Hong Kong Express Airways Ends Group Tour Bookings, Stirs Debate on Aviation Hub Status

In an unexpected move, Cathay Pacific’s low-cost subsidiary, Hong Kong Express Airways (HK Express), has announced it will no longer accept group tour bookings from the fourth quarter onwards.

While HK Express cites this shift as a market-driven decision, the airline’s unique stance in the industry – potentially being the sole global airline to refuse tour groups – has caused many to question the underlying reasons.

Some industry insiders speculate that this move is less about market demands and more about capitalizing on flight capacity challenges. The ongoing pandemic has led to limited flights but a consistently high demand, causing airfares to skyrocket. With planes regularly flying at full capacity, airlines might not find the need to offer discounted rates for group tours. The absence of any official communication from HK Express to travel agencies on this shift further fuels these suspicions.

This surge in airfares could be detrimental to Hong Kong’s reputation as a leading aviation hub. Neighboring Shenzhen airport, offering significantly lower fares for destinations like Singapore and Tokyo, has started to emerge as a formidable competitor. The stark price difference is so pronounced that, were Cathay or HK Express executives in the shoes of travel agency managers, they might opt for Shenzhen airport to capitalize on the more economical rates.

The long-term ramifications of HK Express’s decision are yet to be ascertained. However, with Shenzhen airport looming as a significant rival, the city’s position as a premier aviation hub might be put to the test.

Sources: AirGuide Business airguide.info, bing.com, chinatravelnews.com