INSIGHT REPORT MAY 2020

VIETNAMESE
TRAVEL INTENT
POST COVID-19

POWERED BY:
RESEARCH DIRECTOR: Thu Nguyen
Research Analyst: Oanh Bui
Research Editor: Thao Nguyen
Designer: Nhut Tran

Website: www.outbox-consulting.com
Facebook: /OutboxConsulting
Email: info@outbox-consulting.com

ABOUT OUTBOX CONSULTING

Starting with great passion for tourism industry, we aim to be the pioneer in providing quality
consulting services with optimal solutions for managing and developing the tourism destination.
In Outbox Consulting, we do not just create destination, but we label a destination with innovative
thinking and integrity. We believe each destination has its own soul and unique feature.

Our job is to explore, research, unlock the insights and exploit them in the most effective way.
We believe the key to success is not only the combination of a professional consulting service
but also a whole-hearted care for all the destination development process.

Research Report “DOMESTIC MARKET AFTER THE END OFF COVID-19” is a publication belonging to
Outbox Consulting. All rights reserved
No part of this publication may be reproduced, distributed, or transmitted in any form or by any
means, including photocopying, recording, or other electronic or mechanical methods, without the
prior written permission of Outbox Consulting. Unauthorized commercial use, Reprodution in whole
or part is prohibited

01
 INTRODUCTION
The outbreak of the Covid-19 pandemic all over the world has made a significant
impact on global economic sectors, and tourism is one of the industries which are
severely affected. According to the report from World Tourism Organization
(UNWTO), the number of international tourist arrivals decreased by 20-30% in the first
quarter of this year and is predicted to decline by 60-80% over the whole year 2020.
This organization also considers this to be the worst crisis that international tourism
has been faced with since 1950. In Vietnam, according to the statistics announced by
The General Statistics Office of Vietnam, until March 2020, the number of international
tourist arrivals to Vietnam dropped by 68.1% when compared with the same period of
2019.

The global situation of the pandemic remains chaotic. There has not been any
comprehensive evaluation of how long and how seriously the Covid-19 pandemic
is going to affect the tourism industry yet. UNWTO has pictured various scenarios
for recovering the tourism industry. These predictions also emphasize the fact that the
recovery depends on how rapidly destinations seize control of the pandemic, and
domestic tourism will recover before international tourism. In Vietnam, after six
months of attempt, the pandemic situation has been in control; businesses and
transportation activities are gradually getting back to normal, and tourist sites and
attractions also resume their operation. This is a positive sign for the country’s tourism
industry’s revival.

In this context, businesses as well as destinations need to thoroughly create recovery

plans which are corresponding to market trends. This requires domestic travel businesses
to pay meticulous attention to tourists’ tendency or behavior post Covid-19. A lot of
questions are addressed like “After the impact of Covid-19, have the tourists’ trends in
selecting destinations changed in any way?”, “What intention do Vietnamese tourists
have for the rest of 2020?”, “Has tourist behavior altered?”, etc.

To answer those mentioned questions, in May 2020, Outbox Consulting conducted a

brief national survey on 937 Vietnamese tourists to gain insights into tourists’ intention
as well as behavior in the second half of 2020. We believe that this report will impart
precious information to assist businesses to grasp the market situation in a timely
manner so as to prepare in advance for the recovery of the tourist market after
the pandemic.

(1)
https://www.unwto.org/news/covid-19-international-tourist-numbers-could-fall-60-80-in-2020

02
TABLE OF
CONTENTS

PART 1: CHARACTERISTICS OF VIETNAMESE TOURISTS 04

PART 2: VIETNAMESE TOURISTS POST COVID-19 06

• Vietnamese travel intent in 2020 07

• Vietnamese travel behavior in 2020 09

03
PART 1:

CHARACTERISTICS OF
VIETNAMESE TOURISTS
04
VIETNAMESE TOURISTS’ TRENDS IN SELECTING DESTINATIONS
Traveling has become one indispensable activity for the Vietnamese. Vietnamese tourists have a growing
tendency for traveling both within the country and outbound. According to statistics, in 2018, the growth rate of
domestic tourism was 9.7%, and the growth rate of outbound travel was up to 14.7%. These growth rate
figures are assessed as the results of many factors, especially the emergence and the explosive growth of the
middle and affluent consumers (MAC). Vietnamese tourists are expected to travel increasingly with the number
of international visits continuing to rise by an average growth rate of 9.5% each year in the years to come (2).

When going on trips, Vietnamese tourists display these following characteristics:

CHARACTERISTICS
OF VIETNAMESE AVERAGE TRIP LENGTH
(3)

04 NIGHTS

(4) Weather/security/
CRITERIA FOR SELECTING DESTINATIONS environment

Culture/ Natural
tradition landscape

63 37
% %
TRAVELING STYLES
(5)

TAKE TOUR GROUP TRAVEL INDEPENDENTLY

TRAVELING WITH
(6)

VIETNAMESE TOURISTS
HAVE A TENDENCY FOR
THEIR FAMILIES
(2)
Mastercard Future of Outbound Travel in Asia Pacific (2016 to 2021)

05
https://www.visa.com.vn/vi_VN/about-visa/newsroom/press-releases/nr-vn-180307.html
(3), (4), (5)

(6)
https://www.agoda.com/vi-vn/press/xu-huong-du-lich-gia-dinh-2018?cid=1844104
PART 2:

VIETNAMESE TOURISTS
POST COVID-19
06
VIETNAMESE TRAVEL INTENT IN 2020

THE VIETNAMESE WOULD STILL CONSIDER TRAVELING IN 2020

The Covid-19 pandemic has carried massive implications and influenced the economy as well as people’s
income. Furthermore, it has caused many people the concern about the pandemic’s recurrence when traveling.
However, Vietnamese tourists do not abandon their travel plans for that reason. According to the survey
results, up to 44% of those surveyed indicated that they would still consider traveling this year and 25% were
in the sidelines and have not decided whether they would travel in 2020.

