Tour Bookings in Steady Decline
Ms. Nguyen Thi Thuy from Ha Tinh shared that her family successfully designed their own tour to Hue after the recent April 30th and May 1st holidays. They drove to Hue, taking breaks along the way to visit sites such as the caves in Quang Binh and the Vinh Moc tunnels in Quang Tri. By planning their own itinerary, they could visit places at their own pace without being tied to a fixed schedule.
Mr. Tran Quang Hao, Director of Huetourist, a company that develops tourism products in Hue, noted that in previous years, the Thuy Bieu destination (in Hue city) mostly catered to guests from traditional travel agencies (TAs) like Exotissomo, Discova, and Saigontourist. However, in the last two years, around 40% of their guests have been from online travel agencies (OTAs) such as Klook, Kkday, and Ivivu. Currently, the number of bookings through TAs and OTAs is almost equal.
Mr. Hao attributes this shift to the increasing number of independent travelers who prefer to book their services online. This was evident during the recent holiday period, where there was a notable increase in families driving to Hue and booking through OTAs.
Netin, a company specializing in tourism information and services in Quang Binh, has experienced a similar situation. Mr. Tran Xuan Cuong, the company’s director, shared that their revenue from the domestic market is estimated to be only 30% compared to the previous year. The high airfare and reduced number of flights have made it challenging for tourists to visit Quang Binh, with many opting for alternative destinations.
Other travel agencies in Quang Binh have also reported a decrease in group tour bookings from the north and the Ho Chi Minh City region. Most of the guests traveling to Quang Binh are individual travelers who drive themselves or come by road from neighboring provinces.
Adapting to Challenges
Mr. Le Tan Thanh Tung, Deputy General Director of Vitraco Danang, acknowledges that independent and self-sufficient travelers are becoming the norm. With technology making it easier for tourists to access information and book services, many choose to travel independently to save costs.
To adapt to this trend, Mr. Tung believes that travel businesses must find reasonable solutions to survive. Instead of waiting for customers to come to them, travel companies now have to reach out to potential clients and offer superior services. Vitraco Danang has been actively creating new and feature-rich products to attract tourists. They have introduced a group tour of central heritage sites, offering an affordable option that individual travelers might not be able to access on their own.
Mr. Tung also plans to launch a train tour connecting Hue and Danang, allowing visitors to admire Vietnam’s most beautiful railway route and explore new destinations in Hue and famous attractions in Danang, such as Ba Na and Nui Than Tai.
Mr. Cao Tri Dung, Chairman of Danang Tourism Association, agrees that businesses capable of adapting to the trend of independent travelers can still achieve growth. He emphasizes the importance of businesses pivoting, embracing new platforms, and creating unique products.
The association has organized workshops and discussions to help businesses navigate these challenges and develop strategies to attract tourists. Mr. Dung points out that travel agencies that fail to keep up with the trend will face difficulties. To adapt successfully, businesses must create market-leading products, offer distinct experiences, and develop attractive package deals and specialized tours.
Mr. Cao Tri Dung asserts that Danang has an advantage over other localities in creating comprehensive packages that encompass neighboring provinces like Thua Thien-Hue and Quang Nam. He emphasizes the need for collaboration between these destinations to develop attractive joint products that will lure tourists.