways in the future. Air travel in thailand is very cheap. When its not too busy you can buy a ticket for the next day or even the same day and get a low airfare on the busy routes with lots of flights. This situation may not last forever. Airlines consolidate, oil prices go up, governments add taxes and it might not be so cheap and easy in the future meaning some people may choose the bus.

Compare the same domestic journeys to other countries. UK turn up on the day or book the day before for a flight between Scotland or Manchester and Heathrow. You will be very lucky if you pay 5000 baht but could be more like 10000 baht on BA. Book well in advance and you get the "lowest" price about 3500 baht if you are lucky. Its the same in the USA. As Thai people become more wealthy the airlines will charge more. Right now airfares and domestic travel is as good as it will ever be but it wont stay like this forever.

No maybe it won't stay like this forever. I actually have to be in Manchester by 9am tomorrow. My train ticket one way is £135 @7000THB. Only flight that would work for me is £155.

[maidee]

nothing to do that the killed the visa runners business ?

[Tomtomtom69]

I think the long distance buses will always be around and more so if Thailand builds some motorways in the future. Air travel in thailand is very cheap. When its not too busy you can buy a ticket for the next day or even the same day and get a low airfare on the busy routes with lots of flights. This situation may not last forever. Airlines consolidate, oil prices go up, governments add taxes and it might not be so cheap and easy in the future meaning some people may choose the bus.

Compare the same domestic journeys to other countries. UK turn up on the day or book the day before for a flight between Scotland or Manchester and Heathrow. You will be very lucky if you pay 5000 baht but could be more like 10000 baht on BA. Book well in advance and you get the "lowest" price about 3500 baht if you are lucky. Its the same in the USA. As Thai people become more wealthy the airlines will charge more. Right now airfares and domestic travel is as good as it will ever be but it wont stay like this forever.

The other thing is the viability of some domestic destinations. While full-service airlines such as THAI will continue to stop flying to smaller domestic airports as they have been doing for years, even some low cost carriers who took over these markets are doing the same thing.

Consider the airports that THAI no longer flies to:

Narathiwat

Lampang

Phitsanulok

Phetchabun

Mae Hong Son

Mae Sot

In the case of Mae Sot, Nok Air stopped flying Mae Sot-Yangon, Mae Sot-Mawlamyine, Mae Sot-Chiang Mai (OK the first two were international, but just to give you some examples) and now only flies to Don Muang. For Mae Hong Son, THAI could have flown Bangkok-Mae Hong Son rather than Chiang Mai-Mae Hong Son, but never bothered. They stopped flying the route a few years ago now when Nok took over but now Nok has given up on that route too. Kan flies it, but on very small aircraft. You might as well brave the 8 hour twisty curvy road instead, as that's kind of part of the journey.

I think for a country as small as Thailand, only the main trunk routes will continue to have a chance at keeping planes flying to them. So Khon Kaen, Udon Thani, Ubon Ratchathani, Chiang Mai, Chiang Rai, Phuket, Samui, Hat Yai and Surat Thani. All other airports could be eventually replaced by high-speed rail and/or bus services travelling along better highways and eventually motorways.

[CNXBKKMAN]

I think the long distance buses will always be around and more so if Thailand builds some motorways in the future. Air travel in thailand is very cheap. When its not too busy you can buy a ticket for the next day or even the same day and get a low airfare on the busy routes with lots of flights. This situation may not last forever. Airlines consolidate, oil prices go up, governments add taxes and it might not be so cheap and easy in the future meaning some people may choose the bus.

Compare the same domestic journeys to other countries. UK turn up on the day or book the day before for a flight between Scotland or Manchester and Heathrow. You will be very lucky if you pay 5000 baht but could be more like 10000 baht on BA. Book well in advance and you get the "lowest" price about 3500 baht if you are lucky. Its the same in the USA. As Thai people become more wealthy the airlines will charge more. Right now airfares and domestic travel is as good as it will ever be but it wont stay like this forever.

