Chinese airlines are facing opportunities and challenges
Chinese airlines are facing opportunities and challenges due to increased competition in the market which is expected to develop so rapidly. The three largest Chinese airlines are China Air China, China Eastern Airlines, and China Southern Airlines, and their affiliates have been a positive point in the airline industry in the world, reaching 15% yields until recently. China is moving ahead with new reforms that are relaxed for the new airlines.
The travel industry in China
The objectives of the reforms tend to increase competition in the market. As demand for air travel is increasing in China, market expansion is underway. The travel industry in China Traveling to China is a huge industry. The number of travelers to China could easily increase by 50 or 60%. Combined with the new Chinese middle class, this segment will account for 80% of urban consumption by 2022, compared to 30% in 2012. With only 4% of the population holding a passport, China still exceeds the United States and Germany Travel since 2012 In 2017, more than 127 million Chinese traveled abroad, spending $ 126 billion in their destination countries.
The opportunities for new air routes
These growth areas create opportunities for new air routes. The airline's agencies must change their marketing strategy to meet the new demand. In fact, distribution is disproportionately concentrated on direct sales and traditional travel agencies, with little e-commerce. Airlines must adopt new marketing strategies for the new wave of millennial Chinese travelers (20-30 years), who are more open-minded, independent, willing to travel. They are also Internet savvy, 80% of them book online.