Upscale uplift: tourists willing to spend on tailored tours amidst economic gloom

Despite the challenging economic climate, a segment of the traveller population is prepared to pay for upscale accommodations, excellent services and custom-crafted excursions and Vietnamese companies are servicing these needs.

Vietnam received 1.23 million foreign visitors in November, up 10.9% month-on-month and the highest monthly figure this year. The total number of foreign arrivals in the 11 months reached 11.2 million, not far from the annual target of 13 million, according to the Vietnam National Administration of Tourism.

Europe posted November’s fastest growth rate among continents, up 58.5% compared to the previous month, mainly from countries enjoying Vietnam’s unilateral visa exemption policy like the UK ( up 38.6% month-on-month), France (72.5%), Germany (36.1%), Italy (55.1%), Denmark (32.9%), Sweden (84.8%), Norway (52.7%), Finland (30.2%), and Spain (15.5%).

Experts say that a growing number of tourists less impacted by economic hardships – both domestic and foreign – are ready to spend a significant sum of money on unique travel experiences and resort stays.

An Son Lam, director of Indochina Junk Ltd., which specializes in cruises on the Saigon River, said that despite economic difficulties, many Vietnamese guests did not mind spending VND600,000 ($24.62) for a night cruise on the Saigon River, including a buffet. Many foreigners also use the company’s services, he said.

Vietluxtour CEO Tran The Dung said many tourists have chosen personalized excursions tailored to their specific requirements this year. The majority of these prefer resort vacations, cruises and sightseeing trips as well as shopping at upscale malls both in Vietnam and abroad.

He said the number of such tourists was not too large but it was steady. They typically travel in small groups of two to eight people each. While inbound visitors select beach towns with secluded, upscale resorts offering international standard facilities, outbound counterparts go for upscale resorts and well-known tourist destinations in Europe, Dubai, Japan and America, he said.

Recent data from the Institute for Tourism Development Research, under the Vietnam National Administration of Tourism, indicate that small-group trips are becoming more and more popular.

With more tourists willing to fork out money on custom-designed tours with business-class seats, luxury resorts and so on, gaining the trust of customers with high quality service is key for travel agencies to tap this segment, industry insiders said.

Son Lam of Indochina Junk said they receive a large number of Indian visitors, mostly business groups willing to pay well for excursions to Vietnam. “Even males enjoy singing and dancing… As a result, we set up a separate room for Indian guests to dance and sing.”

He also said that they have diversified their cuisine and begun attracting customers with national and international music.

Vietluxtour's targeted marketing approach is focused on meeting specific demands of high-end consumers, avoiding mixing and coordinating with other market groups.

Experts advocate this approach, saying quality, sophistication, and professionalism must be evident at every step when catering to this customer segment.