As 2025 comes to a close, we take a moment to reflect on a year shaped by collaboration, learning, and progress.

For The Outbox Company, this year was not about moving faster—but about moving more thoughtfully. Across projects, partnerships, and platforms, our focus remained consistent: helping destinations and businesses better understand their markets and make decisions with greater clarity and confidence.

Growing Through Partnership

In 2025, we had the privilege of working alongside a wide range of partners, including destination management organizations, government agencies, industry associations, and tourism-related businesses in Vietnam and across the region.

We were honored to contribute as a Data Partner to the 𝐀𝐮𝐬𝟒𝐄𝐪𝐮𝐚𝐥𝐢𝐭𝐲 𝐆𝐞𝐧𝐝𝐞𝐫 𝐑𝐞𝐬𝐩𝐨𝐧𝐬𝐢𝐯𝐞 𝐄𝐪𝐮𝐢𝐭𝐚𝐛𝐥𝐞 𝐀𝐠𝐫𝐢𝐜𝐮𝐥𝐭𝐮𝐫𝐚𝐥 𝐚𝐧𝐝 𝐓𝐨𝐮𝐫𝐢𝐬𝐦 – 𝐆𝐑𝐄𝐀𝐓” 𝐏𝐫𝐨𝐠𝐫𝐚𝐦 – 𝐏𝐡𝐚𝐬𝐞 𝟐, supporting initiatives aimed at strengthening community-based tourism and promoting inclusive and sustainable development. Through this partnership, data and research were applied to support local decision-making and long-term planning.

We were also proud to be selected as research and data intelligence partners by leading tourism authorities in Vietnam, including the Hanoi Department of Tourism and the Ho Chi Minh City Department of Tourism. These collaborations marked important milestones, allowing us to support destinations with timely market intelligence and practical insights during a period of ongoing change.

Strengthening and Expanding Data Solutions Across Markets

2025 also marked an important year for our data platforms and solutions.

We launched the Global Traveler Barometer, designed to help destinations monitor travel demand, traveler sentiment, and destination image across key source markets. The platform supports destinations in understanding how travelers perceive destinations and how demand evolves over time.

At the same time, we continued to enhance our Outbox Intelligence suite:

• Destination Navigate expanded to cover 11 destinations across Asia, supporting regional comparison and destination benchmarking.

• Asia Travel Market Tracker provided regular updates on travel demand, recovery patterns, and market performance across major Asian markets.

• Vietnam Travel Market Monthly Tracker continued to deliver timely insights into inbound and domestic travel trends, supporting ongoing monitoring and planning for stakeholders in Vietnam.

Across these solutions, improvements were made to data coverage, analytical frameworks, and usability, reflecting feedback from clients and partners. As demand for ongoing market intelligence continues to grow, we remain committed to refining these tools and extending their application to serve more destinations and organizations.

Looking Ahead

As we conclude 2025, we extend our sincere thanks to our partners, clients, and team for their trust and collaboration.

This past year reinforced the importance of long-term partnerships, consistent data monitoring, and thoughtful application of insight. These principles will continue to guide how we develop our solutions, support our clients, and contribute to the tourism sector in the year ahead.

We look forward to continuing this work together in 2026.

Tourism events are becoming a crucial part of the strategies many destinations use to increase visitor numbers, extend the duration of stays, and diversify their tourism offerings. In Vietnam, provinces and cities are investing significantly in cultural festivals, music concerts, sports competitions, and other events to attract travelers. However, despite the growing scale and frequency of these events, many localities still lack the tools needed to assess their actual effectiveness. Measuring the socio-economic impact of tourism events is no longer just a desirable option; it is now essential.

The Growing Role of Tourism Events in Destination Development

In recent years, tourism events in Vietnam have increased in both number and variety. From heritage festivals and community fairs to international marathons and beach music shows, these events serve as powerful tools for destination branding and tourism promotion.

Tourism events offer numerous benefits. They enhance the visibility and appeal of destinations, helping them stand out in an increasingly competitive tourism market. Additionally, these events stimulate local spending by creating demand in various sectors, including accommodation, food and beverage, transportation, and retail services.

