Asia's Boutique a Unique : Airways as a Case

*Krisada Lapromma, Business Department, International College; Suan Sunandha Rajabhat University, Nakorn Pathom Education Campus, Nakorn Pathom, , 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, (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 rewards world’s Best 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 . 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 , 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 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 and Economy class. Bangkok Airways’ owns and operates three boutique airports at Koh-Samui (1989), Sukhothai (1996) and (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 , thatched terminal buildings blend seamlessly with the tropical gardens and coconut groves of Koh Samui. , situated among the calm rice paddies, reflects traditional Thai architecture. Finally, 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 to use the lounge. The menu will serve on board every route with special menu, the passengers can require special menu, every menu under the concept Tastes of Asia inspired by Bangkok Airways position as Asia's (Flybangkokair,2014). Bangkok Airways’s consumer can use exclusive service from boarding pass to be discounted the cost at Bangkok hospital or can recommend special service from counter check-in such as wheelchair, first time flyer who needs miss and assistance and now the passengers who hold the one card can use Blue Ribbon club lounge (Pinnarat, 2018). Bangkok Airways’s aircraft are also decorated with colorful liveries and unique strip that make the distinction that can appeal from the passengers and Bangkok Airways is one airline that not use the same color and same strip on all of the aircraft fleet of Bangkok Airways. Bangkok Airways received its first regional airline award in 2014 for the second time in 2016 and last year in the year 2017. This is the third time the airline has won a prestigious award. In addition, Bangkok Airways has been named Asia's Best Regional Airline since 2004 (Thairat, 2017). It is very important for a product to have a consumer image to recognize and distinguish its products from similar products. Marketing Position in the minds of consumers. To be identified with the feeling that is different from each product. This is very important in marketing. If consumers cannot distinguish the difference. Both products will be the same and will end at the price competition alone (Trachoo, 2014). The airline who can make the product to be airline’s signature that means this airline overcome consumers’ mind. As a Bangkok Airways’ trainee I would say Bangkok Airways can treat the passengers with passion and can solve passenger’s problem, in case of delayed flight other airline the passengers might be wait at the boarding gate without food and beverage but Bangkok Airways’ passenger can wait at the lounge this is a simple thing that giving name Asia’s boutique airline. Product services affecting the image of Bangkok Airways on the image of the company and brand image. The difference by product affects company image. Because airlines are providing services that are. Aviation standards ensure the reliability and reliability of the service. Which is different with the brand image in accordance with the blessing Piyawat Mehta (cited in Phanrapee, 2005). The product will give you It is important to service the unique diversity of the airline. Bangkok Airways reflects on the different image of the brand. Service is to provide what customers. To meet the needs of customers. Demanding good service is required. Comprehensive customer service on what he wants. Bangkok Airways is committed to providing good service to its customers, offering convenience in many areas, including catering services. Every flight, there is a special menu at the festival such as Valentine's Day, Mother's Day, for business class passengers, or even for economy class passengers, no other premium service airlines are available to serve the needs of customers travel in economy class

References

Alamdari, F. (1999). Airline in-flight entertainment: the passengers’ perspective. Journal of Air Transportation Management, 5, pp. 203-209. Bangkokair. (2018). Bangkok Airways news update 2018. Retrieved form www.ba-th.listedcompany.com/ar.html. Deshpande, R. (2008). Airlines’ Winning Strategy. HBR IdeaCast. Retrieved from www.hbr.org. Flybangkokair (2014).Food concept.Retrieved from www.facebook.com/FlyBangkokAir. IATA. (2013). Airline Marketing (2nd ed.). Geneva: IATA. Kankaew, K. (2013). Importance-Performance Analysis in Airlines Service Quality: A Case Study of Legacy Airlines in Thailand. Retrieved from www.ijbts-journal.com. Panraphee. (2005). Marketing Mix for Service Affecting Brand Image. . Master Thesis, Srinakharinwirot University. Pawasa, H. (2011). Comparison of factors affecting decision to choose domestic airlines service between premium airline and low-cost airline. Retrieved from www.library.cmu.ac.th/faculty/econ/Exer 751409/2554/ Exer2554_no147 Pinnarat, J, personal communication, May 11, 2018). Special service for special cards. Thairat. (2017). Bangkok Airways award from Skytrax . Retrieved from www.thairath.co.th/content/979363 Trachoo, k. (2014). Market position. Retrieved from http://www.trachoo.com/2014/01/21 Virachai, K, personal communication, May 13, 2018.Bangkok Airways’s Premiem service.