Tet flight tickets and the win-win problem

03/10/2023

On Tet 2024, aviation has soon added heat to the travel market, making people and the tourism industry 'shocked' because domestic airfares are near the ceiling, meaning the highest possible price within the regulated price range.

Aviation and tourism are like lips and teeth, but there seems to be signs of each industry doing its own thing, each industry knows its own benefits.

Airlines have the right to flexibly sell airline tickets according to market demand, as long as they do not exceed the prescribed price range. It is the excessively high expectations of demand and the maximum way to make profit that pushes prices close to the ceiling. Immediately, there were concerns about the great impact on travel demand, affecting other industries such as tourism, restaurants, hotels...

These concerns are clearly well-founded. During the recent holidays, the domestic tourism market seemed to be thriving but was disfigured by the lack of visitors, losing right at home. Many hotels in Nha Trang and Phu Quoc "complained" because room occupancy rates were not yet at 60% even though it was the peak season.

There is a reason why round-trip domestic flights are almost as expensive as package tours to foreign countries like Thailand, Singapore, etc. Many families have changed their plans and chosen to travel abroad because the tickets are affordable, and some flights are even much cheaper than domestic flights.

The after-effects of the disruption to the air ticket market during the April 30 holiday are still there. Airfares were sky-high but had to be reduced due to weak demand. Immediately, many destinations increased their bookings. Many are still worried that airlines are playing tricks, and the same problem will recur this Tet holiday.

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Many opinions are still worried that the airline is "playing tricks", the old problem will repeat itself this Tet holiday.

Ticket prices are higher during Tet because airlines have to fly empty one-way flights, but there is also a need to share because people are having a hard time, if they limit their trips home because of high ticket prices, airline revenue will also decrease. Not to mention, high airfares are considered to have a big impact on tourism recovery because airfares account for 40-60% of tour costs.

Phu Quoc is famous as a "pearl island" that is popular with tourists, but now it is less crowded. There is a reason why airfare to Phu Quoc is higher than package tours to Thailand, Malaysia, Cambodia... Foreign tourists also choose other destinations with lower service prices.

High transport costs can reduce domestic tourism, and industries that rely on accompanying services will lose revenue. This should not be seen as a problem of a single sector, but rather a serious problem that will have major consequences if not resolved quickly.

Meanwhile, Thailand is trying to stimulate tourism by lowering prices, subsidizing, many solutions are really drastic and consistent. Airlines themselves are also proactively proposing to reduce travel costs. Thailand shows that there are many solutions to reduce airfares.

This includes encouraging airlines to return slots (take-offs and landings) if they cannot be exploited and reallocate them to other airlines to increase flight efficiency and supply.

In Vietnam, there is also this policy, but it is very difficult, almost impossible, for companies to "release" slots when they are not in use.

Many localities have stepped in and discussed with airlines about reducing ticket prices to stimulate tourism, but with no results.

To have a consistent and synchronous policy, a "conductor" is still needed, possibly the National Tourism Administration, to discuss, orient, and harmonize the interests of the aviation and tourism industries... If the unsynchronized approach is maintained, the industries will lose each other's opportunities in the domestic market.

- Source: tuoitre.vn
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