Vietnam an emerging outbound travel market to watch
Author: Lauren Beth
Date published: 27 Mar 2008
Vietnam is an emerging outbound travel market to watch, according to a recent presentation by Euromonitor International at the 2008 Travel Distribution Summit Asia.
Vietnam is an emerging outbound travel market to watch, according to a recent presentation by Euromonitor International at the 2008 Travel Distribution Summit Asia. In 2007, departures in Vietnam grew by 20% to reach 1.2 million travellers. This combined with new tourism developments and rising consumer confidence will result in 22% growth in tourism every year between 2007 and 2012, according to Euromonitor International, faster in percentage terms than Vietnam's neighbours China and India. Travel industry players choosing to target Vietnamese travellers in the near future will be in prime position to see long-term benefits as they catch Vietnamese consumers at the start of the travel boom.
“Several factors will transform Vietnam from a small source market to a more substantial one, said Euromonitor Research Manager Parita Chitakasem in her presentation. “The number of higher-income earners is growing in Vietnam with close to 700,000 households at a monthly disposable income of over US$500. This represents high purchasing power locally. We don't expect this to slow down either and by 2015 this group will more than quadruple to over 3.4 million households.”
E-commerce is also emerging in a big way for the travel and tourism industry with Vietnam already holding 12 million internet users in 2007. The Vietnam National Postal and Telecommunication Corporation plans to create over 2,000 free internet access points in key cities over the next two years, including Hanoi, Ho Chi Minh City, Dam Dinh, Nghe An and Da Nang, Daklak and Can Tho, opening up opportunities for travel focused marketing in this new and dynamic distribution channel. Local travel retailers such as Vietravel, Saigontourist and Appex Vietnam are already bringing e-commerce to their business models and selling their tours online with other players likely to follow suit.
The number of airlines and travel operators in the region has also risen remarkably over the past few years. In 2007, as many as 100 new outbound travel agencies were established and low cost carriers have developed a strong presence in the market. This has spurred more competitive pricing with average prices of travel products 20-40% less than two years ago.
“Package tours will represent over 90% of overseas travel products for holiday makers as they lack experience and are more comfortable in groups when travelling abroad. Destinations still close to home, such as China, Singapore, Thailand and Malaysia, will dominate, although opportunities for long-haul package tours will grow significantly as they attract consumers in the higher income bracket,” concluded Chitakasem in her presentation.
For further information, please contact:
Lauren Beth, International Public Relations Manager
press@euromonitorintl.com
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