Increasing airfare the mindset of small-time tourism

By Le Pham   May 2, 2023 | 04:11 pm PT
Increasing airfare the mindset of small-time tourism
Passengers check in at Tan Son Nhat airport in Ho Chi Minh City, 2023. Photo by VnExpress/Quynh Tran
Travelers are willing to pay for services, but they’re complaining about the endless hike in air ticket prices.

According to a survey by VnExpress, domestic airfares have increased 20% to 40% compared to the same period last year, and there is little difference in cost between airlines. The Reunification Day-Labor Day holiday occupancy rates for hotels in tourist destinations that often require air travel, such as Phu Quoc, Nha Trang, and Da Nang were only about 60% this year. This figure for tourist destinations that do not depend on air travel, such as Sa Pa, ranged from 80% to 100%, depending on the hotel segment.

"I have never seen a national airline raise fares across the board for domestic passengers. Raising fares several times creates psychological waves during holidays and Tet, forcing those who need to travel to grit their teeth and buy at surging prices. The economic law...must be 'pleasing to customers who come and go,' which is the theorem for sustainable development and reflects the spirit of cooperative management. Airlines in our country have launched abnormally unreasonable prices. Many experts have analyzed the situation and asked why only in Vietnam have domestic airfares increased so much? Then suddenly the price drops sharply to old levels, not for any objective reason, but only because tourists have switched to foreign countries. But the adjustment seems to be too late."
Le Anh

"I think airlines see people starting to travel again after the long Covid-19 period, so they think they can raise fares high to make up for losses. But that is a mistake. When fares are raised too high, tourists tend to switch to foreign travel. At that time, the aviation industry not only loses revenue but also causes a decline in other industries such as lodging, food and beverage services, restaurants, hotels, etc. Meanwhile, Thailand is very wise with its 'cheap tourism' strategy to stimulate demand at this time. I think Vietnam's tourism industry also needs to change its mindset to find the most suitable and correct direction for sustainable domestic tourism development."
Thao Thanh Pham

"The airline industry is like a synchronized cog in the tourism machine, and even a small malfunction can cause other cogs to fail. Accommodation, transportation, services, souvenirs, dining, and many other things will be affected. The current airline approach is not for the benefit of the industry as a whole, but only focuses on "cutting corners" for certain segments. Tourists don't mind spending money, but they are allergic to being "preyed upon" at any stage of their journey. I sympathize with those who have already purchased plane tickets. In general, the mentality and practices of seasonal tourism price increases can be found in any segment. However, the purchase of plane tickets is the first step of the trip and it will determine the entire experience."
Que Hanoi

"In reality, businesses must make a profit, no one sells goods at a loss. Therefore, it is understandable that airlines in Vietnam raise ticket prices when revenue is insufficient. However, why do budget airlines in Europe thrive without increasing ticket prices? The answer lies in a very harmonious collaboration between airlines and businesses in the destinations that tourists visit. To be specific, local tourism-related businesses are willing to sponsor the airlines for the number of tourists who come to visit, so that the airlines can reduce airfare fees to attract tourists to visit them. In this way, both sides benefit. They work in a structured way that complements each other to win together (win-win), unlike us, where one person's loss is another's gain."

The opinions expressed here are personal and do not necessarily match VnExpress's viewpoints. Send your opinions here.
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