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Domestic Flights higher than a hindrance to the agent

Travel agencies have difficulty in difficult economic conditions will be emphasized by the latest increase in domestic airfares in the industry.

Agencies face both loss on tour was booked and canceled reservations because higher tour price. In fact, the increase in ticket prices for foreign tours more attractive to local customers, they said.
Earlier this month, Vietnam Airlines said it would raise fares on domestic flights up to 20% from December 15 onwards.
A flight from Hanoi to Ho Chi Minh City can cost as much as VND2.69 million (U.S. $ 128), excluding taxes and surcharges, as compared with the VND2.22 current cap million.

Prices for flights from Hanoi to Phu Quoc Island, the longest route in the country, will be capped at 3.2 million, up from the current ceiling of VND2.7 million.

This is the second time Vietnam Airlines has increased ticket prices this year. In April, it rose 23%.
The Decision May, Director of Tourism Hoang Viet, said that the decision so sudden and did not increase significantly, causing trouble for the travel agent advertised tours 3-5 months.
"I do not know what to do about the rising ticket prices," he said, worried that many customers who have tours for months, would not be willing to pay more money.
Thang said that some customers have canceled their trip. Many other services such as restaurants, hotels, road transport has also seen price hikes, push costs tours, he said.

An executive at another company in Hanoi said a number of tour packages in the country, has increased 10% over last year, even before rising airfares.

Vietravel Nguyen Minh Man said the company will not increase the price of the tour started before the Lunar New Year festival, which falls in late January, as their tickets to be booked about five months.
However, it will have to adjust the price of the trip was organized later. "Now, we are considering to raise prices, but it will not be as high as airline tickets," he said.
Hoang Viet Thang Tourism said the travel agent to accept smaller profits in order to attract customers, in the context of the economic downturn.
At current prices, the tour from Hanoi to Ho Chi Minh City, the central cities of Da Nang and Nha Trang will cost even more than the neighboring countries such as Thailand, Singapore and Malaysia.
Nguyen Hoang Lan, a high school teacher from Hanoi, said she booked a family trip to Singapore Lunar New Year instead of her original plan to visit Nha Trang. A four-day trip to Singapore costs $ 600 per person, the same price as a tour to the downtown area.
Domestic tour prices are expected to increase, as tickets account for 50% of the input costs, Nguyen Cong Hoan, deputy director of the Hanoi Red Tours agent.
He said the increases will lead to fewer tourists and affect a wide range of tourism-related industries like transportation, restaurant and hotel.
Bao Van, Thanh Nien (This story can be found in the December 16 issue of our print edition, Thanh Nien Weekly)
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