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#ATPCOelevate Kevin Zhang, Travelsky Limited Development and Trends of Airline Retailing in China
#ATPCOelevate
Kevin Zhang, Travelsky Limited
Development and Trends of Airline Retailing in China
01 Market Change and New Opportunity
Elevate 2019Note: The s tat is t ics don' t inc lude the fore ign a i r l ines
Source :CAAC
Gro
wth
Trend
of
Air Passen
ger Traffic in
Ch
ina
Air Passenger Traffic in China is still growing, but Growth Rate slows down
9.70% 10.30% 13.70%
18.80%
33.30%
22.70%
7.40%
10.00%
6.80%9.50%8.80%
10.60% 10.10% 9.40%10.70%
13.70%15.00%
11.90%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
0
100
200
300
400
500
600
700
2011 2012 2013 2014 2015 2016 2017 2018 2Q 2019
Number of Passengers Growth Rate （%）Domestic Routes Growth Rate （%）International Routes
Changes in China tourism market with the increase of GDP per capita 2001-2018 (Unit : US$)
Total Tourism Revenue in China 2001-2018 (Unit: Trillion RMB)
0.50.560.490.680.770.891.11.161.291.57
2.252.59
2.953.73
4.134.69
5.4
0 2 4 6
In 2011 , When GDP per capi ta was more than 5000 US dol lars , Ch ina became a mature le isure and vacat ion market .
$ 5000
In 2008 , When GDP per capi ta was more than $3000 , le isure tour ism is booming
.
$3000
In 2001 , When GDP per capi ta was more than $1000 , tour ism market entered a rap id
development era .$ 1000
In 2006 , When GDP per capi ta was more than $2 ,000 , le isure tour ism took of f
.
$ 2000
GDP Per capi ta：64520 .7RMB（About $9509 .8753）
$9509 2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
5.97
From 【Business Travel Market】 to 【Leisure Travel Market】
Source: National Bureau of Statistics
Consumers'
Demand
Became
Diversified
Consumers
Prefer Shopping
on the Mobile
Device
Consumers
Developed Online
Consumption Habit
Consumers'
Requirements for
Product
Consistency
Elevate 2019
From 【Stone Age】 to 【 Internet Age】
02 Airlines' Strategy and Change
All Domain of Travel All Touch Points of Passenger
Airlines' Strategy
All Domain of Airline
All Domain ofTransportation
All Domain ofTravel
Booking
Pre-Trip OutBound On Board
Transfer Return Post-Jounrney
ShoppingDream&Planning
Airlines' Change: Promote Airline Direct Channel
Source : Trave lSky
China Air Market Share by Channel
Elevate 2019
【Airlines' Change】
Expand New Channels
Social Media
WeChatMini Program
E-commerce Platform
FliggyFlagship Store
List of Flagship Store in Alibaba's Fliggy
Flagship Store Entrance of China Eastern Airline
NDC
Airline: China Southern Airlines is certified by IATA NDC Level 4 certification
Elevate 2019
IT Provider: TravelSky is certified by IATA NDC Level 4 certification - IT Provider and Aggregatorand working with OpenJaw on Cathay Pacific'sNDC project
Agent: The six big Chinese OTAs/wholesalers are taking NDC contents from both Chinese and foreign airlines
Elevate 2019
【Airlines' Change】
Sell New Products
01
02
03
Branded Fares
Optional Services
Air-Rail Intermodality
Branded Fares
Optional Services
In 2018, Seventeen Domestic Airlines
Five kinds of Optional Services
Cabin Upgrade,17.38%
Baggage,
46.28%
Seat Assignment,36.33%
Other, 1%
Cabin Upgrade
Baggage
Seat Assignment
Other
Air-Rail Intermodality
我们正处在【数字化转型】的十字路口…
We are at the Crossroads of the Airline Retailing Revolution…
#ATPCOelevate
