Vietnam is a Southeast Asian country known for its beaches, rivers, Buddhist pagodas, and bustling cities. Tourism contributes a significant share to Vietnam’s GDP, and the economy has relied on domestic travel to buoy the sector. Vietnam Online Travel industry is a flourishing sector. An increasing staycation, beach visits, fairs, and exhibitions are expected to contribute to inflows of international tourists and domestic tourist movement.
Fastly taking steps by their Government towards the online travel promotion tells about the growth in Vietnam travel n 2019, The blooming of online travel helps the participants have an overview of the online travel market in Vietnam, tourism development trend and the conversion of customers choices from traditional tourism to digital tourism. Also, VECOM addressed that The demand of tourists determines the supply of product services and ways for how to catch up with the psychology of tourists and optimize the cost for the business. The need for it is its tourists need explorations and experiences at where they go, not just by eating and drinking. Therefore, to meet customer needs, it is necessary to optimize to diversify service utilities and increase the experience of tourists even when they have not arrived.
The rise in the travel and tourism industry and changing patterns in the standard of living have led to progressive growth in the online travel market trends. One area of potential growth in demand for Vietnam Online Travel is working holidays. Further divided into Nature-based holidays with cultural elements, adventure or wellness have high growth potential. Consumers’ desire to be outdoors remains strong, from which the Vietnam countryside is estimated to enjoy benefit in forecast period. Nature-based holidays with cultural elements, adventure or wellness have high growth potential.
The Covid-19 pandemic has had a severe impact on the Vietnam economy, hitting tourism particularly hard, and the sector needs to accelerate digital transformation to manage the business and reach customers. Vietnam’s travel sector relies heavily on international travel, which plunged in year 2020. International flights dropped 80 percent in October 2020 from the same time period a year earlier in Vietnam. The demand for domestic travel in Vietnam will continue to grow and will recover relatively fast because of growing domestic spending by the vacationers who cannot yet travel abroad are redirecting their money locally, at a higher level than in 2019.
Key Market Trends
Vietnam Online Travel Ranks One of Five Top Countries in Asian-Pacific Region
Vietnam's Online Travel ranks one of the top five countries in the Pacific-Asian region which are ranked in the list and its growth rate is after Indonesia, Thailand, Singapore. According to VITA’s statistics conducted in 2019, within five years recently, the number of people seeking Vietnam’s tourism information on the internet has risen around 32 times including more than 8 million and 5 million searching in the information of domestic and foreign tours in Vietnamese in peak and off-peak season respectively.
However, local tourism companies are weaker than their foreign-invested peers. Statistically, internationally well-known Agoda and Booking account for 80 percent of the accommodation market share in the country.
International Tourism in Vietnam
The majority of Vietnam’s international tourists come here in FY 2018-19 were from Asian countries, with those from China, Japan, South Korea, and Taiwan accounting for around 80 percent of Vietnam’s foreign travel spending. Vietnam’s strong economic ties with these countries could lead to a relatively fast tourism-industry recovery compared with other key tourist destinations in Europe and North America. Now, beacuse of flight restrictions due to COVID-19, the trips are going to mainly focus towards the south asia countries out of which Vietnam is expected to be the largest online travel market in the forecast period.
In 2019, The number of people seeking for Vietnam’s travel information in internet has risen around 32 times for searching in information of domestic and foreign tours in Vietnamese in peak and off-peak season respectively.
The Vietnam Online Travel Market is very competitive and highly fragmented across the different regions of Vietnam offering a huge number of competitive players dominating the market, nowadays grabbing market more powerfully by the mergers and acquisitions and traditional Online Travel across the southern part of Asia has made the Vietnam Online Travel Market very competitive and strong in comparison with travel to Thailand, Singapore, and other neighbor countries. International chains and their brands such as Makemytrip, Trivago from other countries for traveling in Vietnam are widely famous and leading the market. Vietnam originated groups are promoting very weak in Online Travel but some Online Travel groups working in Vietnam such as Agoda and Bookings.com have been focusing on comparing holiday deals from most Vietnam holiday providers by filtering down the destination type, travel deals with attractive discounts and packages including Spas, breakfast, etc., first time booking offer, offering an abundance of tourism spots at one glance and many more.
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Table of Contents
1.2 Scope of Study
4.2 Market Drivers
4.3 Market Restraints/ Challenges
4.4 Porters Five Forces Analysis
4.4.1 Threat of new Entrants
4.4.2 Bargaining Power of Buyers/ Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Consumer Buying Behaviour in Vietnam Online Travel Market
4.6 Insights on Governmental Regulations in Vietnam Online Travel Market
4.7 Insights on Technological Disruption in Vietnam Online Travel Market
4.8 Impact of Covid-19 on the Market
5.1.1 Air ticketing
5.1.2 Hotels and Packages
5.1.3 Bus Ticketing
5.1.4 Railway Ticketing
5.2 By Platform
6.2 Company Profiles
A selection of companies mentioned in this report includes: