Thailand Bus

A Report
On
How to Increase
The Number of Bus Riders in the City of Bangkok

Submitted to
Robert J. Bouffier, SM
Graduate School of Business
Assumption University

Date: 14th Mar 2012
Submitted by Kenji Nishi
Student ID: 551-9007
BG 5000 (55)

Contents Executive summary…………………………………………………………………….3.
Introduction……………………………………………………………………………4.
Findings..………………………………………………………………………………4.
Table1: Comparison of the Fare from Big-C Ramkhamhaeng to Siam Paragon…..5.
Table2: A Survey “What kind of images do you have toward a Bus of Bangkok?” 5.
Graph1: Comparative graph -the number of passenger car ownership and
Bus Riders…….…………………………………………………………..7.
Graph2: Transition of Gasohol91 (E10) Price…..………………………………….8.
Picture1~6………………………………………………………………………….9.
Conclusion……………………………………………………………………..……...10. Recommendations...…………………………………………………………………...11.
References ..…………………………………………………………………………...11.

Executive summary
The number of bus riders in the city of Bangkok has decreased every year. In spite of overwhelming cheap bus fare, why does it advance to customer turnover?
The biggest problem is that customers have various negative images toward buses. Also, an increase in competitors and the ownership ratio of private cars spur customer turnover.
On the other hand, in recent years, gasoline price has constantly soared upwards. In other words, using private cars have an impact on household economy.
In this report, I recommend easy ways without a lot of money to increase the number of bus riders.
In any case, BMTA should make effort to improve its negative images from customers. There are broadly two types of negative impressions. The one is negative images toward Employees such as a conductor and driver, the other is ones toward buses.
Considering these, firstly BMTA must aggressively advertise their merits to be realized good points using promotions and Facebook by customers. Secondly, BMTA should implement employee-training to improve the qualities of a conductor and driver. Finally, BMTA should find a new target and make environment whoever easily rides buses. For example, it is important for BMTA to set up English signs. Otherwise, most of foreigners can’t take a bus since they aren’t able to understand Thai language.
I recommend that BMTA take actions as above to increase the number of bus riders.
Introduction
This report will look at:
● Fare setting: BMTA and Competing companies
● BMTA is ahead of negative impressions from the point of rider’s view in comparison with competitors
● The number of private car ownership and Economic condition
● Improving BMTA images: From imagination to experience and appreciation
● Recommendations for increasing the number of bus riders in the city of Bangkok

Findings
Bus Fare of BMTA is certainly cheap in comparison with competing companies. For instance, MRT, BTS, Metro Bus (Picture1~4), BRT (Picture5~6) and Taxi etc.
Basically, Non-Air conditioned bus fare is uniform 8Baht, and Air-conditioned bus fare is from 10Baht up to 23Baht, which is depending on the distance traveled. Then, How about competitor’s fare? Table1 gives an example which is how much cost from Big-C Ramkhamhaeng to Siam Paragon.

Table1: Comparison of the Fare from Big-C Ramkhamhaeng to Siam Paragon
Survey method: Researcher took the following transportations on 9th &10th Mar 2012.
Researcher: Kenji Nishi Transportation | Access | Total Fare | BUS | 16Baht (501), 21Baht (40) *1 | 16Baht – 21Baht | BTS & BUS | 8Baht(71) or 10Baht(501) or 13Baht(40)⇒BTS 35Baht *2,3 | 43Baht-48Baht | MRT&BTS&BUS | 12Baht(137) ⇒MRT 18Baht ⇒BTS 25Baht | 55Baht | Taxi | Up to traffic jam | 180Baht- 200Baht | Boat & BTS | Boat 16Baht ⇒ BTS 15Baht | 31Baht |
*1: (501) means Bus route No. *2:⇒ means change transportations *3:senior&student are 50%off
Table1 shows that a bus is apparently the best fare of the other transportations.
At the same time, BMTA quiet often implement promotions such as Free Fare, Discount, and Fare Concessions for Students and seniors. But unfortunately, most of citizens are not realized these promotions.

