Pongsak Hoontrakul

Application of Data Mining Techniques in Online Travel Industry: A Case Study from Thailand

The paper describes the practical application of data mining techniques for segmentation of on-line enquiries in an on-line travel intermediary. The segmentation approach focuses on the enquiry-to-sale conversion process in the on-line intermediary. The analysis provided significant directions for strategic decision making by unraveling the structure of demand.

Application of data mining techniques in the on‐line travel industry

Purpose – To describe the process of customer segmentation by data mining and expert judgment in a real‐world setting.Design/methodology/approach – Data collected in four case studies of on‐line enquiries via one web‐based intermediary and customer profiling were used as the input to K‐means clustering calculations relating to four tourist destinations in Thailand, two already familiar internationally and two less so.Findings – The case study illustrates the use of data mining techniques to unravel the basic pattern of customer enquiries across various attributes, as an input to actionable strategies.Research limitations/implications – The methodology limits inferences to the single organization studied across the four destinations.Practical implications – The findings suggest a practical planning strategy for customer segmentation in similar on‐line situations. The methodology incorporates both qualitative and quantitative phases, and can be easily be applied in practice.Originality/value – The paper, fo...

The Thai Currency Crisis: Financing Constraints, High Fixed Costs, and Corporate Governance

We examine the role of financing constraints in depressing output during the Asian financial crisis, using Thai firm-level data. From an output decline of 3.7 percent in our sample in 1998, we find that tightening financing constraints contributed to lowering output by 1.7 percent. We also find evidence of high scale economies or high fixed costs in Thai industries. With high fixed costs, small changes in unit costs or financing costs can lead to large changes in output. We interpret the high fixed costs as evidence of overinvestment prior to the crisis. Copyright (c) 2006 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Value Revelation of Differentiated Goods in the Travel Industry

The market for hotel and travel-related services can be seen as one in which the goods are differentiated products. Classification by the information content of goods - search goods, experience goods, post-experience goods and credence goods applies well to this market. Corrective measures are suggested for the market imperfections implied by asymmetry of information and transactions costs. Implications of this characterization for national policies and private business strategies in travel-related industries are examined, specifically for Thailand. Mass media marketing campaigns for tourism expansion, over-utilizing our natural resource and commoditizing travel products and cultural tourism, are not advocated. Efforts to achieve balance between demand and capacity through local involvement are more productive for sustainable tourism; examples are given. Innovative development, niche marketing, and high value endeavors are critical elements of a value enhancement business strategy. Internet usage aids in the reduction of informational imperfection. In order that online advertising be effective and directed at the relevant customer needs, it must make use of search engine marketing in the proper context.

Morethailand.com: Online Travel Intermediary

The case study showcases morethailand.com, an e-intermediary in the tourism industry. Based out of Thailand, the firm is in the process of finding a niche for itself through innovative online and offline marketing strategies with the constraint of limited resources. The case study attempts to focus on the e-business challenges in the travel and tourism sector especially in a developing country like Thailand. It specifically highlights the clash between the traditional and modern form of intermediaries in the travel and tourism sector and how it is bound to evolve in the future. A comparison between different approaches to search engine marketing offers an interesting perspective to the literature pertaining to online e-commerce. An economic view on the case is also presented.

An Economic Analysis of the Tourism Industry - Implications of the Online Travel Intermediary

Informational asymmetry and fragmentation of capacity suppliers in the tourist industry provide travel intermediaries with market power. Market structure is characterized by over-capacity in off-peak seasons, high fixed costs and low variable costs, leading to product under-pricing. Forward sales of capacity at low contract prices surrender profits from consumer surplus to intermediaries enjoying oligopsony benefits. The creation of formal futures contracts in rooms and seats would permit operators to hedge demand uncertainty and retain more of the profits. Online intermediaries can serve the interests of domestic hotel operators through exploitation of databases to provide analytical solutions to capacity utilization and to develop demand balancing.

Chapter 23 What are the next steps for bond market development in Thailand

Recently East Asian policymakers have focused on facilitating corporate bond market development through a host of financial market reforms including greater foreign participation in the domestic markets as issuers and investors. However, the alternate approach – the encouragement of domestic issuers to further tap international markets – remains largely ignored. The objective of this study is to investigate these issues in the context of reform undertaken by Thailand following the Asian Crisis of 1997. As a small and open economy, Thailand was forced to become more receptive to foreign investment and capital market participation. We raise the significance of bond return volatility and skewness as an impediment to greater involvement by international investors. Empirical analysis highlights the time-varying nature of both variance and skewness of bond returns, which can only be overcome through government policy that focuses upon stabilizing the macroeconomic environment and not simply enhancing domestic and regional financial market infrastructure.

A Note on the equilibrium relationships between issuers in the Asia Pacific region

We investigate the relationships between the sovereign bonds issued in international markets by major Asia-Pacific issuers (China, Korea, Malaysia, Philippines and Thailand) and various benchmark US Treasury bonds (2, 5, 10 and 30 year maturities). The results suggest that the equilibrium relationship holds only between pairs of bonds of equivalent credit status. The dynamics of these processes highlight aggregation issues for portfolio managers constructing portfolios of sovereign Asian bonds of different credit ratings.

Developing ASEAN India partnership for fostering technology development

Purpose – This conceptual paper aims to discuss issues relevant to fostering cooperation between India and countries in the ASEAN region in the area of technological innovation. Design/methodology/approach – This is a conceptual paper, based on insights from the existing body of literature and secondary data. Findings – The study looks at the competitiveness of different countries in the ASEAN region and considers their technological competitiveness vis-a-vis India. Broad policy issues related to fostering technological innovation as well as the main advantages of such collaboration are discussed. Research limitations/implications – This is a conceptual paper mainly intended for discussion. Practical implications – The paper provides guidelines for fostering technological innovation and could, therefore, help policy development. Originality/value – Although the Indo-ASEAN free-trade agreement is helping trade flow between the countries in the region, the potential for technological collaborations still li...

Alcohol, No Ordinary Commodity: Tax Policy Implications for Thailand

Alcohol is no ordinary commodity. Millions of people enjoy it safely if drinking in moderation. Alcoholic beverages are big business that creates substantial jobs, pay huge tax and contribute to our economy. But if consume excessively and regularly, alcohol is addictive substance that can cause brain disease beyond a reasonable doubt. Despite a chronic, potentially relapsing disorder and dependence bio-behavior, alcohol is widely distributed and consumed until Thailand has become the world’s fifth largest alcohol consumption per capita behind Russia and UK. Brewery, distilled and winery beverage industry or alike is in the business of delivering alcohol. Because alcohol is a practically drug-like chemical goods and its industry is natural oligopolistic, simple business concept and free market approach are not applicable for national policy making consideration. When this market fails to correct negative externality generating from alcohol, the government is justified to intervene, regulate and tax to redistribute for welfare enhancement. We examine how tax structure based on obsolete assumptions has de-merit incentive for Thai people to drink cheap beverage with high alcohol content that is addictive and chronically harmful to public health. Potential tax leakages with estimated over THB 30bn per annum were also discussed. To improve social welfare, we recommend on how to narrow fiscal gap - with little or no tax rate hike. To amend specific or alcoholic tax rate ceiling is the first best solution, while synthetic volume tax rate is presented as second best with only ministerial directive. A more equitable and more simplified tax regime is needed. Public health concern, social cost, fiscal budget rational and political economic perspectives are among fine issues that need to be addressed comprehensively. Other administrative tax based measures using information technology should be utilized for differential measures - to effectively increase social welfare as well.