Jay Kiew says 'No' to bus fare reduction

[webfact]

Jay Kiew says 'No' to bus fare reduction



BANGKOK: -- The president of the Bus Operators' Association says bus fare will not be cut despite diesel price will decline several times in the past weeks.

The president, Mrs Sujinda Cherdchai, or best known as “Jay Kiew” reaffirmed her defiance to call by the state to reduce bus fare when she was asked about the fare reduction after diesel price now falls below 20 baht a litre.

She said although diesel now falls below 20 baht or the lowest price in almost seven years, it was still not justified to cut bus fares.

She said private bus operators still have to shoulder high operation cost such as maintenance cost, falling number of customers of up to 60-70%, and people turning to drive by themselves, and to low cost airlines.

These factors had forced some operators to give up operations, she claimed.

Therefore, she said, it was unreasonable to adjust bus fares down.

The Transport Department has recently called on public transport operators to cut their service fees in line with the declining oil prices.

So far, several logistic companies, ferry, canal and river boat operators have cut their transport fees, and fares. But private bus operators shuttling interprovincial bus service remain cool to the call.

Source: http://englishnews.thaipbs.or.th/jay-kiew-says-no-to-bus-fare-reduction

-- Thai PBS 2016-01-15

[NextStationBangkok]

Bus in Thailand is total rip off of public wallet!

The bus fair is set when oil price was $120 per barrel. At the moment it is $30.

When it was $40, the bus fair was 3.5 Baht for red bus, and now it is 6.5 baht stable for many years regardless of lower oil prices.

The Air-condition buses are total stealers. All now charge between 12-15 baht for any small ride.

Only the canal boat is bit honest. They reduced about 20% which is a 2 baht discount compare to few months ago.

Then why to complain Taxis asking for raise ? Government rulers never travel in public transport.

[thesetat2013]

I don't understand why miss sujinda just didn't co e out and say they will not reduce the bus fares because it will fatten their wallets. All those other excuses she gave sounded like BS.

[trogers]

I support doubling those bus fares to ensure passenger loads below 20%...lol

[petedk]

Seriously, how can they survive in 3.5 baht per person?

Incidentally, the motorcycle taxis at the top of my soi have just increased fares by 50%.

I used to pay 10 baht, now 15. I don't know if this is "farang price" or not, but they have known me for years.

[ratcatcher]

They will not reduce the fares as they need that cash for the extensive and comprehensive maintenance we all know is carried out on Thai buses.

I think this article is referring to the inter-provincial bus line companies and not the BMTA buses of Bangkok.

[Soi Sauce]

Is any other country in the World reducing bus,train,air tickets, and taxi fares, let alone gas prices accordingly?

The answer is a great big no.

Stop knocking a great and cheap place to live, full of wonderful people

[Bkungbank]

Let's take budget airline cheaper and save lots of time.

[FloridaExport]

She said private bus operators still have to shoulder high operation cost such as maintenance cost, falling number of customers of up to 60-70%, and people turning to drive by themselves, and to low cost airlines.

What higher operation costs? Maintenance?

The rest of it is typical Thai logic. How do you account for customers finding cheaper, safer, more reliable alternatives? Raise the price, of course.

[Briggsy]

Seriously, how can they survive in 3.5 baht per person?

Incidentally, the motorcycle taxis at the top of my soi have just increased fares by 50%.

I used to pay 10 baht, now 15. I don't know if this is "farang price" or not, but they have known me for years.

You seem to be confused.

You seem to be referring to Bangkok bus fares from 10 years ago.

1. This woman is the president of the Bus Operators' Association. She represents inter-city bus operators under government concession. She has nothing to do with the BMTA who run buses in Bangkok.

2. This is 2016, not 2006. Happy New Year.

[Renrut]

She said private bus operators still have to shoulder high operation cost such as maintenance cost, falling number of customers of up to 60-70%, and people turning to drive by themselves, and to low cost airlines.

What higher operation costs? Maintenance?

The rest of it is typical Thai logic. How do you account for customers finding cheaper, safer, more reliable alternatives? Raise the price, of course.

