Zhitong Financial APP learned that on October 12, Cathay Pacific Airways (00293) Hong Kong Express stopped doing tour group business in November and focused on individual ticketing instead. Yuan Zhenning, CEO of Zhongheng Travel Holdings (08069), said frankly that it must have an impact on travel agencies that operate tour groups, because Hong Kong Express is a low-cost airline with cheap air tickets, as well as operating many exclusive routes, such as Kagoshima, Shikoku and Takamatsu in Japan; Da Nang in Vietnam; Chiang Mai in Thailand, etc., the relevant tour groups can only change flights or even cancel their itinerary, including Chiang Mai and Da Nang, and about 100 tour members are expected to be affected.
According to the TIC, Hong Kong Express will stop receiving tour groups from the fourth quarter. For the time being, it is unknown how many tour groups will be affected. According to the news, some travel agencies received a hint one or two weeks ago that they had recently been formally informed that all destinations would no longer accept tour group bookings, but they did not explain the reasons and described it as a unilateral notice, nor did they discuss the issue of air ticket prices.
A spokesman for Hong Kong Express said that as the only low-cost airline in Hong Kong, it would review its business needs from time to time and adjust its sales strategy according to different types of customers. It also means that it currently maintains different forms of business co-operation with major travel agencies.
Yuan Zhenning pointed out that at present, some Japanese tours use Hong Kong Express and switch to Cathay Pacific or Japan Airlines. as a result, tour fees are expected to increase by 10% to 30%. Take the Japanese Tokyo tour as an example, they will have to increase their fares by 20%. He said he did not know the reason for the suspension of tour group booking by Hong Kong Express.
Ye Qingning, chairman of Jinyi Holiday, president of the Travel Agency owners Association, pointed out that Hong Kong Express is mainly engaged in online individual travel business. There have never been many group tickets for tour groups, and its routes are also short-haul areas, so it has little impact on Jinyi holidays.