Gaybutton Posted September 10, 2006 Posted September 10, 2006 BANGKOK, Sept 10 (TNA) Siam Commercial Bank (SCB) and King Power Group,the largest operator of duty free and tax free in Thailand, plan to launch the Quote
Guest wowpow Posted September 10, 2006 Posted September 10, 2006 Personally I would not give a hint of the breath of the air of publicity to King Power. They are an unhealthy monopoly controlling the prices of Duty Free Goods in Thailand. Bangkok airport is no pleasure to shop at because of the ludicrous prices. Retailers at Suvarnabhumi are already complaining bitterly at the high rental prices which are based on turnover!! They make me ashamed of my name Terry Power Quote
Gaybutton Posted September 10, 2006 Author Posted September 10, 2006 I don't see the point of these cash cards in the first place, whether one likes King Power or not. Why would someone buy this cash card when one can just as easily pay cash in most currencies or pay by credit card? I don't get it. Quote
Guest namjai Posted September 10, 2006 Posted September 10, 2006 It is just like the casinos here in Las Vegas now. Instead of being paid in cash, most machines issue a cash voucher which is good in other machines. If you are playing dollars or even quarters, a good percent of people will not bother cashing in 5 or 10 cents if that is what they are down to. As well, at the airport if you have 17 baht left on your card are you going to cash it in? Think of all the thousands of people with a few baht left on these cards and then think of the profit!! Quote
Guest wowpow Posted September 11, 2006 Posted September 11, 2006 King Power doubles up at airport AoT will need to renegotiate terms Bangkok Post AMORNRAT MAHITTHIROOK The duty-free giant King Power International has expanded its retail space within Suvarnabhumi Airport to more than double the original 20,000 square metres stipulated in its contract with Airports of Thailand Plc (AoT). King Power holds a 10- year concession from AoT to operate duty-free shops and manage commercial retail space at the new airport. The original terms called for commercial space to be limited to 20,000 sq m across clearly stipulated locations. The retail management concession excludes another 5,000 sq m set aside for duty-free shops, as well as space allocated for state agencies. But Transport Ministry officials say King Power has since significantly exceeded its utilisation of space as originally stipulated. While AoT will negotiate with King Power for added charges in return for the additional space, authorities are concerned about criticism from other companies that had bid for the contract and had set compensation rates based on the assumption that only 20,000 sq m would be offered. Under the concession, King Power is obligated to pay 1.2 billion baht in the first year for its duty-free space and another 1.431 billion for the commercial space. Payments for subsequent years are based on 15% of sales revenue, with a minimum of 1.4 billion baht. King Power must also pay rental fees of 500 to 700 baht per sq m to AoT each month. AoT chairman Srisook Chandrangsu acknowledged that King Power had exceeded its original space allocation . ''We have yet to determine exactly how much additional space has been used. Once all the renovation and work is completed, we will have to conduct a full survey and enter into negotiations [with King Power],'' he said. Somchai Sawasdeepon, general manager of Suvarnabhumi Airport, said he believed King Power was responsible for around 28,000 sq m of commercial space. ''Any extra charges will have to be based on sales and service revenue, while the lease rates are already fixed,'' he said, adding that details would depend on the decision of a committee chaired by Mr Srisook overseeing commercial revenues. Mr Somchai said the airport had originally set a guideline of 2.75 sq m per passenger when setting the balance between commercial and general space. With usage now averaging three sq m per passenger, further expansion would be difficult if service levels are to be maintained. Vichai Raksriaksorn, the chief executive of King Power, admitted that the company was using more space than its concession stipulated, but said the concession contract had allowed for the right to exceed 20,000 sq m if necessary. ''We will have to wait until a formal measurement is made to say how much space we are using. A survey will be done before the opening on Sept 28,'' he said. Mr Vichai said the duty-free shops, originally planned at 5,000 sq m, had increased by 3,000 to 4,000 sq m, while commercial space increased from 20,000 to between 26,000 and 28,000 sq m. He added that some of the space used by King Power was not for purely commercial reasons, but also for decorative, educational and recreational purposes. Negotiations should ensure fairness for both AoT and King Power, Mr Vichai said, adding that additional charges should not be based solely on the additional space used, but rather on whether it generated additional revenue. ''If you say that we have exceeded our space, we need to see by how much and what the impact will be on sales,'' he said. ''But if charges are based solely on the space alone, discussions should be held. My investments have been to benefit the airport.'' Mr Vichai said the original design of the airport had been to facilitate the rapid movement of passengers, with commercial considerations secondary. In subsequent talks with AoT, King Power stressed the importance of retail facilities and services as part of the overall traveller experience, leading to a rearrangement of the layout of commercial space. Mr Vichai said the short timeframe and the need to make modifications had pushed up costs, with 300 million baht spent just to improve the City Garden restaurant area in the domestic hall. He declined to say how much King Power had invested overall, as work was still continuing in many areas. The duty-free shop alone would have to generate sales of eight billion baht in the first year to simply cover the contracted payment of 1.2 billion to AoT, he said. ''Yes, we have used more space, but one has to consider the changes needed to improve convenience for passengers. The original airport design didn't consider many factors, such as the importance of having book shops or pharmacies near the departure area,'' he said. The King Power group reported sales of 12.65 billion baht last year, with net profit of 700 million baht. It had earlier estimated sales of 16.6 billion baht this year, nearly doubling to 30 billion in 2007 once Suvarnabhumi was fully operating. Bangkok Post today Quote
Guest Boxer Posted September 11, 2006 Posted September 11, 2006 Read recently that goods will still be 10% MORE in Duty Free than outside prices. Buy before you go is the answer. Quote
Guest wowpow Posted September 12, 2006 Posted September 12, 2006 King Power recovering from airline ban on liquid Duty-free operator the King Power International Group has lost about Bt150 million in sales of alcohol and perfume since airlines stopped allowing passengers to carry liquids on board. Most airlines have been implementing the security measure since a plot to blow up US-bound aircraft departing from London was uncovered a month ago. But chairman and CEO Vichai Raksriaksorn said King Power's sales would return to normal soon, because airlines had agreed to collect all duty-free items and put them in the hold instead of being carried by passengers. The group, which used to earn revenues of Bt1 billion per month, yesterday revealed the scale of its investment in new outlets in Suvarnabhumi Airport and Bangkok. With an investment of Bt7.5 billion, King Power Suvarnabhumi will be billed as "the longest walk-through shopping street in the world" when the airport opens on September 28. http://www.nationmultimedia.com/2006/09/12...ss_30013358.php Quote
