Domestic air tickets are ‘rarely cheap’ in the middle of summer

Ms. Lan Anh, living in Hanoi, booked a round-trip ticket from Hanoi to Phu Quoc for the weekend of July 24-26 for about 2.2 million VND per person. A family of three who buys tickets through an agent gets an additional discount of about 200,000 VND, total cost is about 6.4 million VND.

“I booked my ticket 3-4 days in advance, knowing it was the rainy season, but I didn’t think booking so close to the date would have such a cheap price,” Ms. Lan Anh said.

Similarly, Ms. Minh Ha, living in Ho Chi Minh City, just booked a round-trip ticket from Ho Chi Minh City – Hanoi for a business trip combined with tourism at the end of July for about 2.6 million VND, with an evening flight on a weekday. In early June, she spent nearly 5 million VND for the same flight. At the same time last year, she booked a round-trip ticket for a similar route for about 4 million VND.

Mr. Pham Anh Vu, Deputy General Director of Viet Tourism Company, said that this summer will be different from previous years when domestic ticket prices cool down during peak season. Many flight routes have decreased by 30-50% compared to the April-May period, when fuel prices increased due to tensions in the Middle East.

Currently, the popular Ho Chi Minh City – Da Nang route costs about 1.2-2.2 million VND, Ho Chi Minh City – Nha Trang costs about 1.8-3 million VND round trip, and Ho Chi Minh City – Hanoi is popular at 3-3.5 million VND round trip at many times. Routes with great demand such as Hanoi – Ho Chi Minh City once recorded round-trip ticket prices of 5-6 million VND in March and April.

Ms. Vu Thi Hau, marketing department of Hoang Ky Air Ticket Agency, Hanoi, also said that domestic air ticket prices began to decrease from mid-July, many routes reduced by nearly half.

The current price is “quite rare in the middle of summer”, Ms. Hau said.

Since the beginning of the year, domestic airfare prices have continuously fluctuated according to fuel prices. Mr. Nguyen Tien Dat, Vice President of Hanoi Tourism Association, said that in March-April, aviation fuel prices increased sharply due to Israel-Iran tensions, while summer travel demand began to increase, pushing ticket prices up. Vietnam Airports Corporation recorded an average increase of 15-20% in early April. When fuel prices cooled again, the cost pressure of airlines decreased, creating room to adjust selling prices – pulling the market to the lowest level since the Covid-19 pandemic in early July.

In addition to the fuel factor, this year’s market purchasing power is not as explosive as before. Many families consider spending more, prioritizing trips by car instead of plane in a still difficult economic context.

After the early summer period, demand decreased while seat supply remained, forcing airlines to increase promotions to improve flight occupancy factors. The addition of new airlines since the end of last year with a fleet of 10 aircraft and expected to increase to 32 aircraft by the end of this year as well as airlines restoring their fleets also increase competition, especially on tourist routes.

“The ultimate beneficiary is the passenger,” Mr. Dat said.

From the perspective of travel businesses, Mr. Pham Anh Vu commented that reduced air ticket prices make it easier for businesses to sell tours, reducing the rate of cancellations at the last step, especially the routes Ho Chi Minh City – Da Nang, Ho Chi Minh City – Nha Trang, Ho Chi Minh City – Phu Quoc and Hanoi – Da Nang.

“If the airfare is reduced by a few hundred thousand dong, the customer’s decision to book a tour can change very quickly,” Mr. Vu said. When travel costs decrease, both tourists and travel businesses have more opportunities to benefit during the end of the summer tourist season.