At the seminar “Solutions for breakthrough in the tourism industry” organized by Người Lao Động newspaper, one of the issues discussed by many guests was the issue of connectivity. In particular, the most important is the connection between travel businesses and airlines to have all-inclusive tours with competitive costs, limiting negative impacts from soaring airfares.
Domestic tourists “going abroad”
According to the observations of Người Lao Động newspaper’s reporter, at this time, the prices of many domestic air routes have cooled down as it is the off-peak season for tourism and the demand for travel after the Lunar New Year has decreased significantly.
For example, on the busiest route, Ho Chi Minh City – Hanoi, on March 13th, the round trip fare was about 3 million VND, a sharp decrease of 50% compared to before and after Tet. However, airfares only cool down for a short time and will increase again during the April 30th holiday and the upcoming summer peak.
Many travel companies said that the high airfares in the past time have made domestic tour prices compete strongly with other destinations in the region. A paradox is happening that while the tourism industry is trying to attract international visitors, domestic tourists are “inviting each other” to travel abroad because domestic airfares are high.
Mr. Tran Van Linh, Head of Tourism Management Division – Department of Tourism of Kien Giang province, said that the highest airfares are at routes from major source markets such as Hanoi, Ho Chi Minh City to Phu Quoc. Prices are high even on normal days, not only during holidays and Tet. “At the peak time, the round trip fare from Hanoi to Phu Quoc reaches up to 10 million VND, from Ho Chi Minh City to Phu Quoc is 6 – 8 million VND. Although airfares have decreased, they are unstable and fluctuate depending on the time,” Mr. Linh explained.
Ms. Ngo Huong, Deputy General Director of Business and Marketing at Vinpearl JSC, noted that the highest proportion of costs that domestic tourists incur is for transportation between destinations. This makes many tourists shift to neighboring destinations in the region with similar climate and culture but more attractive promotion and reasonable costs.
Need for collaboration between travel businesses – tour operators and airlines to reduce costs for domestic tourism. Photo: LAM GIANG
Reducing the costs of domestic tourism
One of the solutions to reduce the costs of domestic tourism is to cool down airfares. Mr. Nguyen Hong Minh, Deputy Director of the Hanoi Department of Tourism, proposed that the Ministry of Culture, Sports and Tourism research and create official channels of information exchange and consultation between the ministry, airlines, and localities. Through exchanges and consultation with tourism management agencies, airlines can regulate airfares and flight schedules to best serve tourists.
“Cooperating with airlines helps localities attract tourists during the off-peak season, thereby reducing the current situation of seasonal tourism,” Mr. Minh analyzed.
However, cooperation is not simple. Mr. Nguyen Le Vinh Lynh, Director of City Sightseeing Vietnam JSC branch in Ho Chi Minh City, said that businesses have actively cooperated with each other, but it is not easy to adhere to the cooperation. “Some businesses propose ideas but have not been able to implement them, then other businesses exploit and develop them into their own products. It is difficult for businesses to maintain their cooperation, produce joint products, and implement them,” Mr. Lynh emphasized.
Mr. Nguyen Quoc Ky, Chairman of Board of Directors of Vietravel JSC, said he proposed the establishment of an alliance of corporations and businesses in the tourism and aviation industry to develop joint plans and cooperation, but it is not easy to reach a consensus on the direction.
Leaders of businesses that have both travel companies and airlines have proposed that travel businesses and airlines research and develop charter flight tours instead of purchasing air tickets according to series booking. This option benefits both airlines and travel companies by ensuring stable customer volumes and achieving the highest efficiency.
Need for a “conductor” for domestic tourism
Businesses propose that in order to develop domestic tourism more rapidly, strongly, and sustainably, it is necessary to have a “conductor” who connects travel, aviation, and tour operators.
According to Ms. Phan Thi Thuy Dung, representative of Sungroup Corporation, the “conductor” is the Government and the National Tourism Administration of Vietnam, who will build programs with breakthrough stimulating characteristics at this stage with the participation of all localities, the travel business community, and stakeholders.
Ms. Dung proposed implementing a comprehensive program to stimulate domestic tourism with the theme “I love Vietnam”, encouraging Vietnamese people to travel in Vietnam. All participating businesses in the tourism activities, including transportation, restaurants, hotels, etc. will jointly apply special preferential prices while maintaining service quality and enhancing new experiences.
