Airfare for the Lunar New Year (Tet) 2025 is not only expensive but also scarce, especially on provincial routes. (In the photo: Passengers departing from Tan Son Nhat Airport (Ho Chi Minh City) to Vinh ( Nghe An province) – Photo: QUANG DINH)
Information from many travel companies indicates that even when purchased for group tours, domestic airfares are as expensive as individual tickets, driving up the price of domestic tours, sometimes even significantly higher than some international tours. Therefore, many tourists are opting for overseas tours instead of domestic travel.
Tickets are scarce, and prices are soaring.
A survey conducted on the websites of Vietnam Airlines , Vietjet, Bamboo Airways, and Vietravel Airlines on November 20th, regarding travel during the Lunar New Year (Year of the Snake), revealed that round-trip ticket prices from January 25th to February 2nd, 2025 (26th of the 12th lunar month to the 5th day of the 1st lunar month) have continued to increase sharply, doubling compared to normal days and exceeding the figures from a survey conducted two months ago.
For example, the cheapest round-trip fare for the Ho Chi Minh City – Hanoi route is currently 7.2 million VND/ticket with Vietjet, while other airlines such as Vietnam Airlines, Bamboo Airways, and Vietravel Airlines range from 7.3 to 7.5 million VND/ticket. Compared to two months ago, the price has increased by approximately 300,000 VND.
Similarly, Vietjet offered round-trip tickets from Ho Chi Minh City to Thanh Hoa for 7.3 million VND, while Vietnam Airlines' tickets were priced at 10 million VND. Notably, tickets for the Ho Chi Minh City - Dong Hoi route were sold out on the peak days of January 24th and 25th. The Ho Chi Minh City - Da Nang route cost 5 million VND/round-trip ticket, while the Ho Chi Minh City - Quy Nhon route ranged from 5.2 to 5.9 million VND/round-trip ticket.
Representatives from travel agencies said that round-trip airfares during Tet (Lunar New Year) are 800,000 to 1.2 million VND higher than on regular days. For the Ho Chi Minh City – Hanoi route, booking during peak season can cost between 6 and 8 million VND per round-trip ticket, significantly higher than the 6-6.7 million VND per round-trip ticket during Tet 2024.
Despite high prices, demand for travel remains very high, especially during peak hours. The shortage and sell-out of tickets in the days leading up to Tet (Lunar New Year) are making it difficult for many passengers to choose flights, forcing them to book tickets early to avoid even higher costs.
Ms. Minh Trang, an office worker in Ho Chi Minh City, said that she goes back to her hometown every year, but with prices reaching nearly 8 million VND this year, she's having to think carefully. However, if she books late, Ms. Trang worries that last-minute ticket prices could be even higher. Not only popular routes, but also less-chosen routes have seen significant price increases.
"I was looking for flights from Ho Chi Minh City to Dong Hoi, but all the direct flights on peak days were sold out. I'm waiting for the airline to add more flights and see if the prices are a bit more reasonable," said Ms. Trang.
Why are airfares always so high during Tet (Lunar New Year)?
Speaking to Tuổi Trẻ newspaper, Mr. Hạng Quang Tuấn, director of Ngọc Mai Travel (Ho Chi Minh City), said that flights to provinces during Tet are almost fully booked. However, compared to last year, ticket prices have not increased dramatically as they still adhere to the price ceiling.
According to Mr. Tuan, Tet is the time of year when people travel the most, especially on flights from Ho Chi Minh City to northern provinces and vice versa. However, due to limited flight frequencies at many provincial airports, only 5-7 flights per day per airline, mainly handled by Vietnam Airlines and Vietjet, supply does not meet demand.
Smaller airlines, with limited fleets, find it difficult to add more flights to meet demand.
Airlines also explain that the high ticket prices during Tet (Lunar New Year) are intended to compensate for the costs of flights with unbalanced routes. Before Tet, flights from the South to the North are fully booked, but the reverse is less crowded. Similarly, after Tet, flights from the North to the South are crowded, while the reverse often results in losses. This is a characteristic of airline operations during peak seasons.
Speaking to Tuổi Trẻ newspaper, a major airline said it will soon provide an additional 2,000 seats per day on routes during the Tet holiday. “We expect to increase flights and offer more price options next week. However, finding tickets as cheap as usual will be very difficult,” the representative said.
