Travel firms fear higher airfare will deter tourists |Travel companies have urged government agencies to ask airlines to raise airfares gradually to allow travel firms to increase tour fees step by step, thus avoiding shocks to domestic travelers.
Now travel firms have a new worry that they may have to raise tour fees because of higher airfares. Tran The Dung, Deputy Head of the HCM City Team on Domestic Travel Stimulus, said that the airfare for As such, travelers will have to pay 2 million dong more on airfares, and tour fees will be 7.2 million dong instead of 5.2 million dong. If counting the VAT increase to 10 percent and higher service fees, package tour fees will be 7.8-7.9 million dong. If hotels raise their rates, tour fees could be as high as 8.3-6.4 million dong.
A director of a travel firm worries that once “Impressive Vietnam” ends, the market will fall into the hands of big companies with close relations to airlines, or those who have air ticket booking agents. If so, small and medium travel firms will face difficulties because they cannot obtain low cost air tickets. If tour fees go up as expected, it would be more costly to travel domestically from the north to the south than to go to According to Nguyen Cong Hoan, Deputy Director of Vietnamese travelers have to pay $250-300 only for a tour to Dung argues that airfares should be raised step by step in order to avoid shocks to clients. For example, the return ticket on Dung affirmed that if air carriers agree not to raise fares too sharply, other service providers and hotels will also not raise their rates rapidly. Ha Yen
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