Thursday, June 14, 2012

Chinese tour operators push down prices | Look At Vietnam

Chinese tour operators push down prices

June 15, 2012
A number of China-based travel firms that bring Chinese tourists to Vietnam via the Huu Nghi border gate in Lang Son are forcing local partners to pull down prices.

A Chinese tourist shops at a traditional market.
A four-day-three-night tour is priced at only 300 yuan, or VND1 million, so services are poor, affecting the image of Vietnam as a tourism destination.
A senior source from the Travel Department of the Vietnam National Administration of Tourism said many local tour operators are complaining about this situation. Previously, similar tours are priced at 500 yuan, but now when service prices pick up, the foreign partners push prices down to 300 yuan, leading to low service quality.
“A meal for tourists is suggested at VND30,000, then quality cannot be guaranteed. Price squeeze, quality impairment occur more and more frequently,” said the source.
Tour programs for Chinese visitors coming via the Huu Nghi border gate are usually traditional tours from Lang Son to Hanoi, Haiphong and Quang Ninh. Now, this kind of tour has been expanded to the central region.
Despite expanded tour routes and better conditions for border crossing, the number of tourists is dropping.
“The tourist source is huge, but only tens of thousands of tourists cross the border gate every year, and now the volume is falling. Poor service is one of the reasons,” said the source from the travel department.
China is currently the biggest source market for Vietnam’s tourism with more than 1.4 million arrivals in 2011. Tourists from this neighboring country can enter Vietnam using passports or laissez-passers via the inland border gates in Lang Son and Lao Cai or by sea.
The fact that Chinese partners are pushing down prices and cut down on services not only happens at border gates, but also in other road tours. Several companies accept to lose partners and tourists as they cannot reduce prices further.
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