HangLv ZongHeng Enters Direct Flight Ticket Sales Market: Can Aviation's "12306" Disrupt the OTA Landscape?

Deep News
Aug 22

Opening the HangLv ZongHeng app, the "Official Civil Aviation Direct Sales Platform" entrance prominently occupies the homepage. This platform, which integrates resources from 38 domestic airlines, promotes the clear slogan of "0 price difference, 0 bundling, 0 tricks," promising six major guarantees: transparent pricing, no bundled sales, strict adherence to airline refund and change policies, elimination of big data price discrimination, information security assurance, and consistency between itinerary amounts and payment amounts.

One month after launch, this platform, dubbed the aviation version of "12306" by netizens, has already triggered industry upheaval. Air China, China Eastern Airlines, China Southern Airlines and other carriers have collectively voiced support, while OTA platforms face unprecedented challenges as the flight ticket sales ecosystem undergoes profound restructuring.

**Civil Aviation Direct Sales Revolution Disrupts Traditional Distribution System**

HangLv ZongHeng is not an ordinary startup company. It is backed by China Aviation Information Network Corporation (TravelSky), with the three major airlines being shareholders of TravelSky. This unique "airline + technology provider" background gives it inherent advantages in integrating industry resources.

In March this year, China Southern Airlines, Air China, and China Eastern Airlines successively issued announcements, directly targeting irregular practices of third-party flight ticket sales platforms. The announcements revealed three major issues passengers encounter when purchasing tickets on OTA platforms: "flight ticket prices inconsistent with itineraries," "inflated refund and change fees," and "additional charges for services that should be free."

The deeper reasons involve regulatory requirements and airline profit incentives. The Civil Aviation Administration explicitly requires "airline direct sales ratio to be increased to over 40% by the end of 2025," while the current actual direct sales ratio is far below this target.

HangLv ZongHeng's direct sales model directly targets the two major profit pillars of traditional OTAs. On one hand, the agency commission system is undermined. Traditional OTAs rely on flight ticket agency commissions (typically 3%-10% of ticket face value), while HangLv ZongHeng completely bypasses the agency segment, eliminating the need for airlines to pay commissions. According to estimates, airlines can save over 3 billion yuan in distribution costs annually through direct sales channels. On the other hand, OTA technical arbitrage opportunities are compressed. Traditional OTA profit methods such as "buy high, sell low," "bundled sales," and "refund and change fee spreads" become difficult to sustain under HangLv ZongHeng's transparency commitments.

HangLv ZongHeng has 100 million activated users, covering 73% of civil aviation passengers. Leveraging its existing high-frequency functions such as flight status queries and electronic boarding passes, it can convert users to flight ticket purchasing scenarios at low cost. Meanwhile, OTAs need to invest enormous marketing expenses to maintain traffic, with Ctrip's marketing expenses accounting for over 30% in 2024.

**Challenges and Prospects: The Path to Civil Aviation Sales Ecosystem Restructuring**

Despite its impressive momentum, HangLv ZongHeng's direct flight ticket sales journey faces multiple challenges, with pricing dilemmas being foremost.

Shortly after the platform's launch, users discovered that the so-called "source tickets" are not always the cheapest. For example, on August 8, HU7613 flight from Beijing to Shanghai was priced at 780 yuan on HangLv ZongHeng, while Qunar.com sold it for only 669 yuan, a price difference of 16.59%. Similarly, for multiple flights from Guangzhou to Harbin, HangLv ZongHeng prices were 38-145 yuan higher than Fliggy.

"Source tickets don't equal lowest prices," explains civil aviation expert Li Hanming. "Transparency doesn't equal low prices. OTA platforms and ticket agents subsidize ticket prices. If a ticket earns 30 yuan in agency fees, they'll take out 20 yuan to subsidize passengers, relying on volume or other businesses to make money."

More surprisingly, some airline official website prices are even lower than HangLv ZongHeng. China Eastern Airlines' identity verification products for specific groups such as college students, teachers, and medical personnel are priced 8-10% lower than HangLv ZongHeng.

Service capability is currently the most prominent weakness. Data from complaint platforms shows over 13,000 complaints against HangLv ZongHeng, with many recent ones focusing on flight ticket services. User complaints mainly center on "slow refunds," customer service disconnection, and process defects. Some users reported that tickets purchased on July 22 showed "ticketing failed," and refunds still hadn't been received by August 1. HangLv ZongHeng customer service explained: "Voluntary refunds arrive in 1-3 business days, while involuntary refunds require airline review and take longer." OTA platforms typically process refunds faster due to periodic settlements with airlines.

The sustainability of the business model is questionable. HangLv ZongHeng currently doesn't charge airlines agency fees, with revenue mainly depending on value-added services (such as advertising and membership systems). This model can initially attract airlines to join, but long-term success requires balancing user experience with commercial interests.

Insufficient international route coverage constrains development. The platform mainly integrates domestic aviation resources and cannot replace OTAs' global distribution networks (GDS) for international route distribution. With inbound and outbound flight ticket bookings for summer 2025 increasing 8% year-over-year, this weakness becomes increasingly apparent.

HangLv ZongHeng's rise marks China's civil aviation services entering a new phase of "airline direct sales + official platforms." The industry may form a layered competitive landscape in the future: HangLv ZongHeng dominating domestic flight ticket direct sales, OTAs focusing on international tickets and package products, and airlines serving high-end frequent flyers through official websites.

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