Tour operators fret over rising air fares

Tour operators fret over rising air fares

Tour operators fret over rising air fares

The Saigon Times Daily

HCMC – That airlines have lately increased fares and surcharges has exposed tour operators to high risks of losses, as their tour prices were fixed long ago, Tuoi Tre newspaper reports.

Tran Van Long, general director of Viet Media Travel, said air transport costs account for 35-45% of tour tickets. Therefore, a recent rise in air fares has caused a big headache for his company and others.

“Domestic tourism is certain to suffer from increasing tour costs,” he said.

A local air carrier said most airlines only made profits during the Lunar New Year holiday and summer vacation seasons, while in the rest of the year, they either break even or incur losses.

The source said input costs have been on the rise, forcing airlines to hike ticket prices.

Tran The Dung, deputy director of Young Generation Co Ltd, said while stimulus programs launched by airlines for the local tourism industry bring little benefit, the rising air fares would dent their business operations.

According to regulations of air carriers, tour operators wishing to purchase air tickets at competitive prices under the stimulus programs have to register tickets for flights with fixed schedules in advance for each quarter. Meanwhile, arranging tours depends on bookings, meaning flight schedules offered by airlines are not aligned to tourists’ demand.

Dung added airlines often offer tickets which are cheaper than those of tourism stimulus programs, but in fact, tour operators could get five to 10 tickets for each flight no matter how many bookings they get from customers.

Flight tickets, as a result, may come with different prices even for a single tour, putting tourism firms in a disadvantageous position.

He wished airlines would maintain stimulus policy like what was successfully implemented in the 2008-2012 period. That policy allowed tour operators to buy discounted air tickets without being required to register flights long before departures.

He said if the policy is adopted again, prices of inbound tours would fall, encouraging local residents to travel at home; otherwise, they are more inclined to tour abroad.

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