Saha branches into travel business
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Saha Group, the country's biggest consumer products manufacturer, has taken off into the travel business by forming a joint venture with industry professionals.
The new company, Tiger Group Vacation Co (TGV), was set up recently with a registered capital of Bt5 million. Tiger Distribution and Logistics Co, a subsidiary of ICC International, holds a 49-per-cent stake in the company, while 51 per cent is controlled equally by Chavis Kulpattarapoke and Chutiwut Suwanichkul, who have long experience of operating as travel agents.
ICC is a subsidiary of Saha.
The three parties aim for a perfect union: Saha Group has the funds, while Chavis has expertise in incentive travel and Chutiwut is vastly experienced in dealing with air-ticket purchases.
TGC president Vichien Kantathavorn said that expanding into the travel business would help maximise Saha Group’s existing business, which comprises more than 300 companies. It will offer affordable travel packages and also incentive tours to the group’s employees, both domestic and outbound tours.
If successful, he said the company could be listed on the Stock Exchange of Thailand or the Market Alternative for Investment (MAI) over the next five years.
The firm was launched officially at the 17th Saha Group Fair 2013, which takes place from Friday to Monday at Queen Sirikit National Convention Center. The firm showed off its service and got a warm reception from visitors. There will be two group tour packages to Japan. Each group consists of 30 people and the cost per head is Bt28,500 for a five days and three nights trip.
In general, a trip to Japan costs a minimum of Bt35,000. The firm said affordable packages would be offered for other destinations such as Europe, Hong Kong, South Korea. Post-graduate students are among the company’s targeted travellers.
The company expects 30 per cent of customers to be group employees.
Next year, the firm is expecting to attract 10,000 people, charging Bt30,000 per head for its package. In the longer term, the number is expected to increase to more than 50,000, although it acknowledged that it is a very difficult target that has no one has ever achieved. In general, agents manage to find only 15,000 guests annually.
After 2015, the firm plans to launch an inbound tour service as well. In the second half of this year, it projects to earn Bt30 million in total sales. Sales contribution will come equally from air ticket and tour sales.
