O N E R E P O R T 2 0 2 2 OVERVIEW BUSINESS OVERVIEW AND PERFORMANCE CORPORATE GOVERNANCE FINANCIAL INFORMATION SUSTAINABLE BUSINESS DEVELOPMENT 31 The competitive cost structure enables Thai AirAsia to offer the average fare lower than competitors in the same routes supporting its revenue maximisation. Moreover, Thai AirAsia occasionally offers very attractive promotional fares to promote routes with less traffic. 4. DISTRIBUTION AND SALES Thai AirAsia has three principal distribution channels namely the Internet sales, direct sales through our sales offices as well as indirect sales through agents. All travel documents such as the confirmation itinerary are electronically sent, thereby reducing costs associated with printing, mailing, modifying tickets, as well as, reissuing lost or stolen tickets. As at 31 December 2022, Thai AirAsia had a proportion of the total bookings sold through the Internet of 66 percent, direct sales 3 percent and indirect sales 31 percent. 4.1 INTERNET SALES Thai AirAsia sells tickets online via www.airasia.com and the application on the smartphone called “airasia Super App”, available on both iOS and Android. The payment can be made via credit card, direct debit and internet banking, ATM, Mobile Banking, or at service counters such as Counter Service, Tesco Lotus, Big C Supercentre, Thai Post Office, Tops Supermarket, True Money, etc. The lowest fares as well as promotional fares are available only through the website and airasia Super App on the smartphone to encourage Internet reservations. Thai AirAsia expects the internet sales to continue in the future as online bookings lowers operating costs, and thus is its lowest-cost distribution channel. 4.2 DIRECT SALES Direct sales are made at sales offices and airport sales counters at which payments can be paid by cash, credit card, and QR Code, including cash payment at Counter Services. 4.3 INDIRECT SALES Indirect sales through agents consists of online bookings via Online Travel Agents (OTA) and offline via travel agents in other formats. • Third Party Travel Agents: Thai AirAsia has two types of travel agent network. “Sky Agents” are travel agents who are registered with Thai AirAsia and maintain a prepaid account in which bookings made by their guests are debited. In addition, “BSP Agents” are the members of and have credit limits with the International Air Transport Association (“IATA”). In addition, Third Party Travel Agents have expanded the business to online as well. Thai AirAsia obtains revenues from the OTA for the flights that Thai AirAsia provides as part of the travel package or flight booking only. • MyCorporate Bookings: Thai AirAsia offers MyCorporate packages to business travellers who maintain corporate accounts with us. • GoGovernment Booking: Thai AirAsia offers special GoGovernment fare for governors and state enterprise officers to book at airport counters or authorised travel agents. • Book and Pay: Thai AirAsia joins with Counter Services, offering the booking of and paying for AirAsia tickets at Counter Service channels such as a convenience store, department store and supermarket, across the nation to expand its customer base. Ticket booking and payment can be made 24 hours prior to the flight for all of our domestic and international routes, for both single and round tickets. 5. ADVERTISING AND SALES PROMOTIONS Thai AirAsia allocates the budget as deemed appropriate for its communication and marketing activities and chooses its advertising media based on exposure to its targeted demographics and medium’s effectiveness. Television advertisements, billboards, LED screens in the city centre of both Bangkok and the provincial areas, including radio advertisements are the way to reach mass consumers. These help build the awareness of a wider range and also create brand loyalty at the same time. In contrast, online advertisement is the way to reach not only mass consumers but also targeting specific regions or areas of consumers, which encourages a direct conversion since the main sales channel is online via the Company’s website and application. INTERNET SALES 66% DIRECT SALES 3% INDIRECT SALES 31%
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