High-level team seeks to reverse THAI's fortunes

High-level team seeks to reverse THAI's fortunes

From left: Yuthasak Supasorn, governor of the Tourism Authority of Thailand; Nitinai Sirismatthakarn, Airports of Thailand president; Thai Airways International president Sumeth Damrongchaitham and Payong Srivanich, president of Krungthai Bank. (Photo by Somchai Poomlard)
From left: Yuthasak Supasorn, governor of the Tourism Authority of Thailand; Nitinai Sirismatthakarn, Airports of Thailand president; Thai Airways International president Sumeth Damrongchaitham and Payong Srivanich, president of Krungthai Bank. (Photo by Somchai Poomlard)

In a bid to revive loss-making Thai Airways International Plc (THAI), three state-backed entities are pooling their resources to help put the flag carrier back in the black.

The team consists of Airports of Thailand Plc (AoT), the Tourism Authority of Thailand (TAT) and Krungthai Bank (KTB), plus THAI.

THAI president Sumeth Damrongchaitham said the alliance is necessary to combine forces and move THAI towards digital marketing.

He said KTB and AoT have enormous customer databases that will help THAI assess consumer behaviour and adjust marketing plans to fit.

The alliance is a key strategic move for THAI, which has suffered losses for several years, including last year's 2-billion-baht net loss.

The carrier's ambitious goal is to become profitable some time in 2022.

The team's first task is to lure more tourists to second-tier provinces.

TAT governor Yuthasak Supasorn said the agency has been promoting 55 second-tier provinces as new destinations for local and international tourists as instructed by the government.

Those 55 provinces average fewer than 4 million visitors a year and need help to extend tourism revenue to local communities.

Next year, the TAT will continue campaigning for greater tourism in secondary provinces under a new theme, "More Local", that encourages tourists to experience attractions, traditional events, local culture and foods. The TAT will join efforts with the other three team members to drive tourism.

During the first six months of 2018, more than 40 million people travelled to secondary provinces, generating income of more than 2.5 trillion baht.

"Tourism in second-tier provinces grew 4-5% during 2015-16 before the campaign was launched," Mr Yuthasak said. "It is expected to increase 9-10% for 2017-18."

As a partner with the airline, the TAT will offer tourists more attractive packages.

Mr Sumeth acknowledged that the airline faces difficulties such as higher operating costs, rising fuel prices and tough competition.

But THAI believes that it can maintain an average cabin factor of at least 80% for the entire year with the use of new online and digital platforms.

"Tourism in Thailand is growing, so we will take advantage of the opportunity," Mr Sumeth said. "We will work with partners to create proper strategies."

AoT, which operates six international airports, unveiled its own vision to deal with the tourism surge.

President Nitinai Sirismatthakarn revealed that AoT has already begun a 10-year plan of investment and expansion with a budget of 220 billion baht.

The massive outlay is expected to increase capacity from 80 million passengers a year to 185 million in the next decade.

The company is undergoing development of travel data and platform systems to be completed in July 2019. The new system will offer passengers travel data such as real-time flight operations, airport information and situation updates.

In addition, AoT is starting to promote its airports to serve import and export of perishable products, envisioning Thailand as the logistics hub of the region.

At the panel, KTB president Payong Srivanich said the bank has created payment solutions to help tourists pay for products and services online.

KTB has also worked with hotels, airlines and travel companies to create travel promotions.

"In the future, KTB and its alliances will launch travel promotions to help boost tourism," Mr Payong said.

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