How airline ticket scalpers took over the Chinese travel market

(CNN) — When I decided to travel outside of Hong Kong in early March, the daily number of Covid-19 cases in the city had just passed 50,000, with the highest death rate in the world.

I knew that traveling from a Covid hotspot to an area with a strict zero-Covid policy would be tricky. I thought I was ready for all the hassle and hurdles of going back – countless Covid-19 tests, approved time off from work, and mandatory hotel quarantines, not to mention a significant cost.

Little did I know that the challenges had just begun.

Third Party Pressure

In late February, rumors emerged that Shanghai would reduce the number of inbound flights from Hong Kong and limit capacity to 50% per flight.

The policy was not publicly announced, but the response was swift. When I checked airline tickets websites, I saw that the dates for flights in the near future are graying out, one after the other. In less than an hour, all available slots were fully booked throughout the month of March.

In a panic, I turned to a travel agency I knew. The next day she called and offered me an option to fly to Shanghai on March 8 with Hong Kong Airlines.

‘Do you want it or not? Make a decision now, or it will go away,” the officer urged me.

I didn’t feel comfortable making the decision under pressure. But when I saw the tickets disappear at a speed I had never seen before, I decided to go for it.

Medical workers collect PCR test swabs in Hong Kong

Lo Ping Fai/Xinhua/Getty Images

My flight was canceled three days before departure. The airline offered no official explanation, but a popular theory has been put forward that this was the result of Shanghai’s further scrutiny of inbound flights from Hong Kong when the city reported Covid-19 outbreaks. I frantically called airlines and searched for more options, only to find that everything was sold out.

I felt trapped in an endless loop.

Scalpers and Scams

I then turned to another ticketing agent: Ms. Yu, who I found on social media after seeing the recent booking she had scored for someone else.

“Ms. Yu” does not have a website. She just runs her business through WeChat, a popular social messaging app in China.

Air ticketing agents in China were selling tickets at high discounts from airlines. But as China essentially cuts itself off from the outside world and reduces the number of inbound travelers, international flights have shrunk to a minuscule 2% of pre-pandemic levels, the state aviation administration said.

However, the demand from Chinese who study and work abroad continues to grow. And the extremely short supply of flights to China has turned these agents into scalpers who resell coveted tickets at exorbitant prices.

I asked the agent how much of a “premium” I would have to pay for a ticket within a month.

“To be honest, it’s very expensive these days. I feel like it’s beyond a lot of people’s budget,” she replied. “I usually warn my customers about their question right away.”

It’s not just about money either. The tickets are essentially sold on public ticket platforms and agents are not given preference. What they can do is keep a close eye on the reservation system and quickly pick up any remaining tickets.

The agent said there are bots that continuously search for requested flights and take up the available tickets in no time, but the system still requires a lot of manual work.

Yu said she had to work at night to keep an eye on the ticketing system because the airlines tended to “drop some bookings late at night.”

For the date I planned to travel, she asked for 11,000 RMB (about $1,650) for a new booking. It was a ridiculous amount for the 2.5 hour route. Full pre-pandemic prices ranged from $300-450 per trip.

Feeling I had no other choice, I agreed to the price and paid a $450 deposit, which Yu said would be returned to me if she couldn’t arrange a booking within 24 hours.

Since the airline tickets and the Covid-19 test results need to work together, she suggested I arrange for one Covid-19 test per day throughout the week in case she finds last minute seats that I could book, to make sure to be that I have time to be tested before my flight, according to the rules.

Fortunately, on March 8, Yu helped me to arrange a booking. She informed me only 20 hours before the scheduled departure. Around the same time, my PCR test from the day before came back negative. I was ready to go.

Once a major global hub, airport traffic in Hong Kong has declined significantly during the pandemic.

Dale De La Rey/AFP/Getty Images

A ticket is not a promise

The day of my journey arrived. Hong Kong International Airport was incredibly quiet, with only a few counters.

When it was my turn to check in, I confidently presented everything – my travel document, a Covid test report and a QR code assigned to travelers heading to the mainland.

“Sorry, Miss Wang. The flight is full. We can’t get you on the plane today,” the airline clerk said.

“Shanghai authorities only allow 50% capacity and the space is filled. But we can make sure you make it with tomorrow’s flight.”

The airline employees apologized. They continued to comfort me and promised I could get the seat for the same flight tomorrow.

They also said they could arrange a PCR test at the airport right away so that I could have the required report ready for the next day. I felt like I had no choice but to say yes. The airline also gave me $1,000 HKD ($128) in compensation.

While waiting for the airline to handle my case, I saw a group of four young college students walking around the airline staff, begging to be allowed on the flight. They looked tired and miserable. The students later told me that they were booked on the same flight and route as me, but on a different day.

“Sorry we couldn’t get you on that plane. See that lady waiting there? She’s got a ticket, but we can’t even get her on today,” the clerk at the group replied, pointing in my direction.

The girl from the group walked up to me and started talking. After I confirmed that what the clerk said was true, she asked to add me as a friend on WeChat so we could keep in touch.

Her name was Sarah Wang. She told me she was with some other friends who were studying at colleges in Hong Kong on the mainland. Unable to afford one of the scalpers’ expensive tickets like I had, she bought a ticket that offered flexible booking and stood at the airport overnight, hoping to board a plane.

The author’s view from a plane from Hong Kong to Shanghai

Serenity Wang

When money is not enough

The next day I finally got on the plane. Instead of excited, I felt down and tired.

Despite all the hardships, I was one of the lucky ones to come home.

In total, I spent over $3,000: I lost $160 for the canceled booking, then paid $1,726 for a new one, plus $1,130 for the mandatory quarantine hotel.

In some cases, even money can’t buy a trip home. I found out that scammers were targeting Chinese overseas Chinese and exploiting their desperation.

Student Sarah Wang told me her tactics worked and she eventually reached Chengdu in southeastern China with a regular priced booking ($420). But before that, she lost $940 to a scalper, who promised her two bookings from Hong Kong to the mainland if she paid the deposit. The person never responded after transferring the payment.

I could have just as easily fallen into the same trap. The agent who secured the original booking for me didn’t look more believable.

The market for fighting with China has been the Wild West since the early days of the pandemic.

In March 2020, the Civil Aviation Administration of China (CAAC) announced it would reduce the number of international flights to just one flight per week on one route for each airline to China. In addition, there is a fluid “circuit breaker” system that can suspend the route for up to four weeks if more than four positive cases are found on a single flight or route.

Meanwhile, Sarah Wang has joined a WeChat group for victims of airline ticket scams. The group has more than 30 members — all fellow Chinese overseas who wanted or tried to fly home.

In total, they think they lost over $70,000 to scammers posing as ticket scalpers.

The CAAC has introduced rules for the pricing of flights with international prices — it imposed price controls and banned some proxies, transfers and exchanges of tickets.

But the black market continues to thrive.