Domestic tourism numbers hit another record during the April 30-May 1 holidays.
Ho Chi Minh City received 1.6 million visitors, Hanoi, 1.35 million, and Da Nang, 1.46 million, and hotel occupancy in many parts of Khanh Hoa reached 90-95%.But even as domestic destinations overflowed with travelers, another stream of people quietly headed to Bangkok, Tokyo, Seoul, and Taipei.This was due to the costs involved.A family of four in Hanoi wanting to spend four days and three nights in Phu Quoc during the recent holiday had to pay VND6-10 million (US$230-380) per person on airfare alone, according to a survey by the Civil Aviation Authority of Vietnam.Add three- to four-star hotels at VND2.5-4 million ($95 to $150) per night, food and local transportation, and the total cost could easily exceed VND50 million ($1,900).For the same amount, that family could book a four-day, three-night Bangkok-Pattaya package tour for 5.5-7.7 million dong ($209-267) per person and still have money left for shopping.When a Hanoi-Phu Quoc ticket costs as much as a Hanoi-Bangkok ticket, the market naturally shifts.One point deserves clarification for a fair comparison though: Most low-cost Thailand tours now operate on a shopping-tour model, where itineraries require stops at jewelry centers, leather stores, snake farms, and butterfly gardens, and the operators make their profits not from the package price but from commissions paid by retailers.The model has clear strengths and weaknesses and cannot simply be copied. What matters is the way the value chain is designed. Airlines, hotels, restaurants and shopping services are coordinated and so the overall travel experience stays competitive, even in the mass market.
