How Tech is Helping the Aviation Business to Expand in Thailand

Thailand is one of the most popular tourist destinations in the world, attracting millions of visitors every year. The aviation industry plays a vital role in connecting Thailand with the rest of the world, and providing convenient and affordable travel options for both domestic and international travelers.

Thailand has a large and diverse airline market, with over 20 carriers operating domestic and international flights. The market is dominated by two major players: Thai Airways, the national flag carrier, and Bangkok Airways, a regional airline that focuses on niche destinations. Together, they account for about 60% of the market share.

However, both Thai Airways and Bangkok Airways are facing financial difficulties and operational challenges. Thai Airways has been struggling with losses for several years, due to high costs, low efficiency, and declining demand. The airline has been undergoing a debt restructuring process since 2020, which has affected its reputation and service quality. Bangkok Airways has also suffered from the impact of the COVID-19 pandemic, which has reduced travel demand and forced the airline to suspend many routes and flights.

Isuzu Motors launches D-MAX and MU-X in Thailand

On the other hand, the low-cost carriers (LCCs) have been growing rapidly and gaining market share. The LCCs offer cheaper fares, more frequent flights, and more destinations than the full-service carriers. Some of the leading LCCs in Thailand are Thai AirAsia, Nok Air, Thai Lion Air, and Thai Vietjet Air. These airlines have been able to attract price-sensitive customers, especially domestic travelers and regional tourists.

The LCCs are not only competing with Thai Airways and Bangkok Airways, but also with each other. The LCC market is highly saturated and competitive, with low profit margins and high price wars. The LCCs have to constantly innovate and differentiate themselves from their rivals, by offering value-added services, loyalty programs, or co-branding partnerships

However, the aviation business also faces many challenges, such as increasing competition, rising fuel costs, environmental regulations, and changing customer expectations. How can technology help the aviation business to overcome these challenges and expand in Thailand?

During the last few years, technology has been increasing faster than ever worldwide; we can see how, during the COVID era, the technology industry had a high growth trend, showing spikes in its growth levels.

Technology has been one of the driving forces behind the growth of the aviation industry in the Thai market.

Thailand is considered one of the top tourist destinations in the world; the country heavily relies on a solid aviation sector to sustain its economy and connectivity.

One example of how the tech world is helping the development of the aviation market segment in the Thai market is the case of Air Asia.

AirAsia all in one mobile app

The company is a prominent low-cost carrier that has introduced an all-in-one mobile app that allows travelers to conveniently book flights, check-in, and board all in one place. This innovative solution has greatly enhanced passengers’ travel experience and improved airline operations.

The AirAsia app is more than just a booking app. It’s like your personal travel assistant that helps you plan, book, and enjoy your trips with AirAsia.

Here are some of the features of the AirAsia app:

– Book flights to over 150 destinations across Asia, Australia, and beyond. You can also find the lowest fares with the Low Fare Finder feature, and save more with bundle deals and add-ons.

– Book hotels and activities with AirAsia Go, the one-stop shop for your accommodation and attraction needs. You can choose from over 500,000 hotels and 10,000 activities worldwide, and enjoy instant confirmation and flexible payment options.

– Manage your bookings. You can view your itinerary, change your flight details, upgrade your seat, pre-book meals and baggage, and more. You can also check in online and get your boarding pass on your phone, saving you time at the airport.

– Earn BIG Points for every purchase on the AirAsia app. You can use your BIG Points to redeem flights, hotels, activities, and other rewards from the BIG Loyalty program. You can also access your BIG Member privileges, such as priority check-in, boarding, and baggage collection.

– Stay updated with the latest news and promotions from AirAsia. You can also get travel tips and inspiration from the AirAsia blog, and share your travel stories with the AirAsia community.

Airport infrastructure and services development.

Another example of how technology is helping to expand the country’s aviation business is the airport infrastructure and services development.

Recently, the Thai government has taken proactive measures to improve and expand current airports and construct new ones, with a particular focus on the Eastern Economic Corridor (EEC) area.

This strategic zone has been designed to attract investments and promote innovation in various fields, including aviation. A noteworthy project within the EEC is transforming U-Tapao Airport into a state-of-the-art international airport and a hub for maintenance, repair, and overhaul (MRO) activities in the aviation sector. Along with these upgrades, the airport will boast technologically advanced and environmentally friendly features, such as a data analytics center and artificial intelligence integration.

utapao project — U-Tapao airport project

Despite the current fast development of the aviation market in Thailand, the market still needs some help.

One prominent obstacle is the competition from neighboring aviation hubs, including Singapore and Malaysia, which boast more advanced technology and infrastructure. Thus, to remain competitive, the Thai aviation industry must focus more on investing in research and development and collaborate with key stakeholders such as universities, research institutes, and foreign partners.

On the other hand, there are promising prospects for new business models and markets, such as urban air mobility, electric aircraft, and space tourism, that may arise from technological breakthroughs.

To capitalize on these opportunities, the Thai aviation industry must be adaptable and embrace change.

To sum up, technology plays a crucial role in propelling Thailand’s aviation industry, presenting many advantages and opportunities. Nevertheless, the sector demands flexibility and adaptability to keep up with the ever-evolving and cut-throat landscape. As such, the Thai aviation sector needs to adopt technology as a facilitator, rather than a hindrance, to its progress and advancement.