Since increased oil prices and completion of high speed railway projects among major cities in China, airlines are actively seeking ways to reduce ticket prices. In the same effort Air China has undergone agreement with Alibaba Group's Alipay to sell tickets directly to customers from their online website.From now on official Air China website, Alipay will be used for online payment support for ticket sales. Other airlines to follow are China Southern and China Eastern.
Currently, tickets offered by some airlines' official websites are cheaper than their agencies', because the authority of fixing the original price of the ticket belongs to the airlines, the report notes.
Due to high oil prices and earning less than 1% of a profit margin in the global airline industry, direct online outlet can increase airlines' profits as the reduction of commissions attracts more customers, the report said.
It is reported that the sale of over 90 percent of airline tickets in China have been conducted by agencies. Yet in developed countries, more than 30% of airlines tickets are directly sold from airlines' official websites, while the ratio even reaches 60 percent for some well-established companies.
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