THAI Management has brainstormed ideas to establish guidelines to increase revenue and reduce expenses as quickly as possible.
Thai Airways International Public Company Limited (THAI) announced its strategies to reduce expenses and increase revenues amidst external crises, such as the strong baht, US-China trade war, sluggish global economic, and closure of Pakistani airspace. As a result, tourists numbers declined and customer purchasing power reduced, in addition to delayed engine repairs by the manufacturer, even though the Company implemented cost control measures until the total cost was lower than the previous year, but the afore-mentioned external factors affected the corporate group to incur an increased net loss in the last quarter similar to other airlines. However, THAI Management has brainstormed ideas to establish guidelines to increase revenue and reduce expenses as quickly as possible.
Mr. Sumeth Damrongchaitham, THAI President, said that intense competition affected all airlines’ operating results coupled with recurring issues that all functions have been trying to rectify. As a result, the following strategies will be implemented to reduce expenditure and increase revenue.
1. SaveTG Co-Creation: A cost-control strategy that does not hinder THAI’s quality of service. The Company’s cost reduction plan allows THAI staff to propose ideas and suggestions to the Management team, and more importantly grants passengers the opportunity to suggest solutions for the Company through Co-Creation at firstname.lastname@example.org.
2. Zero Waste Management: A project that helps save and creates a circular economy for both the organization and the nation as a whole starting from food waste. THAI is currently cooperating with FoodInnoPolis to develop an action plan.
3. In the fourth quarter, a new marketing strategy will be implemented to launch direct flights to Sendai, in Tohoku region, Japan, a beautiful city for every season.
4. Strategy to Increase Revenue: Utilize digital marketing, such as promotions in the digital media on a regular basis in order to better serve the online customer. In particular, this benefits customers who download the Thai Airways mobile application that enables them to make reservations, search for flights, and promotions. The mobile application helps to increase revenue by selling ancillary products, such as increase excess baggage allowance, travel insurance, airport limousine service, car rental, hotels, and has also increased languages available as well as improved the mobile application layout to meet the needs of the younger generation. Furthermore, the customers will also be able to purchase products online through the eCommerce platform. THAI has selected eCommerce vendors who have worked with other world-class airlines and anticipates that service will be launched in October 2019.
5. THAI Synergy Strategy: THAI’s products and services can be offered through business alliances. Currently, a project is underway for THAI to collaborate with Café Amazon to expand business in Thailand and the Asian region.
6. TG Group Strategy: THAI and THAI Smile will be stronger together in all dimensions, with a route network that offers systematic connectivity for passenger convenience, which will be implemented regionally during the fourth quarter this year. THAI Smile is set to become a Star Alliance connecting partner by the end of this year, which will strengthen the airline network in this region.
“I have been President of THAI for 11 months and there was never a day without a problem. Members of the THAI Board of Directors, Management, and staff recognize THAI as a national carrier and we have all been working hard as the problems that we face cannot be easily solved. With these afore-mentioned strategies, we believe that THAI will return to its position as one of the top world class airlines although not as soon as we hoped. This all depends on the support of Thai passengers who still love THAI, who can help by flying with our airline, use our services, and by making recommendations under the #SaveTG concept. All employees and I are confident that we will accomplish our goal,” said Mr. Sumeth Damrongchaitham.
In addition to the previously mentioned strategies, THAI also adjusted its work structure with THAI Smile Connectivity to be centralized in one place in order to increase passenger convenience and also implement corporate business ethics throughout the organization as well as strengthen unity, which is one part of the whole #SaveTG master plan. While the various crises continually pose a challenge and have been difficult to manage internally, the Company tries it utmost to ensure that the quality of service is not compromised. This is evident from the Skytrax awards that THAI recently received: one of the Best World’s Top 10 Airlines of 2019, the World’s Best Airline Lounge Spa, and the Best Airline Staff in Asia. These achievements are possible through Thai people’s encouragement and support as well as from customers across the world who love Thai traditions. These strategies will help THAI return to glory as befitting the national carrier.