We accelerated the transformation and innovation of our sales and marketing models. We closely monitored
the market conditions and responded to market changes in a timely manner through a more precise and
flexible pricing strategy. We made use of IT measures extensively and took delivery of the first phase of our
Customer Relations Management (CRM) system, which enabled
us to expand certain functions and target
our sales and marketing more precisely. The Origin &
Destination (OD) system has been fully applied to
international routes, markedly improving our revenue management capability. As the first contracted airline,
we successfully launched our government air ticket procurement project. The frequent flyer programme
expanded steadily with a total of 32.96 million PhoenixMiles members whose revenue contribution increased
by 10% over the previous year. Revenue contributed from first and business classes continued to grow with
the expansion and optimisation of our customer base, resulting in a year-on-year growth of 8% in revenue.
We also optimised our channel management, strengthened our direct marketing efforts and launched the re-
construction of our B2C mobile application platform. As a result, our e-commerce revenue grew by 26% from
the previous year, and the proportion of direct sales revenue continued to rise and reached 23%. We actively
adjusted the management strategy of our agents, flattened the sales channel structure, and increased the
loyalty of our agents. We also enhanced our co-operation with business travel service providers and continued
to extend our overseas sales channels. By introducing a number of new products in our long-haul flights, such
as seat selection fee, upgrade coupon, prepaid luggage fee and upgrade at boarding gate, we established a
range of products generating ancillary revenue, which achieved positive results in collecting ancillary revenue.
Taking advantage of a number of key events such as in-flight Internet connections, the 20th anniversary of
PhoenixMiles, the introduction of our first Boeing 747-8 aircraft and the 50th anniversary of the establishment
of diplomatic relationship between China and France, we launched a series of marketing campaigns to
increase our brand value.