2022 is the first year of post-COVID recovery process, South East Asia tourism saw sharp growth compared to the previous year (UNWTO). However, in general, the tourism industry has not yet reached the pre-pandemic level in 2019.

Last year, the South East Asian region welcomed a total of 35 million international arrivals. It accounted for 4% of the share in comparison with Asia – Pacific. The tourism recovery rate compared to 2019 decreased to 74.8% but increased to 1,094.5% compared to 2021, when travel restrictions were still tight.

This year, countries in the region are keeping efforts in tourism development. In the first two months of 2023, South East Asia has recorded many positive numbers, signaling a big year for the tourism industry.

Vietnam among destinations with the best tourism performance

In 2023, Vietnam tourism received some good signals in the first two months of the year. The country ranked first in top most visited destinations by international tourists in January, following only Thailand and Singapore. In addition, Vietnam also achieved the highest 2023 tourism target rate. In January, Vietnam welcomed 871,162 visitors, reaching 10.89% of 8 million international visitors target. In terms of tourism recovery rate compared to January 2019, the Philippines led with 64.17%.

Thailand still proves its great appeal as the Southeast Asian destination that welcomed the most international visitors (more than 2.1 million arrivals) in January. Following this momentum, the country is likely to reach the set target of 25 million international visitors. Following Thailand in terms of inbound visitors in January 2023 were Singapore, Vietnam, Indonesia, Philippines and Cambodia, respectively.

In aviation, according to data from OAG, in February 2023, Indonesia provided more than 8.9 million seats by flights, ranking first in South East Asia. Next was Thailand with more than 5.6 million seats, closely followed by Vietnam (more than 5.5 million seats).

Highlights

Top 3 South East Asian destinations with largest numbers of international arrivals in January 2023:

1. Thailand: 2,144,948
2. Singapore: 931,650
3. Vietnam: 871,162

Top 3 South East Asian destinations with highest recovery rate in January 2023:

1. Philippines: 64.17%
2. Cambodia: 62.26%
3. Indonesia: 61.24%

Although it did not offer the highest seating capacity, Vietnam led in the top of the busiest domestic routes in the region. Specifically, the Hanoi – Ho Chi Minh City route reached a total capacity of more than 930,000 seats in February only. It is 63% and 94% higher than the 2nd and 3rd busiest routes, Jakarta – Bali and Jakarta – South Sulawesi, respectively. The two routes are both from Indonesia.

It can be seen that many destinations in South East Asia are recording positive statistics in tourism recovery. Each needs to continue to promote its strengths, while finding new strategic approaches that are appropriate and feasible for tourism to return to the way it was before.

 

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.

Travel demand of elderly travelers is increasing, but the tourism industry has not yet prepared to provide enough facilities and accommodations to serve them.

The United Nations states that the population over 65 is growing the fastest. Therefore, travel businesses need to meet their travel needs as they will account for a larger proportion of the tourism market.

However, the tourism industry still does not have the necessary facilities for elderly travelers. Many travel businesses face difficulties in serving this group of customers.

According to Kelly Torrens, Kensington’s vice president of product, during tours, this group needs more breaks. They are more susceptible to the effects of heat, and need assistance when getting on and off vehicles, and on rough terrain.

People with disabilities will make up the majority of the older tourist segment. Nearly one-fifth of people 65 and older said they had difficulty with seeing, hearing, communication, mobility, memory, concentration, or the ability to take care of themselves. Among them, the most common problem is mobility, including walking or climbing stairs.

Creating favorable conditions for elderly travelers is a big challenge for tourism businesses. Installing elevators in historic destinations and older hotels is challenging because the structure of these structures needs to be maintained.

Many hotels do not have vehicle services for this specific group. It’s hard to find elevators that can accommodate over two people in motels and hotels in cities like Rome and Paris.

Hotels can adapt if they are willing to invest resources. For example, the Brooklyn hotel in Manchester, UK, worked with the design team to implement innovations such as removable handrails in the bathrooms and a spacious restaurant with seating options for those using canes and other mobility aids.

Besides, traveling by cruise or boat is also preferred by many elderly. However, the ports still need more services and equipment to help these tourists get off the ships.

