China’s air ticket online booking market is upcoming and on the rise, with seen increases in market share and dominance of certain air divisions, coupled with increased direct sales channels to enhance the pace of growth.
According to Analysys’s released report in Q1 of 2017 on China’s air ticket online booking market, its market size reached 132 billion yuan (US$19 billion), with a year on year growth rate of 31.8%, as seen in the chart below.
Following the July 2016 revised ticket sales policy for the pay-per-month segment vote, each air division is aimed at improving corporate profits, exerting market dominance and directing marketing channels to accelerate the pace, all working with OTA to rectify the ticket agent industry.
This year, the airline continued to strengthen its platform and held sales of the tickets, hotels, tour package through direct channels in order to increase market share.
With each air divisions playing individual strategies with increased intensities, OTA’s profit margins are gradually decreasing. This quarter, while OTA is continuing to enhance product experience and operational efficiency, at the same time, it is also focussing on the layout of higher prices of the international air ticket market.
From engaging in depths of integration, and aspects of upgrading, manufacturers provide more competitive online aviation service products. On the other hand, manufacturers further strengthen the international ticket product and service side of supply through online international voyage and flagship stores.