Newsdetail
Tourists in Outbound tour operators lose out on dollar rise

Outbound tour operators lose out on dollar rise

Outbound tour operators lose out on dollar rise
 

Home
Travel News

Culture Tours

Leisure Tours

Adventure Tours

Halong Cruise

 

Mekong Cruise

 

Vietnam Tours

 

Indochina Tours

Vietnam Travel

Cambodia Travel
Laos Travel
Travel Reviews
About Us

Visa VietnamVisa Vietnam
Online service, quick, low fee!

 
HTML clipboard

The devaluation of the Vietnam dong against the U.S. dollar has cost outbound tour operators who had signed big contracts before the dong dropped last week.
Sales of outbound tours have not suffered yet, but tour operators have already lost money in their already-signed tour deals and they are concerned by the rising price of the dollar on the unofficial market.
Luu Dinh Phuc of Viettours said local people were still purchasing outbound tours as normal but the company, which specializes in arranging group tours for companies, would need more time to evaluate the impact of the high rate.
In the short term, the company has incurred a big loss from its contracts signed before August 18 when the central bank let the dong fall against the greenback.
He said big groups normally paid 45-60 days after the invoice was issued so the dong devaluation from VND19,400 to VND19,154 per dollar meant losses especially for contracts worth hundreds of thousands of dollars.
Operators were also worried about the high price of the dollar on the black market as commercial banks often refuse to sell dollars when the currency is in short supply, forcing outbound tour operators to buy dollars on the underground market.
“The price on the unofficial market is higher than the price at the banks but we need to buy dollars for overseas payments. Its going to cost us more,” said Dinh Kim Phuong, director of Carnival Tours.
Travel companies use one of two ways to set the price of the U.S. dollar – either the commercial bank price or the agreed price as the average of the bank and unofficial market prices.
Companies that get paid in U.S. dollar from inbound tourists and those selling tours for companies use the first way. The agreed price is used by companies selling individual outbound tours.
The company still uses the official price for big contracts but is considering resorting to the agreed price for group company tours and may ask individual travelers to pay by U.S dollars if the price on the black market keeps going up, Phuong of Carnival Tour said.
“Some big customers agree to pay by the agreed price but we will deal with them if the price of the dollar on the black market rises. Costumers will have to think harder when they sign the contract.”

 

Source: VietNamNet/SGT

OTHER VIETNAM TRAVEL NEWS:
Vietnamese cultural festival featured in Germany
VNAT promotes Viet Nam tourism in St. Petersburg
Ninh Binh City to become regional cultural-historical centre
Panorama of Trang An - Bai Dinh World Cultural and Natural Heritage
Investment in hotels on Phu Quoc Island reap high profits
International visitors to Viet Nam in the first 6 months of 2014 increases 21.11%
Workshop fosters UNESCO-recognised Giong festival’s values
The community of Vietnamese ethnic groups lead up to sea, islands, borders and national sovereignty
Vietnam aims to develop sea tourism
Ben Tre to host Coconut Festival next year
Japan slackens tourism visa rules for Viet Nam
Mountain mausoleum blends nature with cultural history
More tourists switch from Thailand to Vietnam: CBRE
Traditional music as tourism bait
Culture Days showcase Vietnam traditions in Russia
Time seemingly stops on Con Dao Island
Nearly 11 million tourist arrivals to Mekong Delta in the first 5 months of 2014
National park visitors venture into the wild
Seabourn joins UNESCO in new alliance for World Heritage sites
VietJet Air adds 1,000 flights for summer travel
PATA and The Code join forces to fight child sex tourism
A day at Vinh Hao fishing village
Tu Lan cave tour offers glimpse into mystical underground world
Dong Hoa: Welcome the certificate of provincial level historic-cultural vestige
American tourist praises Viet Nam tourism
Vietnamese Culture Days 2014 in Russia – A chance to promote the country’s Culture
Ensuring safety for int’l tourists in Viet Nam
Strengthening investment, development of Lang Co tourism brand name
Giang Mo Village offers intimate view of Muong ethnic culture
Cat Tien National Park an ecotourism paradise