No maybe it won't stay like this forever. I actually have to be in Manchester by 9am tomorrow. My train ticket one way is £135 @7000THB. Only flight that would work for me is £155.

Crazy prices. The private rail companies and BA i feel are a real drag on the UK economy. They make it expensive for people to move around. Basically stop people from moving around the country. I believe Virgin charges gbp600 for one way first class ticket to London if you walk up and pay on the day. If you take a Virgin flight from Manchester airport to Orlando or Las Vegas the economy return airfare is cheaper than that train to London.

[CNXBKKMAN]

I think the long distance buses will always be around and more so if Thailand builds some motorways in the future. Air travel in thailand is very cheap. When its not too busy you can buy a ticket for the next day or even the same day and get a low airfare on the busy routes with lots of flights. This situation may not last forever. Airlines consolidate, oil prices go up, governments add taxes and it might not be so cheap and easy in the future meaning some people may choose the bus.

Compare the same domestic journeys to other countries. UK turn up on the day or book the day before for a flight between Scotland or Manchester and Heathrow. You will be very lucky if you pay 5000 baht but could be more like 10000 baht on BA. Book well in advance and you get the "lowest" price about 3500 baht if you are lucky. Its the same in the USA. As Thai people become more wealthy the airlines will charge more. Right now airfares and domestic travel is as good as it will ever be but it wont stay like this forever.

The other thing is the viability of some domestic destinations. While full-service airlines such as THAI will continue to stop flying to smaller domestic airports as they have been doing for years, even some low cost carriers who took over these markets are doing the same thing.

Consider the airports that THAI no longer flies to:

Narathiwat

Lampang

Phitsanulok

Phetchabun

Mae Hong Son

Mae Sot

In the case of Mae Sot, Nok Air stopped flying Mae Sot-Yangon, Mae Sot-Mawlamyine, Mae Sot-Chiang Mai (OK the first two were international, but just to give you some examples) and now only flies to Don Muang. For Mae Hong Son, THAI could have flown Bangkok-Mae Hong Son rather than Chiang Mai-Mae Hong Son, but never bothered. They stopped flying the route a few years ago now when Nok took over but now Nok has given up on that route too. Kan flies it, but on very small aircraft. You might as well brave the 8 hour twisty curvy road instead, as that's kind of part of the journey.

I think for a country as small as Thailand, only the main trunk routes will continue to have a chance at keeping planes flying to them. So Khon Kaen, Udon Thani, Ubon Ratchathani, Chiang Mai, Chiang Rai, Phuket, Samui, Hat Yai and Surat Thani. All other airports could be eventually replaced by high-speed rail and/or bus services travelling along better highways and eventually motorways.

Those smaller cities may actually be able to support air services better as the country develops and hopefully becomes more wealthy. Lampang has a lot more flights today to Bangkok than years ago when only PB Air flew the route. 3 or 4 Nok Air flights, a couple of Bangkok Air, Air Asia. About as many flights in one day that PB Air operated in a whole week. Prices are only a couple of hundred baht higher than Chiang Mai with lots of flights and competition.

[Basil B]

Hardly see Airlines competing with bus company for a 1 hour flight compared to a 8 hour bus trip, airports are often out of town and you have to check in early for you flight so you do not save that much time.

[rametindallas]

When (and for some of you, "if") the dual track, fast freight/passenger rail service opens, it will break the back of the trucking mafia/syndicate in Thailand that has been destroying the roads with their overloaded trucks. When the roads improve, bus service will be a comfortable alternative to destinations not served by airlines.

Personally, I like the VIP buses as they are more comfortable than a plane and less hassle; the only drawback is the swaying from uneven highways caused by overloaded trucks.

Now would be a good time to 'slim down' by selling off the oldest buses, getting rid of incompetent drivers, and run a taut, clean, reliable, and safe operation that does not compete with airlines. Trying to compete with airlines is a money-loser as long as energy prices are as low as they are. I hope they can 'get it together' and survive. In the future, they should locate new bus terminals next to, or part of, the new train terminals and the government should mandate bus terminals at all airports.

.