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China Research Network
During the "May Day" holiday, the price of air tickets "dived", which did make some passengers who had already purchased air tickets in advance feel "at a loss". This phenomenon may be the result of a combination of factors.
First of all, compared with previous years, the total number of takeoffs and landings expected at domestic airports during the May Day holiday in 2024 has increased, showing strong travel demand. However, this increase in demand did not lead to a general increase in airfares, but rather a "dive" in prices. This may be due to the fact that airlines have adopted a price reduction strategy closer to the holiday season in order to attract more passengers, and increase the occupancy of flights by lowering the price of air tickets.
Secondly, the price of international flights is relatively "friendly", for example, the tax-included fare from Nanjing to Jeju Island, Seoul, Manila, and Hanoi is 500 or 600 yuan. This price advantage may have attracted some travelers who originally planned to travel domestically to choose to travel abroad, which reduced the demand for domestic flights, resulting in lower air ticket prices.
In addition, judging from the data from Ctrip's aviation data platform FlightAI and Feichang Zhun Big Data and other channels, the price of air tickets before the holiday has fallen, and the average price of domestic economy class air tickets excluding tax in the past 7 days is 852 yuan, down 1.13% year-on-year in 2023 and 22% week-on-week. This shows that the price of air tickets has shown a downward trend in the period before the holiday, but some travelers may not pay attention to this change in time for various reasons, thus missing the opportunity to buy low-cost air tickets.
To sum up, there may be many reasons for the "diving" of air ticket prices during the May Day holiday, including the price reduction strategy adopted by airlines to attract passengers, the price advantage of international flights, and the pre-holiday air ticket prices have fallen. For passengers who have already purchased their tickets in advance, although they may feel "at a loss", they can also look at this problem from another angle: after all, it is important to be able to plan their itinerary in advance and travel smoothly. At the same time, it also reminds us to pay more attention to the trend of air ticket prices when traveling in the future, so that we can make more informed decisions.
According to the analysis of the China Research Industry Research Institute:
The in-depth analysis of the civil air transport industry market needs to be examined from multiple dimensions, and the following are some key analysis points:
Market size and growth: In recent years, with the recovery and growth of the global economy, the market size of the civil air transport industry has continued to expand. According to data from Shangpu Consulting Group, despite the impact of the new crown epidemic, it is expected that the civil aviation industry will complete the total transportation turnover, passenger traffic and cargo and mail transportation volume in 2023, and the market size will expand.
Market structure: The market structure of the air transport service industry in mainland China has undergone a transformation from a state monopoly to a competitive structure of diversified air transport enterprises. At present, the market concentration of the civil air transport industry in mainland China is relatively high, and most of the market share is concentrated in the hands of a few large state-owned airlines. This market structure gives these large airlines strong bargaining power and market influence.
Competitive landscape: In the civil air transport industry, competition mainly comes from price competition and service competition between airlines. In order to attract more passengers and cargo, airlines need to continuously improve the quality of service and reduce operating costs. In addition, with the continuous opening up of the air transport market and the increase in the degree of internationalization, the competition of international airlines will also intensify.
Market demand: With the improvement of people's living standards and the increase of business activities, the demand for air transportation is also increasing. Especially in recent years, with the rapid development of tourism and the diversification of people's travel modes, the demand for air transport market has shown a rapid growth trend. At the same time, with the rise of cross-border e-commerce and the prosperity of international trade, the demand for cargo and mail transportation is also increasing.
Influencing factors: The development of the civil air transport industry is affected by a variety of factors, including the macroeconomic environment, policy environment, technical environment, etc. For example, factors such as the global economic situation, international oil prices, and exchange rates can all have an impact on airlines' operating costs and profitability. In addition, the policy environment will also have an important impact on the development of the air transport industry, such as air traffic control policies, tax policies, etc.
