What will be different about the new Siam Express Travel Services (SETS)?

We originally thought it made sense to operate the leisure side of the business with the business travel side, using the positive cashflow of inbound leisure to bolster the negative cashflow of corporate ticketing. We now believe the time has come to spin off the business travel side and incorporate SETS as a separate legal identity.

What are the main reasons for relaunching the company with a new name?

People used to think of us only as an inbound operator with a business travel department. We want people to see SETS not as an adjunct to Siam Express, but as a separate company with a specialised identity. The days when people want a one-stop travel company for all their needs are gone. We also believe setting up SETS will give the staff a greater sense of identity and they will realise the company has to stand on its own.

Will the new company have a new management structure?

Not only new management, but new shareholders. We will continue to be the majority shareholder but we are looking for equity partners with capital. The new company should have a capitalisation of about 10 million baht (US$250,000) to 30 million baht.

Working capital will need to be about US$750,000 to US$1.5 million. At the moment, we are local; we need a global partner to help us grow. About 80 per cent of our business is locally derived and only 20 per cent comes from overseas.

What will be SETS unique selling points?

One of the things that distinguishes us from the pack is our strategy of setting up satellite offices on industrial estates. We have one in Ayuthaya; we are about to open one in Chonburi and we will open one in Rayong. We will see how that goes and then expand, but only if we can maintain standards of service.

How big is the corporate travel market in Thailand?

Corporate travel has only gained recognition here since 1997. I mean, in 1995, hardly anyone here had ever heard of the term.

It is growing but it is not as big compared with Hong Kong or Singapore. Thai business people have found it difficult to accept corporate travel management. It is an imported concept. But it is catching on because senior managers are beginning to realise it can no longer be left to the secretaries. Plus, more and more MNCs are setting up offices in Bangkok.

How fast has the market been growing in Thailand?

It has more than doubled in the last five years and we estimate it is growing by about 20 per cent per year.

Will it continue to grow at the same rate?

I anticipate that future growth will be at the rate of about 15 per cent. As to our own growth prospects, that will depend on our partnerships. With the right partner I believe we can grow a lot more rapidly than 15 per cent.

What more can be done to help the market grow?

From time to time we have hosted receptions for secretaries. These help secretaries to understand what corporate travel is all about. Growth is coming anyway, but I believe we can accelerate it by breaking down the resistance of secretaries through education.

Would you like to see more co-operation among corporate travel agencies?

Our main focus at the moment is getting SETS established but certainly we would like to co-operate. An association of some sort would be a good idea.

Who are your main competitors in Thailand?

Honestly, we do not see corporate travel companies as our competitors. Rather they are supporters, often giving us their more complex work where they do not have the expertise or time. No, our competition comes from companies selling cheap fares.

How tough is competition for corporate travel business here?

It is hard for the newcomer and it is going to get harder. Thailand has been overlooked for many years, but international operators are beginning to realise that they have to have a link in Bangkok; it is an important place nowadays.

How can SETS bring about change in Thailand’s corporate travel sector?

I think the satellite concept will change the thinking of the industry. Our approach is to take the service to the customer, not in the form of an implant, but in the form of the satellite office. We have to meet the requirements of the end user. We cannot force change.

Changes are coming and it is our job to adapt. One of the big changes is headquarters of companies are demanding more reporting from their regional offices. We are having to improve our reporting skills. It is not just about selling tickets anymore.