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Asia's Boutique a Unique Airline: Bangkok Airways As a Case

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Asia's Boutique a Unique Airline: Bangkok Airways As a Case Asia's Boutique a Unique Airline: Bangkok Airways as a Case *Krisada Lapromma, Airlines Business Department, International College; Suan Sunandha Rajabhat University, Nakorn Pathom Education Campus, Nakorn Pathom, Thailand, E-Mail: [email protected] **Kannapat Kankaew, Asst. Prof., Airline Business Department, International College; Suan Sunandha Rajabhat University, Nakorn Pathom Education Campus, Nakorn Pathom, Thailand, E-Mail: [email protected] Abstract To set apart from rivals, Bangkok Airways (PG), a Thai regional carrier has named its slogan; Asia’s Boutique Airlines. PG outperformed with the products and services according to slogan guaranteed by Skytrax rewards world’s Best Regional Airline and Best Regional Airline in Asia in 2017. As an intern with PG, researcher is reviewing the airline’s products theory and the products provided by PG making a unique proposition. Bangkok Airways distinguishes itself with six main points that define its initiative Boutique Lounges, Blue Ribbon Club Lounges, Boutique Airports, Appetizing Menu, Exclusive Service, Colorful Aircrafts. Keywords: Airline’s products, Boutique, Unique, Bangkok Airways Introduction Bangkok Airways first began air transportation services in 1968 - established as Sahakol Air, it became the first private aviation company in Thailand. Initially, the airline provided charter services; regular charter assignments came from the OICC (an American construction company), USOM (United States Operations Mission), and other organizations, which engaging in oil and natural gas exploration in the Gulf of Thailand. Due to the rapid growth of tourism and business investments in Thailand, air transportation has become an increasingly important aspect contributing to both the economic growth and the infrastructure development to become a major destination capable of hosting several million overseas visitors. In order to fulfill the increasing demands for air transportation, in 1986, Bangkok Airways officially began its operations as the country’s first privately-owned domestic airline; offering scheduled flights from Bangkok to Krabi, Korat, and Surin. Bangkok Airways has obtained permits to operate scheduled flights over 20 different major routes. In 1989, the airline became a member of the International Air Transport Association (IATA). The airline code was PG. Subsequently, on 27 February 2013, the Company was registered as a company (Bangkok Airways, 2017). To date, because of the growth of air travel market, the deregulations, and along with Thailand is ranked the top destination of tourists around the world has aroused the emerging of new airlines, especially low-cost carriers. As a result, air travel market has both offering supply and stimulating demand with low fares. In the mean time, the new comers have forced more intense competition in price among airlines. Since, most of airlines have offered the same products and services for instance; routes, class of services, seating conditions, type of aircraft etc., As Deshpande (2008) pointed out that airlines are in commoditized industry where they have few differences to compete, hence, most of airlines focus on pricing strategy. Howbeit, PG is an Asia’s Boutique Airlines offering unique products making the airline differ from other players in the market. Literature Review Global market, today, has high competition especially airline industry which the products and services offered to the market are quite the same. Firms require to get inside customer needs and wants then anticipating those needs to satisfy them. This is in order to be competitive advantages and run business profitably. Based on IATA (2013) defined airlines’ products are both tangibles and intangible consisting of benefits, activities, and customer satisfaction. As refer to marketing mix elements, besides 4Ps, airlines need to have people and process in its product that deliver to customers. Thereby, IATA has divided airlines’ products into 2 perspectives including; product hardware and product software. The hardware side has 3 levels consisting of scheduling features, class of service features, and supplementary features. Whereas, the soft side are people and process as shown in figure 2. Product • scheduling features hardware • aircraft type • frequency/ routing, timing • Class of service features • in flight: cabin type, seat access, seat type, catering, in-flight entertainment • Supplementary features • Reservations, special services Product • People • skills, experience and motivation software • Process • easy to use system Figure 1. The Component of Airline Products The well blended of both hard side and soft side is important to create customer experiences and satisfaction. There are various issues study on air travel customer preferences such as Kankaew (2013) employed Importance-Performance Analysis technique to measure service quality of full service airlines in Thailand including Thai Airways International and Bangkok Airways. The result shown that passengers were satisfied both on ground services and in-flight services. Kankaew also evaluated 7Ps (product, price, place, promotion, process, people, and physical evidence) which influenced customers’ choice of flying. While, Alamdari (1999) presented four levels of airline product those were (1) core product consist of safety, schedule and reliability, (2) expected products for example, food & drink, seat comfort, cleanliness, (3) augmented such as limousine services, shower facility, lounge entertainment, and (4) potential services which airlines plan for providing in the future. Airlines that place brand position in other segment proliferate including the customer base, profit and income. Every airline try to be airline’s lead but they have similar factor for example human resource, aircraft, cost, services so each airline create something different to make it unique. The consumer is the main target of the airline because if we have on the consumer we will not get income. Money is important thing that make airline growth so every airline has to make consumer impressed in their product. The products are one way to make the consumer interested and remember. Every airline has a technique to conquer the consumer by their product. A comparative study of factors affecting choice between premium airlines and low-cost airlines. Pawasa (2011) found that the reliability of the products or the reliability of the airline along with the services of ground staff and reception staff convenience food service the life or condition of the aircraft were something that passengers value. Chechai Somkhasirikul (2010) cited the study (Parasuraman et al., 1985) the expectations of consumers in the service are influenced by four sources personal needs, word of mouth, original experience, advertising from various service providers. Methodology Researcher studied the topic by reviewing secondary data from books, journal publication and social media. As well as, researcher has observed the product of PG from real experiences as intern student. This allow researcher to monitor various part of PG services and products. Conclusion Bangkok Airways is a full-service airline providing premium service to passengers and they are operating 2 classes Business class and Economy class. Bangkok Airways’ owns and operates three boutique airports at Koh-Samui (1989), Sukhothai (1996) and Trat (2002) each airport was designed to blend in with the natural and cultural similar like of each of Thailand's three provinces (Bangkok Airways, 2018). Each airport has differentiated style of building. The terminal’s design depends on the environment around the airport in case of Samui airport, thatched terminal buildings blend seamlessly with the tropical gardens and coconut groves of Koh Samui. Sukhothai Airport, situated among the calm rice paddies, reflects traditional Thai architecture. Finally, Trat Airport highlights the essence of the province's surrounding natural environment. The uniqueness of each airport complements Bangkok Airways' boutique characteristics but the same thing is used nurture air without air condition. Every route and airport that Bangkok Airways operated will have lounge for the passengers but the thing that makes the passengers remember Bangkok Airways is every Bangkok Airways’s consumer can use the lounge. First boutique lounges, it is similar to business-class style lounges offered by other airlines, but the striking difference is that it is available to all passengers with no extra charge or hidden fees. passengers can eat snacks and various choices of hot or cold drinks. Passengers can also enjoy free Wi-Fi at boutique lounge and they have kids zone for young children. Second Blue Ribbon Club Lounges it used for serve premium passengers flying with Bangkok Airways including Blue Ribbon Club (Business class), Boutique Premier Service and FlyerBonus Premier Membership (Virachai,2018). It is different from boutique lounges, not just in the more extravagant design with hanging crystal chandeliers and a cozier atmosphere, but it offers greater personalized service and more attention to passengers needs hot meals and a personal shower room, personal library room, which can also be used as a personal meeting room, offers our passengers more private space and The menu that declare the word Bangkok Airways’s signature is Khao-tom-mud including sticky rice, banana inside, covered by the banana leaf (Bangkokair, 2018). If you use Bangkok Airways lounge but you do not eat Khao-tom-mud it shows you not come
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