Another significant contribution of tourism events is their ability to extend the average length of stay for visitors. People often plan longer trips to fully experience both the event and the surrounding destination. Furthermore, events generate employment opportunities and provide avenues for local businesses and entrepreneurs to thrive, fostering economic growth within the community.

Despite these advantages, the lack of reliable measurement and evaluation can lead to inefficient planning, misallocated budgets, and missed opportunities.

Why Measuring Impact Matters

Measuring the impact of tourism events provides valuable data that aids in smarter decision-making for both destination managers and event organizers.

First, data-driven planning helps local governments and stakeholders identify which events produce the most value. With accurate insights, they can determine which events should be expanded, restructured, or perhaps discontinued, ensuring that each initiative aligns with the overall tourism strategy.

Second, measuring impact supports budget optimization. When authorities understand the actual returns from events, they can allocate public funding and attract private sponsorship more effectively, minimizing waste and enhancing the return on investment.

Third, it enables transparent reporting. Clear evidence of outcomes—such as visitor spending and community engagement—helps demonstrate value to sponsors, residents, and higher-level government bodies, fostering trust and accountability.

Finally, measurement is crucial for sustainable development. It highlights both the positive contributions and potential downsides of events, providing opportunities to improve areas like cultural preservation, environmental management, and inclusive community participation.

In summary, you can’t manage what you can’t measure.

Key Indicators for Measuring Event Impact

At Outbox, we recommend a comprehensive set of indicators to assess tourism event impact from multiple angles:

Economic Impact:

• Direct Spending: This includes what visitors spend during the event on essentials like accommodation, dining, transportation, souvenirs, and ticket purchases. These expenditures directly inject money into the local economy and provide a baseline for understanding visitor behavior and value.
  
• Indirect Spending: Beyond the immediate transactions, events drive indirect benefits through supply chains. Local producers, service providers, and logistics companies see increased demand due to event-related activities, thereby multiplying the economic contribution across sectors.
  
• Job Creation: Events often create both short-term and long-term employment opportunities. From temporary event staff to more sustained roles in hospitality and retail, the increased demand during events supports workforce development and income generation.
  
• Tax Revenue: With higher levels of commerce, local and national governments benefit through increased tax collections, from value-added taxes on purchases to business and income taxes paid by enterprises involved in the event.
  
• Return on Investment (ROI): ROI compares the total revenue generated from the event (including visitor spend and sponsorship) against the cost of organizing it. It helps authorities and organizers assess whether the event delivered proportional value relative to investment.

Social Impact:

• Visitor Satisfaction: Assessing how tourists evaluate their experience gives a clear sense of the event’s quality and its influence on destination perception. Positive reviews often translate into higher revisit intention and positive word-of-mouth.
  
• Resident Satisfaction: It is vital to understand how residents perceive the event. Do they feel proud of it? Do they experience disruptions or inconveniences? Gathering this feedback enables organizers to improve future editions and ensure social acceptance.
  
• Community Participation: A high level of local involvement—through volunteering, attendance, or partnership—signals that the event resonates with the community. It reflects public endorsement and ensures the event is rooted in local identity rather than being externally imposed.
  
• Cultural Integrity: Events should reinforce, not dilute, local culture. Evaluating whether the event celebrates authentic traditions or risks over-commercialization is key to long-term sustainability. The best events foster pride, preserve heritage, and create platforms for cultural expression.
  

Conclusion

Tourism events have significant potential, but without accurately measuring their true impact, much of that potential may remain unrealized. By adopting a structured impact assessment framework, local authorities and event organizers can access valuable data, improve the effectiveness of their events, and strengthen local tourism economies.

Outbox provides professional solutions designed to help destinations throughout Vietnam assess and enhance the socio-economic value of their tourism events. Let data guide you towards smarter and more sustainable event strategies.

As technology continues to shape the travel experience, Vietnamese travelers—both domestic and outbound—are setting different expectations for the future of travel tech. While convenience and efficiency remain key priorities, their exposure to international innovations significantly influences their preferences.

