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Fuel price hikes plague travel firms

Consecutive petroleum price hikes so far this year have further burdened travel firms in Vietnam which are trying to gradually recover after the Covid-19 pandemic.

Consecutive petroleum price hikes so far this year have further burdened travel firms in Vietnam which are trying to gradually recover after the Covid-19 pandemic.

Vu Van Tuyen, director of Travelogy Vietnam, said that since the start of the year petroleum prices in Vietnam have increased 13 times, pushing up transportation costs.

Currently, it costs Travelogy Vietnam VND10.5-11 million to hire a 45-seat car to transport visitors from Hanoi to Got Wharf in Hai Phong for their return trip to Cat Ba Island. The figure was just 8-9.5 million previously. This represents a rise of 30-35 percent in the firm’s transportation costs.

Airfares and hotel service fees have also increased at least 10 percent.

Tourist meals have increased to VND200-250,000 compared to VND150-170,000 before.

“Despite the recovery from the pandemic, the number of foreign visitors has remained modest. So, the tourism sector’s revenues have been still low compared to before Covid-19,” Tuyen added.

According to the director of another travel company, a three-day and four-night tour to Phu Quoc Island was previously sold at around 6-7 million per person, but it is now some VND9-10 million. The tour price to Cat Ba has surged to VND3.5 million from VND2.5 million per person.

Following the pandemic and petroleum price hikes, travel company profits are now around 5-7 percent compared to the previous 10 percent.

The Vietnamese tourism sector earned an estimated VND265 trillion in revenue in the first half of this year with the majority from domestic travellers.

Source: VNA

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