Spring Airlines Dips Its Toes into Distribution Channels
By Nolwenn Tang, China Aviation Daily | Aug. 03, 2012
China's first low-cost airline Spring Airlines is offering an "olive branch" to a Chinese online travel agency (OTA) for the first time.
Recently, sales of some Spring Airlines' ticket products have been formally launched on Ctrip.com, the largest ticket distributor of major domestic airlines and also the largest domestic OTA platform.
Zhang Wu'an, the spokesman for Spring Airlines and the secretary of the board chairman, disclosed that the cooperation with Ctrip officially began in early June. He said it's "kind of attempt" for Spring Airlines.
Low-cost airlines, also known as budget airlines, rely heavily on direct sales through their own website and e-tickets in terms of sales channels, which are the most important ways for them to save costs.
As the first low-cost airline in China, Spring Airlines has taken direct sales as its most significant sales method since its establishment.
In the current Spring Airlines' sales system, bookings from the official website and mobile site account for about 85% of all, while the rest bookings come from Spring Airlines' travel agencies.
Spring Airlines has never set foot in distribution channels in the past 7 years.
Zhang Wu'an said that the cooperation with Ctrip has just begun. The reason for this attempt is that OTA has become a very common sales method internationally and it can be a complement for the Spring Airlines. He emphasized, however, that Spring Airlines will "definitely still takes direct sales as its major sales mode" in the future.
Up to now, Ctrip is the only OTA which Spring Airlines has launched cooperation with. The Ctrip website is not covering all Spring Airlines ticket products, but only some of them.
The airline explained that the move is with further meaning. Users of Ctrip mainly consist of high-end business travelers, so Spring Airlines expects to offer products that can be "suitable for Ctrip.com users", for example, the relatively high level products - "premium economy class".
However, the Spring Airlines' special offer tickets, especially the 99 yuan series tickets, will still be sold on its own website. Spring Airlines' "easy special offer" won't open sales to Ctrip.com either.