The fare is the cheapest. But the number of bus riders does not increase. That is why people have negative images toward buses.
I did an attitude survey to my friends and their family. The result is Table2 as follows.
Table2: A Survey “What kind of images do you have toward a Bus of Bangkok?”
Date: 8th Mar 2012
Method: Hearing survey, multiple answer
Researcher: Kenji Nishi
N=24 <23-43old/ M=16, F=8/ Thai=7, Japan=13, Korea=2, Canada=1, Malaysia=1> Answer | ( )=effective answer | Non-coming on time, Traffic Jam | 19.2% (18) | Don’t understand how to ride buses | 14.9% (14) | Don’t understand where to go | 12.7% (12) | Dirty | 10.6% (12) | Bad services | 8.5% (8) | Only Thai language inside buses | 8.5% (8) | Hot (Non-Air conditioned bus) | 8.5% (8) | Crowded buses, No seats | 4.3% (4) | Dangerous | 4.3% (4) | Too slow | 4.3% (4) | Don’t stop at Bus station | 2.1% (2) | TOTAL | 100% (94) |
According to Table2, most of them have negative impressions which derive from poor facilities and services. After all, they have never gotten on a bus in Bangkok since they have negative images.
On the other hand, BTS and MRT provide us for comfortable space and appropriate time plans. Basically, as to Metro Bus, we must take a seat anytime, namely, Metro Bus certainly offer us available clean seats. Then there is no conductor in Metro Bus. We must pay 20B for Bus fare in the box by ourselves follows by Picture 1~4 at page 9. Also, BRT oriented exclusive bus lanes, as a result, it is possible to avoid traffic jam and be on schedule follows by Picture5~6 at page9.
As stated above, competing companies constantly improve their services and facilities to meet the needs of customers.

As external pressure, it is that the number of private cars ownership has increased. As a result, it is lead us to lose opportunities taking a bus.
Graph1 shows transition of the number of passenger cars ownership and bus riders. As graph show, the number of passenger cars has exactly increased every year. Contrary, the number of bus riders has rapidly decreased.
Graph1:Comparative graph-the number of passenger cars ownership and Bus Riders- unit: thousand
Car
Bus Riders

Source: Ministry of Land, Infrastructure, Transport and Tourism & BMTA Survey
On the other hand, Car-owners worry about gasoline price since in recent years it has seen so high. Graph2 indicates gasoline price from 2007 to last week.
Graph2: Transition of Gasohol91 (E10) Price

Source: Petroleum and Petrochemical Policy Bureau Energy Policy and Planning Office Ministry of Energy, Bangkok, Thailand

Picture1: <Metro Bus> Uniform fare 20B Picture2: <Metoro Bus> Cleanliness

Picture3,4: <Metro Bus> Riders pay 20B for fare in the Box by ourselves, No conductors .

Picture5: <BRT> BRT lanes, No Traffic jam Picture6: <BRT> BRT Ratchapruek station
*All pictures was taken by Kenji Nishi on 9th Mar 2012
Conclusion
Bus fare of Bangkok is far attractive in comparison with competing companies such as MRT, BTS, Metro Bus, BRT and Taxi etc. But most of customers have negative images to buses more than merit of bus fare. After all, they keep away from taking buses. Also, the number of passenger cars ownership has increased every year, namely, it is lead to reduce the number of bus riders. But in recent years, gasoline price has seen so high.

