Aviation and tourism increase linkages to stimulate market demand
According to Mr. Dinh Van Tuan - Deputy General Director of Vietnam Airlines Corporation (Vietnam Airlines), the global aviation industry is facing many difficulties, especially due to fluctuations in flight fuel prices. "At times, fuel prices increased by 100%, even 3 times. This is a factor that greatly affects operating costs, pushing many airlines around the world to the brink of bankruptcy," Mr. Tuan said.
Also according to Mr. Tuan, to optimize costs and maintain operations, Vietnam Airlines strives not to put all price increase pressure on passengers, thereby helping people have more choices when using tourism products.
Mr. Duong Hoang Phuc - Director of Vietravel Airlines Commercial Board - also admitted that the aviation industry is under great pressure not only from fuel prices but also from aircraft rental and purchase costs, technical maintenance, spare parts, operating systems and related operating expenses. In addition, the situation of limiting flight crews internationally also directly affects operations. Vietravel Airlines once had to cut the number of aircraft to ensure operating efficiency.
In addition to cost pressure, airlines also have to meet the increasing demands of the market. Customers are more demanding about service quality and flight experience, while ticket prices must still be maintained at a reasonable level to stimulate tourism demand. This creates a "double problem" for aviation businesses.
Goods are an area with high cyclicality and sensitive to market fluctuations. The important thing is not to grow too fast or race prices, but to build a sustainable development platform to adapt to constantly changing markets," Mr. Phuc said.
According to Ms. Nguyen Thi Le Huong - Deputy General Director of Vietravel Group JSC - airfares have increased significantly recently, commonly from 15-50% depending on the route and time. This increase creates direct pressure on the entire tourism product chain because transportation costs account for a large proportion of tour prices.
According to Ms. Huong, in the context of increasing global operating costs, the tourism industry is forced to shift from price competition to quality and experience competition. Businesses need to develop multi-modal tourism products, flexibly combining aviation, road and rail.
In which, aviation is responsible for connecting long routes; roads serve journeys to explore culture, cuisine, and craft villages; while railways bring a slow, different experience, suitable for groups of passengers who want to enjoy the journey instead of just moving.
Aviation and tourism join hands to remove difficulties in the face of increased fare pressure
Mr. Bui Minh Dang - Head of the Aviation Transport Department, Civil Aviation Authority of Vietnam - said that the current difficulties should not be entirely blamed on businesses or burden passengers. For the aviation and tourism industries to maintain operations and take advantage of recovery opportunities, there needs to be sharing and companionship from the State, businesses and people.
Mr. Bui Doan Ne - Vice Chairman of the Vietnam Aviation Business Association (VABA) - said that the link between aviation, tourism, localities and service businesses needs to be further strengthened through demand stimulus programs, destination promotion and synchronous support policies.
If the Government continues to maintain its companionship with flexible solutions from businesses, Vietnam's aviation and tourism industries can completely recover strongly, creating new growth momentum for the economy," Mr. Ne said.
Mr. Nguyen Quy Phuong - Head of International Relations and Tourism Promotion Department, Vietnam National Authority of Tourism - said that tourism and aviation are no longer two separate development fields but have become closely supportive relationships in the service economic structure of many localities.
According to Mr. Phuong, the current tourism stimulus problem cannot only be approached from the perspective of simple price reduction but needs to strengthen substantive links between aviation, localities and tourism businesses. At the same time, it is necessary to build stimulus packages integrating air tickets, accommodation, sightseeing and entertainment; diversify products; promote regional linkages, multimodal connections and promote digital transformation to enhance the competitiveness of destinations.
Mr. Uong Viet Dung - Director of the Civil Aviation Authority of Vietnam - said that the agency will continue to improve institutions and policies to create a favorable environment for aviation and tourism businesses to develop stably, transparently and compete healthily.
Mr. Uong Viet Dung - Director of the Civil Aviation Authority of Vietnam emphasized: "The Civil Aviation Authority of Vietnam will strengthen practical links between aviation - tourism - localities; build promotion programs in key international markets; develop new routes to potential markets; promote digital transformation, green transformation; optimize flight operations, reduce emissions and improve passenger service quality.
Ms. Nguyen Thi Le Huong - Deputy General Director of Vietravel Group JSC said: "Ticket price fluctuations not only affect the destination choice of tourists but also impact the market structure. A part of customers tend to switch to near-term, short-term products or change travel times to reduce costs.
