The Vietnam Travel Market Tracker Q2/23 has launched an updated report on the consumption behavior of Vietnamese tourists in Q2/23. This article will explore the differences and changes in visitor behavior during this peak summer period for tourism in Vietnam.

Gen Y continued dominant

The majority of Vietnamese tourists were under 42 years old in Q2/2023. Gen Y travelers (27-42 y.o.) accounted for the highest proportion of almost 50%, followed by Gen Z (18-26 y.o.). However, the gap between these two groups is not too much. There were not many Gen X and very few Baby Boomers. Compared to Q1/23, there is no much change in the proportion of the age groups.

This might show that the younger generations are more active and adventurous in traveling, while the older generations are more conservative and cautious.

 

The growth of middle class

Middle-class travelers (household income between 15m – 45m VND/month) still dominated the market in Q2/2023, followed by those with a household income of less than 15 million VND, and the household income of more than 45 million VND. However, compared to last quarter, the household income of between 15m – 45m/month decreased by 14%, while those with a household income below 15 million VND/month increased by 15%.
This might show that travel is becoming more accessible and affordable to a wider range of people, especially those with lower incomes.

Leisure activity for working people

Full-time workers accounted for the highest group of travelers in Q2/2023, followed by part-time, hybrid workers, and freelancers. Similar to the proportion of tourists by age group, the percentage of retirees traveling was very small. Travel is mainly a leisure activity for working people, who may need a break from their stressful jobs or want to reward themselves for their hard work. In addition, travel might not be a priority for retirees, who may have health issues or financial limitations.

Lower travel frequency

Although summer is typically the peak travel season in Vietnam, Vietnamese travelers in Q2/23 were more likely to take only one trip, accounting for almost 60% of all travelers. This is a significant increase from the previous quarter, when only 47% of travelers took one trip. In contrast, the number of travelers who took two or three trips in Q2/23 decreased by 6%. This trend is likely due to a number of factors, including the rising cost of travel and the economic difficulties in Vietnam.

Self-guided travel on trend

Self-guided travel continued to be popular in Q2/2023, with over 83% of Vietnamese travelers choosing this type of travel. Solo travel trend is back with 26% of chosen compared to only 13% in Quarter 1/23. Travel by tour has not changed much.

This is likely due to the flexibility and freedom that self-guided travel offers travelers. Self-guided travelers can choose their own destinations, activities, and pace of travel, which can be a great way to experience a new place. Travel by tour has not changed much because it still appeals to some travelers who prefer convenience and security.

Preferred domestic destinations

Vietnamese travelers still prioritized domestic destinations in Q2/2023, with Ba Ria – Vung Tau, Danang, Hanoi, Ho Chi Minh City, and Dalat being the top 5 destinations. Among outbound destinations, Thailand was the number one destination of Vietnamese travelers to visit, followed by South Korea, Japan, Singapore, and China.

Vietnamese travelers still prefer to explore their own country, which has a rich and diverse natural and cultural heritage. Ba Ria – Vung Tau, Danang, and Dalat are popular for their beaches, mountains, and cool weather, while Hanoi and Ho Chi Minh City are attractive for their historical and modern attractions. The switch of the positions fourth and fifth for HCMC and Dalat may be due to the preference for cooler destinations in the summer.

Among outbound destinations, Thailand, South Korea, Japan, Singapore, and China are popular for their proximity, affordability, and variety of experiences. UK was out of the top 5 this quarter because of the travel restrictions and the high cost of travel. China was back in the top 5 because of the improved diplomatic relations and the reopening of the borders.

The Vietnam Travel Market Tracker Q2/23 provides valuable insights into the travel habits of Vietnamese tourists. This information is important for businesses in the tourism industry, as it can help them to better understand the needs and preferences of their target market.

What are the common characteristics of Vietnamese people traveling in the last quarter? In a report, Outbox’s survey of over 1,000 Vietnamese tourists in the first three months shows the following information.

Age: Gen Y decreased but still dominated the market

In Q1 2023, the majority of Vietnamese tourists were under 42 years old. Gen Y travelers (27-42 y.o.) accounted for the highest proportion, followed by Gen Z (18-26 y.o.). However, the gap between these two groups is not too much. There were not many Gen X and very few Baby boomers. Compared to 2022, the percentage of Gen Z and Gen X has increased. In particular, Gen Z saw a relatively high growth rate. It shows that this age group made more travel trips in Q1 after the pandemic was completely controlled. Meanwhile, there was a decrease in the number of Gen Y compared to last year.

Income: Increasing travel demand of travelers with good household incomes

Vietnamese tourists traveling in the first quarter with a good household income (15-45 million VND/month) accounted for more than half, followed by travelers with a household income of less than 15 million VND. Those with high household income (over 45 million/month) ranked last. Compared to last year, the proportion of tourists with a household income of less than 15 million/month decreased significantly, while those with a good household income increased. The proportion of visitors with a high household income did not change much.

