Tourism and travel are one of the major economic development engines of many countries around the world. Vietnam has also been determined to turn tourism into a spearhead industry in recent years. However, the pandemic and socio-economic changes have made the tourism industry increasingly complex and unpredictable. Therefore, many businesses are utilizing market research to make the right decisions and seek new opportunities.
Here are the reasons why businesses gradually use market research.
Travelers can search for more information than ever
With the explosion of technology, travelers today have countless sources to find information for their trips. Popular sources can be mentioned as Google, social media, YouTube, websites of travel agencies, review sites, blogs, celebrities, influencers, and more.
In particular, Gen Z is a generation whose shopping habits are heavily influenced by YouTube, social media, and other online platforms. When planning a trip, they tend to do little research, ask for third-party opinions, and read online reviews.
Knowing where your target audience is looking for information, what they desire, and how they make decisions will help businesses reach as well as connect more effectively. Businesses will need market research to get this data.
Minimize costly risks
Optimizing costs will contribute to profit maximization. And to limit the impact on the budget, businesses must ensure to minimize risks. Comprehensive research can help businesses understand customers’ feelings about their products, services, and marketing messages. Simultaneously, it can help identify potentially problematic items before they go to market and receive negative feedback from consumers. Nevertheless, businesses should be aware that insufficient market research can lead to inefficient and wasteful decisions.
Have a strategic advantage over competitors
In addition to customers, costs, or profits, businesses also need to pay attention to competitive advantages, especially in the current challenging market. Thanks to in-depth market research, businesses will have a more accurate picture of what visitors like, want, and need. Thereby, they can create services and marketing that meet consumer needs better than competitors.
In uncertain times, adaptability can also become a competitive advantage for businesses. When there are big swings in any market, the brands that can adapt best are the ones that have the biggest chance of survival and growth. To capture how the market and consumers are changing, businesses cannot simply observe or judge because there will be many risks. Market research is what they need then.
COVID-19 changes the tourism industry
Brand and market research of businesses from before the pandemic no longer accurately reflects the current state of the tourism industry. Due to the pandemic, global tourist arrivals dropped by 73% in 2020, and 1 billion fewer visitors than in 2019.
Though the tourism industry is recovering and the pandemic is controlled, priorities for health, safety, hygiene, and sustainability are still in focus. Therefore, businesses still have to put these issues first.
Thus, market research is vital as it can help businesses understand and reach customers, reduce risks, increase competitive advantage, and adapt to every change in the market.