China’s leading airlines are taking a major step in reshaping their ticket sales strategy by integrating their online booking channels.
Passengers can now book flights operated by Air China, China Eastern, and China Southern through each airlines’ mobile apps for many domestic routes.
This move marks a significant shift in airline ticket distribution. As airlines continue to strengthen their direct sales channels in competition with third-party platforms, their apps are evolving to resemble OTAs.
The initiative began as a pilot program last year on select routes between Beijing, Shanghai, and Guangzhou and has since expanded to include a broader range of shared flights.
According to market representatives from two of the airlines, the primary goal of mutual ticket sales is to offer greater flexibility to frequent flyers, particularly high-end travelers who prioritize flight schedules.
They also hinted at the possibility of expanding the initiative to include more airlines and international routes in the future.
For years, airlines and OTAs have maintained a relationship of both competition and cooperation. OTAs act as agents, selling airline tickets while also attracting independent ticket vendors. At the same time, they encourage airlines to establish direct-sales flagship stores on their platforms.
While airlines rely on OTAs for traffic and distribution, they also incentivize travelers to book directly through their own websites and apps by offering exclusive membership discounts.
However, price comparison remains a key advantage of OTA platforms, driving the airlines to introduce mutual ticket sales to keep users within their own ecosystem.
To enhance user retention, airlines are expanding their service offerings, incorporating features traditionally found on OTAs—such as car-hailing, high-speed rail bookings, global hotel reservations, and visa services—into their apps.
Despite these advancements, airline executives acknowledge that their apps still lag behind OTAs in terms of IT infrastructure and passenger service systems (PSS), sometimes leading to suboptimal transaction experiences. Further improvements are needed to enhance usability and competitiveness.
