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 has to 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 63% of February 2019 levels. Cathay Pacific and Qantas are the largest airlines operating between Hong Kong and Australia, while Virgin Australia is unlikely to return to the market. 

Wholesalers/large agents

• Wholesale agents are airline consortium partners having their own sales distribution network and sales channels. Major player is Corporate Travel Management Group which owns two renounced separate entity 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 and air plus hotel packages.
• For group packages, key players are Travel Circle International (trading as Kuoni) and Charming Holidays. To ensure differentiation to major retail agents, this group of wholesalers promote niche and diverse products. Their business model also operates directly to consumers and had developed their own consumer brand 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 group and partially package agents for Australia are Hong Kong Wing On Travel, Miramar Travel, EGL Tours and Travel Experts Group.
• Other reputable retail agents also feature Australian products include Goldjoy Travel, China Travel Service (HK), Sunflower Travel, Morning Star, Jebsen Holidays, 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 2023 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 (ASP) is the primary platform for Tourism Australia to train and develop front line travel sellers to best sell Australia.
• There are over 1000 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 ITOs contact servicing the market.
  • Australian Travel Management (ATM)
  • Australia and Beyond Holidays (AABH)
  • Blue Travel 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 leisure travel to Australia by Hong Kong travellers was AUD$621 million in 2023, growing by 226% compared to 2022, while the average trip spend was AUD$2,782, dropping by 7% compared to 2022 (Source: IVS 2023).  

Planning a visit to market

• Commuting within Hong Kong is very convenient via Mass Transit Railway or taxi.
• Preferred appointments normally starts 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 agent, frontline retail staff is 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 campaign with travel agent partners. As 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.