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HK lags neighbours in booking online for budget flights

New research shows that budget airline-driven online booking is taking off in Singapore and Malaysia, but Hongkongers still prefer to use travel agents.

The survey by Cendant TDS, one of the world's leading online travel distribution groups, focused on the impact of low-cost carriers on travel behaviour. It also found that, given the option of using budget airlines, Singaporeans and Malaysians intend to travel more often (68 per cent and 53 per cent, respectively), compared with only 25 per cent of Hong Kong people.

Preferred destinations for Hongkongers are Tokyo, Beijing and Shanghai, which are not yet serviced by low-cost carriers. The top three for Singaporeans are Bangkok, Hong Kong and Kuala Lumpur, while Malaysians favour Singapore, Bangkok and Sydney.

Malaysians have the highest online buying pattern, with 87 per cent intending to book air travel online in the next 12 months, and 84 per cent planning to make online accommodation reservations. Singaporeans are next, with 69 per cent planning to book air travel online and 50 per cent accommodation. In contrast, only 32 per cent of Hong Kong travellers intend to book air travel online and even fewer (26 per cent) accommodation.

The survey also examined how travellers will spend the money they save on low-cost air travel. Singaporeans are generally not upgrading their accommodation, preferring to spend on shopping during their trip (62 per cent).

Hongkongers also intend to spend the savings on shopping (61 per cent) and eating (52 per cent). Approximately half of travellers from Malaysia will spend the savings on shopping, but 39 per cent said they would choose better accommodation.

The survey was done by MarketShare among 2,000 leisure travellers early this year and offers hope for traditional travel agents who are usually bypassed by the budget airline online booking systems.

Mark Rizzuto, managing director for Asia at Cendant TDS, says: 'Our research shows that there is a new low-cost travel segment emerging. While direct online bookings are increasing, we believe that there is a strong opportunity for travel agents to offer low-cost travel options combined with the expertise and service that only travel agencies can provide.'

passenger pays

In response to last week's item on airport costs, reader Bella Nguy took issue with a Hong Kong airport authority statement that Singapore collected the majority of its airport charges directly from passengers.

'When I travel between Hong Kong and Singapore, apart from the airfare and fuel surcharges, I also have to pay the following,' she says. 'From Hong Kong: airport administration charge - $40; airport security service charge $33; passenger service charge $120 - total $193.'

Meanwhile, she says that travelling from Singapore, she pays: airport service charge $100. 'Thus as a passenger, I find departing from Singapore is cheaper than Hong Kong by $93. It would be interesting to hear what HKIA says on this.'

The airport authority responded, insisting that under their total cost benchmarking, the amount received by Hong Kong International Airport is 7 per cent cheaper than Changi airport.

The HKIA calculation includes costs of landing, lighting, terminal navigation, noise, parking, passenger charge, security, aerobridge and baggage handling.' Collection methods of airports differ in items that are charged to airlines and passengers,' a spokesperson stressed. At HKIA a passenger charge is payable by airlines, while Singapore's Changi airport collects it from passengers directly at check-in point. Security fees are charged at both airports.

'With reference to your reader's letter, the airport authority collects a $33 security charge from each departing passenger, while the $120 departure tax [instead of passenger service charge as put by your reader] per passenger is payable to the government. There is no airport administration charge at HKIA.'

It seems that no matter what the charge is called, or who gets it, the passenger still pays.

Taiwanese win in beijing

In a lightning two-week tender process, Sunrise Duty Free has won the concession to run the duty-free operation at Beijing Capital International Airport by offering the most money. The Moodie Report revealed last week that Taiwanese retailer Sunrise, which also operates duty-free at Shanghai Pudong Airport, was the highest bidder, offering a minimum annual guarantee of about 13 per cent more than the state-run China Duty Free Group. BCIA's annual sales are about US$250 million and bidders had to stipulate a minimum annual turnover and a minimum annual guarantee payment.

This tender marks the first time a China airport has broken free from the CDFG supply channel. Until now, the airport has had to buy through CDFG and its partner China Power Duty Free.

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