With the Chinese market experiencing its biggest year-over-year fall in more than three years, airlines are looking for new ways to squeeze more travelers into their routes.
Travel agencies and hotels are increasingly seeing their revenue declines and competition for customers has grown.
Travel agency bozei said the fall in sales to China could help drive a sharp fall in travelers.
“If we lose customers and we’re seeing a decline in business, that will affect us,” said Bozei’s CEO, Chris Lutz.
“The revenue that we generate here in China is our biggest source of revenue.”
In the last five years, Bozeis revenues have declined more than 60 percent.
Its Shanghai business saw the biggest decline in revenue.
In the first six months of this year, Bozes Shanghai business, which has about 40,000 full-time employees, saw its sales decline by 30 percent, its CEO said.
That’s a decline of about 2.5 million dollars, according to Boze.
Lutz said Bozes goal is to make Shanghai its top destination for travelers.
The airline’s first Chinese-themed flight to Shanghai will begin Sunday and will depart on Monday from the city of Shenzhen.
The flight will depart from the airport’s Hangzhou International Airport.
Luxe Travel Agency said it saw its revenue decline 20 percent last year to $1.5 billion, mostly due to a decrease in its Chinese-related business.
It has also seen sales fall by more than 40 percent.
It said it had to slash its China-related revenue by 30 to 40 percent in order to survive, as it has to cut staff to reduce costs.
It had to reduce its China travel by 50 percent in the last six months, according the company’s chief financial officer, Richard Chang.
In addition, it had cut back on its business in China.
“We were not able to make more money, so we had to cut back,” Chang said.
Bozei has a business in Hong Kong and Taiwan, but it doesn’t plan to operate in the two markets anymore.
Luxury travel company Hanyu Airlines, based in China’s Guangdong province, has had its sales drop 20 percent to $2.7 billion.
Its Beijing-to-Shenzhen flight is expected to be the first international flight to Shenzhen, China’s second-largest city.
It will be the airline’s third flight to China and the first one to China.
Hanyu, which also operates in Taiwan, Hong Kong, Vietnam and Malaysia, said its revenue has dropped 20 percent in three years.
Hanya has its first flight from Beijing this weekend.
The Chinese-language website of the airline says the flight will leave Hong Kong at 8 a.m. local time Sunday.
The airport in Hong, the hub for all air traffic in China, has a capacity of 1 million passengers a day.