Overview of Vietnamese Travelers’ Expectations for Travel Technology Applications

Travelers today prioritize essential and practical technologies that enrich their travel experience. This includes tools for navigation, virtual reality previews, and advanced payment systems. Those who have traveled internationally often develop heightened expectations for these technologies, such as artificial intelligence and chip applications. Their exposure to a variety of tech solutions while abroad influences their familiarity and sets higher standards for what they expect during their travels.

Differences in Travel Tech Expectations Between Domestic and Outbound Travelers

Among all travel technologies, payment flexibility stands out as the most highly anticipated advancement. An impressive 72% of travelers expressed a desire for seamless payment solutions, highlighting the growing demand for cashless transactions, digital wallets, and alternative payment methods. Interestingly, both domestic (62%) and outbound travelers (63%) share similar expectations, indicating that the push for modern payment systems extends beyond those traveling abroad.

As travelers seek more immersive experiences, virtual reality (VR) technology is gaining popularity. 60% of Vietnamese travelers expect VR to play a role in their journeys, with outbound travelers showing slightly higher interest (63%) than domestic ones (58%). This suggests that those who travel internationally are more accustomed to advanced digital experiences.

Similarly, AI chatbots are increasingly seen as valuable tools for real-time customer support. However, expectations vary significantly between outbound travelers (51%) and domestic travelers (41%). The higher demand from outbound travelers indicates a preference for AI-driven assistance when navigating unfamiliar destinations.

For outbound travelers, offline access to maps and translation tools is crucial. 65% of them expect this technology to be available, compared to 52% of domestic travelers. The significant gap suggests that international travelers face greater challenges with language barriers and connectivity, making offline accessibility a vital necessity.

Emerging technologies like smart luggage (RFID e-tags) and robotic assistants are generating notable interest. 54% of outbound travelers see value in smart luggage, while 43% of domestic travelers find it appealing. Similarly, robotic assistants attract 45% of outbound travelers, whereas only 37% of domestic travelers find them relevant. These trends indicate that frequent international travelers, who encounter smart travel solutions in global airports and hotels, are more inclined to adopt them.

Conclusion

Vietnamese travelers are embracing technology at different levels based on their exposure to international travel. 

Flexible payment options remain the top priority, highlighting the growing demand for cashless transactions and digital wallets in tourism. The high expectation for VR technology and AI chatbots signals a shift toward more digitized and immersive travel experiences, particularly in trip planning and customer support.

Outbound travelers demonstrate a stronger demand for technology that supports international mobility, especially in translation tools, offline maps, and smart luggage solutions, which help navigate foreign destinations more seamlessly. While robotic assistants and AI-driven automation are gaining attention, their adoption still lags behind more practical and immediate needs, such as payment solutions and virtual experience technologies.

By understanding these differences, destinations and businesses can better align their digital transformation strategies, ensuring a seamless and enhanced experience for all travelers.

Mobile wallets have become essential for travelers, transforming how they pay for travel-related expenses. In Vietnam, the mobile wallet market is highly concentrated, dominated by several key players that shape user preferences and loyalty.

This blog highlights the most popular mobile wallet brands among Vietnamese travelers in 2024, based on data collected over the past 12 months. This ranking offers valuable insights into the current landscape, helping businesses understand consumer behavior and identify market opportunities.

The Current Mobile Wallet Landscape

Momo continues to be the dominant player in the Vietnam mobile wallet market, boasting a remarkable P12M rate of 89%, which reflects its extensive user base. This strong penetration is also evident in its consistently high BUMO rate, significantly surpassing its competitors. Momo’s frequent use in daily transactions – thanks to its wide range of services and reliable performance – solidifies its position as the preferred wallet for Vietnamese consumers.

ZaloPay holds a respectable second place with a P12M rate of 60%, showcasing its broad adoption among users. However, its BUMO rate is considerably lower than Momo’s, indicating that while many users have tried the service, fewer rely on it for regular transactions. ZaloPay’s growth potential lies in enhancing user retention and expanding its ecosystem to boost daily engagement.

ShopeePay, with its integration into the Shopee platform, secures a solid third position with a P12M rate of 46%. Its BUMO rate is relatively modest compared to the top two wallets, suggesting that its primary use is associated with online shopping rather than broader financial services. Expanding beyond e-commerce payments will be crucial for ShopeePay to increase its regular usage rate.

