หน้าทอนซิตี้ : NathonCity

source : Bangkok Post (online)

Thursday February 21, 2008

Horizons : TRAVELLER'S TALES
DON ROSS

Let's make a toast to ourselves, a jubilant Thai Airways International president, Apinan Sumanaseni, told executives during the Samui inaugural flight celebrations. We have waited for this moment for years.

Samui's travel industry and local officials joining the event, at the four-star Centara Grand Beach Resort, raised their glasses to welcome the new twice daily service that commenced last Friday.

Everyone breathed a sigh of relief, the four or five-year wait for THAI to touch down on the island's privately owned airport was over.

If you had asked me two weeks ago if THAI would succeed in launching a service to Samui, I would have admitted I was sceptical, said Centara Grand general manager, Jacques Mury.

Mr Mury has lived in Samui for eight years managing the beachside hotel on Chaweng bay. He loves the place, but like most residents he believes the drive to take this island's hospitality up market requires more airline access.

THAI's arrival is viewed as the solution to the arrival of a network that will draw high-end travellers to the island.

In between the lavish dinner and aided by free-flowing wines and ales, Samui's travel and hotel executives spoke enthusiastically about economic prospects. You would have been forgiven for assuming THAI had just landed the monster A380, with three decks of tourists brimming over to fill up every available room. In fact, hoteliers were awe-struck by a twice daily Boeing 737-400 that delivers 300 additional seats a day.

There were some quite magical observations. "We are on the map," said Tourism Association of Ko Samui president, Seni Puwasethawon. "We were off the map before, now we are on it."

I felt like assuring him that Samui was still on the Michelin tourist map, the last time I looked at it, and as far as I know it hasn't fallen off the school globes that adorn the headmasters' study in every town in the land.

But he was too overjoyed in the knowledge that his island tagged Paradise is now on the THAI International network map. It's the only map that counts and once the tiny Jampee flower emblem is placed over the island the world is your conch shell. In practical terms, it means the 600,000 plus Royal Orchid Plus frequent flyers, many of them business travellers, can soar to Samui, like they do to other domestic destinations, for a debit of just 15,000 points.

Being on the map has other advantages. It plugs Samui into the THAIs reservations system, worldwide, that connects to at least 500,000 travel agents and corporate travel planners. The island will immediately benefit from publicity in the airline's in-flight magazine, e-newsletters, sent to frequent flyer programme members, and global advertising to both consumers and trade.

Ultimately, the vast pool of travellers in Star Alliance will gain access through THAI code-share deals to Samui.

"It should help us fill rooms," said Mr Seni. "Expansion in the three to four-star category continues and that has given us a surplus so we really do need additional flights if the islands economy is to grow."

You cannot fault Mr Seni's argument from a business perspective, although there are alarming discrepancies between his claim that the island has 15,000 rooms available for tourists and other reliable data sources that say the room pool already exceeds 20,000.

There are also discrepancies in just where the island is heading, with the Tourism Authority of Thailand claiming the island is now reaping the benefits of being a world class destination.

However, the island's hoteliers point out that the actual five-star or luxury hotel segment represent less than 10% of the overall room supply, leaving the island firmly anchored in the budget to mid-level tourist markets.

Based on the calculation that travellers stay on the island for six to seven days, hoteliers estimate that the island has 20% spare room capacity, prompting the recommendation that more airlines should be encouraged to fly to Samui.

Even during the launch celebrations, hotel marketing managers, resident on the island, claimed there were persistent rumours that Silk Air of Singapore and Air Asia, the low-cost airline based in Kuala Lumpur, are interested in serving Samui this year.

To achieve that goal, airlines would have to complete an environment impact study, while the private owned airport would need clearance to allow more jet aircraft to land. Owned by the Samui Airport Property Fund, the airport's landing and service fees are comparable to those charged at Suvarnabhumi Airport, which is deterrent for low-cost airlines. THAI pays approximately B100,000 to land and service its Boeing 737 at Samui Airport.

THAI currently supplies Samui with about 14,000 travellers a month, making it Bangkok Airways' top customer. With the launch of its own two daily services some of those travellers will now fly THAI, making it relatively easy for the national airline to achieve an 80 to 90% cabin factor. It needs a 75% cabin factor to breakeven.

No one appears to worry about the higher landing costs, since the addition of Samui means the airline now serves all popular southern Thailand beach destinations. It also has the distinction of flying to two airports in Surat Thani, the first time that the airline has served to two destinations in a single province.

Surprisingly, fares are the most sensitive issue for both Bangkok Airways and THAI executives to address.

They like to sidestep the issue with vague statements such as: They will be similar or perhaps slightly lower.

One travel agent believes THAI will maintain a local fare slightly below Bangkok Airways, while setting its fares in overseas markets at a higher level.

"They will sell convenience, one-stop connections and benefits for FFP customers to cash in miles for free trips. Here In Thailand the airline has to be seen to be competitive and offering a lower fare to be politically correct."

Both airlines politely talk about co-operation and promoting tourism while avoiding comparisons of fares and services. Yet fares are in the market for us to come to our own conclusion.

THAI fields a roundtrip fare to Samui at B6,710, on sale until March 31. It comes with restrictions on date validity and has no facility for itinerary changes.

There is a cheaper Bangkok Airways fare if you are willing to travel on the early bird 0600 flight or on its late night service at 2100. Based on these two flights, the roundtrip costs B5,840.

THAI's roundtrip fare, valid year round with no restrictions, costs B7,410. This fare will still be on sale after March 31. This compares with the standard Bangkok Airways fare of B8,940.

A travel agent warns that come 15 March, the airline may raise its restricted-use fare again.

Don Ross can be reached through this email address: info@ttreport.com

source www.bangkokpost.com