Airfares are expected to remain low as the aviation industry faces a shortage of aircraft. To cope, tourism businesses are shifting their products and services, linking means of transport from cars, trains to planes.
"Reverse" promotion to Ho Chi Minh City and Hanoi
Mr. Pham Quy Huy, Director of Kiwi Travel Company, said that he had just checked the airfare system for the route between Ho Chi Minh City and Hanoi in early June 2024, and the ticket price was still very high, around 5.5 million VND/round trip. With this airfare, it is difficult to reduce domestic tour prices to stimulate domestic demand during the summer.
Businesses are shifting to developing road and waterway tours amid rising airfares. Photo: LAM GIANG
Right now, it is the low season for domestic tourism, airfares remain high and it is difficult to have stimulus packages to reduce prices for travel agencies and passengers like before. Therefore, businesses are changing direction. Instead of promoting tourism and strengthening connections between Ho Chi Minh City and other provinces and cities, they are now doing the opposite, finding ways to attract visitors to the city.
"We have just launched a product to stimulate tourism in Ho Chi Minh City by taking a double-decker bus or river bus to visit typical destinations with prices starting from VND299,000/person, instead of the usual package tour price of up to VND799,000/person. City tour programs can be combined with medical tourism, culinary tourism or 2-3 day tours to explore Can Gio, Cu Chi, connecting with Tay Ninh... The direction for visitors to Ho Chi Minh City will be to fly at the opposite end, reducing high airfare costs and adding more choices" - Mr. Pham Quy Huy said.
Ms. Nguyen Thi Khanh, Chairwoman of the Ho Chi Minh City Tourism Association, analyzed that domestic tourism is facing competition in terms of price, product quality, and service. To cope with the increase in airfares, businesses are turning to building new tour routes in the direction of increasing tours by high-quality vehicles on short routes; combining flights, trains, and cars...
"Many businesses are flexible by promoting short-distance tours from Ho Chi Minh City to destinations in the Southeast region such as Tay Ninh or the Mekong Delta provinces, to Phan Thiet, Nha Trang, Phu Yen. Along with cars, tours also combine train, plane or vice versa, adding more options and reducing tour costs for customers. The Association is coordinating with localities such as Tay Ninh, Binh Duong, Dong Nai... to build more attractive road tours to attract customers" - Ms. Khanh said.
Changing the habit of booking "last minute" tours
According to Mr. Le Truong Hien Hoa, Deputy Director of the Ho Chi Minh City Department of Tourism, the city's tourism industry has worked with airlines and aviation management agencies to grasp information and promptly provide solutions to support businesses in the industry. The increase in airfares is related to the difficulties of the aviation industry due to the lack of aircraft, so some solutions that can be implemented are to increase flight frequency and increase night flights. Regarding tourism businesses, it is encouraged to diversify means of transportation, not completely dependent on aircraft.
Mr. Nguyen Minh Man, Director of Communications and Marketing of TSTtourist Company, believes that developing and diversifying types of transportation in Vietnam is extremely necessary, ensuring convenient and smooth connections, shortening time, and increasing the experience time of tourists. Especially in the context of a series of North-South expressways being completed and put into operation, "redrawing the map" of domestic tourism.
Not only will the cost of the package tour be reduced, this solution will also create an attractive sightseeing itinerary for tourists by connecting roads and trains - the favorite means of transportation for tourists to sightsee on long journeys, through many different terrains including plains, plateaus, seas...
"If airfares increase, in addition to financial capacity, tourists will have to find affordable forms of travel, in which short-distance road tours and train tours are quite interesting options because they solve many problems at the same time, not only because of high airfares but also because of tourists' travel trends," said Mr. Man.
On the tourist side, travel companies recommend changing the habit of booking "last minute" tours when traveling domestically because the closer to the departure time, the higher the airfare. Mr. Pham Anh Vu, Communications Director of Viet Travel Company, analyzed that if customers change their habits and book tours 2-3 months in advance; book in groups of family and friends; reserve seats in advance... they will get deep discounts and much better costs.
"Travel businesses are willing to reduce profits to maintain reasonable tour prices and stimulate demand, but the long-term problem is that tourists should also change their habit of buying tours spontaneously in the current context," said Mr. Vu.
Multimodal transportation has been promoted by many travel companies in recent times after airfares have remained high. At a recent press conference announcing the Ho Chi Minh City Tourism Festival 2024 (scheduled to take place from April 4 to 7 at September 23 Park, District 1), Mr. Le Truong Hien Hoa said the event is an opportunity for businesses to promote summer tours to tourists and residents of the city. However, domestic tourism is being competed by foreign tourism in the context of continuously rising airfares.
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