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The charms of Krabi come at an increasing cost on Thai Airways

Krabi Joins Phuket's Lower Air Fares Push

Thursday, May 13, 2010
Phuketwan News Analysis

THE BATTLE in the air over prices has reached new heights as Krabi complains that Thai Airways return tickets to Bangkok now top 10,000 baht.

The criticism came from Krabi Chamber of Commerce President, Phuwadit Preechanon, who said pricing was making it tough for the destination to compete.

Elsewhere in Thailand, including Phuket and Chiang Mai, where Thai recently announced large price rises, complaints about ''price-gouging'' by the national airline are growing.

AirAsia's low budget prices are changing the attitudes of travellers throughout the region but Thai Airways appears intent on stoic resistance to the challenge by pushing high fares even higher.

Phuketwan checked online and discovered Thai Airways' prices for a return flight between Bangkok and Krabi start at 8160 baht and rise to 13,100 baht for a Royal Silk ticket. AirAsia's standard price for the same journey is 4469.50 baht.

AirAsia flies the route once a day while there are three Thai Airways flights. Bring on more low cost airlines as soon as posible, say local officials, who are concerned about the damaging effect on tourism.

The entire global airline industry is undergoing dramatic change as the traditional national brand airlines seek to compete with budget airlines.

Not many are adopting the Thai Airways approach of trying to increase revenue by lifting prices. In the long term, that probably means increasing the speed with which customers turn to other, less expensive options.
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Comments

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10,000 baht plus for BKK-Krabi-BKK...YIKES!!!

Posted by BigP on May 13, 2010 13:20

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This is Thailand. Thai Air have not got a clue what is going on in the word of air fares.

Posted by Lord Jim on May 13, 2010 14:47

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@Lord Jim....International airfares are usually written in NUCS (Neutral Unit of Currency), NUCS are based on the US dollar. So,a year ago a $1000 airfare would have netted Thai Air approx 36,000 baht, today they will only get 31,500 baht, but of course today that $1000 airfare is being discounted down to $950, $900, $850 or even lower. Thai Air have to match those international fares to keep their passenger numbers. That's why they've bumped up the fares on the less competitive domestic routes. Its the strength of the Thai baht that's caused the problem.

Posted by Antz Pantz on May 13, 2010 18:03

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I should add that the upside to this is that it has never been cheaper for Thai nationals to travel overseas.

Posted by Antz Pantz on May 13, 2010 18:07


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