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BIZ TRAVELER

Down to earth

Rising domestic airfares have had a dampening effect
on travel within Vietnam this year, with tourist numbers
falling and many looking at overland travel.
By TUONG BACH

ummer is the peak season for almost namese airlines have been higher since averaging 660 a day, down 8.8 per cent
all tourism companies, not just in the beginning of this year compared to compared to 2023 and 10 per cent com-
S Vietnam but globally, with revenue the same period of 2023. For example, pared to pre-pandemic 2019.
in these warmer months generally account- Hanoi - Ho Chi Minh City flights with Ms. Tran Thi Bao Thu from Vietluxtour
ing for 40-70 per cent of the annual total. Vietnam Airlines cost approximately said the current surge in airfares is a
Compared to previous years, this year is VND2.64 million ($103), up 14 per cent, source of concern for all travel companies
expected to see significant changes in with Vietjet Air around VND1.74 million and present a potential threat to earnings
tourism offerings in Vietnam, to cater to ($68), up 25 per cent, with Bamboo Airways during this year’s summer season. Travel
changing customer preferences and miti- some VND2 million ($78), up 11 per cent, by road actually rescued many in the
gate the issue of rising airfares. and with Vietravel Airlines roughly VND1.5 tourism sector during the recent holidays.
During the recent April 30 - May 1 million ($59), up 15 per cent. Of a similar mind, Mr. Bui Thanh Tu,
holiday, the local tourism market exhibited Even on “ordinary” days, outside of Chief Marketing Officer at BestPrice
certain trends in travel demand. As it is peak periods like public holidays and the Travel, predicted that attractive beach
estimated that airfares represent 30-50 summer, domestic ticket prices have destinations nearby major cities will draw
per cent of a holiday’s cost, higher airfares soared, with a flight within Vietnam’s in the most visitors this year. With airfares
directly impact holiday plans and, hence, borders often costing more than heading soaring during the peak summer season
tourism companies, who must adjust their abroad. For example, flights from Hanoi and showing no signs of abating, travelers
strategies to meet customer preferences to Phu Quoc Island range from VND7 to are likely to opt for nearby destinations,
and budgets. 9 million ($275 to $353), for which trav- viewing car, bus, or train travel as viable
elers could enjoy a five-day, four-night alternatives.
Change all-inclusive trip to Thailand. According to a representative from
in direction Indeed, rising airfares affected tourist BenThanh Tourist, domestic flight and
According to the Civil Aviation Author- numbers during the recent holidays. Ho holiday packages are expected to see
ity of Vietnam (CAAV), average economy Chi Minh City’s Tan Son Nhat Interna- prices rise 20-30 per cent this summer.
class tickets on a number of domestic tional Airport catered to a total of 3,961 Faced with the challenge of waiting for
routes, including taxes and fees, with Viet- flights over the April 30 - May 1 break, airfares to stabilize, travel agencies are

42 Vietnam Economic Times May 27, 2024 en.vneconomy.vn