Travel firms struggle to provide low-cost tours

Travel firms are making every effort to find low-cost air tickets, the most important factor in keeping tour fees low and attracting travelers.
Vietnam Airlines (VA) announced it would offer low-cost air tickets on certain days, except peak travel days like the Hung King death anniversary, Liberation Day travel (April 22-May 4) and weekends. These P-class tickets will be reserved for travel firms to stimulate tourism.
As for March 1-March 15, and June 1-Septemeber 5, VA will reserve 45-60 seats for travel firms on B777/A330 aircraft, 25-35 seats on A320/A321, 15-35 seats on F70/ATR. In the period from March 16-Mary 31 and September 6-December 31, the number of seats to be reserved for travel firms will be no more than 60, 35 and 20, respectively.
As such, the number of low cost air tickets reserved for travel companies accounts for some 20 percent of the total number of seats on VA flights.
“The fact that Vietnam Airlines announces the exact number of P-class air tickets for travel firms is good news that will help travel firms take initiative in their businesses,” remarked Tran The Dung, Deputy Director of The He Tre Travel Firm and head of the domestic travel promotion team.
Right after the announcement, the domestic travel promotion team met on March 23 to discuss how to attract travelers. The eight travel firms that VA will allow to sell low-cost air tickets have promised to support the others.
As such, the number of low-cost VA tickets that travel firms can book depends on the number of clients or on travel firms themselves.
Since hotel room rates, transport fees and service fees have all increased, travel firms now rely on low-cost airfares to maintain tour fee rates.
Nguyen Tuan Quyen, Director of Thanh Nien Xung Phong Travel Firm, reported that most firms now try to keep tour fees at acceptable levels, while hoping to profit from high numbers of clients instead of profits per client.
The domestic travel promotion team hopes to keep tour fees unchanged and also lure more travelers. In 2009, the team sent 300 dispatches to relevant service providers, asking them to reduce service fees to help stimulate tourism. The team received 70-80 replies agreeing to 30-40 percent service fees.