Qantas logs on to Chinese connection with Alibaba

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August 13, 2017
Qantas Beijing
Qantas CEO Alan Joyce launches the airline's Beijing flights. Photo: Qantas

Chinese travelers wanting to visit Australia will be able to experience some Aussie hospitality early thanks to an agreement between Qantas and online giant Alibaba.

The companies have signed a memorandum of understanding to allow the Australian carrier to take bookings through the Alibaba Group’s online travel agency, Fliggy.

With a market capitalization of $US360 billion, Alibaba is the world’s biggest retailer and boasts 507 million mobile active users.

Fliggy is a direct sales platform for airlines targeting China and has more than 20 international carriers running online booking stores.

China is becoming a major source of tourism for Australia with both the nation’s major carriers looking to boost their presence in the market with flights and alliances.

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Figures released by Tourism Australia indicate that spending by Chinese visitors to Australia could rise to $A13 billion annually by 2020.

The new wave of Chinese visitors are also big spenders: they current outlay an average of $A8,000 each on every visit to Australia, more than any other source market.

Qantas International chief executive Gareth Evans said the deal with Fliggy made it easier for customers to buy flights on the Australian carrier.

He said the Qantas booking page would allow Qantas to connect with the younger Chinese travelers who make up 75 per cent of Alibaba’s customers.

“Australia is one of the top destinations on the wish list for many Chinese travelers, and following the launch of our direct service from Beijing to Australia in January, we now have the Qantas Group’s largest ever network in Greater China,’’ Evans said in a statement.

“Qantas’ partnership with Fliggy forms another part of our growth strategy for China and the broader Asian region.”

Qantas and partners China Southern and China Eastern operate more than 130 weekly return flights between Australia and China, plus close to 250 connecting services to domestic destinations within China.

The Jetstar Group of airlines offers more than 30 return flights a week into six Chinese cities from Singapore, Vietnam and Japan.