Golden week: record number of Chinese travellers planning domestic trips tempted by cheap airline fares, overseas curbs
- The total number of domestic flight trips made between October 1 and 8 will reach more than 15 million, a 10 per cent jump from last year, according to Qunar
- Airfares remain 10 per cent lower than that in 2019, helping to stimulate travel demand but could hit airlines’ bottom line, say experts
China’s domestic air traffic volume is expected to reach a record high during the upcoming “golden week” holiday, as lower ticket prices and curbs on international travel because of the coronavirus pandemic spur travel-hungry mainlanders to seek out local tourist destinations.
The total number of domestic flight trips made between October 1 and 8 will reach more than 15 million, a 10 per cent increase from last year, according to data from online travel booking website Qunar, noting the added volume of mainlanders who would have travelled overseas has boosted demand.
But average airfares based on pre-bookings for the same period declined 10 per cent compared with a year ago to 895.55 yuan (US$132), the lowest in five years, said Qunar, owned by China’s largest online travel booking firm Ctrip.
“Ticket price is at a low level due to discounts amid oversupply,” said Lin Zhijie, an expert at the official Aviation Think Tank. “In previous years, it was full price or at most less than 20 per cent discount. The lower price stimulates travel demand, but puts pressure on the balance sheets of airlines as overall revenue declines.”
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“This year’s National Day holiday will serve as a key indicator for airlines,” said Lei Zheng, founder and president of the Institute for Aviation Research, an independent think tank. “Compared with last year, we need to look at yield – the average revenue collected per passenger-kilometre. If this increases, Chinese airlines will have turned the corner, otherwise it indicates that a full recovery is still some time away.”
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At least two Chinese carriers saw a year-on-year improvement in several gauges of domestic performance in August. Spring Airlines, a budget carrier based in Shanghai with a focus on the domestic market, said that while its passenger capacity rose by 50 per cent, volumes were not far behind, gaining 37 per cent.
Looking ahead, Chinese carriers’ recovery still faces headwinds as the outlook for profitability is uncertain and international travel is still clouded by the pandemic, which stands at less than 10 per cent of last year’s level.
“The full recovery will have to wait for the emergence of a Covid-19 vaccine,” he said.