 

2022 came to an end. The tourism industry has been recovering since last summer. 2023 is still expected to explode when travel sentiment and confidence keep rising, along with the new trends coming.

Although the pandemic has passed, its “echo” is still there. This changes the psychology, behavior and trends among tourists. New travel trends have been forecasted. Here are a few of those.

Transformation retreats

After the time of travel for fun, relaxation and reunion post-pandemic, 2023 will be the year many people travel for personal improvement. They look for retreats that can change themselves and become a better version. This will be a promising tool for tourists to realize their full potential inside.

Crypto trips

Thanks to technological innovations from fintech companies, cryptocurrency owners are able to redeem Bitcoin and Ether to pay for their trips. In the US, a market research company estimates that almost 13% of the adult population now owns at least one type of cryptocurrency. By the end of 2023, about 3.6 million people will be spending crypto (previously it was just about investing and trading). Therefore, the tourism industry should adapt to new shifts in consumer spending.

Luxury yachts from big hotel brands

Big hotel brands such as Four Seasons, Belmond, Aman,… are competing on luxury yachts to attract guests next year. They will get bespoke experiences and services in breathtaking destinations.

Artist-owned hotels

The art-hotel mash-up trend has been around for a while and is now on the rise. These hotels are born for a generation of travelers looking to be inspired and bed down in places where creativity and connection are nurtured.

Sleep tourism

Sleep tourism is traveling and spending most of the time falling asleep.

COVID-19 has caused more and more people to have insomnia. According to a study published in the Journal of Clinical Sleep Medicine, 40% of the over 2,500 adults surveyed reported a reduction in their sleep quality since the pandemic broke out.

Hotels, resorts and travel companies should quickly grasp the chance and consider providing more special services so that visitors can enjoy a better sleep.

Adaptogenic menus

Health is being put on top after COVID-19. People appreciate the nutritional qualities of food. In the coming times, they “hunt” for some plants to help the body combat stress, and fatigue. For instance, trendy adaptogenic herbs include Siberian ginseng, Ashwagandha (Indian Ginseng), Tulsi (Holy Basil), Schisandra berries,…

Electric road trips

After the pandemic, people became more and more interested in environmental issues. In particular, reducing carbon emissions to zero becomes one of the long-term goals of many businesses. Along with that is the launching of many types of electric vehicles. In 2023, electric road trips are set to take the throne.

Travelers need to plan their route carefully to make sure there are charging points available en route. But it doesn’t matter as car rental companies are increasingly offering fleets of e-vehicles for hire.

Educational itineraries

After missing out on two years of adventures, travelers do not want to waste another second. They desire to have deeper and more meaningful experiences than ever, and learn something new in their journeys.

The sound of silence

“Silence is golden” promises to be at the heart. The last three years can be seen as the longest period of quiet in recorded history. We could hear the wind blowing, and birds singing rather than traffic or planes. And once the noise pollution is back, many people are trying to seek quiet space. According to a recent survey by Booking.com, 40% of respondents said they would consider a silent retreat in 2023.

From the most primitive tools, people have improved their research methods to help them easier to understand the market and customers over time. As a result, they can develop their products/services and improve their business efficiency and competitiveness.

Today, market researchers have a tool kit including desk research, telephone interviews, face-to-face interviews, self-completion questionnaires, focus groups and observation.

They use special techniques for selecting samples and analyzing the data. It is equally important to understand what market research is for, and why it is carried out.

Market research on its first days

By the early 1900s, a fledgling market research industry had started in the US, focusing on advertising testing in one form or another. In those early days, there was concern that people would give dishonest answers for direct questions. That’s why some of the first commercial market research relied heavily on observation.

Then, market research companies like Nielsen emerged. For the first time, managers had objective and accurate data on their sales, the size of the market, trends and their competitors’ shares.

In the 1950s and 1960s, business competition intensified. Market researchers used sample surveys with questionnaires to obtain attitudinal data. At that time, the market research interview was considered as the main tool for collecting information, and survey companies blossomed. It also marked the time when managers had objective and systematically collected data to help them understand what people were doing with or thinking about their products.

