Why Fewer People Are Flying This 2nd of September Holiday

The aviation industry is facing a curious conundrum of low passenger numbers during the holiday season, which, while seemingly paradoxical, is not entirely unusual. This phenomenon highlights the diverse travel options available to consumers, who are not limited to air travel, often considered a monopolistic mode of transportation.

Aviation’s Bitter-Sweet Concession

The recent holiday season witnessed airlines adding hundreds of extra flights for the National Day celebrations on September 2nd, only to be met with sparse passenger numbers. This scenario underscores the imperative for airlines to accord greater respect to their customers by ensuring punctuality in their operations.

Mr. Tran Quang Tuyen, a resident of Me Linh, Hanoi, shared his family’s experience during the recent holiday. Opting for a vacation in Vung Tau, they chose air travel for the Hanoi-Ho Chi Minh route, despite the high ticket prices, to save time and maximize their relaxation and sightseeing opportunities.

However, their plans were disrupted when, despite arriving at the airport at 5 am for their 6:45 am flight on August 31st, they were informed of a delay shortly before the scheduled departure time. The flight was then rescheduled for 9 am, resulting in a 2.5-hour delay. To their further dismay, the departure time was pushed back again to 11 am, leaving passengers stranded and frustrated, with no explanation offered by the airline.

Renowned aviation expert, PGS-TS Nguyen Thien Tong, attributes this shift to the emergence of diverse travel alternatives, both direct and indirect, that consumers are now embracing. For instance, while air travel used to dominate the Ho Chi Minh-Nha Trang and Ho Chi Minh-Danang routes, these destinations are now accessible via road and rail, offering travelers novel and appealing experiences.

“The introduction of new highways has alleviated the burden on the aviation industry, especially during peak holiday seasons. However, a significant factor contributing to the resurgence of road trips is the persistent issue of high ticket prices and chronic delays plaguing the airlines, instilling fear in potential passengers,” explained Mr. Tong.

“Consequently, for destinations exclusively accessible by air, individuals are opting to drive or even forgo travel altogether, choosing instead to stay in the city or visit their hometowns to avoid the dual pitfalls of costly tickets and chronic delays. This strategic shift alleviates economic pressures and minimizes the risk of purchasing a ticket only to be met with frustration,” added the expert.

Airlines Need to Crunch the Numbers

According to a Vietnam News Agency report on September 3rd, a Vietnam Aviation Administration official acknowledged the unusually low passenger numbers during the National Day holiday (from August 31st to September 3rd).

“The busiest days were August 31st and September 3rd, but even then, passenger numbers didn’t surpass 70% of the peak Tet holiday and were only equivalent to regular travel days. On September 1st and 2nd, passenger numbers dipped below 40% of the Tet holiday peak and fell short of 80% of regular travel days. It was a rather bleak holiday season for airlines, with little to report in terms of passenger numbers,” the official remarked.

Analyzing the reasons behind the stark contrast in passenger numbers between the recent holiday and the Tet holiday, Mr. Tong attributed it to the frequent delays experienced with certain airlines, prompting travelers to opt for alternative modes of transportation, such as trains, buses, or personal vehicles.

This dynamic resulted in unusually empty airports during the holiday season, while roads were congested, trains were fully booked, and personal vehicles crowded the highways.

Mr. Tong also recalled a similar scenario a few years ago when consumers vehemently reacted to exorbitant airfare prices by simply opting out of air travel unless absolutely necessary.

“The aviation industry should take heed of these reactions and recalibrate its pricing strategies. It’s not mandatory to always charge the maximum allowable fare. Airlines must learn to adapt their pricing to market dynamics and enhance their skills and service standards. Passengers should not have to endure chronic delays after paying premium prices for their tickets. The recent holiday season served as a powerful reminder of the market’s capacity for pushback, underscoring the imperative for airlines to abandon any notions of monopolistic practices and instead prioritize customer satisfaction,” asserted Mr. Tong.

Mr. Tong commended consumers for their proactive response, noting that their decision to forgo air travel is a positive development that will compel the industry to reevaluate its fare calculations and abandon reliance on price floors and ceilings.

“The era of monopolies is over. Airlines now compete with various other transport options, including foreign airlines, road and rail transport, and personal vehicles. It’s imperative for airlines to  constantly crunch the numbers to strike a balance with ticket prices. AI technology can assist in these calculations, predicting passenger numbers based on fare levels. Thus, if prices are too high, passenger numbers will dwindle, and conversely, lower prices can stimulate demand and boost profits. Hopefully, this recent experience will spur airlines to reflect and devise more sustainable strategies,” concluded Mr. Tong.