Many companies are cutting summer travel plans.

Many travel agencies have confirmed that large groups of customers, such as companies and businesses, are tightening their budgets for summer travel for their employees.

Hoang An, an employee at a Hanoi- based company, said her company usually organizes a trip for employees in June every year. This year, the activity was canceled due to financial difficulties. An said she "doesn't mind too much" because she "doesn't like team building" and can use that time to travel with her family.

However, travel companies are interested because MICE (Meetings, Incentives, Conferences, and Exhibitions) groups generate significant revenue. According to statistics from the travel platform Mustgo, the total spending by companies on employee summer trips has decreased by 30% compared to last year. The main reason given is the economic difficulties following the pandemic, leading to reduced spending on leisure activities.

Despite the difficulties faced by businesses, travel costs continue to rise. Ms. Tran Phuong Linh, Director of Communications and Information Technology at BenThanh Tourist, noted that summer tour prices this year are about 10-20% higher than the same period before the pandemic. The risk of economic recession and high inflation are weighing heavily on tourism spending budgets. This has led to a 20% decrease in the domestic MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism market compared to the same period last year.

A hotel in Da Nang with a sea view. Photo: A LC

The director of a company specializing in travel packages said that annually they have about 15-20 regular corporate groups booking their services. Travel costs range from 4 to 8 million VND per person, with the main destinations being Phu Quoc (Kien Giang), Nha Trang (Khanh Hoa), and Da Nang.

Currently, the company has about 10 corporate groups booked for services this summer, but all of them are new clients. Regular clients have either not yet needed to travel or have canceled their plans due to poor business conditions, requiring a reduction in employee benefits.

According to Mr. Nguyen Tien Dat, General Director of AZA Travel, some regular clients, if they still organize trips for their employees, will maintain the same spending level as in previous years, around 6 million VND per person. At this level, the quality of service will not be as good as in previous years due to increased costs. For example, a 4-day, 3-night tour to Da Nang from Hanoi, which used to cost around 6 million VND per person, has increased to 7 million VND this year. Companies are forced to change destinations or choose inconvenient flight times, and hotels are not as luxurious as before.

A representative from a travel agency revealed that potential clients for their company this year are typically in the banking, auditing, and technology sectors. Companies in industries such as garment manufacturing and real estate are "quite cautious" this summer.

Successful businesses tend to send their employees on overseas trips. BenThanh Tourist recorded a 50% increase in outbound MICE (Meetings, Incentives, Conferences, and Exhibitions) clients this summer. Businesses often choose travel combined with conferences, incentive programs, and team-building activities to optimize costs while strengthening brand loyalty. Countries such as Thailand, Singapore, Taiwan, South Korea, and Japan are the most popular destinations for MICE groups.

However, Ms. Tran Thi Bao Thu, Director of Communications at Vietluxtour, noted that the seasonality in tourism after Covid-19 has decreased significantly, including in the MICE market. Therefore, the fact that MICE tourists are not traveling this summer "is not a very serious problem".

Tu Nguyen

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