Airfares are sky-high, while tens of thousands of tours are only offered at minimal discounts.

The biggest discount is only 10-30%.

According to travel companies, as of now, 90% of tours for the 5-day holiday from April 30th to May 1st have been booked, especially overseas tours. Those still available are mostly domestic tours, filling a few vacant spots on airline tickets, or primarily road trips.

Therefore, at VITM Hanoi 2023, the tourism products offered were mainly summer tours, with discounts not as significant as in previous years, only ranging from 10-30%. Furthermore, these tours were mostly sold early, with weekdays in May and longer trips as far as September-October. During the peak summer season, June, July, and August, there were virtually no promotional or discounted tours.

For example, thanks to Bamboo Airways' price reductions of up to 60%, Flamingo Redtours is offering 30% discounts on tours to Da Nang - Hoi An, Tuy Hoa - Quy Nhon, Ly Son Island, and some new destinations such as Diep Son Island and Vinh Hy Bay.

However, the departure dates are mainly at the beginning and middle of the week in the coming month, such as May 15th, May 18th, etc.

Tourists inquire about summer tour information at VITM Hanoi 2023. (Photo courtesy of the interviewee)

The company also offers an additional 10% discount for customers paying via Vnpay, up to a maximum of 40 million VND; furthermore, some group tours abroad also have significant discounts, but are only available during fixed hours.

At the fair, Vietluxtour travel company (Ho Chi Minh City) launched a variety of products, featuring multiple airlines and 3-5 star hotel standards to cater to diverse mid- to high-end customer segments. Domestic tours offered discounts of 1-1.5 million VND per person, depending on the route. International tours were equally vibrant, with departures in June, July, and August to destinations such as Thailand, Singapore, South Korea, Japan, Europe, Bali, and Fenghuang Ancient Town, offering discounts of 2-3 million VND per person. Additionally, the company offered a 15% discount on a package of 10 signature tours exploring Ho Chi Minh City, aiming to attract customers from other localities.

During the four-day fair from April 13-16, visitors also had the opportunity to choose from over 20 domestic and 50 international tours with discounts of up to 30% offered by Vietravel. In addition, there were economical flight and hotel package deals, such as a Da Nang combo from only 2.59 million VND/person for 3 days and 2 nights, a Quy Nhon combo from 4.49 million VND/person for 4 days and 3 nights, and a Phu Quoc combo from 4.99 million VND/person for 4 days and 3 nights,...

Viet Travel Company is launching a "Promotion 3" program for customers who register for tours at the fair, applicable to all tours with discounts of up to 2 million VND per person and cashback of up to 6 million VND per group.

On the airline side, Vietravel Airlines is offering more than 1,900 tickets with prices starting from just 9,900 VND or 0.5 USD or 16 Thai Baht (excluding taxes and fees) for all routes the airline operates on April 13-14.

Bamboo Airways is reducing airfares by 20% on domestic routes, excluding flights to Con Dao and the Hanoi - Ho Chi Minh City route,...

Vietnam Airlines had a booth at the fair but did not announce the specific number of discounted tickets or the level of discounts and promotions.

High airfare forces travel agencies to cut profits.

While the VITM Hanoi 2022 tour promotion offered discounts of up to 40%, or even 60%, this year the maximum discount is only 30%. Most travel companies attribute this to the high cost of airfare. The percentage of discounted airline tickets available to travel agencies has decreased, and the discounts are no longer as substantial as before. Meanwhile, airfare accounts for over 50% of the tour cost.

Speaking to reporters, Mr. Nguyen Ngoc An, Deputy General Director of Vietluxtour Travel, said that the number of promotional tours this summer is very limited. To offer discounts of 10-30%, most travel companies have to reduce their profit margins or sell at prices below the break-even point. Meanwhile, the level of cooperation between entities such as restaurants, hotels, and transportation is still low, so offering preferential prices is a significant effort on the part of travel agencies.

Mr. Bui Thanh Tu, Marketing Director of Best Price Travel Company, commented that the company's tour prices only reduced by about 20%, provided that customers finalized their purchase and paid immediately. However, due to the high cost of airfare, even with hotel discounts of up to 70%, many people still chose not to book their tours in Phu Quoc.

According to Mr. Nguyen Tien Dat, General Director of AZA Travel, travel agencies are also more cautious about purchasing discounted group tickets from airlines. This is because they would have to spend billions of dong and pay a 30% deposit 30-60 days in advance; if they don't sell all the tickets, they will be penalized by the airline. With the economy struggling and customers tightening their spending, many agencies are comparing prices and considering various options before making a decision, so they are accepting reduced profits to secure tickets, or are afraid of the risks and choose not to book at all.

A representative from an airline also revealed that demand for air tickets this year, up to the April 30th - May 1st period, remains low. The number of buyers is only at a certain level, so even if airlines increase flights and add more seats to lower ticket prices, the number of passengers will not increase. Therefore, the likelihood of airfares decreasing is very low.

Therefore, Mr. Nguyen Cong Hoan, General Director of Flamingo Redtours, believes that price reduction is no longer the primary attractive factor; what is more important is a product with depth and high individualization.