Today we are witnessing perhaps the most interesting period of change in the low cost business model. China’s Spring Group, anchored by Shanghai-based budget carrier Spring Airlines, is entering the hotel sector in Asia, turning itself into a comprehensive hospitality company to serve customers throughout their trip.
Spring Group took the first few moves in the hotel business with the opening of the budget hotel chain in Japan. The first hotel was launched in Nagoya in 2015 and the second one in Osaka early this year. The company plans to launch 15-20 new hotels in Japan over the next three to five years with local partner Sun Frontier Fudousan. Its hotel business is expected to expand over the next few years into countries served by Spring Airlines and popular with Chinese, such as South Korea, Thailand and Singapore.
Making a foray into the hotel business is unusual as budget carriers are often known for offering cheaper tickets and rigorously analysing boarding data to make swift judgments on entering or withdrawing from a market.
To understand how the new hotel venture complements the LCC core business, and what is the next phase of business model innovation for LCC to continue to grow, join us at Aviation Festival Asia 2017 and hear from Spring Airline’s President, Mr. Stephen Wang.
Stephen’s presentation “The evolving LCC business model: Towards an integrated air travel business” will take place at Aviation Festival Asia 2017 on Day One morning.
About Aviation Festival Asia
Now entering its 13th year, Aviation Festival Asia is one of the largest and most well-established commercial aviation shows for airline and airport executives from both the Asia Pacific region and across the world. In 2017, we are expecting to welcome over 2,000 attendees to the event, with over 900 airline executives across 7 premium conference tracks covering full service and low cost airline strategy & business models, passenger experience, marketing, IT systems, retail, human capital and more. Book your ticket now