Working in Market - Hong Kong

Distribution system

The travel trade industry in Hong Kong is heavily regulated. The Travel Industry Authority (TIA) formed the Travel Industry Ordinance in 2022. A business conducting tourism activities needs to apply for and obtain a travel agent license through TIA.  A travel agency must be a member of any of the following associations to operate:

• Hong Kong Japanese Tour Operators Association
• Hong Kong Outbound Tour Operators’ Association
• Hong Kong Association of China Travel Organizers
• Hong Kong Taiwan Tourist Operators Association
• Society of IATA Passenger Agents
• International Chinese Tourist Association
• The Federation of Hong Kong Chinese Travel Agents
• Hong Kong Association of Travel Agents

In terms of air access, the number of flights per week from Hong Kong to Australia continues to grow, currently sitting at 70% of March 2019 levels. Cathay Pacific, Qantas, Hong Kong Airlines and Singapore Airlines are the largest airlines operating between Hong Kong and Australia. Other indirect airlines are keen to promote outbound traffic from Hong Kong.

Wholesalers/large agents

• Wholesale agents are airline consortium partners having their own sales distribution network and sales channels. A major player, Corporate Travel Management Limited, owns two renounced separate entities, Westminster Travel and Lotus Tours. Top on the list is Nan Hwa (Express) Travel Service, Hong Kong Four Seas Tours and Jebsen Travel. These players focus on ticketing, MICE and air plus hotel packages.
• For group packages, key players are Travel Circle International (previously known as Kuoni) and Charming Holidays. To ensure differentiation with major retail agents, this group of wholesalers promote niche and diverse products. Their business model also operates directly to consumers and have developed their own consumer brands and positioning to capture their market share.

Retail agents

Retail travel agents deal directly to consumers and had their own brand and marketing activities:

• In Hong Kong, there are approximately 1,400 outbound travel agencies.
• The top producing retail groups and partially package agents for Australia are Hong Kong Wing On Travel, Miramar Travel, EGL Tours and Travel Expert Group.
• Other reputable retail agents also feature Australian products include Goldjoy Travel, China Travel Service (HK), Sunflower Travel, Morning Star, Jebsen Travel and The Events Team/ Holiday in Style.
• Newcomers are Eat Play Travel, Holiday Star and Big Line Holidays.

Online

• Travel products promoted via travel websites operated by licensed travel agents and most popular online travel agencies among consumers in Hong Kong as of June 2024 by Rakuten Insight are Agoda, Booking.com and Expedia.
• Popular online travel agencies for leisure travel in Hong Kong are Klook, Cathay Pacific Holiday, Wingon.com, KKday, Trip.com and Hutchgo.com

Aussie Specialists

• The Aussie Specialist Program is the primary platform for Tourism Australia to train and develop front line travel sellers to best sell Australia.
• There are over 700 qualified Aussie Specialists in Hong Kong. 

Inbound Tour Operators

• ITOs handle all group business from Hong Kong Australia and play a key role in developing new itineraries and products for the Hong Kong market.
• Below are the key ITO contacts servicing the market.
  • Australian Travel Management (ATM)
  • Australia and Beyond Holidays (AABH)
  • Blue Travel Pty Ltd
  • Easy Going Travel Services Pty Ltd
  • Experience Tours Australia (ETA)
  • E-tours Australia
  • GTA
  • Jade Express
  • Miramar Travel Australia Pty Ltd
  • Travel Around Australia 
  • Western Safari
  • Wing On Tours

Trends

• Outbound travel from Hong Kong is not dominated by any single destination, but in-region travel is a noticeable trend. In the case of Hong Kong, seven of the ten most popular destinations are in Asia Pacific, key driver is driven by airline capacity and competitive pricing.
• The total trip spend on holiday to Australia by Hong Kong travellers was AUD$439 millions in the year ending September 2024, and total trip spend for all trip types was AUD$1,228 millions (Source: IVS 2024).  

Planning a visit to market

• Commuting within Hong Kong is very convenient via Mass Transit Railway or taxi.
• Preferred appointments normally start at 10am.
• Within Hong Kong Island office location, can allow 30 minutes’ travelling time.
• As the turnover rate for retail agency frontline staff is high, it is worthwhile for Australian products to arrange in-house training for committed travel agent partners on sales calls. Highlight your competitive edge and point of difference. For group retail agents, frontline retail staff are keen to learn of products which they can sell ‘optional’ experiences or attraction at the spot. Value-add or competitive pricing offers during the low season travel period from March to June are useful to trigger tactical campaigns with travel agent partners. March to June is the period within the whole calendar year with less demand.
• The best time for sales calls targeting low season business is after Chinese New Year holiday. To capture peak season business and have products included in itineraries, visit the market after Easter holiday for July and August high travel season, visit the market in September for Christmas and New Year high travel season.