Planning a trip can be tough when airfare is high right now, leading to a noticeable dip in global travel. Tourist spots are bracing for fewer visitors. High plane ticket prices could mean less people traveling by year’s end.
Since September, debates have heated up over costly flights between Hà Nội and HCM City. Even off-peak tickets to beaches like Phú Quốc Island remain pricey.
Travel agents worry this could make fewer people fly.
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Airlines can’t cut fares right now. They’ve been financially hurt by COVID-19 for over two years.
Airlines are losing money. They’re not making as much as before the pandemic, and costs keep changing.
Fuel, a big expense, takes up 36% of flying costs. By late 2022, it jumped to over $120 per barrel — a huge rise from $67 in 2015.
Jet fuel prices have dropped but still hover around $90 per barrel.
Year-end travel spikes globally, so fuel costs might stay up.
A $1 rise per barrel adds $9 million in costs for Vietnam Airlines.
The exchange rate hits airlines hard too. Vietnam Airlines spends 70% in foreign money, but earns in Vietnamese đồng.
The đồng’s value fell, raising costs by 4.35%. It might drop 3% more this year. Vietravel Airlines shares these troubles. They also face debt and high interest rates. Vietravel, small in the market, struggles as ticket sales don’t cover costs.
During Tết, flights sell out. But airlines says making flight costs as low as trains or cars is impossible.
Airlines are key but fragile.
Other aviation businesses like airports profit more, say airline folks.
Đinh Việt Thắng from Civil Aviation says airlines base prices on supply and demand. They adjust prices if tickets don’t sell.
Some tourist spots lack visitors. Too many hotels and bad management turn off travelers.
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Savills, a property firm, notes Phú Quốc lacks budget-friendly options.
70% of Mekong Delta’s top hotels are on this island. They’ll struggle if the economy worsens and people spend less.
To help Phú Quốc and other places, everyone needs to work together.
At a meeting to boost Phú Quốc tourism, an airline agreed to help but said tourist spots must review their prices too.
