Expects 30-40% growth from India this year, up from 20% annually.
India is regarded as the fastest-growing market for Vietnam, demonstrating steady growth each year. To engage with the Indian travel trade, Vietnam Airlines hosted a grand evening in Mumbai on March 25th, in association with Sun World and Vietravel.
During her address, Nguyen Tran, Deputy CEO of Sun World, highlighted that India has witnessed a remarkable 297% growth as a source market for Vietnam compared to the pre-pandemic period. In 2024, approximately 501,000 Indian travellers visited Vietnam, with 70% of them visiting Sun World.
Current yield from India & growth
Emphasizing the significance of the Indian market, Nguyen Trung Hieu, Country Manager of Vietnam Airlines JSC in India, shared in an exclusive interaction with T3 that India is a key market. “The market is booming and ranks among the top five for Vietnam Airlines. We strongly believe that India will soon climb to the top two or even number one.”
While this may not happen immediately, Hieu expects it to materialize within the next five years. When asked about Vietnam Airlines’ priority markets, he mentioned Germany, France, the U.S., Australia, Korea, and Japan, in addition to India. “India will soon become the most important market for Vietnam Airlines,” he added.
Discussing the current load factor and revenue from India, Hieu revealed that it is around 90%. “We have been growing at around 20% per year. Although ticket prices remain low, limiting revenue, we aim to enhance the travel experience for Indian customers. This year, we estimate a growth of about 30%, building on the consistent 20% annual growth we have seen.”
Outlining the airline’s future roadmap, Hieu emphasized that safety remains the top priority. “Passenger safety is our foremost concern. Secondly, we continuously invest in service quality to enhance the travel experience. We do not focus heavily on marketing, but instead, we bring the quality service to passengers. That is the best form of marketing for this market.”
Strategy going ahead
Abhishek Goyal, Executive Director & CEO at Aeroprime Group (GSA for Vietnam Airlines in India), shared with T3 that traffic from India to Vietnam is growing rapidly, with year-on-year growth in double digits, something not seen in most other countries. He emphasized that connectivity plays a crucial role in this growth. “Vietnam is considered a short-haul destination from India, and travellers prefer direct connectivity,” he added.
He shared that when there was no direct connectivity, airfares were significantly high. However, with the introduction of direct flights by Vietnam Airlines, they have witnessed substantial growth. “We are now focusing on expanding our capacity and enhancing our offerings, including premium products, to meet the growing demand for premium travel”, added Goyal.
With the introduction of wide-body flights in Delhi and Mumbai, Goyal noted the airline to be offering one of the best business class in the market, which is flatbed, the state-of-the-art A350 with Vietnamese hospitality.
Talking about the roadmap ahead, Goyal shared, “We are already operating from Delhi and Mumbai, and we will soon start from Bangalore and Hyderabad, covering all four major metro cities. Then, we will look at tier-two cities because, right now, we will be operating 21 flights per week, which will exhaust the bilateral. We can still introduce flights from tier-two cities, except the five metros. We will evaluate options for seasonal or year-round flights from these cities based on demand. Once the market matures and develops further, we will consider deploying capacity into these markets as well.”
Speaking about the growth percentage, he stated that this year it should exceed 20% and ideally reach 30-40%. To build product awareness, Goyal highlighted the organization of engagement events, roadshows, and familiarization trips, among other initiatives. He also mentioned plans to collaborate with influencers to enhance destination awareness. “Moving forward, we will place greater emphasis on B2C marketing, exploring strategies such as radio jingles, branding, and hoardings to engage more directly with consumers,” noted Goyal.