Viettel Money has a 12-month (P12M) adoption rate of 41%, indicating steady usage among a specific segment of users, particularly those familiar with Viettel’s telecom services. However, its BUMO rate is among the lowest in the market, suggesting limited daily usage. This presents an opportunity for Viettel Money to expand its service offerings and increase user engagement beyond telecom-related payments.

VNPay, with a P12M rate of 33%, shows a moderate presence in the market. Similar to Viettel Money, VNPay’s BUMO rate is relatively low. Unlike other wallets that focus on retail payments, VNPay thrives in providing a wide range of bill payment and banking-related services. To boost user engagement, VNPay could enhance the user experience and expand its service offerings to attract a wider audience beyond occasional users.

Domestic vs. Global Players

The Vietnamese mobile wallet market is primarily dominated by local brands such as Momo, ZaloPay, Viettel Money and VNPay, which consistently outperform global competitors. These domestic players have cultivated strong consumer trust and loyalty by offering localized services, frequent promotions, and cashback programs tailored specifically for Vietnamese users.

ShopeePay, although a regional player, has effectively positioned itself as a strong competitor by integrating with Shopee, one of Vietnam’s leading e-commerce platforms. This integration provides ShopeePay with high visibility and frequent usage, particularly during shopping promotions and major sales events. As a result, ShopeePay has managed to secure a significant share of the market and remain competitive with top domestic wallets.

Conclusion

The increasing popularity of mobile wallets is transforming the payment landscape for Vietnamese travelers. To take advantage of growth opportunities in 2025, businesses must understand consumer preferences and stay updated on the latest market data. Mobile wallets have evolved beyond mere payment tools; they are now strategic assets for both travelers and companies within the travel ecosystem.

For a comprehensive understanding of how Vietnamese travelers interact with these platforms, check out our newly released report, “Vietnam Travel Tech 2024.”

As Vietnamese travelers become more dependent on technology for planning their trips, online travel agents (OTAs) have established themselves as essential intermediaries in the travel ecosystem. This blog highlights the top OTA brands preferred by Vietnamese travelers, based on data from the Vietnam Travel-Focused Omnibus Survey. This monthly tracking model continuously gathers responses from over 4,500 Vietnamese travelers throughout 2024.

The ranking reveals the dominance of global players and the growing significance of localized experiences in influencing consumer behavior. The survey data measures brand awareness through two key indicators: P12M users—representing those who have interacted with the brand in the past 12 months—and total users, which reflects overall brand recognition. These metrics comprehensively show each brand’s market penetration and influence among Vietnamese travelers.

The Dominance of Global Players: Same Stage, Different Performance

Global OTAs dominate the Vietnamese travel market, but their success varies significantly in terms of brand awareness and usage. Traveloka, Booking.com, and Agoda lead the pack, yet each brand demonstrates a distinct level of familiarity among travelers. 

Traveloka holds the leading position, with 82% of respondents familiar with the brand over the past 12 months and 72% recognizing it overall. By tailoring services to the Vietnamese market—such as integrating local payment options and offering Vietnamese language support—Traveloka bridges the gap between a global platform and local needs, giving it a competitive edge over its global peers.

In second place, Booking.com has achieved significant recognition, with 81% of users aware of the brand over the past year and 73% aware in total. While its brand equity is comparable to Traveloka’s, Booking.com is perceived as a more international-centric platform, appealing especially to those seeking outbound travel experiences.

Agoda ranks third, with 78% of users familiar with the brand in the past 12 months and 64% overall recognition. Agoda’s focus on hotel bookings, particularly in Asia, resonates well with price-sensitive Vietnamese travelers. Through promotional campaigns and flexible booking options, Agoda has cultivated a loyal customer base among frequent travelers.

Interestingly, Trip.com—an international OTA with growing regional influence—occupies a space somewhere between global and local players. With 39% P12M awareness and 32% total awareness, Trip.com’s success stems from its ability to position itself as a hub for both regional and global travel, especially within Asia-Pacific. Its appeal lies in combining global inventory with regional expertise, catering to Vietnamese tourists increasingly interested in short-haul international trip

Domestic Players vs. Global Giants: Finding Strength in Localization

While global OTAs dominate the market, local brands are carving out space by offering more personalized and relevant experiences for Vietnamese travelers.  Mytour.vn stands out as the leading domestic player with 43% P12M awareness and 38% total awareness. Mytour.vn focuses on promoting domestic destinations, offering localized content, and providing customer service tailored to Vietnamese preferences. This localized approach allows Mytour.vn to compete not by matching the scale of global OTAs but by offering a deeply familiar and culturally relevant user experience.

