Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Airlines - China - September 2015

“Chinese consumers place great importance on efficiency when taking flights. They are most likely to pick an airline based on on-time rate, number of connecting flights and the convenience of transportation from the airport/terminal in addition to price and flight time. Furthermore, Chinese consumers are also most willing to pay more for the taxi reservation/pick-up services offered by airlines, adding evidence to consumers’ high attention to efficiency.”

–    Linda Li, Senior Research Analyst

This report covers the following areas:

  • How to make the frequent flyer programme more attractive?
  • High efficiency becomes a key demand in air travel
  •  How can international airlines further compete with domestic airlines?

 

The growing demand of leisure travel will continue to drive the growth of the civil aviation market. However, due to the limited annual leaves in China, Chinese consumers are more likely to be medium- to low-frequency flyers.
 
However, the medium-frequency flyers are worth cultivating, given their large bases. Therefore, airlines need to make the frequent flyer programmes more attractive to these people to enhance brand loyalty among them.
 
Airlines could have innovations either on the awards or how can their members use the accumulated points, or in the way consumers accumulate the points.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Definition
        • Methodology
          • Abbreviations
          • Executive Summary

              • The market
                • Figure 1: Forecast of total airline passenger volume, China, 2010-20
              • Companies and brands
                • The consumer
                  • Who are likely to be the high-frequency flyers?
                    • Figure 2: Times of travelling by air in the past 12 months, May 2015
                  • Official website is the most popular purchasing channels for both airlines and travel agencies
                    • Figure 3: Channels used when buying plane tickets, May 2015
                  • Chinese consumers focus on travel efficiency, with on-time rate as their top consideration
                    • Figure 4: Consideration factors when choosing flights, May 2015
                  • Consumers most willing to pay for the commute from/to the airport
                    • Figure 5: Services that consumers are willing to pay more for, May 2015
                  • Full-service airlines also have opportunities to introduce “pay what you want” pricing structure
                    • Figure 6: Attitudes towards airlines and air travel, May 2015
                  • Consumers prefer international airlines for long-haul travel and family trips
                    • Figure 7: Preference of domestic and international airlines, May 2015
                  • Airlines have opportunities to offer more convenience via mobile apps
                    • Figure 8: Attitudes towards frequent flyer programmes, May 2015
                  • Meet the Mintropolitans
                    • Key issues
                      • How to make the frequent flyer programme more attractive?
                        • High efficiency becomes a key demand in air travel
                          • How can international airlines further compete with domestic airlines?
                            • What we think
                            • Issues and Insights

                                • How to make the frequent flyer programme more attractive?
                                  • The facts
                                    • The implications
                                      • High efficiency becomes a key demand in air travel
                                        • The facts
                                          • The implications
                                            • How can international airlines further compete with domestic airlines?
                                              • The facts
                                                • The implications
                                                • Market Size and Forecast

                                                  • Key points
                                                    • Volume of airline passengers enjoys a healthy growth over 2010-15
                                                      • Figure 9: Volume of airline passengers, by segment, China, 2010-15
                                                      • Figure 10: Volume share of airline passengers, by segment, China, 2010-15
                                                    • More air traffic volume coming from the West of China
                                                      • Figure 11: Volume share of total airline passengers in China, by region, 2012-14
                                                      • Figure 12: Number of civil aviation airports in China, by region, 2012-14
                                                    • Forecast
                                                      • Figure 13: Forecast of total airline passenger volume, China, 2010-20
                                                      • Figure 14: Forecast of mainland airline passenger volume, China, 2010-20
                                                      • Figure 15: Forecast of Hong Kong, Macau, Taiwan airline passenger volume, China, 2010-20
                                                      • Figure 16: Forecast of international airline passenger volume, China, 2010-20
                                                    • Forecast methodology
                                                      • Key market drivers
                                                        • Opportunities raised by “One Belt One Road” strategy
                                                          • Growing demand for leisure travel
                                                            • Further development in low-cost airlines
                                                              • Key challenges of growth
                                                                • The slowdown of Chinese economy
                                                                  • Figure 17: GDP growth rate vs volume growth of airline passengers in China, 2010-15
                                                                • Even worse flight delay issues
                                                                • Market Share

                                                                  • Key points
                                                                    • The “big three” lose shares under severe competition
                                                                      • Figure 18: Market share of airline companies, by passenger volume, China, 2012-14
                                                                    • China Southern Airlines is catching up in the international segment
                                                                      • Figure 19: Volume share of airline passengers of the “big three”, by segment, 2014
                                                                      • Figure 20: Volume share of airline passengers of the “big three”, international segment, 2012-14
                                                                    • Hainan Airlines and Sichuan Airlines have witnessed the largest expansion
                                                                    • Companies and Brands

                                                                      • China Southern Airlines
                                                                        • Figure 21: Main subsidiaries of China Southern Airlines, by 31 December 2014
                                                                      • China Eastern Airlines
                                                                        • Air China
                                                                          • Figure 22: Main subsidiaries of Air China, by 31 December 2014
                                                                        • Hainan Airlines
                                                                          • Spring Airlines
                                                                            • Sichuan Airlines
                                                                              • Juneyao Air
                                                                              • Who’s Innovating?