However, some argue that this is only the tip of the iceberg. Many believe that airlines are taking advantage of the Lunar New Year holiday to keep prices at the highest level acceptable to the market. This makes passengers feel that airlines are "taking advantage of the situation," prioritizing profit over customer interests.
According to a representative of an airline, the operating costs of the aviation industry are very high, from aircraft maintenance and personnel to fuel, and these factors are unlikely to decrease during peak season. "There won't be cheap tickets during Tet, but the airline won't increase prices either, ensuring compliance with price ceiling regulations," this representative said.
This expert argued that from a business perspective, companies must be profitable to survive and thrive, especially in the aviation industry with its high costs and significant risks. "As long as the prices do not violate legal regulations, airlines have every right to apply appropriate pricing strategies," he emphasized.
Lack of competition makes it difficult for ticket prices to decrease.
According to aviation experts, the lack of competition in Vietnam's aviation industry, especially during the Lunar New Year holiday, leads to high ticket prices during these periods. The domestic market is largely dominated by a few large airlines, resulting in virtually no competition in terms of price and service during peak seasons.
Airlines often raise prices simultaneously to nearly the same level, making it difficult for passengers to choose the best option. Furthermore, the limited number of airlines and infrastructure mean airlines are not under pressure to lower prices or improve services. In addition, international airlines do not participate in domestic routes, further reducing competition.
"Meanwhile, in developed markets like the US or Europe, intense competition among airlines often helps maintain reasonable ticket prices even during peak seasons," said one expert.
High airfare prices are making domestic tours difficult.
Tour prices to the northern region during Tet (Lunar New Year) have increased significantly due to rising airfares. (In the photo: Tourists visiting Cat Cat village in Sa Pa (Lao Cai) – Photo: Q.D.)
Speaking with us, Ms. Tran Phuong Linh, Marketing and Information Technology Director of BenThanh Tourist, said that Tet holiday airfares have increased by more than 50% compared to normal days, leading to a rise in tour prices as well. Some tours that are in high demand have seen price increases, such as Phu Quoc tours during Tet priced at 8-9 million VND, and Northern Vietnam tours priced at 12-14 million VND, comparable to tours to Malaysia or Singapore.
"Group airfares have also increased, just like individual ticket purchases, pushing domestic tour prices up to the same level as international tours, so many tourists have opted for international tours," Ms. Linh said, adding that the company's Tet holiday tour prices have increased by 4-20% compared to normal days, not significantly different from the same period in 2023 thanks to early collaboration with airline partners.
According to several travel companies, the number of domestic tourism products to Northern tourist markets (Ha Long, Ha Giang, Northwest Vietnam, etc.) has decreased by more than 50% compared to the same period in 2023. Due to high airfare prices, tours to Northern markets are always among the most expensive domestic tours during the Tet holiday season.
"Besides high airfares, tourists are also hesitant to book tours to the North due to infrastructure damage caused by storms and floods, not to mention the weather," said a leader of a travel company. In addition, with the extended nine-day Tet holiday, longer-duration tours to distant destinations are more popular with customers.
A survey by Vietravel shows that during the 2025 Lunar New Year holiday, the number of overseas Vietnamese returning home to celebrate the holiday and traveling with family and friends increased sharply compared to the same period last year, and they showed great interest in overseas tours. Among the overseas tour destinations, China is currently one of the hottest international destinations.
Ms. Tran Thi Bao Thu, representative of Vietluxtour, said that the trend of tourists booking overseas tours accounting for a higher percentage than tourists booking domestic tours/services during Tet (Lunar New Year) has been occurring for about the last two years. However, according to Vietluxtour's experience, the domestic tour market may become more vibrant from the end of November onwards.
Businesses continue to stimulate demand through attractive pricing policies and early bird or group booking discounts of up to 3 million VND per person for all tour packages. Many travel companies also report that domestic tourists tend to finalize their tour bookings quite late, with the majority still researching services and prices, resulting in an occupancy rate of around 30%.
Based on market trends over the past 2-3 years, domestic tourism services are very diverse and flexible, ranging from all-inclusive tours to individual services, and are available throughout the Tet holiday as in previous years to cater to tourists with sudden travel plans during the holiday.
Businesses expect purchasing power to increase as Tet (Lunar New Year) approaches. Regarding the overall market, many companies report having achieved nearly 60-70% of their Tet 2025 business targets.
Source: https://tuoitre.vn/ve-may-bay-tet-den-hen-lai-cang-20241122082222143.htm
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