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Rows of unoccupied seats on a prime time flight from Phuket this week

Phuket Fare: Thai Airways Backs Down on Hike

Sunday, December 19, 2010
THAI Airways appears to be backing away from its high fares on the Phuket-Bangkok route by offering promotional prices. But even the discounts have failed to attract fliers in large numbers on some flights from Phuket.

A Phuketwan reporter flying to Bangkok from Phuket at a discount fare at a peak time this week encountered a 747 on which less than half the seats were occupied.

Thai flies 11 times daily between Phuket and Bangkok at present. The airline was reluctant to provide details on numbers of passengers on board flights.

Back in March, Thai Airways boosted the standard fare on the 696km Bangkok-Phuket hop by a whopping 46 percent, from 2575 to 3770 baht.

The move was roundly criticised by tourism industry leaders on Phuket, and it seemed to be odd at a time when more passengers were opting to fly budget at lower prices.

Now Thai is operating a promotion for December that returns the airline to its pre-March fare of 2575 baht for those who book to fly Mondays through Thursdays, with the fare for Fridays-Saturdays-Sundays at 3165 baht.

Observers find it unusual for a cut in fares on the key Bangkok-Phuket route at a time when airlines usually rely on a growing number of tourists to boost their revenue. However, the December discount appears to have been under-promoted.

Phuketwan discovered the discount by chance when researching flight prices online - if there was any announcement to create interest among the flying public, we missed it.

Despite obvious concerns about the important Bangkok-Phuket dodmestic route, Thai Airways International has conservatively projected a 10 percent increase in revenue but flat growth in seat occupancy next year.

The national carrier's board did not offer precise sales or profit forecasts, but president Piyasvasti Amranand told the Bangkok Post that 10 percent growth appeared possible if there were no major political disruptions next year.

THAI earned more than 12 billion baht in the first nine months of this year.
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Comments

Comments have been disabled for this article.

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No logic involved in decisions taken by Thai Inter management.
These are the people that after the tsunami stopped flying the Phuket to Singapore route due to lack of demand and consequently lost their landing slots. Classic short-sightedness.
Meanwhile, Tiger Airways and Silk Air are making money hand over fist on the route with each offering several flights per day.

Posted by Sir Burr on December 19, 2010 18:11

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Must be hard for the old monopolies to come to terms with competition.

Posted by Mike Boyd on December 19, 2010 18:18

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one big problem thai airways have with their promotional flights is that they do not show when searching from the front page. you have to know to look for the promotional pages and only from there can you get the promotional fares

how many tourists who are comparing fares back from actually even find these promotions? i am guessing very few. the promo fares also will not obviously show if one is searching through agent sites

all i see there now is one promo offering flying to bangkok only on friday/saturday and return has to be on sunday. another promo is flying only monday-thursday and third promo you need to be travelling with someone to get cheaper fares

Not easy with THAI in my opinion

Posted by temh on December 20, 2010 12:27

Editor Comment:

The concept of having special promotions but not telling anyone is a new idea. It may not be imitated.

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Many of the Thai Inter special deals are for Thai nationals only.

Posted by Sir Burr on December 20, 2010 15:08

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THAI overestimated the value of their product and the passengers voted with their feet. I used to fly THAI to BKK in Business which was around Bt 4300 but not at the current prices.

I've switched to flying to Singapore instead for my shopping needs outside Phuket.

As to the illogical "invisible" promotions, it's just another example of how the whole country is being run.

Posted by Chris on December 20, 2010 16:22

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It is incorrect to say that this fare reduction was not published, I read about it on Bill Barnett's website last month, and he must have been informed by someone within TG.

Posted by Ian on January 5, 2011 12:48

Editor Comment:

Hello Ian,
Perhaps Bill read this Phuketwan report on December 19. Bill's report was published on December 23.

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Actually Bill reads the Thai Airways website and the posting from the 23rd refers to a special promotion is the Visit Bangkok Fare

http://www.thaiair.com/offers/special-fare-promotions/en/visit_bkk.htm which is the subject of the article, not fare cutting. Though by the looks of it Bill has been known to read Phuketwan. It's all good.

Posted by Bill Barnett on January 5, 2011 14:23

Editor Comment:

Happy New Year.

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Why on earth would they be flying a 747 for such a short flight, especially with low demand? A simple solution would just be to use a smaller plane.

And what incentive could there possibly be in paying more to fly a full service airline, over a low cost carrier, for such a short flight?

I will always go with the better airline for long hauls, but for something this quick, I will always go with the lowest fare, as long as the airline is safe to fly.

Posted by Kris on January 6, 2011 19:46


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