Vietnam domestic tourism stars in post-Covid rebound

Domestic tourism has been the star of Vietnam’s post-Covid tourism revival over the last two years, setting a world record for the aviation sector.

Vietnam has the world’s fastest-recovering domestic aviation sector and the fifth fastest-growing aviation market, expected to reach 150 million air transport passengers by 2035, according to Royal Melbourne Institute of Technology (RMIT) experts.

They say in a report released Saturday that a sustainable tourism trend and strong growth in the accommodation sector are other salient features of the sector’s recovery since Vietnam lifted Covid-19 restrictions.

After it fully reopened its borders from March 15, 2022, Vietnam has gained in popularity as a global travel destination. The country won 16 top categories at the 2022 World Travel Awards, and in its latest edition, was recognized as Asia’s Leading Destination (for the fifth time) and Leading Nature Destination (for the second time).

A particular highlight of Vietnam’s tourism recovery has been greater product diversity. “Alongside conventional types of nature and culture tourism, we’ve seen the promotion of river tourism, cuisine or gastronomy tourism, rural tourism, and wellness and spiritual tourism,” the report says.

Notably, the green/sustainable tourism trend has led to a higher demand for rural nature tourism, while community-based tourism has resulted in an increase in homestays and local dining.

“Overall, we have witnessed strong growth in the accommodation sector with an expansion of international hotel brands and chains. Many accommodation service establishments have also upgraded their properties and services.”

The report sees clear evidence of a stronger focus on promoting and implementing sustainable tourism measures including bicycles rentals and walking streets in Hanoi, Ho Chi Minh City and Danang; and entrance fees in the ancient town of Hoi An. Many pavements have been relaid and public toilets upgraded.

Another commendable development is the move toward digitization and use of technology to promote tourism, the report says.

“We see QR codes available in many popular travel destinations, and instant translation apps being adopted by tourism service providers.”

On the aviation front, carriers in particular and the industry in general have carried out several upgrades. For example, national flag carrier Vietnam Airlines has upgraded its products and services and maintained its 4-star airline certification.

There has also been improvements in crowd management at airports, with Hanoi’s Noi Bai International Airport recognized by Casago.com as one of the world's top airports for efficient queue management.

The report makes several recommendations. Firstly, in today's competitive travel industry, companies need to meet the growing demand for personalized experiences. By leveraging technology, companies can offer tailored recommendations, customized itineraries and personalized services that cater to individual preferences.

Secondly, personalized experiences enhance customer satisfaction by providing unique and memorable travel experiences. When companies utilize technologies to understand customer preferences and deliver personalized services, they can create a more satisfying and enjoyable travel experience.

Thirdly, by offering personalized experiences, companies can build stronger relationships with customers. When travellers receive tailored recommendations and exceptional service, they are more likely to become loyal customers and advocates for the brand.

As the travel landscape continues to evolve in the post-covid world, companies that embrace technology and prioritise personalised experiences will be better-positioned to thrive in the dynamic market of Southeast Asia and beyond, the report concludes.

The report is authored by RMIT experts Jackie Ong, senior program manager, Tourism and Hospitality Management, and Nuno Ribeiro, associate senior program manager and research cluster lead, Tourism and Hospitality Management.