Selling cheap than sitting idle

      Air ticket fares decreased by 20-30 percent, even 50 percent for some flights. Travel tours supported by airlines also reduced sharply from 20-30 percent.
Some tours cost only a little more with common tickets fares. The global economic slowdown makes foreign airlines seek every way to attract tourists, pushing domestic airlines into hard competition.
In late March, Shanghai Airlines opened a direct flight between Shanghai and Hanoi with a fare of USD 280 for round trip tickets, a decrease of USD 110 compared to average ticket fares.
The Hanoi-Shanghai-Hang Zhou-Su Zhou-Wu Ji-Beijing tour, also supported by Shanghai Airlines, cost USD 596 for seven days-six nights.
A small calculation showed that the tour cost is much cheaper with air fares. This is a special offer performed by airlines to book to capacity within the first days of operation.
In early April, Korean Airlines offered 20-30 percent discounts on ticket fares from Hanoi to the Republic of Korea (RoK), the US and Europe. Mr. Lee Sang Kum, Chief of Korean Airlines representative office in Hanoi said that the airlines coordinated with Sam tour Travel Co., (RoK), to establish tours to RoK that were 25 percent cheaper with common ticket fares. While ticket fares on the Hanoi – RoK route is USD 620 for a round trip, Hanoi – Seoul – Everland – DMZ tour within five days, four nights costs USD 729.
In fact, this action aims to compete to find destinations during the global economic slowdown. And, airlines have utilized the motto: “Selling Cheap than Sitting Idle.”
Despite being alone, Vietnam’s national flag carrier (Vietnam Airlines) also found its individual market to stimulate demand to destinations. Ms Giang Bich Nguyet, a representative from Vietnam Airlines, said that in late 2008, Vietnam Airlines organized Fam trips with participation of both domestic and foreign travel agents to speed up the number of tourists on the routes of Vietnam – Japan and Vietnam – Hong Kong.
Vietnam Airlines also assisted domestic travel agents in air ticket fares to establish tours at preferential cost, aiming to attract more tourists to Vietnam. However, some representatives of domestic said that travel agents, room prices in domestic tourist sites still cost high and tour prices are hard to discount compared with foreign rivals.