Local travel agencies fret over possible airfare hikes

Nguyen Van Tran, general director of APEX Vietnam Tourist Co., worried that he had not been able to find a good explanation about a tour price spike to his clients, who had been informed of the tour package price six months or even one year before.

“We are very anxious even though there is no official announcement on fare price hikes from domestic air carriers so far,” Tran stated. “Higher airfares will be harder for us to lure Japanese visitors, who have to tighten the purse string after suffering natural disasters in March,” said Tran.

In fact, international tourists coming to Vietnam have to pay more for local airfares to travel among tourist attractions all over the country, which make up some 23%-25% of total travel cost. Thus, the number of foreign customers to Vietnam is believed to fall upon the heels of an upsurge in airfares.

Like Apex, many other domestic travel agencies are anxiously waiting for information from local air carriers.

“This year, we have made a number of changes in airfares and have to continue to watch Vietnam Airlines’ moves for timely responses,” said Bui Viet Thuy Tien, managing director of Asian Trails Co., Ltd.

In recent times, local airfares have witnessed a lot of airfare adjustments, forcing some local tour operators to separate airfares from the tour packages to avoid risks. However, most local tourism enterprises find this solution meaningless to attract European clients who are cutting spending given financial constraints.

Foreign tourists now find prices of tour packages to Vietnam 15%-20% higher than those in neighboring countries and this disadvantage would further erode the nation’s competitiveness once new airfares are applied.

Not only the inbound tourism segment but the local travel segment is also uneasy about any airfare rise. According to a number of travel agencies in HCMC, due to economic difficulties, the number of local air travelers has sharply decreased, even up to 30%-35% at Young Generation Travel Co., Ltd.

“If airfares keep soaring at home, that will be our biggest concern,” Young Generation’s deputy director Tran The Dung told the Daily.

Source - vietnamnet.vn