How ticket scalpers took control of the Chinese airline market

When I decided to leave Hong Kong in early March, the city had just hit a daily Covid-19 case count of over 50,000, with the highest death toll globally.

I was aiming to visit Shanghai, my hometown, for the first time in more than two years.

I was aware that traveling from a Covid hotspot to a region enforcing strict zero-Covid measures would be complicated. I prepared for the inevitable obstacles—multiple tests, time off from work, quarantine hotels, and hefty expenses.

Little did I anticipate that the real challenges had only just begun.

Pressure from external sources

In late February, rumors spread that Shanghai was reducing the number of flights from Hong Kong and limiting flight capacity to just 50%.

Though the policy hadn't been officially announced, the response was immediate. When I checked airline sites, I saw flights for the upcoming weeks gradually turn gray. Within an hour, all of March's slots were fully booked.

In a panic, I reached out to a travel agent I knew. The following day, she called with an offer: a flight to Shanghai with Hong Kong Airlines on March 8.

“Do you want it or not? Make a decision now, or it’ll be gone,” she urged me with pressure.

I wasn't at ease making a decision under pressure, but as I watched the tickets vanish at an unprecedented rate, I ultimately chose to take the chance.

Three days before my departure, my flight was canceled. The airline didn’t provide an official reason, but a widely circulated theory suggested it was due to stricter controls in Shanghai on incoming flights from Hong Kong amid rising Covid-19 cases. I desperately called airlines and searched for alternatives, but everything was already booked.

I felt stuck in an unending cycle.

Ticket scalpers and fraud

I then reached out to another ticket agent, Ms. Yu, whom I discovered on social media after noticing her successful booking for a previous client.

Ms. Yu doesn't maintain a website. She operates exclusively through WeChat, the popular Chinese messaging app.

In the past, Chinese ticketing agents would sell discounted flights directly from airlines. But as China closed itself off from the world and drastically reduced the number of incoming passengers, international flights have dropped to just 2% of pre-pandemic levels, according to the state aviation administration.

Despite this, demand from Chinese nationals studying and working abroad is still on the rise. The scarcity of flights to China has turned these agents into scalpers, reselling highly sought-after tickets at sky-high prices.

I asked the agent what kind of “premium” I would have to pay to secure a ticket within the month.

“Honestly, it's incredibly expensive right now. I think it’s out of reach for many people,” she responded. “I usually warn customers about this as soon as they inquire.”

It’s not just a matter of cost. Tickets are essentially sold through public platforms where agents don’t receive special treatment. What they can do, however, is monitor the booking system closely and snap up any remaining tickets as soon as they appear.

The agent mentioned that bots are used to constantly search for specific flights and quickly claim any available tickets, but manual effort is still needed to secure them.

Yu explained that she had to stay up overnight watching the ticketing system, as airlines often “release some bookings late at night.”

Since the flight ticket and Covid-19 test results must align, she advised me to schedule a daily Covid-19 test throughout the week, just in case she found any last-minute seats. This would give me enough time to get tested before the flight, as required by the rules.

Fortunately, Yu managed to secure a booking for me on March 8. She informed me just 20 hours before the flight was due to depart. Around the same time, my PCR test from the previous day came back negative. I was all set to go.

A ticket is no guarantee.

The day of my flight arrived, and Hong Kong International Airport was eerily quiet, with only a handful of counters in operation.

When it was my turn to check in, I confidently presented all the necessary documents – my travel pass, Covid test results, and a QR code for travelers heading to mainland China.

“Sorry, Ms. Wang. The flight is full. You won’t be able to board today,” the airline agent told me.

“Shanghai authorities only allow 50% capacity, and it's already filled. But we’ll make sure you’re on tomorrow’s flight,” the agent explained.

The airline staff was apologetic, reassuring me that I would get a seat on the same flight the next day.

While waiting for the airline to sort out my situation, I noticed a group of four college students trailing the airline staff, pleading for a chance to board the flight. They looked exhausted and defeated. Later, the students told me they were booked on the same flight and route as mine, but for a different day.

“Sorry we couldn’t get you on this flight. See that lady over there? She has a ticket, but we can't even get her on today,” the clerk told the group, pointing toward me.

One of the girls from the group came over to talk to me. After confirming the clerk’s words, she asked if we could connect on WeChat to stay in touch.

Her name was Sarah Wang. She explained that she was traveling with several other mainland Chinese students studying in Hong Kong. Unable to afford the steep prices of scalped tickets like mine, she had bought a flexible ticket and had been waiting overnight at the airport, hoping for a chance to board.

When money isn't enough

The following day, I finally boarded the plane. But instead of feeling excited, I felt defeated and exhausted.

Despite all the challenges, I counted myself among the fortunate ones who managed to make it home.

In some situations, even money can't guarantee a journey home. I discovered that scammers were exploiting the desperation of overseas Chinese travelers.

I could have easily fallen into the same trap. The agent who secured my original booking seemed just as dubious.

The market for flights to China has been like the Wild West since the early days of the pandemic.

In March 2020, the Civil Aviation Administration of China (CAAC) announced it would slash international flights to just one weekly flight on a single route for each airline flying to China. On top of that, a “circuit breaker” system was introduced, which could suspend a route for up to four weeks if more than four Covid-19 cases were detected on a flight.

Meanwhile, Sarah Wang joined a WeChat group for victims of airline ticket scams. The group has over 30 members, all fellow overseas Chinese who were or are trying to return home.

The CAAC has introduced new regulations on the pricing of international flights, imposing price controls and banning certain ticketing agents, transfers, and exchanges.

However, the black market still flourishes.