God knows what kind of logic you use but they're not increasing prices.

[deckape]

Bus in Thailand is total rip off of public wallet!

?? A bus ticket for a 4 hour trip costs 215 THB. That is a VIP ticket. With a snack and drink. Buses are sometimes less than half full, but they seem to run regularly regardless.

I shake my head whenever I buy a ticket. Cheap as chips.

Edited January 15, 2016 by deckape

[FloridaExport]

She said private bus operators still have to shoulder high operation cost such as maintenance cost, falling number of customers of up to 60-70%, and people turning to drive by themselves, and to low cost airlines.

What higher operation costs? Maintenance?

The rest of it is typical Thai logic. How do you account for customers finding cheaper, safer, more reliable alternatives? Raise the price, of course.

God knows what kind of logic you use but they're not increasing prices.

The point is that smart businesses account for loss of customers due lower cost alternatives by lowering their prices or offering better service. They don't keep their rates the same (or raise them). There are many stories of of Thais raising prices to account for a loss of customer base, as if the higher price doesn't lead to further loss of customers.

In this particular story, the owner doesn't seem to understand that she might be able to increase the number of customers by lowering the price. She instead opts to keep the prices high to account for the low number of customers. Her logic is flawed because the prices are probably negatively impacting the number of customers she receives.

Do you understand now?

[springheeled jack]

thai logic prevails she is typical of many thais she doesn't understand the law of economics cheaper bus fares means more customers raising fares means less .

[Thian]

When fuel was expensive there was always a long qeueu at the CNG stations.

Now the taxi's drive fuel again i guess because there's no more qeueu .

[casualbiker]

She said private bus operators still have to shoulder high operation cost such as maintenance cost, falling number of customers of up to 60-70%, and people turning to drive by themselves, and to low cost airlines.

What higher operation costs? Maintenance?

The rest of it is typical Thai logic. How do you account for customers finding cheaper, safer, more reliable alternatives? Raise the price, of course.

God knows what kind of logic you use but they're not increasing prices.

The point is that smart businesses account for loss of customers due lower cost alternatives by lowering their prices or offering better service. They don't keep their rates the same (or raise them). There are many stories of of Thais raising prices to account for a loss of customer base, as if the higher price doesn't lead to further loss of customers.

In this particular story, the owner doesn't seem to understand that she might be able to increase the number of customers by lowering the price. She instead opts to keep the prices high to account for the low number of customers. Her logic is flawed because the prices are probably negatively impacting the number of customers she receives.

Do you understand now?

. Interprovincial bus prices aren't exactly "high"!

[OMGImInPattaya]

thai logic prevails she is typical of many thais she doesn't understand the law of economics cheaper bus fares means more customers raising fares means less .

That depends on how elastic the demand is for inter-provincial bus services is. I would assume it's not that price sensitive and that there is only a certain number of people who wish/need to travel on particular routes on particular days. Therefore, lowering prices wouldn't lead lead to increased passenger numbers...just less revenue and either lower profits or even losses.

Edited January 15, 2016 by OMGImInPattaya

[jaywalker]

Is any other country in the World reducing bus,train,air tickets, and taxi fares, let alone gas prices accordingly?

The answer is a great big no.

Stop knocking a great and cheap place to live, full of wonderful people

My first thought is that capitalism is what it is. You don't like the price? Don't pay it and walk.

I have no problem with that.

As for pathetic maintenance and driver training, it is what it is. Don't take the bus and walk.

---------------

As for it being a State run enterprise with a horrible safety record? They have no excuse to not lower fairs alongside lower operating expenses.

BTW, I utterly detest any and every state run enterprise.

Obama just said he had created 14 million new jobs. What he failed to mention was the $8 trillion (that's $8,000,000,000,000) of government spending, to create them.

Yes, I detest state run enterprises.

[Youaredoomed]

Double plice for you 'Farang' "Fahrlang" Fahlang" or however the TV twattwry choose to misspell it this week.......

