Price war shaping up on Hong Kong airfares
Karisa Lui, Assistant Marketing Manager for the Hong Kong Tourism Board, said competition is heating up from Canadian gateways to Hong Kong as more carriers jump into the market, causing prices to plummet. For travel agents selling to families or groups, now is a good time to pitch the destination. Photo credit: Jean Sorensen

Price war shaping up on Hong Kong airfares

VANCOUVER — Competition is heating up on the Vancouver to Hong Kong route as there are now 14 carriers all flying to the destination out of Vancouver International Airport.

The good news for travel agents is that the break in airfare pricing makes it a good time to book families or groups that have wanted to explore the Asian hub but were hedging because of the cost.

“There is a price war,” said Hong Kong Tourism Board’s Assistant Marketing Manager Karisa Lui, who arrived in Vancouver this week as part of a delegation to promote Taiwan and Hong Kong as dual destinations for those travelling to the Far East.

“There is so much competition and so many attractive prices; it is attracting a lot of travellers to the market,” said Lui.

Lui said that increasing stiff competition has seen prices in Canada dip below $500 for a return trip to Hong Kong. “What is being offered by the airlines now is amazing.”

Tourist tram at the Peak, Hong Kong

Tourist tram at the Peak, Hong Kong

A quick check shows economy fare pricing for YVR to Hong Kong ranging from $600 to $800 return. FlightNetwork’s website advertised a return ticket (including taxes and fees) for $610.61 for the travel period Jun. 7 to 21.

Hong Kong Airlines announced nonstop daily service between Hong Kong International Airport (HKG) and Vancouver International Airport (YVR) starting on June 30. It joins 13 others now flying the same route out of YVR. They are: United Airlines, Air Canada, Air China, China Airlines, Cathay Pacific, China Southern, Delta, EVA Air, Japan Airlines, Korean Air, Philippine Airlines, China Eastern Air and Sichuan Airlines.

Yalum Ho, part of the marketing team with the Taiwan Tourist Bureau in L.A., who attended the table networking session and was a presenter at the information session following, said there are approximately 70 weekly flights now leaving YVR and Toronto Pearson en route to Hong Kong. Figures shown at the information session reported a 21% seat increase in capacity compared to last year in the Canadian market. In addition, there are 60 flights now available between Taiwan and Hong Kong making it easy for a dual destination trip to these Asian gateways.

Ho said that while prices have been dropping on the Hong Kong route out of Canada, the impact of the competition has resulted in some major incentive pricing in the U.S. as well. Return fares as low as $199 have been seen. “That’s in U.S. dollars, though,” she said.

Hong Kong airfares

Lui said the competition is the result of more carriers wanting to exercise bilateral agreements out of China, a huge market of tourists looking to explore Canada as a destination. Carriers who are delivering passengers into the North American market are looking for outbound passengers to backfill the seats.

The growing Chinese tourism market is combining with tourism out of Hong Kong. Lui said that the tourism board does not count the visiting friends and family (VFR) travellers in its numbers when compiling data on tourists visiting Hong Kong. But that market also still remains strong. Canadian government statistics show that Hong Kong boasts one of the largest Canadian communities abroad (with a population of an estimated 295,000). There are an estimated 500,000 people of Hong Kong descent in Canada.

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