—The aim of the research is to understand the current demand for budget airlines in Hong Kong and analyze their potential development. Recommendations were then provided based on the research results. Information was collected through public opinion survey, news report, journals, in-depth interview and online survey. An analysis on the strengths, weaknesses, opportunities and threats of the industry was done based on the secondary data. The major and obvious strength of budget airlines is their low cost whereas most of them has an unfavorable schedule and limited choice of destination. Meanwhile, there were plenty of uncontrollable factors which may be favorable or detrimental to the development of the industry, including the infrastructure, market demand, government policies and competition of traditional airline. We have then come up with five consumer insights on the budget airline industry in Hong Kong. It can be concluded based on our online survey that there is a generally low awareness towards Budget Airlines in Hong Kong. Yet, for those who has tried the service has a generally positive attitude towards budget airlines. It is also found from the research that low cost can compensate the less preferable schedule. Thus, it is proposed that low-cost airline can make use of Word of Mouth and value-added service to strike a balance between drawing new trials and retaining old customers in a long run.
—Demand, Hong Kong International Airport ("HKIA"), low cost, low price.
The authors are with the Chinese University of Hong Kong (e-mail: firstname.lastname@example.org, email@example.com, firstname.lastname@example.org, Stephanie.email@example.com).
Cite: Chau Man Sze, Lai Wai In, Lee Ngai, and Or Wing Yan, "Budget Airline Industry in Hong Kong," International Journal of Trade, Economics and Finance vol.6, no.2, pp. 129-133, 2015.