Elite Card sales flop

08 Jul 2014  2034 | World Travel News

Tourism Authority of Thailand, owner and operator of the Thailand Privilege Card Co (TPC), has been forced to cut its Elite Card membership target to 317 members, down from an earlier target of 1,300 members.
The national tourism agency blames the need to revise the target on political instability, but critics will point out that the original target was ambitious and omitted to take into account the card’s negative image and track record.
The revision means TAT can only expect to earn THB311 million revenue from membership, down THB2.6 billion if its earlier target had been practical.
According to TPC president, Apisit Chuenchompoo, the lower projection was due to the country’s political turmoil since last year including the miliary coup last May.
“The situation therefore impacts on tourist and investor confidence,” he reported.
So far, the company sold 41 Elite Card memberships, meaning it has now to sell 276 membership to hit even its revised target with just three months left of the fiscal year that ends 30 September.
“It will be very difficult to meet the Elite Card target, but we are pinning our hopes on improving sentiment…our sales agents will organise a trip and bring 300 potential customers to Thailand to try the service.”
TPC will spend THB185 million on marketing and promotional activities to boost Elite Card membership sales in the coming months.
It is likely to raise questions in the ranks of the National Council of Peace and Order, that has declared it will demand fiscal prudence from government departments and a much higher level of transparency and acountabiity.
TAT’s marketing of the Elite Card will focus on selling membership to high-spend residents in China, Japan, Dubai and Iraq. It was not explained how war-torn Iraq came into the equation.
TPC has 18 sales companies and 10 personal agents to help sell Elite Card memberships.
Sales representatives receive a 5% base commission fee, 11% for selling up to 20 memberships, 13% for 21 to 40 memberships and 15% for more than 40 memberships.
The Elite Card has four membership types.
Individual cardholders receive a five-year multiple-entry visa with a one-year stay per entry, 24 complimentary rounds of golf (greens fees only), 24 spa treatments per calendar year and a free annual medical checkup.
Family membership offers a five-year multiple-entry visa with a one-year stay per entry, 10 complimentary rounds of golf and 10 spa treatments.
Thailand Easy Access Membership simply offers a five-year multiple-entry visa with a one-year stay per entry.
The newest membership category is the Privilege Card for Thailand Real Estate Business aimed at high-end markets in China, Singapore, Hong Kong and Malaysia.
Members get a five-year multiple-entry visa with a one-year stay per entry, plus health treatments from providers with links to the property firm Nusasiri.
The card project was the brainchild of former Prime Minister, Thaksin Shinawatra. It was launched in 2003 with a target of 1 million members. It failed running up debts and almost exhausted its capital forcing repeated efforts to rework the formula and even suggestions that it should be closed.
In November 2012, the Thai Cabinet approved a plan to revive the Thailand Elite Card after years of losses and a failure to reach its membership targets.

Sourced: ttrweekly

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