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The rising value of the US dollar and euro, along with soaring airfare and hotel room prices, has led to a decrease in demand for European travel among Vietnamese people this summer.
The phenomenon of "unsold tours" is occurring with travel companies specializing in the European and American markets. According to these companies, the outbound tourism market (Vietnamese tourists traveling abroad) has decreased sharply compared to two years ago. The number of tourists traveling to Europe this year is lower than last year, despite the Euro in Germany and the upcoming Olympics in Paris (from July 26th to August 11th). Many travel companies say that selling European tours this year is more difficult due to abundant supply but low demand.
European tours are seeing fewer and fewer customers.
In fact, during the period of 2022-2023, many travel companies in Vietnam achieved success in the European market. Besides sightseeing, many Vietnamese tourists also visited relatives and combined it with business trips to Europe over the past two years. Currently, obtaining a European visa independently from Vietnam remains quite difficult; therefore, many tourists choose to purchase tour packages to ensure visa approval.
Building on last year's success, many travel companies have expanded into this market, leading to an increase in supply of around 20%. However, this year's number of tourists has decreased by as much as 30% at many companies. One reason for this is that those who traveled to Europe in the two years prior may not travel again this year.
Companies say that high tour prices are one of the reasons for the sluggish European tourism market this year. Economic recession, inflation, the sharp rise in the exchange rates of the US dollar, euro, and British pound, along with a 15-20% increase in the prices of services such as airfare and hotels compared to the previous year, have contributed to the difficult situation. The Euro 2024 and Olympic Games attracted a large number of tourists, leading to service overload and difficulties in booking accommodations and related services. Changes in visa regulations in various countries, while not major, have also had a certain impact on the European tourism market.
Economic recession, inflation, sharp increases in the exchange rates of the US dollar, euro, and British pound, along with rising prices for services such as airfare and hotels, are the reasons why European tours are experiencing low demand.
To adapt, many travel companies that previously specialized in European tours have expanded to other markets or partnered with 3-4 other companies to sell combined European tours instead of organizing them independently as in previous years. According to travel companies' predictions, European tours are unlikely to achieve the same boom as last year between now and the end of the year.
Nevertheless, European tours remain a traditional choice for high-end Vietnamese customers thanks to destinations with long histories, unique cultures, renowned cuisine, stunning natural landscapes, and high-quality service. Traditional tours such as the 9-10 day itinerary through Italy - Switzerland - France - Luxembourg - Belgium - Germany are still the most popular among Vietnamese customers, with prices ranging from 75 to 90 million VND.