It can be seen that economic difficulties and high inflation make households with incomes less than 15 million/month tighten their spending, leading to lower travel demand in order to pay for other essential needs.

Gender: The ratio of men and women quite balanced

The proportion of male and female visitors was quite similar in Q1 2023, with the number of male visitors slightly higher. Compared to last year, the proportion of male travelers saw a relative decrease, and the proportion of female visitors increased. It shows a balance in gender in Vietnam’s tourism market in the last quarter.

Occupation: Full-time workers predominated

The percentage of tourists working full-time accounted for more than half of Vietnamese tourists in the first quarter, followed by freelancers, part-time, and hybrid workers. In addition, the percentage of retirees traveling was very small. This partly reflects the similarity with the proportion of tourists by age as the proportion of retirees is almost equal to the proportion of Baby boomers.

 

Travel frequency: 1-3 trips in the quarter

Travel demand of Vietnamese tourists in the last quarter was still quite high (1-3 trips). The main reason is pent-up demand from 2022. Moreover, the long Tet holiday was also one of the factors pushing them to travel during this period.

Type of travel: Self-guided

Many Vietnamese travelers continued to choose self-guided tours. In Q1, up to 80% of tourists chose self-guided tours with their family and friends or alone.

Destinations: Domestic trips

Vietnamese travelers still prioritized domestic destinations in Q1 this year. The top 5 domestic destinations were Ba Ria – Vung Tau, Danang, Hanoi, Da Lat and Ho Chi Minh City, respectively. Among outbound destinations, Northeast Asia and Southeast Asia continued to be the most popular, namely South Korea, Japan, Singapore, and Thailand. The UK is the only non-Asian country in the top 5.

According to Outbox’s survey, there are some changes in Vietnamese travelers compared to the previous time. In Q1 2023, the biggest groups of tourists are those of Gen Y and Gen Z, people with a household income of 15-45 million VND/month, full-time workers, and there is no significant difference between men and women. They still had a high travel demand, preferring self-guided and domestic travel.

Outbox will continue to track whether and how they change in Q2 and further. This will help businesses and destinations firstly portray traveler profiles, then understand their behavior and psychology to plan and make decisions.

In such a short time, from the end of 2022 to the first quarter of 2023, Vietnamese tourists’ preferences for choosing domestic destinations have changed a lot.

According to surveys on Vietnamese travelers, The Outbox Company saw changes in their travel trends and behaviors. Recently, Outbox has released the first-ever ranking of the travel brands chosen by Vietnamese tourists in Q1 2023.

Regarding domestic destinations, Vietnam’s coastal and major cities occupied the entire top 5 of the ranking. Ba Ria – Vung Tau was the most favorite domestic destination of Vietnamese travelers with 13.6%. At the end of last year, Ba Ria – Vung Tau just ranked 4th. The main reason that Ba Ria – Vung Tau became the most popular destination in Q1 is the diversified investment from tourism activities to entertainment programs well received by many people.

In 2022, the province exploited a range of new products such as Tropicana Park with many attractive activities, public beach, Ho Tram walking street, sea view bridge,… to serve visitors. Events such as street music shows, mountain climbing, cycling, weekend beach sports, etc. also contribute to promoting its image. Moreover, Ba Ria – Vung Tau has always been a popular destination for Vietnamese people thanks to its beautiful scenery, and moderate cost. It is very close to Ho Chi Minh City, the most populous city in Vietnam, and suitable for short-term trips.

Danang, the famous coastal city in Vietnam, kept its good performance with #2 in the two phases. Danang impresses travelers with its energetic image, magnificent scenery, breathtaking and unique architecture works, and more.

Q1 2023 saw the return of the two largest cities in Vietnam including Hanoi and Ho Chi Minh City. At the end of last year, Hanoi only ranked 6th and Ho Chi Minh City was out of the top 10, then early this year, Hanoi rose to No.3 and Ho Chi Minh City won 5th place. The remaining position in the top 5 domestic destinations most loved by Vietnamese travelers in Q1 2023 was Da Lat. The city of Lam Dong led the ranking at the end of 2022.

Notably, in the domestic destination ranking in Q1, Phu Quoc was absent. High airfare was one of the main reasons that made tourists lose their interest in Phu Quoc. Anyway, it is expected to make a breakthrough in Q2 ranking, when summer vacation, the peak season, begins. Besides, before the Reunification Day (April 30), round-trip airfares for some routes such as Hanoi – Phu Quoc decreased. Thanks to that, the occupancy rate here has shown signs of increasing.

According to Outbox Most Loved Ranking, Vietnamese travelers are tending to explore busy cities. Recently, Ho Chi Minh City and Hanoi have made great efforts to offer many new and attractive programs for travelers, especially tours related to historical sites.

In the coming time, the choice of domestic destinations of Vietnamese tourists is forecasted to change continuously. Destinations need to come up with many brand new programs, products and services if they want to win the hearts of Vietnamese travelers.