Comparing global and domestic OTAs reveals that while international players leverage scale and global connectivity, local OTAs focus on cultural relevance and customer proximity, which remains a powerful differentiator for travelers prioritizing domestic experiences.

For businesses and destinations, these insights highlight clear opportunities to refine strategies in a highly competitive market. International Online Travel Agencies (OTAs) should continue investing in localized content and services to stay relevant, while domestic players should focus on enhancing the customer experience and addressing underserved segments, such as niche travel or emerging destinations. Furthermore, partnerships between OTAs and destinations can enhance visibility and improve the traveler experience, creating a mutually beneficial ecosystem. 

As we move deeper into an increasingly digital world, the competition for consumer attention will intensify. Both global and local brands must prioritize innovation, personalization, and collaboration to win over Vietnamese travelers in 2024 and beyond. Although the landscape is competitive, it also presents numerous opportunities for those willing to adapt and evolve.

To deeply understand how Vietnamese travelers engage with these platforms, stay tuned to our new report Vietnam Travel Tech 2024 – to be released soon this February!

The Outbox Company has officially released the Most Loved Ranking 2024, which highlights the “Top 10 Domestic and Outbound Destinations of the Year by Vietnamese Travelers.”

This ranking was compiled using data from the monthly tracking model called the “Vietnam Travel-Focused Omnibus Survey.” This survey involved direct interviews with over 4,500 Vietnamese tourists conducted continuously throughout 2024. The ranking presents a list of domestic and outbound destinations based on the preferences of Vietnamese travelers. It aims to provide insights into the tastes and trends in destination selection among Vietnamese travelers, serving as a useful resource for businesses and destination managers to enhance their strategies for 2025.

Top 10 Domestic Destinations: Major Tourist Centers Continue to Lead

Domestic tourism plays a significant role in Vietnam travel industry, with a positive outlook for local vacations for Vietnamese travelers in 2024. The list of the top 10 most popular destinations among Vietnamese travelers last year indicates a continued focus on renowned locations, particularly suited for short getaways.

Da Nang: The Most Favored Destination for Vietnamese travelers in 2024

Da Nang has emerged as the standout destination in the domestic tourism market for 2024, with a preference rate of 21.6% among travelers—nearly three times higher than other popular destinations like Hanoi and Da Lat. This premier beach and event location in the Central region has consistently ranked at the top each month throughout 2024. Investments in brand communication and engaging tourism events by Da Nang City have yielded positive results over the past year.

Vietnamese travelers Favor Nearby Destinations for Relaxation

The travelers continue to prefer destinations near Vietnam’s two largest domestic tourism markets, Ho Chi Minh City and Hanoi, especially considering that last year’s demand was largely geared toward resorts, with few new distinguished locations emerging. With convenient travel connections and the ability to meet short-term vacation demands, popular destinations like Ba Ria-Vung Tau, Nha Trang-Khanh Hoa, and Da Lat-Lam Dong in the south, and Sapa-Lao Cai, Ha Long-Quang Ninh, and Ha Giang in the north are among the top choices for Vietnamese travelers in the past year.

Big potential for Hanoi and Ho Chi Minh City tourism in the domestic market

In addition to serving as source markets for the domestic travel industry, the Most Loved Ranking for 2024 reveals that both Hanoi and Ho Chi Minh City have the potential to become leading favorite destinations. This ranking provides a foundation for tourism management agencies in both cities to enhance policies aimed at developing the domestic market and leveraging their unique competitive advantages.

Particularly in 2024, Hanoi is experiencing significant growth in attracting domestic travelers, aided by innovative strategies in product development, festival events, and effective partnerships. Hanoi has surpassed many traditional tourist destinations to become the second-most preferred domestic location for Vietnamese travelers.