Development trend: In the future, the civil air transport industry will continue to maintain a rapid growth trend. With the advancement of technology and the upgrading of aircraft, the efficiency and safety of air transportation will be further improved. At the same time, with the recovery and growth of the global economy and the diversification of people's demand for travel modes, the demand for air transport market will continue to maintain rapid growth. In addition, with the improvement of environmental awareness and the requirements of sustainable development, green aviation and low-carbon aviation will become an important direction for the development of air transport in the future.
To sum up, the civil air transport industry market has broad market prospects and development space, but it is also facing fierce market competition and a variety of challenges. Therefore, airlines need to continuously improve service quality and operational efficiency, strengthen cost control and risk management to adapt to market changes and meet customer needs.
It was learned from the Civil Aviation Administration of China that civil aviation will promote a significant increase in direct flights between China and the United States in 2024. According to data from the Civil Aviation Administration of China, regular direct passenger flights between China and the United States have increased to 63 per week, and the recovery level between China and the "Belt and Road" countries is 6.2 percentage points higher than the overall level of international routes, which has effectively promoted international personnel exchanges.
This year, civil aviation will comprehensively stimulate the demand of the aviation market, coordinate the expansion of domestic demand and supply-side structural reform, and strive to complete the total transportation turnover, passenger traffic and cargo and mail transportation volume of 136 billion ton-kilometers, 690 million passengers and 7.6 million tons, an increase of about 14%, 11% and 3% year-on-year respectively, making new contributions to the construction of a new development pattern of services.
Civil air transport is a mode of transportation that transports passengers and goods through certain air routes with aircraft as the means of transport, civil as the purpose, and the airport as the base.
Civil air transport is an integral part of the national and regional transportation system, and its outstanding advantages are fast transportation speed, straight routes, not affected by the ground terrain, and can undertake long-distance passenger and cargo transportation; However, the carrying capacity is small, the fuel cost is high, the transportation cost is expensive, and it is susceptible to climatic conditions. Civil air transport plays a very important role in international exchanges and domestic long-distance passenger transport.
After entering the 21st century, the mainland's economic development has entered a sound and rapid development track, the national economy has continued to grow at a high speed, the demand for air transport is strong, and the construction of civil airports has set off a new round of development climax. The central and local governments have continuously increased investment in the construction of civil airports, and gradually broadened the financing channels for airport construction.
The central position of the three major hub airports of Beijing, Shanghai and Guangzhou has become increasingly prominent, and the backbone role of airports in important cities such as Kunming, Chengdu, Xi'an, Wuhan and Shenzhen has been further enhanced, and the construction of regional airports has been tilted towards the central and two regions.
The civil aviation industry in mainland China is a specific industry engaged in flight services and occupies an important position. In recent years, with the development of the economy, people's travel demand has gradually risen, the domestic aviation market has continued to develop, the number of passengers has been rising, and economic and social development has provided strong market support.
The civil aviation industry is about to enter a "growth period" and a "release period", which is far from the "14th Five-Year Plan" goal of civil aviation. According to the 14th Five-Year Plan for Civil Aviation Development, the development of civil aviation during the 14th Five-Year Plan is divided into two phases, namely the recovery and accumulation period from 2021 to 2022 and the growth and release period from 2023 to 2025.
At present, the threat of substitutes in the mainland civil air transport industry is greater, mainly due to the continuous improvement of the construction of the mainland high-speed rail network, which has formed a certain impact on the industry. In addition, because the global commercial aircraft manufacturing industry is in a state of oligopolistic competition, the upstream bargaining power is strong for the mainland civil air transport industry.
China's strong economic resilience, great potential, and long-term positive fundamentals provide the most fundamental guarantee and support for the recovery of the civil aviation industry. The recovery of the economy and industrial chain can lead to the recovery of demand for civil aviation travel and the stability of air cargo demand. With the gradual recovery of the mainland civil aviation market, the continuous improvement of service quality, and the return of fare levels to rationality, there is still a lot of room for growth in the aviation market.
If you want to know more about the detailed analysis of the civil air transport industry, you can click to view the research report of China Research Institute Puhua
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