Qantas urged to consider ‘All you can fly’

In Attractions, Australian Domestic Tourism, China, Featured Home Page News, Government, Harmonisation, Momentum, Tourism Routes, Transport
TTN 3 Aug 2020: Tourism operators are urging Qantas to consider an ‘all you can fly’ product to keep the industry afloat.
China Southern and China Eastern Airlines are reported to be offering a ‘Fly Happily’ product – a single price for an unlimited number of flights.
Qantas are being urged to consider the same product which could be a great workaround for unsteady lockdown periods – crowds can be redirected depending on each region’s tourism recovery, whilst airlines, airports, travel and hospitality supply chains for air travel can survive ongoing uncertainty.
Tourism marketing expert Veronica Hope of Australian Voice Marketing said it’s also a unique opportunity for Qantas to investigate where their markets will lay in the future – and to shape the Australian Domestic Tourism industry.
“This is a unique opportunity for Qantas and the revamped Virgin to see what Australian domestic flyers would do if cost was no object”, Ms Hope said.”We may find for example that Uluru, Darwin, Broome, Perth and Cairns peak in demand with an all-you-can-fly product, and the domestic market was lacklustre before because tourists had to factor in high flight costs and highly variable transfer and transport costs into their holiday budget”, Ms Hope said.

She continued, “There is a significant opportunity here for Qantas and their new competitor to reshape the Australian tourism industry into something that works better for the airlines, regions, the providers, customers and of course shareholders.”

Chinese airlines plug ‘all you can fly’ deals to pierce virus clouds

From the Australian Financial Review, Stella Qiu, Sophie Yu and Brenda Goh 
  • Passes often priced about $US500, most with some restrictions
  • China Southern latest to join rush with ‘Fly Happily’ package
  • China air travel closely watched for post-virus recovery trends
  • Deals filling domestic flights, international rollout unlikely
Beijing | China Southern Airlines on Tuesday rolled out an “all you can fly” pass, becoming the latest in a fleet of cash-strapped carriers to join a promotional craze that analysts say has helped revive a coronavirus-ravaged air travel market.At least eight of China’s dozens of airlines have introduced similar deals since June, often priced around $US500 ($700) for in some cases unlimited flights. Industry watchers say the packages have been a shot in the arm, with costs offset by otherwise empty seats being filled in a country where daily flights last month recovered to 80 per cent of pre-coronavirus levels.

The global aviation industry is keenly eyeing China as a pilot for air travel recovery trends, as the country reopened its economy months earlier than other places after managing to bring the pandemic mostly under control – at least for now.

But Luya You, transportation analyst at BOCOM International, said these promotional packages – ranging from unrestricted flights to an array of terms and conditions – can only stimulate demand when coronavirus risks are already sufficiently reduced.

“While these packages may work in domestic markets, we do not expect similar rollouts for outbound routes anytime soon,” she said.

The “Fly Happily” deal launched by China Southern, the country’s biggest carrier by passengers, allows buyers to use passes for as many flights as they wish for destinations across the country from August 26 to January 6 for 3699 yuan ($741).

As with other deals, passholders also pay a small tax to the airline – about 50 yuan – per flight.

Meanwhile China Eastern Airlines’ 3322 yuan “Fly as you wish” deal, launched in June, only applies to weekend travel. Hainan Airlines’ 2699 yuan package is only valid on flights to or from Hainan province.

China Eastern has sold over 100,000 passes, state media reported. That helped boost passenger loads on its domestic routes to over 75 per cent on recent weekends, according to aviation data provider Variflight.

“I’m going to Changsha this weekend and Guangzhou the next weekend,” said Elaine Shen, a Shanghai-based insurance professional just back from an eight-day trip in the country’s north-west using the China Eastern pass.

“The experiences are great,” Ms Shen said. “I would not be flying this much if it weren’t for this pass.”

It’s not just Chinese airlines that have jumped on the deals bandwagon to revive the travel industry.

The Marriott Group said it was aiming for a fresh promotional campaign in August 2020 in the wake of a successful April deal giving buyers the chance to eat a month’s worth of buffet breakfasts in any of its 146 China hotels for 588 yuan.

Reuters

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