bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

sponsorType

urlAlias

moreOnThisArticles

commentCount

authorLocations

authors

corrections

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Cathay Pacific Airways said its weekly sales of discounted tickets drew more traffic to its website and raised the percentage of direct sales to passengers.
The marketing campaign is part of the airline's response to mounting competition from budget carriers in the region, including one that may soon be challenging it from its home base in Hong Kong.
Cathay launched its "fanfares" programme on October 30. It puts 1,200 to 1,700 discount tickets up for grabs every Tuesday morning. Sixteen rounds of discount ticket sales have been launched.
Ninety per cent of the tickets were sold through Cathay's website, and the rest by travel agents.
As an incentive for passengers to book online, they receive 500 Asia Miles points for every ticket bought directly through the company website.
Traffic for Cathay's website and that of its subsidiary, Hong Kong Dragon Airlines, had gone up by 60 per cent, Cathay said. The airline did not disclose traffic figures.
"We want the fanfares site to be the first place to which passengers go when they are thinking about a weekend away or are looking for great-value offers to a specific destination," Cathay's spokesman said in an e-mail.
Some "hot" tickets were sold out within one or two hours from 8am, when they were put up for sale, the spokesman said.
On average, more than 80 per cent of the promotional tickets found buyers.
About two-thirds of tickets for full-service airlines, including Cathay, were sold through travel agencies and global distribution systems, said Will Horton, an analyst at Capa, a Sydney-based aviation think tank.
Costs per ticket varied but could be about 15 per cent, Horton said.
"Airlines generally have low single-digit margins, so the distribution cost can mean the difference between a profit and a loss," Horton said.
Low-cost carriers, however, sell 80 per cent to 90 per cent of their tickets through their own websites, which cost only a few US dollars per ticket, he said.
It will mean a lot to Cathay if it can increase the proportion of direct sales, especially at a time when it is likely to face head-to-head competition from Jetstar Hong Kong Airways, a budget carrier still waiting for government approval to operate out of the city.
Cathay suffered HK$935 million in losses in the first half and is facing tough full-year results, as demand for premium in business and first class seats is waning because of a decline of more than 15 per cent in traffic from top customers in the financial industry.
Airfares in economy class also faced downward pressure, as the average ticket price dropped 4 per cent last year, Cathay chief executive John Slosar said in November.
It is still too early to tell if Cathay can turn the tide by steering most of its passengers online.
Sales through the fanfares programme still accounted for just a fraction of 1 per cent of Cathay and Dragonair's total capacity, Horton said.


Cathay Pacific Airways sees surge in direct sales through online promotion

Cathay Pacific Airways is trying to ward off competition from budget carriers with a "fanfares" programme of discount tickets. Photo: AFP

Business

Companies

Airline sees surge in direct sales as online discount tickets scheme attracts interest


Cathay launched its "fanfares" programme on October 30. It puts 1,200 to 1,700 discount tickets up for grabs every Tuesday morning. Sixteen rounds of discount ticket sales have been launched.


Cathay Pacific Airways sees surge in direct sales through online promotion

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Airline sees surge in direct sales as online discount tickets scheme attracts interest

Airline sees surge in direct sales as online discount tickets scheme attracts interest