Top 10 Outbound Destinations: Intra-region Travel Remains the Main Trend

In addition to a growing interest in short-term domestic vacations, Vietnamese travelers are increasingly returning to outbound travel with greater frequency and volume. The list of the top 10 most popular outbound destinations for Vietnamese travelers in 2024 indicates that their preference for outbound travel aligns closely with global travel trends, primarily favoring nearby destinations in Asia and focusing on familiar, traditional locations.

Japan: The Most Popular Outbound Destination in 2024

Japan stands out as a leading destination in the global tourism industry for 2024. Similar to travelers from other countries, Vietnamese travelers are prioritizing Japan for their outbound trips this year, with 36.1% choosing it as their preferred destination. This preference is attributed to Japan’s attractive offerings, high service quality, and competitive costs compared to previous years.

China’s Rising Popularity Among Vietnamese Travelers

China has emerged as a top destination for Vietnamese travelers. The trend of prioritizing travel to China began in late 2023 and is expected to gain momentum throughout 2024. The allure of China’s landscapes, diverse attractions, and proactive measures to attract Vietnamese visitors have led to an increasing number of Vietnamese travelers selecting China for their next vacation. As a result, China has secured its place as the third most popular international destination for Vietnamese travelers in 2024, surpassing traditional Southeast Asian favorites like Thailand and Singapore, and only trailing behind Japan and South Korea.

Nearby Destinations Remain Vietnamese travelers’ Top Priority

Traditional nearby destinations in Asia, such as Thailand, Singapore, Malaysia, Indonesia, Taiwan, and Hong Kong, continue to be favored by Vietnamese travelers in 2024, maintaining their stability from previous years. While these destinations may not see significant growth, they align with the current and future travel trends, where travelers increasingly prioritize short-term trips within the region to optimize travel time and costs. This trend explains why 9 out of the 10 most popular destinations for Vietnamese travelers are located in Asia. The United States stands out as the only long-haul destination in the top 10 favorites for Vietnamese travelers.

International tourism is steadily gaining momentum, while Southeast Asia (SEA) remains stable n in October 2023, with a minor 1.8% increase in international visitors from 6,193,292 to 6,305,273 (excluding Malaysia). Catch up more details about SEA tourism with the reading below!

During the first 9 months of 2023, as per the recent updates from UNWTO, global tourism is on a robust rebound, achieving 87% of pre-pandemic levels, totaling 975 million international arrivals. Despite progress, the SEA region lags behind with a recovery rate of 70%. In this October:

• Thailand maintains its leading position as the top destination for international visitors in the region. There was a slight upswing in tourist arrivals, with a 3.1% increase compared to September. 
• Singapore follows closely in second place, with a 6.7% decrease compared to September. 
• Vietnam has taken over Indonesia’s position and now ranks third, with a modest 5,5% rise in tourist arrivals compared to September in the region.

Additionally, while the Philippines and Cambodia experienced a modest increase, Indonesia went through a slight decrease compared to the previous month. 

Recovery Rate and Tourism Targets

• Cambodia nearly achieves its target, with the highest recovery rate with 99.70%.
• Singapore maintains its position in second place with a recovery rate of 73.86%, while Indonesia secures the third spot with a recovery rate of 72.67%. 
• Vietnam has attributed an adjusted goal shifting from 8,000,000 to 12,000,000 visitors. 
• The other countries experienced a slight upturn when measured against the same period in 2019.

HIGHLIGHTS

Top 3 SEA Tourism Destinations with the Highest Number of International Visitors in October 2023

• Thailand: 2,197,017 international visitors, a 3.1% increase compared to September 2023
• Singapore: 1,130,000 international visitors, a 6.7% decrease compared to September 2023
• Vietnam: 1,112,526 international visitors, a 5.5% increase compared to September 2023, pushing Indonesia out of the top three.

Recovery Rate

• Cambodia achieved a recovery rate of 99.70%
• Singapore achieved a recovery rate of 73.86%
• Vietnam achieved a recovery rate of 72.67%.

Aviation

1. Domestic Landscape

The Hanoi (HAN) to Ho Chi Minh City (SGN) route remains the premier choice, experiencing a noteworthy 10% surge compared to the previous month in a total of 826,817 seats. 