                                                                                • Key points
                                                                                  • Launching themed safety videos to add fun to the flight
                                                                                    • Hainan Airlines has pioneered in using jet fuel made from gutter oil
                                                                                      • More efficient boarding processes launched by international airlines
                                                                                        • International airlines offer more in-flight entertainment through passengers’ mobile devices
                                                                                        • The Consumer – Frequency of Flying

                                                                                          • Key points
                                                                                            • Definition of flying frequency
                                                                                              • Who are likely to be the high-frequency flyers?
                                                                                                • Figure 23: Times of travelling by air in the past 12 months, by age, May 2015
                                                                                                • Figure 24: Times of travelling by air in the past 12 months, by demographics, May 2015
                                                                                              • Women are taking more flights than before
                                                                                                • Figure 25: Times of travelling by air in the past 12 months, by gender, May 2015
                                                                                            • The Consumer – Channels Used When Buying Plane Tickets

                                                                                              • Key points
                                                                                                • More consumers are buying directly from airlines than travel agencies
                                                                                                  • Figure 26: Channels used when buying plane tickets, May 2015
                                                                                                • Most purchases still take place on websites
                                                                                                  • Figure 27: Channels used when buying plane tickets, May 2015
                                                                                                • High-frequency flyers buy more plane tickets via apps
                                                                                                  • Figure 28: Channels used when buying plane tickets, by flying frequency, May 2015
                                                                                                  • Figure 29: Purchase channels of buying plane tickets, “via mobile apps”, by gender, May 2015
                                                                                                • Consumers from tier one cities rely more on travel agencies
                                                                                                  • Figure 30: Channels used when buying plane tickets, by city tier, May 2015
                                                                                              • The Consumer – Consideration Factors when Choosing Flights

                                                                                                • Key points
                                                                                                  • On-time rate is the top consideration factor
                                                                                                    • Figure 31: Consideration factors when choosing flights, May 2015
                                                                                                  • Chinese consumers are efficiency-driven
                                                                                                    • Opportunity to trade up low earners with more flexible refund conditions
                                                                                                      • Figure 32: Consideration factors when choosing flights, “The ticket is refundable/changeable”, by monthly household income, May 2015
                                                                                                    • Younger consumers value more in-flight catering
                                                                                                      • Figure 33: Consideration factors when choosing flights, in-flight catering and entertainment-related, by demographics, May 2015
                                                                                                  • The Consumer – Services that Consumers Are Willing to Pay More for

                                                                                                    • Key points
                                                                                                      • Consumers are most willing to pay for the commute from/to the airport
                                                                                                        • Figure 34: Services that consumers are willing to pay more for, May 2015
                                                                                                      • Leverage in-flight Wi-Fi to show the brand as a standard setter
                                                                                                        • Introduce more ‘local food’ in-flight to entice passengers
                                                                                                          • Keep consumers most updated when there is a delay
                                                                                                            • Theme flights may be a good “surprise” for mid- to low-frequency flyers
                                                                                                              • Figure 35: Services that consumers are willing to pay more for, “Theme flights”, by flying frequency, May 2015
                                                                                                          • The Consumer – Attitudes towards Airlines and Air Travel

                                                                                                            • Key points
                                                                                                              • Opportunities for airlines to introduce “pay what you want” pricing structure
                                                                                                                • Figure 36: Attitudes towards airlines and air travel, May 2015
                                                                                                              • Consumers are paying more attention to in-flight experiences
                                                                                                                • Figure 37: Attitudes towards airlines and air travel, May 2015
                                                                                                              • Make more affluent consumers part of the marketing force
                                                                                                                • Figure 38: Attitudes towards airlines and air travel, “I like sharing my flight experience on social networks”, by monthly personal income, May 2015
                                                                                                              • Consumers from the South are more willing to pay for refundable tickets
                                                                                                                • Figure 39: Attitudes towards airlines and air travel, “I prefer to buy the tickets that are a bit more expensive but refundable/changeable”, by region, May 2015
                                                                                                            • The Consumer – Preferences of Domestic Airlines or International Airlines on Different Occasions

                                                                                                              • Key points
                                                                                                                • Consumers prefer international airlines for long-haul travel and family trips
                                                                                                                  • Figure 40: Preference of domestic and international airlines, May 2015
                                                                                                                • Low-frequency flyers are more likely to be indifferent to the airlines
                                                                                                                  • Figure 41: Domestic airlines vs international airlines, “No difference”, by flying frequency, May 2015
                                                                                                              • The Consumer – Attitudes towards Frequent Flyer Programmes

                                                                                                                • Key points
                                                                                                                  • Airlines have opportunities to offer more convenience via mobile apps
                                                                                                                    • Figure 42: Attitudes towards frequent flyer programmes, by flying frequency, May 2015
                                                                                                                  • The need to reward medium-frequency flyers
                                                                                                                    • Figure 43: Attitudes towards frequent flyer programmes, by flying frequency, May 2015
                                                                                                                • The Consumer – Meet the Mintropolitans

                                                                                                                    • Why Mintropolitans?
                                                                                                                      • Who are they?
                                                                                                                          • Figure 44: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
                                                                                                                          • Figure 45: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
                                                                                                                        • Mintropolitans take more flights than non-MinT
                                                                                                                          • Figure 46: Times of travelling by air in the past 12 months, by consumer classification, May 2015
                                                                                                                          • Figure 47: Channels of buying plane tickets, by consumer classification, May 2015
                                                                                                                        • Mintropolitans wants to know more culture background in-flight
                                                                                                                          • Figure 48: Services that consumers are willing to pay more for, by consumer classification, May 2015
                                                                                                                        • Offer unique experiences to attract Mintropolitans
                                                                                                                          • Figure 49: Selected attitudes towards airlines and air travel, by consumer classification, May 2015

                                                                                                                      Companies Covered

                                                                                                                      To learn more about the companies covered in this report please contact us.

                                                                                                                      Airlines - China - September 2015

                                                                                                                      £3,273.18 (Excl.Tax)