Bus operators plan to fight the inroads being made into their business by low-cost airlines as more and more passengers forsake bus terminals for airport lounges.
Suchinda Cherdchai, president of the Association of Interprovincial Bus Operators, on Thursday unveiled a new plan to launch low-cost bus services as the operations of members is being hit hard by no-frills airlines.
She said ideas will be discussed with other members and then proposed to Transport Co and the Land Transport Department for approval if they agree, she said.
Low-cost air-conditioned buses will have no snack and drink services for passengers, but they will pay lower fares to rival the airlines.
"Bus operators have seen a 40% drop in passengers over the past few years due to the price wars of the airlines," she said. "We have to make some adjustments to stay competitive."
Even Kruewan Wongrakmit, managing director of Nakhonchai Air Co, one of the most successful interprovincial bus firms, admits that budget airlines are drawing away passengers from the buses.
The situation was benefitting consumers and therefore the bus companies had to adapt to stay in business, she said.
Nakhonchai Air stressed safety for customers and new bus fleets, Ms Kruewan said. The firm will expand to add new routes and reschedule existing services to avoid competition with the airlines, she added.
Low-budget airlines are offering ticket prices of as low as 1,000 baht for a flight from Bangkok to Chiang Mai. The price for the most luxurious bus on the same route by Nakhonchai Air is 876 baht. The flight time between the two destination is about one hour while travel time on a bus is eight hours more.
Wutthichart Kallayanamitr, president of Transport Co, said the firm was not being hit by low-cost airlines because most of its routes involve destinations that the airlines do not service.
Transport Co, a state enterprise under the Transport Ministry, runs 10% of the interprovincial routes and the rest are concessions given to the private sector, including the association chaired by Ms Suchinda.
Before the low-cost bus idea becomes a reality, Tassapon Bijleveld, the CEO of budget airline Thai AirAsia, offers some tips for them to survive.
He suggests bus operators follow the example of budget airlines on pricing strategy to fill seats on planes.
Low-cost airlines use the flexible fare scheme by charging more during high season and less when people tend not to travel so much. Bus fares, however, are fixed.
Mr Tassapol said if bus firms deployed the same tactic of adjusting fares in line with the number of travellers, it could improve their operations.
Although no-frills airlines launch campaigns to lure passengers, including a zero-baht fare promotion, air ticket prices remain higher than bus fares on average, he added.