Conversely, other domestic routes in the region witnessed a decline in demand. Following the HAN-SGN route is the Jakarta (CGK) to Kota Makassar (UPG) route with 537,670 seats, and to Bali with 492,881 seats.

2. International Landscape

Singapore maintains its prominence as a key hub in SEA tourism, with seven out of the top ten international routes in the region either starting or ending there. Accordingly, the routes from Kuala Lumpur, Jakarta, and Bangkok to Singapore remain the busiest international routes in the region, despite a slight decrease compared to the previous month.

Facing many uncertainties and changes, especially in the tourism industry, applying only one strategy and hoping that will be the business guidance throughout the year is no longer suitable and can lead to serious mistakes. Instead, scenario forecasting will be an important strategy for destination management organizations (DMOs) and stakeholders. This is extremely important during the post-COVID recovery phase.

Forecasting different scenarios allows us to explore multiple options to develop, and design the best possible responses. This is a forecasting method that is widely applied and implemented in the tourism industry.

In 2022, Vietnam received 3.6 million international arrivals, equivalent to 18% of nearly 19 million arrivals before the pandemic. This level is quite low compared to other Southeast Asian destinations. Typically, Thailand welcomed more than 10 million international visitors, accounting for 25% of the traffic in 2019 (40 million), or Indonesia received 4.6 million arrivals, reaching 28% of 2019 traffic (16 million), etc. However, according to the UNWTO World Tourism Barometer, the recovery rate in South East Asia improved but was still the lowest (54%) in Q1 2023. One of the main reasons the recovery was slow is due to the delay in fully reopening borders and easing COVID-related restrictions, especially in China, the top source market of many destinations, including Vietnam.

It is forecasted that Vietnam tourism in 2023 will face both opportunities and challenges. Changing zero-COVID policy and easing travel restrictions for domestic and foreign tourists in China could boost total arrivals to Asia Pacific in general and Vietnam in particular this year, and help the tourism industry recover on a larger scale. In addition, the capacity in tourism supply in the region keeps recovering, and will support increasing demand. Nevertheless, higher oil prices, inflation and the weaker global economic growth outlook will continue to affect Vietnam’s inbound market recovery.

“Vietnam Tourism Outlook 2023” report published by Outbox at the end of March also mentioned tourism recovery scenarios for businesses to take note of. To have an overview and build the 3 inbound tourism recovery scenarios, Outbox is based on the common recovery of the region and the world. Besides, we also consider other factors that can significantly affect the recovery pace, including shaping factors and adjustment factors. Shaping factors mean tourist psychology, behavior and trends. Adjustment factors include visa policy, prospects of economy, investment/tourism real estate, and domestic airfare cost. Any changes in the two groups of factors will affect Vietnam tourism market this year.

Considering all the above factors, 3 scenarios of Vietnam’s inbound tourism recovery in 2023 as follows:

Scenario #1: According to the recovery momentum of important source markets from mid and late 2022 to now, the most likely recovery prospect for international tourism to Vietnam is 40% of the pre-pandemic level, equivalent to 7.2 million arrivals.

Scenario #2: The most positive scenario is when the recovery speed of the markets reaches the optimal level will bring Vietnam’s international tourism to 10 million arrivals, equivalent to 60% of the 2019 level.

Scenario #3: However, in the less optimistic scenario, the uncertainty from the effects of the economic environment and the fierce race to attract back the Chinese tourist market from destinations in the region will create tremendous challenges. Due to these pressures, the recovery of international tourism in Vietnam only reached 6.3 million arrivals, which is 35% of the pre-pandemic level.

 

According to Outbox’s report, travelers still prefer wellness tourism and sustainability due to the huge impact of the pandemic. They expect to receive experiences and values worth the money spent, as well as consider the cost of trips due to the economic difficulties. Factors such as rising airfares or inflation,… can all contribute to a decrease in travel sentiment and willingness to pay for travel, and vice versa. Travelers are the end-users of tourism products/services. So everything that affects their psychology and behavior will more or less affect the tourism industry.