Recommendations * BMTA should make new strategies to change Customer’s negative images toward buses of Bangkok. In other words, it is important for BMTA to pay attention to customer opinions. Specifically, BMTA is not good at publicities such as promotion which meet the need of customers.
Even though BMTA has a quite nice website, but most of customers have never seen it. Now, it is better that BMTA introduce mobile contents site for smart-phone or SNS site such as Facebook. * BMTA should implement employee training. To improve the quality of bus conductors and drivers are absolutely essential. Toward a superior employee, BMTA can give them to a bonus. As a result, their motivation and hospitality would improve by degrees.
Also, BMTA need to teach them corporate missions and visions. * BMTA should find new target. For example, most of foreigners would avoid taking a bus. Because buses of Bangkok do not have English signs, so they don’t know the bus where to go and how much does it take. After all, BMTA must set up English sign inside buses. This approach would be useful to acquire new customers. Finally, BMTA should aim for making environment whoever easily rides a bus. * As a complementary opinion, BMTA should discuss with Thailand government about any tax reduction. Due to a jump in gasoline price in recent years, some people might abstain from using their cars instead of taking a bus. This modification contributes to environmental preservation.
Namely, Bus riders who have private car can take tax reduction such as motor vehicle tax, automobile acquisition tax and environment tax.

References
Bangkok Mass Transit Authority. (2012). BMTA. Retrieved 3 7, 2012, from bus information, result, history: http://www.bmta.co.th/en/index.php

Bangkok Mass Transit System Public Limited. (2012). BTS. Retrieved 3 7, 2012, from structure of route and stations: http://www.bts.co.th/customer/en/02-route-current.aspx

Mass Rapid Transit Authority of Thailand. (2012). MRT. Retrieved 3 7, 2012, from About BMCL: http://www.bangkokmetro.co.th/ticket.aspx?Menu=13&Lang=En

Ministry of Land, Infrastructure, Transport and Tourism. (2011). MLIT. Retrieved 3 9, 2012, from World Motor Vehicle Statistics: http://www.mlit.go.jp/k-toukei/search/pdf/23/23000000x02401.pdf

National statistics Office Thailand. (2000). NSO. Retrieved 3 8, 2012, from Average Monthly Fuel Consumption Expenditure per Household by Type of Fuel: http://web.nso.go.th/eng/en/stat/energy/tab1-43.htm

Petroleum and Petrochemical Policy Bureau Energy Policy and Planning Office Ministry of Energy, Bangkok, Thailand. (2012). EPPO. Retrieved 3 9, 2012, from DATES OF FUEL CHANGES: http://www.eppo.go.th/petro/changes/index.html

ATT. (2011). ATT. Retrieved 3 11, 2012, from Thai Data: http://home.att.ne.jp/yellow/tomotoda/data.html

References: Bangkok Mass Transit Authority. (2012). BMTA. Retrieved 3 7, 2012, from bus information, result, history: http://www.bmta.co.th/en/index.php Bangkok Mass Transit System Public Limited. (2012). BTS. Retrieved 3 7, 2012, from structure of route and stations: http://www.bts.co.th/customer/en/02-route-current.aspx Mass Rapid Transit Authority of Thailand. (2012). MRT. Retrieved 3 7, 2012, from About BMCL: http://www.bangkokmetro.co.th/ticket.aspx?Menu=13&amp;Lang=En Ministry of Land, Infrastructure, Transport and Tourism. (2011). MLIT. Retrieved 3 9, 2012, from World Motor Vehicle Statistics: http://www.mlit.go.jp/k-toukei/search/pdf/23/23000000x02401.pdf National statistics Office Thailand. (2000). NSO. Retrieved 3 8, 2012, from Average Monthly Fuel Consumption Expenditure per Household by Type of Fuel: http://web.nso.go.th/eng/en/stat/energy/tab1-43.htm Petroleum and Petrochemical Policy Bureau Energy Policy and Planning Office Ministry of Energy, Bangkok, Thailand. (2012). EPPO. Retrieved 3 9, 2012, from DATES OF FUEL CHANGES: http://www.eppo.go.th/petro/changes/index.html ATT. (2011). ATT. Retrieved 3 11, 2012, from Thai Data: http://home.att.ne.jp/yellow/tomotoda/data.html