Mr. Ngoc Duy (residing in Thu Duc City, Ho Chi Minh City) said that his family of three recently traveled to Hanoi independently, with round-trip airfare costing over 4 million VND per person, compared to approximately 3 million VND or even less during the previous period if there were promotions.
The impact of rising airfare and tour prices.
Not only are individual travelers struggling, but many travel companies are also facing headaches due to the rising cost of airfare as a factor in the overall tour price.
A representative from Saigontourist Travel Service Company stated that compared to the same period last year, airfares for individual travelers (including large-scale advance bookings) and Free & Easy tour tickets are on average 300,000 - 500,000 VND higher per leg, with the highest prices on routes to Phu Quoc and Da Nang… For Tet holiday tours, the increase in airfare has had a significant impact, and the insufficient supply of accommodation has caused the price of all-inclusive tours to increase by 1 - 1.2 million VND.
Ms. Nguyen Nguyet Van Khanh, Director of Marketing at Vietravel Tourism Company, noted that prices for individual travelers booking tickets close to the departure date, group travelers, and additional services such as extra baggage are frequently adjusted. Long-haul flights (departing from Ho Chi Minh City to northern provinces and cities) have also seen price increases.
"Rising ticket prices are posing a challenge to the tourism industry, especially during the off-season when it could reduce the attractiveness of domestic tourism. Tourists may have to reconsider their travel plans or look for alternatives," said Ms. Van Khanh.
Ms. Tran Phuong Linh, Marketing and Information Technology Director of BenThanh Tourist Company, said it is very difficult to find low-priced domestic air tickets from Ho Chi Minh City to Hanoi, Da Nang, or Phu Quoc for group tours or tourists booking services too close to the departure date. The optimal ticket prices in these cases have increased by 20% to 30% compared to the same period last year. The high airfare prices have led to a 10% to 20% increase in tour prices during the year-end period, reducing purchasing power.
Customers are switching to overseas tours.
According to Mr. Nguyen Minh Man, Director of Marketing and Communications at TSTtourist, the high increase in airfare has led to a 10% - 15% increase in tour prices. The closer it gets to Tet (Lunar New Year), the higher the tour prices become. Customers will be more inclined to compare domestic and international tours.
According to Ms. Tran Thi Bao Thu, Director of Communications at Vietluxtour Travel Company, during peak seasons, airfares for international routes increase, but only by about 5%. Other costs in the tour itinerary remain unchanged, making it easier for travel businesses to operate tours. However, if the price of packages including airfare, hotels, and restaurants at domestic destinations increases, it will significantly impact tour prices and reduce competitiveness.
Amidst the challenging circumstances, Mr. Tran The Dung, Deputy Director of The Young Generation Tourism Company, stated that tour prices to the Northeast and Northwest regions remain at 14 million VND per person for 7 days, instead of increasing to 16-17 million VND when airfares rise sharply.
"The company accepts very low profits or breaking even because at 16-17 million VND, customers will choose to go on overseas tours. Domestic tourism is facing difficulties partly due to rising airfares, but if the increase is too high, there is a risk that customers will turn away. Tourism and aviation need to sit down and find solutions," Mr. Dung said.
Some businesses are choosing to shift from air travel to road travel for tours. Mr. Nguyen Tran Hoang Phuong, General Director of Golden Smile Company, said that previously, the company had about 5-7 tour groups departing for Hanoi, northern provinces, Phu Quoc, etc., each month. For the past few months, the company hasn't had any groups on these routes because airfares are too high. Previously, airfare accounted for about 50% of the tour cost, but now it has risen to 60-65%. The company has therefore shifted to focusing on road tours to destinations near Ho Chi Minh City or Hanoi, as well as international tours.
"Airfare is only one aspect; the quality of tourism products and destinations is crucial. If domestic tourism fails to retain customers through quality tours and products, and now airfares are rising, it will be even more difficult," Mr. Phuong said.
The issue of airfare affecting tourism development was also raised at the 2023 Khanh Hoa Tourism Business Dialogue and Information Reception Conference, organized by the Khanh Hoa Provincial Department of Tourism on November 29th.
Mr. Nguyen Phi Hong Nguyen - Business Director of Viet Promotion Tourism and Service Co., Ltd., and Vice President of the Khanh Hoa Provincial Travel Association - said that due to high airfares, the cost of domestic tours has increased, and coupled with the economic downturn, the demand for leisure travel has decreased significantly. For the same price, tourists choose international travel instead of domestic travel. In addition, tourists tend to travel independently by car, not through organized tours. Stimulating demand at this stage is no longer feasible because, in places like Nha Trang, service prices are already very low.
K.Nam
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