And its shifting

In the 1970s and 1980s, attitudinal research moved to a different level, and surveys were developed to track customer satisfaction.

In recent years, computing has gradually become cheaper and more powerful. People focus on transforming data for more insights. They also employ different modeling for segmentation, conjoint analysis for pricing decisions, data fusion to fill in gaps of missing data and geo mapping to find the best locations for retailing or distribution.

Currently, insight is one of the top keywords for businesses when doing market research. Insight will help them have a deep understanding about customers and the market. Thereby, they will be able to make right decisions based on data, instead of just observation or judging as previous.

The Outbox Company, Vietnam-based tourism market research company, after rebranding also focuses on “insight”. We introduced Outbox Insight, which offers one-stop insights solutions through regularly updated analysis and reports. Moreover, Outbox Research provides tailor-made solutions based on quality data analysis and business’ requirements. Outbox is the pioneer in the field of data analysis and development in Vietnam.

 

Following the rebrand journey and the new release of the latest Outbox Insight report “How Vietnamese are reconnecting with outbound travel?,” The Outbox Company (referred to as Outbox) will focus mainly on the keywords “data” and “insight” in their activities. These two concepts are sometimes confused or misunderstood.

Known as an industry expert with many years of experience in tourism research, Ms. Nguyen Anh Thu, Co-Founder and CRO of The Outbox Company, has shared specific insights and data on the Vietnam tourism market.

Outbox always talks about “insight”. So what is its most accurate definition?

“Insight” is understood as tacit truth, or accurate and deep understanding of things. However, as the word “insight” has been used more often, its definition becomes more ambiguous. Interpretation, “insight” is new discoveries and explanations about a certain subject, such as a target market or group of customers. Insight lies deep within an object and can be analyzed by its actions or related facts.

Market Insight is often confused or used interchangeably with data, knowledge, or general customer feedback. While data has the potential to become an insight, individual data are just numbers. Only when there is a connection of data points, associated with a specific object, an insight about that will be created.

How important is insight in the current tourism and hospitality industry?

From a business perspective, the more we understand the market we are exploiting and the customers we serve, the more we can create quality products. That is the purpose of finding insight. In addition, the use of market insight helps predict potential changes in the market or industry. Finding patterns in customer behavior, such as spending characteristics or content engagement, can be done very effectively by analyzing data.

In particular about Outbox Insight, Outbox wants to be able to explain as many aspects of the industry as possible through analytics and data connectivity. Thereby, individuals involved in the tourism industry with different purposes will be able to learn and find different values of information. Therefore, insight can support not only business people but also those doing research and studying related to tourism.

In your opinion, what is the most difficult thing in the process of finding insight? How do you and Outbox “troubleshoot”?

In the tourism industry, it’s challenging to find insights that reflect the true nature and trends of the market as well as the characteristics of tourists. The core reason is the complex structure of the industry with many sectors and stakeholders, plus the nature of constant change under the influence of different environmental factors.

When working with Outbox’s customers in many different fields, we have realized that in the tourism industry, especially in Vietnam, there are still many gaps in market data. This leads to lack of exploitation and analysis of data and information to give real insights into the market and users. Therefore, at Outbox, by observing the market, and accessing many different data sources, we build research models that connect the data to generate insights that truly reflect the visitors, markets and various aspects of the industry.

As one of the two core areas of Outbox in a new development phase, what does Outbox Insight promise to bring to customers in particular and the travel market in general?

Outbox in the new phase will provide two segments including Outbox Solutions and Outbox Insight as two solutions for businesses and industry stakeholders. Outbox Solutions will decide the specific problem of businesses and destinations in the tourism industry. Outbox Insight connects information and data, and fills the background data that is still quite empty in Vietnam’s tourism industry in general at present. It is built as a tool to support businesses in their investment and operating decisions.

From my core point of view, data abounds. For example, people who serve customers directly in the hotel or travel industry have countless data of their guests. So what is next, how does the data solve further problems? Data number is not enough. Outbox Insight is born with the ambition to analyze quality data and transform them into business solutions for the travel market, ideally helping the market have a clearer perspective instead of relying on experience or judgment, then making decisions more rationally and appropriately.