China's Major Three Airlines Start Selling Each Other’s Tickets

  

Source: OT-Team(G), 极目新闻

  Air China, China Eastern Airlines (CEA), and China Southern Airlines (CSA)—have begun selling each other's tickets on their respective apps.

Frequent travelers recently noticed that when searching for flights on the CEA app, not only does it display CEA's own flights on routes such as Shanghai to Beijing, but it also lists ticket prices for flights operated by Air China, China Southern, and even Juneyao Airlines. A similar setup has been observed on the apps of Air China and China Southern, where customers can now book flights operated by their competitors.

A Shift Toward OTA-Style Sales Channels

Industry insiders have confirmed to reporters that this cross-ticketing arrangement is now fully implemented on many overlapping domestic routes. This marks a significant shift in the sales strategies of China's leading airlines, as their direct booking platforms increasingly resemble Online Travel Agencies (OTAs) such as Ctrip, Qunar, and Tongcheng.

For years, airlines and OTAs have maintained a relationship of both competition and cooperation. OTAs serve as major distribution channels, signing agency agreements with airlines, selling their flights, and allowing third-party ticket agents to participate in fare distribution. At the same time, airlines have opened official flagship stores on these platforms, aiming to drive direct sales while leveraging the OTAs' user traffic.

However, with direct ticketing channels now accommodating multiple airlines, the traditional divide between airlines and OTAs is becoming increasingly blurred.

Why Are Airlines Embracing Cross-Ticket Sales?

For airlines, this shift appears to be a strategic response to changing consumer behavior. While they want travelers to book directly through their apps, many passengers rely on OTAs for one key advantage: the ability to compare prices across different carriers on the same route. By integrating cross-ticketing into their own apps, the airlines may be trying to reduce reliance on third-party platforms while still catering to passengers' price-comparison needs.

Moreover, airlines are actively working to improve customer retention by expanding their service offerings. Their apps now feature not only standard ticketing services but also add-ons such as compensation for flight delays, bundled flight-and-hotel packages, and flight-and-car rental deals. Additional services that were once exclusive to OTAs—such as ride-hailing, high-speed rail ticket bookings, global hotel reservations, and visa services—are also being incorporated.

Challenges Ahead

Despite these efforts, industry insiders acknowledge that airlines still face significant challenges in competing with OTAs on the technical front. Several airline sales executives admitted to reporters that their IT infrastructure and Passenger Service Systems (PSS) lag behind those of established OTAs. Technical limitations sometimes impact the overall booking experience, with some users reporting glitches or a lack of seamless functionality when purchasing cross-airline tickets.

As airlines work to close this gap, the move toward cross-ticketing signals a broader shift in China's air travel market—one where airlines are not only competing for passengers but also evolving their business models to stay relevant in an increasingly digitalized and competitive industry.