The decision of Siam First Tour to terminate its passenger services has sent a message to other interprovincial bus operators that bumpy roads lie ahead for them amid stiff competition from airborne rivals.
The company announced the end of passenger service after May 31, leaving only cargo express delivery in its portfolio.
Established in 1978, Siam First Tour was a familiar name for passengers on the country’s northern routes. It ran from Bangkok to destinations in Chiang Mai, Chiang Rai and Lampang until the last day.
CURTAIN CLOSES
“On behalf of Siam First Tour, I would like to announce that the company has decided to end the service from June 1, 2019 onwards. All executives and staff members would like to thank our customers who used our service over the past 40 years,” bus hostess Baikhaw Dreesri informed passengers as they approached their final destination in Chiang Mai on the morning of June 1.
“Our mission is to take you to the destination safely and happily with our best service,” she said.
“We are proud to serve you and aim to repay our gratitude for your loyalty until today. Thank you very much.”
Ms Baikhaw was on one of the last buses leaving Bangkok on the night of May 31 before the fleet came to a complete halt a day later.
Her Facebook post and that of her colleagues including Naiyana Saisood drew sympathy and encouragement from their followers on social media.
“One more night to speak,” Ms Naiyana wrote on her Facebook page, referring to her last day speaking with passengers. She was on duty on the night of May 31 on a southbound bus from Chiang Mai to Bangkok.
Siam First Tour staff at the company head office pose for a photo to preserve memories on the last day of operations on May 31. (Photo from Siam First Tour @ Wat Samien Naree Facebook account)
“Having listened to her, I felt deeply sorry. Keep fighting,” one follower commented.
“I feel associated with Siam First since I was a kid. The first thing I think of when I have to travel to the upper part of the northern region is Siam First,” another wrote.
BY BUS OR BY PLANE
The company has not given a specific explanation for its decision to end passenger service after more than four decades. But the move comes at a time when interprovincial bus operators, especially those on long-haul routes, are facing stiff competition from low-cost airlines, which offer competitive prices as they fight among themselves to woo air passengers.
A ticket on the most luxurious bus with 24 seats from Bangkok to Chiang Mai is 823 baht, according to the website of the state-owned Transport Co. A Thai AirAsia flight from Don Mueang to Chiang Mai can cost as little as 538 baht excluding taxes, according to the carrier’s website.
“Bus operators are under pressure on revenue and operating costs mainly because of the changing behaviour of consumers who have more options to choose,” said Kamonmarn Jaenglom, an analyst with Economic Intelligence Center (EIC), the research arm of Siam Commercial Bank Plc.
“They face competition from other modes of public transport such as low-cost airlines which offer lower air fares to be competitive with buses running to the same destinations,” the analyst said.
No-frills airlines hold an advantage over bus services as they cut short travelling time, she added.
A bus from Bangkok to Chiang Mai takes at least nine hours, compared with only one hour on a plane. Then again, getting to and from the airports at both ends can add a lot more time to a journey.
TIPS FOR SURVIVAL
Siam First is not the only company feeling the pain from low-cost airlines.
Nakhonchai Air Co, another long-haul bus operator, has already diversified its business from bus service for the first time to taxis. It launched All Thai Taxi in Bangkok 2015, followed by a luxury taxi service last year. But its new venture faces competitors in the form of ride-hailing app companies such as Grab and Line.
Low-cost airlines and their cheap tickets are drawing more travellers away from buses. (Photo by Pornprom Satrabhaya)
The EIC said bus services still have a future as they offer flexible schedules for travellers and can take them to destinations beyond the main cities where airlines operate. But plans to upgrade regional airports and the construction of double-track rail lines to carry high-speed trains will pose another challenge for them in the future, the research house added.
“Bus operators have to make adjustments to boost revenue,” Ms Kamonmarn said.
They should add routes directly to tourist destinations, institute dynamic pricing based on demand, cooperate with local producers to sell products on their buses, and offer bus maintenance services, she suggested.
Bus operators currently cannot set ticket prices at will, as pricing is regulated by the Land Transport Department.