2024 is supposed to be the final year of recovery. This is also forecasted to be the time when many new variables affect the recovery rate of inbound tourism in Vietnam. Businesses and destinations need to be ready now, proactively change and approach as well as be flexible with targets and strategies depending on scenarios or market. For each scenario forecasted, businesses and tourist destinations need to come up with corresponding action plans. As a result, they can react quickly and better adapt to any foreseen circumstances. It’s because both the market and travelers are constantly changing due to many different factors.

The strategic change and proactive approach to visitors must come from the synchronous efforts of not only one person, or one organization, but all industry insiders must strive together to improve and develop. Thereby, we will be able to accelerate the recovery, and then boost the industry more than before the pandemic.

Along with the development of the tourism industry, the international big hotel brands have been constantly expanding their portfolio in many destinations.

Even during the pandemic, “giants” in the industry still launched or planned to open many new hotels and resorts. For instance, Hyatt opened its first Hyatt Centric hotel in Australia at the end of 2021. Regent Phu Quoc of IHG debuted in early 2022. The Crowne Plaza brand under IHG opened in Phu Quoc in summer 2021, and in Vinh Phuc at the end of 2022, etc. IHG Hotels & Resorts also planned to add 74 Crowne Plaza properties in its portfolio in coming years. Accor is set to launch the first Mövenpick hotel in Jakarta in Q3 2023. Accor’s Tribe brand will come to Thailand in Q4 this year, and more.

Vietnam in recent years has attracted more and more international hotel brands to invest. They have been quickly remembered and loved by Vietnamese travelers. In Q1, The Outbox Company recorded Vietnamese travelers’ selection and announced the international hotel brand ranking.

Dream hotels chosen by Vietnamese tourists

In Q1 2023, top 3 international hotel brands in the wishlist of Vietnamese travelers are JW Marriott, Novotel, and Sheraton, respectively. The first JW Marriott hotel was born in 1957. Up till now, the luxury brand owns more than 100 hotels in over 32 countries and territories around the world. In Vietnam, JW Marriott is currently located in two famous tourist destinations including Hanoi and Phu Quoc. With just two properties, JW Marriott still leaves a strong impression on Vietnamese travelers thanks to its very big scale, beautiful and sophisticated architecture, as well as high-class service. With its long history, JW Marriott was chosen by Vietnamese tourists as their dream international hotel brand in the first 3 months of the year.

The second rank after JW Marriott in top dream hotels for Vietnamese travelers in Q1 was Novotel. Founded in 1967, Novotel is the first and most enduring brand operated by Accor. Until June 2021, there were a total of 514 Novotel hotels in 62 countries. Vietnam is now the location of 6 Novotel properties. By the end of 2023, the 7th hotel, Novotel Phan Thiet, is expected to officially come into operation. Novotel offers high-class and consistent services, spacious rooms, many facilities and promotions for families, and a modern equipped meeting space.

Sheraton, another big brand from Marriott, ranked No.3 in top dream hotels in Q1 2023. Sheraton owns more than 440 hotels in over 70 countries and territories, including 4 in Vietnam (Sheraton Saigon Hotel & Towers, Sheraton Grand Danang Resort & Convention Center, Sheraton Hanoi, and Sheraton Nha Trang Hotel & Spa). Sheraton focuses on offering guests familiar feelings wherever they are. Sheraton continues to enhance the brand through innovative guest experience, differentiating design, multi-channel marketing and a sharp focus on service. Its new vision is reflected in intuitive design, cutting-edge technology experiences, and elevating public spaces and F&B service to flexible meeting spaces.

Most known hotels chosen by Vietnamese travelers

In addition to top dream hotels, Outbox also ranked top most known international hotel brands for Vietnamese travelers. The top 3 still featured the 3 brands mentioned above, but the order was a little bit different. Specifically, Novotel topped the list with more than 10% of choices, followed by JW Marriott. Sheraton maintained the #3 position.

Currently, the impact of COVID-19 and the economic and financial difficulties causes the uncertain tourism real estate market. However, that does not mean that brands will reduce communication and marketing activities, or narrow its portfolio. In Q2, will the ranking see any change or will any new brands appear? Hotel brands will need to keep upgrading their services, experiences and awareness in order to win the hearts of Vietnamese travelers during the recovery phase.