Airport Express proposes fare increase amid rising costs and planned upgrades
For the first time in eight years, the Airport Express has proposed a fare increase of approximately 9.4 percent, expected to be implemented in June.
This proposal comes as the number of tourists visiting Hong Kong has not fully rebounded post-pandemic, and energy costs have surged in recent years.
Near 14pc inflation in 7 years
The MTR Corporation, which operates the Airport Express, has not raised fares during this period. The company stated that the cumulative inflation over the past eight years has exceeded 13 percent, and operating costs have significantly increased.
Additionally, investments are planned to improve facilities, necessitating a fare adjustment to achieve financial balance. However, fare discounts will be offered to accommodate different passenger groups.
The rail giant has submitted a document to the Legislative Council's Panel on Transport proposing that starting from June, the adult Octopus card fare for the Airport Express will increase by HK$5 to HK$10, and the single-journey ticket price will increase by HK$10 to HK$15.
Since its last fare adjustment in 2017, the Airport Express has seen a cumulative inflation of 13.8 percent, according to the Composite Consumer Price Index, with energy costs rising by 27 percent during the same period.
The rapid decline in passenger volume since the onset of the COVID-19 pandemic in 2020 has only recovered to about 70 percent of pre-pandemic levels. During this time, other modes of transport to and from the airport and related to tourism have also increased their charges. Additionally, changes in business travel patterns and competition from other public transport options have continuously challenged the financial sustainability of the Airport Express.
HK$2 billion to be invested to upgrade infrastructure
The document also highlights that over the next few years, more than HK$2 billion will be invested to upgrade various assets and enhance facilities of the Airport Express, which has been operational for about 27 years. This includes the construction of new platforms connecting to Passenger Terminal 2 at the airport, replacement of ticket gates, and new trains to improve passenger experience.
Despite the fare increase, the MTR Corporation assures that promotional discounts will be offered, including maintaining group ticket prices for six months, free MTR interchanges, and ongoing promotions like free return trips on the same day to the airport.
Additionally, during the upcoming summer and Christmas holidays, children will ride for free, and there will be enhanced collaborations with airlines and travel agencies to offer various Airport Express travel products and bundled discounts. The fare for airport staff traveling between Hong Kong/Kowloon/Tsing Yi stations and the airport/AsiaWorld-Expo station with an Octopus card will remain unchanged.
Reaction from tourism industry
The fare adjustment is deemed reasonable by the tourism industry, with the Hong Kong Tourism Association executive director Timothy Chui Ting-pong stating that the increase will not impact visitors significantly, as the primary users of the Airport Express are tourists and business travelers who prioritize convenience and punctuality.
He suggested that the Airport Express could establish a "frequent traveler discount" to alleviate the pressure of fare increases on regular passengers and to consolidate its customer base. He also recommended that the Airport Express increase its collaboration with the tourism industry, which would not only provide mutual benefits but also enhance promotional effects.
Reaction from Airport Express users
Christian, who is from Italy and works in Hong Kong, said he usually chooses the Airport Express when traveling for business. Having used it over a hundred times, he mentioned that the Airport Express is very close to the city center, making it the preferred choice for residents of Hong Kong Island heading to the airport.
Regarding the fare increase, Christian believes that the increase is modest and the new price is moderate and affordable. He added that one would pay much more for similar services in London and the United States.
Zhang, a traveler from mainland China, said this was his second visit to Hong Kong, and he always chooses the Airport Express for its convenience and speed.
He stated that the fare increase would not affect his decision to use the Airport Express, as it is within his travel budget.
However, a local resident who travels to Southeast Asia mentioned that while the Airport Express facilities are generally good, the current prices are already high. He hopes for a reduction in fares to attract more passengers.
(Prashan Limbu)
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