Still since I've not taken a bus in twenty years, I couldn't give a flying one......

[casualbiker]

Is any other country in the World reducing bus,train,air tickets, and taxi fares, let alone gas prices accordingly?

The answer is a great big no.

Stop knocking a great and cheap place to live, full of wonderful people

My first thought is that capitalism is what it is. You don't like the price? Don't pay it and walk.

I have no problem with that.

As for pathetic maintenance and driver training, it is what it is. Don't take the bus and walk.

---------------

As for it being a State run enterprise with a horrible safety record? They have no excuse to not lower fairs alongside lower operating expenses.

BTW, I utterly detest any and every state run enterprise.

Obama just said he had created 14 million new jobs. What he failed to mention was the $8 trillion (that's $8,000,000,000,000) of government spending, to create them.

Yes, I detest state run enterprises.

They are private bus operators!

[trogers]

thai logic prevails she is typical of many thais she doesn't understand the law of economics cheaper bus fares means more customers raising fares means less .

That depends on how elastic the demand is for inter-provincial bus services is. I would assume it's not that price sensitive and that there is only a certain number of people who wish/need to travel on particular routes on particular days. Therefore, lowering prices wouldn't lead lead to increased passenger numbers...just less revenue and either lower profits or even losses.

And what is the purpose for her to list the alternative modes of travel that is causing a downturn in her business? Self-drive, minivans, trains and planes...

[OMGImInPattaya]

thai logic prevails she is typical of many thais she doesn't understand the law of economics cheaper bus fares means more customers raising fares means less .

That depends on how elastic the demand is for inter-provincial bus services is. I would assume it's not that price sensitive and that there is only a certain number of people who wish/need to travel on particular routes on particular days. Therefore, lowering prices wouldn't lead lead to increased passenger numbers...just less revenue and either lower profits or even losses.

And what is the purpose for her to list the alternative modes of travel that is causing a downturn in her business? Self-drive, minivans, trains and planes...

Who knows? I assume she's just pointing out that people have many choices for their transportation needs and price is just one consideration.

[Briggsy]

thai logic prevails she is typical of many thais she doesn't understand the law of economics cheaper bus fares means more customers raising fares means less .

You have completely failed to understand.

This woman is not an industry analyst.

She is president of the Bus Operator's Association.

Therefore she is, by definition, an advocate for her members, the largest of which is her own family's firm. By definition she has to present the case most favourable to the bus operators.

Secondly your analysis is completely wrong. Because 1) there is not much choice out there for the long distance bus traveller. and 2) you have failed to factor in the effects of marginal costing where a small increase in the selling price (here: fares) will result in a much larger increase in profitability due to the existence of fixed costs.

Edited January 16, 2016 by Briggsy

[TallGuyJohninBKK]

I have a good solution:

Every time one of these inter-provincial bus companies has a fatal bus crash, that company should be required by the government -- apart from any other sanctions/litigation/insurance, etc. -- to reduce their bus fares companywide by 10% for a year. A second fatal crash in the same year, another 10% off their fares. And so on...

Perhaps that would be a sufficient inducement to get them to start properly maintaining these buses and stop using drivers who are unsafe, reckless and who knows what all else.

Hardly a day goes by here where there isn't a fatal bus crash reported here involving inter-provincial buses, usually in the late night/early morning hours and often under questionable circumstances. Often with multiple fatalities and even more injuries. And yet, we never hear any criminal convictions against the drivers involved or even any resulting sanctions against the bus companies involved.

The whole thing is an ongoing tragedy that, predictably, draws no attempt by authorities to solve or prevent.

[ratcatcher]

Let's take budget airline cheaper and save lots of time.

A person living in Nakhon Pathom wanting to travel to Prachuap Khiri Khan won't save much time by going all the way to Don Mueang to catch a plane. Will they?

Multiply that by the tens of thousands leaving Morchit, Ekkamai and Southern terminals, traveling to smaller provincial towns. Not practical in most cases.

Highway buses, properly regulated and maintained, (a big ask, I know) are still a sound alternative to private cars and mini buses.