Price cuts to attract customers
09:52' 14/12/2008 (GMT+7)

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Many tour companies are already offering discounts and other promotions to attract customers.

Cholontourist Company said they reduced some tours by US$50- $60 and the company was considering reducing its profit margins in order to keep regular customers.

Some smaller tour companies are in even an even more grave situation. They said they used to take an average of 20 to 30 groups each month but now numbers had dwindled to just two or three groups a month.

December to February is usually the peak tourist season for international visitors to visit the Asia-Pacific region. However, the signs are not looking good for the peak season this year.

Some industry insiders say the situation in Bangkok, where anti-government protestors seized control of the city’s two main airports for more than a week, could make Vietnam a more attractive destination for international tourists.

But, on the other hand, Vietnam is considered a slightly more expensive travel destination than Thailand.

And, while Vietnam Airlines and budget carrier Jetstar Pacific have been offering cheap domestic tickets in recent months, international fares to Vietnam have not been discounted.

“We are lacking strong advertising programs and quick marketing campaigns to help the tourism sector overcome the current difficulties,” Culture, Sport and Tourism Minister Anh said.

He said that, for the rest of this year, the sector would carry out more promotion programs overseas and on international media networks to try to lure more visitors to Vietnam.

The national tourism body has just finished a promotional trip to Spain, and was preparing similar campaigns in Japan and Russia this month and in Australia and Taiwan soon, Anh said.

"Roadshows in the Russian cities of Moscow and St. Petersburg on September 16 and 18 were a great opportunity to increase the number of Russian visitors to Vietnam from nearly 70,000 this year to 100,000 next year,” he said. “It's a good market because the travel purchasing power of Russian travelers is still high."

Earlier this year, the country's tourism authorities launched a VND16 billion advertising campaign on international television networks, including CNN and Discovery Channel. A similar campaign will be broadcast on Japanese and South Korean television networks later this year.

According to the Department of Culture and Information, the price of high-class hotel accommodation increased 41 percent over the first nine months of the year, compared with the same period last year.

Now, many hotels are “sharing the difficulties” with tour companies and offering 5-20%  reductions on room rates.

(Source: SGGP)

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