Filed under: Consumer Insight, travel/hospitality | Tags: advertising in BRIC nations, air travel, air travel marketing, airline marketing, asia business travel, attracting business travelers, behavioural targeting travel, bric infrastructure and development, BRIC marketing, BRIC media buying strategy, business travel, conferencing vs. business travel, digital travel advertising, digital travel marketing, global travel marketing, interactive marketing travel sector, marketing in BRIC countries, online travel advertising, online travel marketing, online travel marketing firm, regional development marketing initiatives, sky express, spring air, travel advertising, travel and hospitality, travel marketing, virtual business travel
- R.D. Eisenhart III, reisenhart@criterionglobal.com
Domestic air travel in China, once subject to tight government regulation and closed to foreign operators, is quickly entering a new era of greater competition for marketshare in both business-class and budget travel segments. Meeting the demands of these business-class and discount consumers presents challenges for both domestic and foreign air carriers, both established and new to the Chinese market.
International airlines are increasingly adapting to accommodate the cultural preferences of the Chinese business-class air travel consumer. Those who can do so effectively will be well-rewarded. For many business travellers in China, quality of service is the only factor determining whether that customer returns or not, and despite the economic downturn, experts note that Chinese business travel continues to remain strong. Still, this elite business-class community represents only a small portion of country’s total population capable of flying.
Although China’s middle class have yet to move towards international travel en masse, it seems only a matter of time before they do. Domestic airlines in China are expected to increase passenger travel by 10 million, for a total of 170 million passengers, in 2009, the majority of which shop by price alone, regardless of brand preference or quality of service. Discount airlines, such as Spring Air, are meeting this demand, and have even considered offering customers “standing room only” tickets at a 20% discount to meet demands according to Sky News. Despite the shock value of this prospect, Spring and other private air carriers continue to perform well next to state-backed airlines, known for exceptionally high ticket prices combined with “notoriously low levels of service and efficiency.” (more…)
