Vietnamese demand for US travel declines sharply

Many agencies also face challenges in maintaining customer interest and designing attractive tour packages for the American market.

A staff member at a travel agency based in District 7, Ho Chi Minh City, known for its U.S. tours, said on Thursday that the company had to postpone tour schedules and overhaul its plans due to rising conflict between Iran and Israel. 

The agency originally booked flights with Emirates, which included a transit in Dubai, but the airline suspended its U.S. routes. 

The company has since switched to EVA Air, based in Taiwan.

This adjustment created logistical and financial challenges, the staff member said, and the company is working closely with customers to explain the unexpected changes. 

Despite the complications, they are committed to honoring existing contracts and ensuring traveler safety during a time of global uncertainty.

Travel demand drops in peak season

Tu Quy Thanh, director of Lien Bang Travel Trading Company, said international bookings have dropped across the industry, particularly for European and U.S. tours. 

His company alone has seen a 20-30-percent decrease compared to the same time last year.

He explained that Vietnamese tourists typically favor U.S. West Coast destinations like California and Nevada, or East Coast places such as New York and Washington, D.C. 

But even during summer, which is usually the peak travel season, demand remains low.

According to Thanh, geopolitical risks and increased security concerns have dampened interest in traveling to the United States.

"If we offer an eight-day-seven-night package priced around VND70-80 million [US$2,683-3,066] per person using low-cost carriers, the route often includes a Middle East transit point," he said. 

"But instability in that region has forced airlines to reduce or cancel flights, leaving us to find alternatives that drive up our costs.

"For premium tours priced around VND120 million [$4,599] per person, we usually route through Japan, South Korea, or Taiwan, which provide better service.

"But even then, the high cost makes it hard to sell, especially with weak demand."

Regional instability affects airlines, travelers

The Vietnam National Authority of Tourism reported that 5.3 million Vietnamese traveled overseas in 2024, a nearly-six-percent increase from the year before. 

Europe and the U.S. remained popular destinations, with some companies managing to secure tour contracts to the U.S., Switzerland, Italy, France, Germany, and the Netherlands.

However, recent figures from the World Travel and Tourism Council suggest the U.S. could lose $12.5 billion in tourism revenue in 2025. 

Spending is projected to fall to below $169 billion by the end of the year, about seven percent lower than in 2024 and 22 percent below 2019's peak.

A representative from a Vietnamese airline said on Thursday that even though the carrier does not fly directly to the Middle East, regional conflicts in places like Iran, Israel, and Ukraine are affecting international transit routes. 

The airline has seen a sharp drop in connecting passengers through major hubs such as Doha and Dubai, with some routes now operating at just 50 percent capacity, compared to the usual 80-85 percent.

At Hamad International Airport in Doha, departure screens have shown widespread delays and cancellations. 

On May 24, flight QR976 from Doha to Hanoi was removed from the screens without explanation, leaving passengers confused and anxious. 

Many waited without updates, surviving on instant noodles and bottled water provided by ground staff.

These disruptions are not only affecting travelers. 

Airlines are facing mounting costs as they reroute to avoid closed airspace. 

Each detour can cost thousands of dollars per hour in added fuel, not to mention extra expenses for crew wages, airspace usage, and penalties from delays and missed connections.