THAI lags as Centara Grand emerges Thailand’s strongest brand
The sluggish revival of business tourism, coupled with Thailand’s failure to establish itself as a global connection hub, has resulted in the brand value of Thai Airways (THAI) lagging behind its rivals. Conversely, Centara Grand Hotels & Resorts has emerged as the strongest brand in the nation this year.
According to Alex Haigh, who serves as the Asia-Pacific Managing Director at Brand Finance, the Thai Government should place an additional emphasis on enticing immigrants who wish to work and retire in the country. Haigh suggested that Thailand should go beyond projecting itself as a leisure-oriented destination, an image it has successfully cultivated among travellers worldwide.
Recent studies conducted by Brand Finance revealed a somewhat tepid growth in the brand value of THAI. Currently standing at US$990 million, THAI’s value has certainly increased, but it has failed to keep pace with rivals such as Singapore Airlines and Malaysia Airlines, whose corresponding growth rates of 8% and 5% respectively outperformed THAI’s 3% year-on-year increase.
With THAI yet to reach its pre-2019 capacity levels, analysts have been quick to point out the challenges ahead. Notably, the inbound tourism sector of Thailand faces the daunting task of matching its pre-pandemic glory days, largely due to the diminished demand among Chinese tourists, an inexplicable lack of business travellers, and the country’s inability to gain international connectivity, as noted by Brand Finance.
These revelations have also affected Bangkok’s reputation as a viable business hub. The Thai capital currently ranks 81st and 77th out of 100 global cities in terms of investment and livability, respectively. Despite these unimpressive standings, Bangkok still managed to claim the 16th spot for being the “most familiar city with great nightlife and fun activities” as per a recent survey.
If the government can successfully diversify its customer and business bases, the benefits would be reaped not only by tourism-related businesses such as airlines and hotels but also by the city of Bangkok and Thailand at large, suggested Haigh.
In this year’s brand ranking, the strongest brand was reported to be Centara Grand, which dethroned last year’s leader, Kasikornbank. The latter dropped to third place while PTT retained its second position. Propelled by its brand strength, Centara Grand entered the national brand value ranking for the first time, occupying the 32nd spot with a brand value of $233 million, reported Bangkok Post.
Brand Finance takes various factors into account when measuring brand strength, the primary among which are brand recognition and its influence on customers’ purchasing decisions. The brand value, on the other hand, is calculated based on the size of the business as well as its ability to cater to and stimulate customer demand.
It is also worth noting that Dusit and Anantara have emerged as the strongest hotel brands in Thailand, even though they haven’t made their way into the top 50 brand value ranking yet, added Haigh.
