Thai Airways International holds 'Time out with Thai's Marketing Masters'

Thai Airways International recently held a "Time Out with THAI's Marketing Masters" session to discuss the company's competitive commercial stance at the start of Fiscal Year 2005-2006 (1 October 2005 - 30 September 2006).

Mr. Somchainuk Engtrakul, THAI's Board Member Acting as President, said "The continual increase in fuel cost continues to be one of THAI's greatest challenges. THAI's amount of jet fuel consumption remains unchanged and amounts to 28-30% of the company's total expenses. Last year, THAI's jet fuel expenses were 40,000 million baht. This year, it is anticipated that the cost of jet fuel will continue to rise, with the budget for jet fuel set for 59,000 million baht. Last fiscal year, THAI hedged jet fuel by 30%, although it is possible to hedge fuel up to 50%."

Mr. Vasing Kittikul, THAI's Executive Vice President for Commercial, said "Last fiscal year 2004-2005 (1 October 2004 - 30 September 2005), the company's cabin factor was approximately 74% but was set for 75.7%. This fiscal year 2005-2006 (1 October 2005 - 30 September 2006), THAI forecasts its cabin factor at 73%, with production to increase by 5.4% and cargo to increase by 5.2%. During the month of October 2005, THAI's cabin factor systemwide is 72%."

THAI has been implementing a more competitive strategy in order to successfully complete with low cost and low frills carriers as well as competitor commercial carriers in the industry. In a move to substantially elevate its market share, THAI has implemented more competitive pricing and more strategic promotions made possible through special travel deals such as the Thai Travel Fare, Mother's Day, and a forthcoming Father's Day special air fare.

THAI's marketing efforts in Thailand have focused on corporate sales and block seat allocation. In Thailand THAI has secured a total of 70 corporate clients, with additional corporate sales customers being sought to sign with THAI. The company will introduce Ticket Time Limit Tools by mid-2006, an automated system that will aid in screening duplicate bookings made with varied travel agents and on different reservation systems and cancel bookings when tickets have not been issued. The automated system will provide auto-warnings that will track and alleviate flight overbooking problems experienced when multiple bookings have been made with various agents during passenger price comparisons and when bookings have been made on different reservation systems. Currently, time limits are set as cut off dates for agents to confirm seats and issue tickets, which especially vital during peak seasons.

During Fiscal Year 2005-2006, a total of 5 new aircraft will enter THAI's fleet: 1 Airbus A340-500 and 1 Airbus A340-600 in October 2005, 2 Airbus A340-600 in December 2005 and January 2006, and 1 Boeing 777-200ER in September 2006. In addition, THAI will retire and lease out 7 aircraft: 4 MD-11 to retire from the fleet in April 2006, 1 Boeing 737-400 to be leased to Nok Air, and 2 ATR-72 to retire from the fleet.

THAI aims to boost traffic in the Asian region to and from India and China, in order to increase travel in potential markets where there is incentive and MICE (Meeting, Incentive, Convention, and Exhibition) travel into Thailand. While the winter season is considered the peak period for travel to Thailand, the company's aim is to turn the country into an "All Year Round Tourist Destination" for incentive travel markets. It was announced that cooperation would be sought between THAI and the Tourism Authority of Thailand (TAT), Pacific Asia Travel Association (PATA), and other travel-related entities, to motivate incentive travel into Thailand. Plans are also in place to boost incentive travel on the Bangkok - Moscow route, as the airline regards Moscow an incentive travel market with high potential.

See other recent news regarding: Travel News Asia, Thai Airways International