Vietnam Domestic Airfares Plummet by Up to 50% Amid Falling Fuel Costs and Fierce Competition

Falling fuel costs, increased capacities, and fierce competition among carriers are making domestic airfares in Vietnam unexpectedly affordable, creating an ideal opportunity for exploring the country. Minh Ha from Ho Chi Minh City recently purchased round-trip tickets to Hanoi for a business and leisure trip in late July for VND2.6 million on weekday nights. This is a significant drop from the VND5 million she paid for the same flights in early June and VND4 million during the same period last year. Pham Anh Vu, deputy general director of Du Lich Viet Tourism, noted that this summer is different from previous years, with domestic airfares cooling down even during the peak travel season. Fares on many routes have decreased by 30% to 50% since April and May, when fuel prices surged due to Middle East tensions. Currently, round trips between Ho Chi Minh City and Da Nang cost VND1.2-2.2 million, and between Ho Chi Minh City and Nha Trang range from VND1.8-3 million. The busy Ho Chi Minh City – Hanoi route now costs just VND3-3.5 million, a sharp decline from VND5-6 million in March and April. Vu Thi Hau of Hoang Ky Ticketing Agency in Hanoi stated that airfares began to fall in mid-July, with nearly halved prices on several routes. She described current price levels as "quite rare for mid-summer." This year, airfares have fluctuated with jet fuel prices. Earlier in the year, a global jet fuel crisis linked to Middle East conflicts pushed up operating costs, forcing airlines to scrap budget fare options, leading to a 15-20% rise in average domestic airfares in early April. However, demand has also softened amid ongoing economic challenges, with many travelers being more budget-conscious and opting for road trips over flights. "Passengers are the beneficiaries," said Nguyen Tien Dat, vice president of the Hanoi Tourism Association. Vu added that the lower airfares have made it easier to sell tour packages and have particularly reduced last-minute cancellation rates. "Even a price drop of a few hundred thousand dong per ticket can quickly change a customer's decision to book a tour." Source: VnExpress International