As the government eases its enforcement of strict regulatory controls, China has witnessed double-digit booking growth for airlines across all reservation platforms. Since October foreign airlines have had the option of using global distribution systems, following a change in the Civil Aviation Administration of China (CAAC) Computerised Reservation System (CRS). This legislative adjustment has enabled a wider network of travel agents to book fares and access content. Previously, the state-controlled reservation system, TravelSky, possessed a near monopoly on the sale of any information technology solutions to the air travel industry. 800 million new air travellers are expected to be flying from 2009 to 2014, with at least a quarter coming from China, providing enormous distribution and sales potential. The number of passengers on foreign airlines is growing and non-Chinese airlines account for more than half of the Chinese international flight market, according to CAAC. International bookings by foreign carriers for the China market are estimated to be 16 million this year. Despite this only being a small portion of the total China booking volume, this figure is expected to increase by 10-20 percent in the next few years. The CAAC regulation change provides airlines a choice when deciding on the right distribution partner. “One can choose to be proactive or reactive to these changes, but one thing is certain - being armed with the proper tools and a sense of readiness will give an airline the edge in supporting current and future moves by CAAC,” according to distribution company Abacus. |
China loosens regulatory grip, foreign airlines benefit
Source = e-Travel Blackboard: P.T