Low-Cost Airlines Revolutionize Air Travel in Thailand

TRAVEL & TOURISM
Written by: James Horatanachai,
United Airlines / Air Transport Service Ltd.
Low-Cost Airlines Revolutionize
Air Travel in Thailand
T
he advent of low-cost airlines since 2003 has enabled
many low-to-middle income earners in Thailand who
probably never before thought of traveling by air to
reconsider their options. These airlines are cutting both the
time and cost of air travel in the Kingdom.
At present, low-cost airlines’ three major players are:
Malaysia-based Air Asia in which Thailand’s Shin Corp has a
stake, One-Two-Go owned by Orient Thai Airlines and Nok
Air, a subsidiary of Thai Airways International.
Apart from pricing, low-cost airlines are competing
fiercely on distribution channels, reservations system and
payment methods. We are also seeing determined attempts by
these airlines to win as much customer attention as possible.
Each is differentiating itself in terms of services, reservations
and distribution.
AIR ASIA
Being the first low-cost airline operator in Thailand, Air Asia’s
emergence in the market has shaken and drastically changed
the regional and domestic travel industry. It is now offering
various routes from Bangkok to several domestic and regional
destinations. In trying to boost its name among local travelers, the airline has advertised its airfares on TV, creating the
perception that it is now affordable for anyone to fly.
Its website www.airasia.com features comprehensive information about the company, flight schedules, promotions
and visitors can also make online reservations. However, the
system requires first-time users to register as a member before
continuing to the bookings section. The Call Center, at 02515-9999, is relatively easy to use. What you need is only a pen
and a piece of paper to take note of the code and use it to claim
the boarding pass when you check in at the airport. Payment is
made by credit card. Fares depend on how early you book.
In Thailand, the airline uses 140-seat Boeing 737 planes
and currently serves Bangkok, Chiang Mai, Chiang Rai, Khon
Kaen, Hat Yai, Phuket, Ubon Ratchathani and Udon Thani.
Air Asia does not offer advance seat assignment so passengers are free to choose wherever they want to sit on a firstcome, first-served basis. This maybe viewed as a disadvantage
by some, although they usually allow preboarding for the
elderly and those traveling with small children. However, as
many of their flights leaving from Don Muang International
Airport require a shuttle bus to get to the aircraft, preboarding
becomes irrelevant once you get to the plane. The airline does
not serve or allow passengers to bring food or drinks on board
but does sell simple snacks and beverages on the plane.
14 F Thai-American Business / January-February 2005
ONE-TWO-GO
The airline is the first local player to challenge Air Asia and
its website is www.onetwo-go.com. The Call Center, at 1126,
has three payment options: credit card, 7 Eleven stores and
Counter Service Plus locations. The administrative fee is Baht
25 per ticket.
AMCHAM Members in Thailand’s
Travel and Tourism Industry
AIRLINES AND TRAVEL AGENTS
• Amadeus Asia
• Cathay Pacific Airways
• Diethelm Business Travel
• Galileo Thailand
• Global Union Express
• Northwest Airlines
• Pacific Leisure
• Qantas Airways/British Airways
• SEA Tours
• Thai Airways International
• United Airlines
• World Travel Service
HOTELS AND RESORTS
• Aleenta
• Banyan Tree Bangkok
• Central Hotels Group
• Chiva-Som International Health Resort
• Conrad Bangkok
• Dusit Thani Hotel
• Evergreen Laurel Hotel
• Four Seasons Hotel Bangkok
• Grand Hyatt Erawan
• Holiday Inn Silom Bangkok
• InterContinental Bangkok
• JW Marriott Hotel Bangkok
• JW Marriott Resort and Spa Phuket
• Krisdadoi Chiangmai Aprime Resort
• The Landmark Bangkok
• Marriott Resorts & Spa Bangkok,
Hua Hin and Pattaya
• Marriott Vacation Club
• Millenium Hilton Bangkok
• Nai Lert Park Bangkok
• Novotel Hotel Bankok
• Pan Pacific Bangkok
• Plaza Athénée, A Royal Meridien Hotel
• Queen’s Park Hotel Group
• Royal Orchid Sheraton
• Shangri-La Hotel Bangkok
• Sheraton Grande Bangkok
• Six Senses Hotels, Resorts and Spas
• The Sukhothai Bangkok
• The Metropolitan
• The Oriental Hotel
• Westin Grande Sukhumvit
SERVICES
• American Express
• Black Canyon
• Bourbon Street/The Courtyard
• Cyrano
• Groovy Map
• Hertz Rent A Car
• McThai (McDonald’s)
• Minor Food Group
• Nancy Chandler Graphics
• Outback Steakhouse
• Starbucks
One particular advantage of One-Two-Go is that customers do not have to book in advance as the airline has daily service to every route it operates. The “Go Show” system
allows customers to simply just go to the airport and buy a
ticket at the counter on traveling date. Using 216-seat Boeing
757 and 456-seat Boeing 747 aircraft, the airline will certainly
have seats for “go-show” customers. Every seat is offered at the
same price.
From Bangkok, the airline currently serves Chiang Mai,
Chiang Rai, Hat Yai and Phuket. Unlike most no-frills airlines,
One-Two-Go offers advance seat assignments and serves passengers complimentary snacks and beverages on board.
NOK AIR
The latest addition to low-cost airlines in Thailand, Nok Air,
which in Thai means “bird,” is a subsidiary of Thai Airways
International. The airline aims to tap into this undeveloped
market with fun and friendly service.
Customers can book tickets via its website www.nokair.
com. The Call Center, at 1318, also has three payment options:
credit card, Counter Service Plus locations and Siam Commercial Bank ATM locations. Administrative fees vary from Baht
20 – 30 per ticket. All flights offer advance seat assignments.
Using also 140-seat Boeing 737 aircraft, Nok Air serves
Bangkok, Chiang Mai, Hat Yai, Phitsanulok, Phuket and Udon
Thani. Nok Plus is the airline’s version of Business Class with
free snacks, drinks, newspapers and extra baggage allowance.
REGIONAL TRAVEL
Low-cost airline travel from Thailand now stretches to regional destinations.
• Air Asia serves Kota Kinabalu, Kuala Lumpur, Macau,
Penang and Singapore.
• Another player is Valuair which is privately owned and
was launched as Singapore’s first budget airline offering
three levels of pricing (children, discounted Saver Fare
with restrictions and standard Flexi Fare with no restrictions.) With Airbus 320s, it flies from Bangkok to its base
in Singapore offering some amenities, such as meals and
assigned seats. Their website is www.valuair.com.sg.
• Tiger Airways, of the well known Singapore Airlines,
flies from Bangkok, Chiang Mai, Hat Yai and Phuket to
its base in Singapore, charges about 40% less than current market fares levied by major carriers and uses 180seat Airbus 320s. The airline is also the first operator to
commit to Singapore’s newly proposed low-cost terminal at Changi International Airport, which will debut in
early 2006. Its website is www.tigerairways.com.
James Horatanachai is Commercial Sales
Manager of United Airlines / Air Transport
Service Ltd. He can be reached at:
[email protected]
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The American Chamber Of Commerce In Thailand F 15