商旅进行时

Text by Michael B. Baker | Previously published by Business Travel News

Photos by VCG & Zeng Jian

商旅进行时

Text by Michael B. Baker | Previously published by Business Travel News

Photos by VCG & Zeng Jian

CHINA SOUTHERN AIMS TO VASTLY BROADEN CORPORATE BUSINESS

南航接受全球知名商旅媒体BTN《商务旅行》专访，谈未来五年大客户业务发展。

Between July 18-20th, during the GBTA Denver Convention, China Southern was interviewed by BTN (Business Travel News) during which they discussed their upcoming five-year corporate business plan.

Although China Southern Airlines has significantly grown corporate business over the past few years, the segment remains a small portion of its business, something the carrier intends to change.

Since launching its first business travel program in 2003, China Southern has grown business travel sales to $1 billion, and it grew 27 percent year over year in 2015, senior vice president of sales Li Dongliang said. That includes 40 global corporate contracts, accounting for about $40 million in sales.

Despite that growth, those large corporate account sales account for only 2 percent of corporate revenue, according to Li. The carrier expects to grow that this year, both through new and existing accounts, corporate sales project manager Wang Siyang said. The goal is to raise corporate accounts to 3 percent of revenue in 2016.

That still is only a fraction of where the carrier would like to be, and it aims to reach more than 100 corporate accounts in the next five years, Siyang said. "I don't think this proportion is enough compared with advanced airlines such as Delta or KLM, where their proportion may be closer to 30 percent or 40 percent," Li said. "China Southern has much to do in the future to get a similar result in terms of corporate sales."

While China's corporate travel growth will be one avenue—China passed the United States as the biggest business travel spender last year and remains one of the fastest-growing business travel markets in the world, according to the Global Business Travel Association—the carrier also seeks to broaden its recognition among travel buyers outside China.

As one strategy, China Southern will promote the size of its network. It operates more than 670 aircraft, the fifth-largest fleet in the world①, and its passenger volume is the largest in Asia, according to Li. The carrier also has seen significant international growth over the past few years, he said. When it began service to Australia in 2009, for example, it flew only seven weekly flights to Melbourne and Sydney. Now, it operates 60 flights a week to Australia and New Zealand, according to vice president of marketing Liu Yunna.

The carrier plans to add Toronto to its North American service in December, Li said. It will join Los Angeles, San Francisco, Vancouver and New York. Codeshares with Delta Air Lines, WestJet and Virgin America expand its network to 66 destinations in the region, he said. Similarly, codeshares with Air France, KLM, Aerof l ot and Czech Airlines expand its network beyond its routes to London, Amsterdam, Paris, Rome, Moscow, Frankfurt, Istanbul and St. Petersburg, according to Li.

As another selling point to corporate clients, China Southern also touts its safety record, Li said. In 2012, the carrier was the first to receive the Civil Aviation Administration of China's Blue Sky Diamond Flight Safety Award after logging 10 million hours of safe flight operations over nearly a decade. It reached more than 15 million hours by the end of last year, according to the carrier.

BUSINESS TRAVEL NEWS

《商务旅行》

Highly recognized by the world business travel industry,Business Travel Newshas been providing business travel and meeting professionals with news, analysis, and research for over 30 years. Its circulation of 44,000 corporate executives are responsible for setting travel policy, managing and buying business travel/meetings for their companies. BTN's digital portfolio includesBTN Daily,BTN Global, BTN Travel Managementand the industry's leading websiteBusinessTravelNews. com

(①Data update by October 2016∶ 700 aircraft, the fourthlargest fleet in the world)