Note to avoid losing money when using airline services

Airlines increase prices simultaneously

On March 20, the Northern branch of Vietnam Airlines Corporation (VNA) sent a document to its partners, travel companies in the Northern region, announcing the 2018-2019 season price system. According to this announcement, from April 1, there will be many changes in the ticket price structure.

At the same time, ticket offices have posted information about this adjustment to customers. Specifically, with VNA, children's ticket prices increased from 75% to 90% of adult tickets. Ticket prices increased from 30,000-400,000 VND/way.

Vietjet Air, child fee increased from 110,000 VND/child/way to 165,000 VND/child/way. Name change fee increased from 352,000 VND/person/way to 500,000 VND/person/way. Flight date change fee increased from 352,000 VND plus fare difference to 370,000 VND/person/way plus fare difference (if any). Jetstar Air increased infant fee to 209,000 VND/child/way.

Many prices and fees for using aviation services will increase from April 1.

Also at the end of March to the beginning of April last year, VNA adjusted the price of over 50% of the route. The adjusted price for business class increased from 100,000 - 500,000 VND, and for economy class increased from 40,000 - 300,000 VND.

Jetstar Pacific also increased the system management fee from VND100,000 to VND130,000 excluding VAT (10%). Vietjet Air adjusted the fee applied to booking and changing tickets, including domestic flights, by VND40,000 (from VND100,000 - VND140,000) excluding VAT. International flights increased from VND120,000 to VND160,000.

Regarding Vietjet's seat selection service fee from April 1 for domestic flights, the fee for regular seats is 30,000 VND, for front seats is 40,000 VND, and for special seats is 90,000 VND. For international flights, the fee for regular seats is 50,000 VND, for front seats is 90,000 VND, and for special seats is 150,000 VND.

Not only have ticket prices and change fees increased, but from April 1, the fees applied by airports will also increase.

According to Decision No. 2345/QD-BGTVT of the Ministry of Transport, Vietnam's airports are divided into 3 groups and have specific fees. Accordingly, Group A is the group of airports operating 24/24 hours including: Noi Bai, Da Nang, Tan Son Nhat, Cam Ranh, Cat Bi, Vinh, Can Tho, Phu Quoc, Lien Khuong, Phu Bai, Buon Ma Thuot airports; Group B is the group of airports not in Group A and Group C; Group C is the group of airports serving the economy and society including: Con Dao, Dien Bien, Ca Mau, Rach Gia airports.

In phase 2 (from January 1 to March 31), the corresponding prices for airports in groups A, B, and C are VND80,000, VND75,000, and VND60,000 per passenger. In phase 3 (from April 1 to June 30), domestic passengers at airports in groups A, B, and C will have to pay VND85,000, VND75,000, and VND60,000 per passenger, respectively.In the final stage, the highest price applied at group A airports is 100,000 VND/passenger, group B is 80,000 VND/passenger and group C is 60,000 VND/passenger.

Regarding the price of aviation security services until March 31, the price will be 13,636 VND/passenger and from April 1 onwards, the price will be 18,181 VND/passenger. Regarding the security screening fee, the applied fee is 20,000 VND/passenger from July 1, for children it will also increase to 10,000 VND/passenger from July 1.

Customers are skeptical, travel companies are upset because of price increases

The simultaneous increase in ticket prices or service fees by airlines has made travel companies restless, because tour prices will certainly increase in the near future.

Ms. Le Thu Huong, Director of Ngoc Viet International Travel Company, said that travel companies are currently having a headache after airlines simultaneously increased airfares. “Air transportation costs account for 35-45% of tour prices, so the increase in airfares by airlines puts many travel businesses in a difficult position, especially in the context that businesses have already finalized tour prices with customers. Especially now that the peak tourist season has begun.”

Mr. Nguyen Van Linh - Director of a travel company also said that the increase in ticket prices will greatly affect domestic tourism, especially air tours. "The increase in fees or airfares is not large, from a few tens to a few hundred thousand VND, but "each step increases a little bit, making the cost of the tour increase a lot. This has invisibly caused domestic tourism to become increasingly less popular, especially air tours," said Mr. Linh.

As for customers, many people also question the quality of service when airlines simultaneously increase ticket prices. “Last year, airlines also increased ticket prices but service quality did not increase. This year, I wonder if the increase in ticket prices goes hand in hand with an increase in service quality?” Ms. Nguyen Thu Hang (Bac Tu Liem, Hanoi) wondered.

Ms. Tran Van Anh (Hoai Duc district, Hanoi) said: “There are some services that I think the ticket price increase is too high, for example, the child ticket price has increased to 90%, almost equal to the adult ticket price, the name change fee has also increased a lot. Adding the costs, the ticket price will be increased quite high. For low-income people like us, the high ticket price increase will make us hesitate more when traveling by air.”

On March 20, VNA sent a notice to travel agencies stating that the minimum number of guests per group is 10 people. Previously, in 2017, VNA stipulated that 2 children would be counted as 1 adult and in the case of 9 adults and 1 child, it would still be counted as a group of 10 guests. The fee for refunding tickets before the departure date is 300,000 VND.