Wednesday, December 14, 2011

Domestic tour will be abandoned if the ticket price ceiling

Vietnam Domestic Flights, not all the difficulties over the ceiling price domestic flight tickets increased by 20% in April but now travel agencies are now very worried about the proposal to increase the ceiling price of domestic airline tickets to 1.5 times ...

Customers will give tour "internal" to the tour "foreign"
Airlines Vietnam Airlines said that, for diverse types of local fare, the company has proposed to increase 1.5 times the ceiling price, domestic air fares will rise by about 15%.
Accordingly, the ordinary ticket price ceiling rate on domestic flight routes will have significant price increases. One-way flights Ho Chi Minh - Da Nang from 1.481 million excluding 10% VAT and other charges to 2.222 million, stage Ho Chi Minh City - Hanoi, from 2.227 million to 3.34 million VND flight Hanoi - Phu Quoc from 2.727 million to 4.09 million ...

If the proposed increase is approved, the goods travel agents are really worried about the cheapest domestic flights f tour. According to Nguyen Cong Hoan, Hanoi Redtour Vice President, Domestic tour prices made up of service, each service increase, the tour will lead to price increases. Usually air fares accounted for 50% of the tour, if the ceiling airfare increase to 1.5 times the total tour price will be increased to about 25%.

Mr. Hoan stressed, this is low season, normal customer demand has dropped, the travel company had to reduce prices to stimulate demand. But this time the discount is difficult to achieve, but if the increase will be very hard to stimulate demand for tourist travel in the country. On the other hand, the domestic tour will also have to compete with the international tour, the tour because the current international prices, but even some of the tour is the discount airline tickets. Constitutes a national tour by plane can equal or greater foreign tour. Thus, traveling inland normally did not rise up, but also share to the international tour.

According to Luu Duc Ke, Director of Hanoi Tourist, tour price constitutes the price of the ticket price up too much. For example, take a local tour in five days, up from 50-70% fare. If on a Domestic Vietnam Flights ticket prices will tend to shift to overseas tour package for cheaper services, overseas shipping is also cheaper. Meanwhile, there are many foreign tour promotion, ticketing regime for group travel is clear while the tour is almost no talk of domestic promotion or price preferences.
According to his prediction Next, the tour price will not increase price ceiling equal to that ticket, but will increase the range from 15 to 25%.

Customers do not need a roadmap soon

"If the ceiling prices of Vietnam domestic  flights tickets are likely to accept more difficult to exploit consumers for domestic tourism but also to accept. However, if the airline route, moderate price increases rather than sudden and unexpected too, it will help more with tourists as well as help it difficult for intermediary firms including guests, tourists also the guests of the airline. The industry should sit together, the less predictable to the unexpected, shortfalls and will be good for both the aviation and tourism, "said Ke analysis.

Being a strong on outbound (customer Vietnam & foreigners living in Vietnam, foreign travel) and hotel rates are higher market share than Vietnam flights domestic  tourists, Hanoi Redtour trying to push to sell more products domestic tourists how to balance the ratio between traveling internationally and domestically. However, in practice, policies of the airlines as well as the policies of other services that provide incentives to increase domestic tourism by Hanoi Redtour also impaired by the trend of travel services Int'l down as the local tour increases.
"The trend of the market is about increasing or decreasing is natural, but the airlines should have a longer time, reported earlier to the travel company offers tours can take the initiative for its customers. When any travel company offering lower prices until a sudden the airlines change the price, it's time to notice the price to customers for travel is very difficult, maybe even lead to losses, "said Hoan said.

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