The Zhitong Finance App learned that on October 12, it was rumored that Hong Kong Express, a subsidiary of Cathay Pacific (00293), stopped doing tour group business in November and switched to centralized individual passenger ticketing. Yuan Zhenning, CEO of Zongheng Travel Holdings (08069), admits that it will definitely have an impact on travel agencies that operate tour groups. Since Hong Kong Express is cheap and air tickets are cheap, plus it operates many exclusive routes, such as Kagoshima, Shikoku, and Takamatsu in Japan; Danang in Vietnam; and Chiang Mai in Thailand, etc., the relevant tour groups can only change flights or even cancel their itineraries, including Chiang Mai and Danang. It is expected that about 100 group members will be affected.
According to information from the Travel Council, Hong Kong Express will stop accepting tour group travelers from the fourth quarter. It is not yet known how many tour groups will be affected. According to the news, some travel agencies received a hint 1 or 2 weeks ago. Recently, all destinations were officially notified that they would no longer accept tour group bookings, but there was no explanation for the reason. It was described as a one-sided notice, and there was no discussion on ticket prices.
A spokesperson for Hong Kong Express said that as the only low-cost airline in the region, it will review business needs from time to time and adjust sales strategies according to different types of customers. It also indicates that it currently maintains different forms of business partnerships with major travel agencies.
Yuan Zhenning pointed out that currently some Japanese groups use Hong Kong Express and switch to Cathay Pacific or Japan Airlines, and tour fees will definitely rise as a result. It is expected that the increase will reach 10% to 30%. Taking the Japanese tour in Tokyo as an example, the price increase will be 20%. He said it is not yet known why Hong Kong Express suspended tour group bookings.
Ye Qingning, chairman of the Travel Agency Owners Association, said that Hong Kong Express is mainly an online free traveller business. There have never been many group tickets for tour groups, and their routes are also short distance regions, so it has little impact on Jinyi Holidays.