A scheduled flight to Hainan operated once in ten days by Bureau South Cross starting from March 2006, will fly all year round. The program by Transaero Boeing – 767 was prolonged until the end of summer but the demand for the flight met all the expectations with a sales depth until the middle of September.
Meanwhile, when the flight was launched the majority of experts doubted its economical effectiveness explaining it by the fact that 80% of tourists traveling to China prefer either excursion or combined tours to beach holidays. Therefore, according to them, the existing flights met the demand for the destination. Thus, Andrey Kuznetsov, Director of Bureau South Cross, pointed out: ‘it was possible to get to Hainan via Beijing or Shanghai by local airlines. However, the launch of the scheduled flight stimulated the demand for the island. We believe that Hainan is an independent and highly perspective destination’. Therefore, the company plan to launch the second, weekly, flight to Hainan starting from October 2006 and the third flight flying once in two weeks starting from the New Year.
Meanwhile, travel market experts that specialize in the Chinese market divided opinions regarding the initiative of Bureau South Cross. Some players find the project to be reasonable. For example, Tatiana Zakusilova, the Head of the Chinese Department of UTE Megapolus Group, said: ‘I believe the flights will be in demand considering the growing interest in the destination. Tourist flow to China, including Hainan, has increased by around 30%. Even now the destination is marked with a shortage of air traffic volume’.
Simultaneously, others are skeptical towards the project. Thus, Tatiana Vand, Director of Vand International Tour, emphasized: ‘Three flight programs to the island will result into the excess of flights. The demand for non-visa Hainan is growing but it is not enough to load three aircraft. It might provoke price reduction owing last-minute tickets that will affect the reputation of an exclusive product. It should not become a mass-market destination’.
Travel market analytics point out that at the moment the Russian demand is supplied by 7-10 hotels. New flights might provoke shortage of hotel rooms, especially on peak dates, for example, Chinese New Year.
