**Hanoi’s Tourism Industry Faces Challenges Amid Rising Airfares**
The escalating cost of air travel may hinder Hanoi’s appeal to both domestic and international travelers during the forthcoming summer holiday season.
| Tourists in Ha Long Bay. Photo: Pham Hung/The Hanoi Times |
Vietnam’s summer holidays typically commence with the national holidays observed during the week of April 30 and May 1. This year, Vietnamese citizens will enjoy a five-day holiday period from April 27 to May 1.
According to Vietnam Airlines’ website, economy class fares for a flight from Hanoi to Phu Quoc on April 28 range from VND4.4 million ($173) to VND7.2 million ($283). In comparison, fares from Ho Chi Minh City to Hanoi on the same day vary between VND1.7 million ($67) and VND4.9 million ($192.6).
Similarly, budget air carrier VietJet Air offers flights from Hanoi to Phu Quoc in late April for approximately VND1.8-4.5 million ($70.7-177) per passenger. Fares on the Cantho-Hanoi route fluctuate between VND890,000-4.5 million ($35-177).
Do Dinh Cuong, Vice Chairman of the Hanoi Tourism Association, attributes the increase in ticket prices to a scarcity of aircraft, which hampers the transport capacity of domestic airlines. This surge in airfares contributes an additional 30-60% to the overall cost of a vacation.
Nguyen Tien Dat, General Director of Hanoi-based tour operator AZA Travel, suggests that travelers may opt for international destinations if they find them more affordable and advantageous compared to domestic options.
Domestic tours from Hanoi to destinations such as Phu Quoc, Nha Trang, and Da Lat can set Vietnamese travelers back up to VND10 million ($393). Comparatively, a similar budget would allow them to fly to South Korea, Thailand, China, or Taiwan (China) for their holidays.
Vu The Binh, Chairman of the Vietnam Tourism Association, emphasizes the need for market regulators, aviation companies, and tourism operators to collaborate in devising solutions that strike a balance between the interests of airlines and tour providers.
“A governing body should be established to oversee the market, provide appropriate incentives, and ensure that both parties act in the collective interest,” he says.
Phung Quang Thang, Vice-Chairman of the Vietnam Association of Travel Agents (VISTA), acknowledges the persistence of robust domestic purchasing power, but notes that travelers are compelled to choose economical tours in light of escalating airfares.
He suggests that travel companies must excel in forecasting and guiding their customers, as well as in adapting to the challenges and opportunities presented by current market dynamics.
**Opportunities Amidst Adversity**
Even in challenging times, opportunities can arise. Local businesses in Hanoi can capitalize on the growing preference for short-distance travel.
| Visitors at Viet Phu Thanh Chuong (Thanh Chuong Residence) in Soc Son district. Photo: Hoai Nam/The Hanoi Times |
“The number of bookings I’ve received for the April-May holidays has increased by 30% compared to last year,” Dao Trong Tan, founder and CEO of Tavi Travel, informs The Hanoi Times. “Overall, I estimate a 25% growth in the total market compared to last year.”
He observes a trend towards Vietnamese travelers seeking international destinations due to their often more affordable and attractive offerings.
Since the holiday period extends to five days, travelers will likely prioritize low-cost tours, says Le Cong Nang, General Director of Wondertour.
“Road trips to coastal destinations like Ha Long, Cat Ba, and Sam Son, as well as tours to mountainous areas such as Sa Pa, Moc Chau, and Ninh Binh, will be popular options. Flights to Danang, Thailand, and Singapore with reasonable fares will also be in demand.”
Flamingo Redtours, a Hanoi-based company located in the Hoan Kiem district, has witnessed a surge in bookings in recent weeks. The company caters to clients seeking to combine travel with business trips.
Nguyen Cong Hoan, General Director of the company, suggests that Hanoi’s tour operators must reassess their target market.
“In the past, travel agents in Hanoi primarily sought customers from the central and southern regions. Now, we need to expand our focus to the northern customer base,” he says.
He emphasizes the need for local companies to develop innovative tours with high-quality services and products to attract high-value spenders.
“Hanoi should collaborate with neighboring provinces and cities to create joint products and services,” he adds.
In addition to air travel, Hoan proposes that local companies and authorities explore rail as a viable travel option to reduce costs and enhance traveler satisfaction.
“Rail services have improved significantly, and the railway industry is fully capable of meeting the growing market demand.”
Dang Huong Giang, Director of the Hanoi Department of Tourism, maintains that the northern region will remain a key market for Hanoi’s travel companies as people opt to travel within the region.
The department anticipates a similar growth rate for travelers visiting Hanoi in the second quarter as in the first quarter, attributed to stimulus packages and evolving consumer preferences.
“Hanoi will prioritize collaboration with businesses and neighboring local governments to promote travel,” Giang states. “We aim to develop new tours, new products, and new services that are accessible to local travelers, thereby unlocking the region’s full potential.”
She adds that the Hanoi government will explore partnerships with online media platforms to showcase the city’s picturesque landscapes, cultural heritage, and popular attractions to entice visitors.