Yes
31%
44% Not decided yet

No
25%

VIETNAMESE TRAVEL INTENT IN THE SECOND HALF OF 2020

Contrary to the concern about tourists dropping their travel plans in 2020, the survey results show that only
7% of Vietnamese tourists decide to cancel planned trips and currently, are looking for the new ones, while
22% do not desire to change their travel plans in 2020. The fact that 71% of those surveyed state that they
are still planning their trips this year is an encouraging sign for travel businesses. All in all, it is partially
understood that Vietnamese tourists’ travel demand has always been there, and it is solely postponed due to
the outbreak. Nevertheless, the demand is predicted to grow again as soon as the economy and society
regain its “new normal”.

I am planning my up
7% coming trips in 2020

22%
I am going to keep the plan

71%
I canceled the plan and I am
looking for the new one recently

PLANNING A TRIP

07
VIETNAMESE TRAVEL INTENT IN 2020

VIETNAMESE TOURISTS STILL FIND THE PANDEMIC AGONIZING

It is not surprising that the fear of the pandemic’s recurrence (38%), as well as safety and health-related
concern when traveling (21%), are two key factors determining Vietnamese tourists’ travel plans at least in the
next six months and even further. Additionally, Vietnamese tourists’ choice of destinations or service products
for trips is forecast to be influenced by those two mentioned factors to some extent. Another critical point is that
the Vietnamese ‘price sensitivity’ when traveling is higher during these times. The proof is that 22% of those
surveyed consider their income to be modest this year because of the pandemic situation; therefore, they have
to be more frugal and cautious when it comes to expenditure.

Worrying that the pandemic may spread again 38%

Income might be low this year, has to save money 22%

Concems about health and safety issues when travelling 21%

Holidays might be reduced, so is freetime 13%

Work will be more stressful, not in a mood for travel 6%

FACTORS AFFECTING VIETNAMESE

TRAVEL INTENT IN 2020

08
VIETNAMESE TRAVEL BEHAVIOR IN 2020

THE VIETNAMESE FAVOR DOMESTIC TOURISM IN 2020

According to the Outbox Consulting’s 2019 survey, the Vietnamese’s tendency for traveling abroad has drastically
increased in recent years; the period from May to October every year is the peak season for Vietnamese
tourists to travel abroad.

Nevertheless, after the peak of Covid-19 since the beginning of this year, Vietnamese tourists tend to opt for
domestic destinations (57%) instead of international destinations (12%) for trips in the second half of 2020.
Additionally, destinations which are near places of residence for short and economical trips have become one
of the alternatives for Vietnamese tourists (16%) this year.

Travelling to domestic destinations 57%

Travelling to destinations near places of residences 16%

Not decided yet 15%

Travelling to international destinations 12%

PREFERRED DESTINATION

09
VIETNAMESE TRAVEL BEHAVIOR IN 2020

TOURISTS PAY ATTENTION TO THE SAFETY OF THE DESTINATION

In the present context of Covid-19 carrying enormous implications for the economy, tourists will be more sensitive
to price regarding destination choice as well as spending plans (30%). Apart from selecting destinations based on
personal preference (23%), currently, Vietnamese tourists focus particularly on the safety of destinations (19%).
Vietnamese tourists’ behavior when selecting destinations are somewhat influenced by the profound impacts
exerted by Covid-19. They will predominantly concentrate on the destination’s safety as well as medical and
health support information. Despite being emerged recently, this factor heavily contributes to determine the
destination choice for both domestic and overseas ones of Vietnamese travelers.

Price 30%
Personal preference 23%
Safety level of the destination’ 19%
Distance / travel time 14%
Popularity of destination 9%
Flights status 4%
Others 1%
FACTORS AFFECTING THE WAY VIETNAMESE CHOOSE DESTINATION

THE DEGREE OF SAFETY INFLUENCES THE TOURISTS’ DESTINATION CHOICE

10
VIETNAMESE TRAVEL BEHAVIOR IN 2020

JULY & AUGUST IS THE MOST CHOSEN TIME FOR TRAVELING OF

VIETNAMESE TOURISTS
During these times of uncertainty due to the pandemic, there are several speculations that it would take the
tourism industry at least six months to one year to recover. However, there is a positive sign for the domestic
tourism market that a majority of tourists (45%) desire to resume traveling rather soon, starting from July and
August. Besides, 31% of those surveyed announce that they have yet to schedule their travel plans. This
reveals that Vietnamese tourists consciously decide on when to go on trips and are petrified of the possible
recurrence of the pandemic.

Summer (July & August) 45%

Have a plan with no certain time 30%
September or October 15%
November or December 10%
TRAVEL TIME FOR THE UPCOMING TRIP IN 2020

MOST OF VIETNAMESE PREFER TO TRAVEL ON JULY AND AUGUST

78% of Vietnamese tourists declare that they will go on trips lasting no more than five days. Vietnamese
tourists still have the habit of going on short trips; average trip length of three to five days (46%) is certainly
preferred by most Vietnamese. Vietnamese tourists are quite sensitive to price these days, so short trips are
suitable for their budget. Furthermore, tourists principally focus on health-related problems currently, and short
trips make them feel safer rather than long trips.

46% 32% 10% 7% 5%

3-5 DAYS NO MORE THAN 6-8 DAYS MORE 10 DAYS 9-10 DAYS
03 DAYS

11
VIETNAMESE TRAVEL BEHAVIOR IN 2020

PLANES AND PERSONAL TRANSPORT ARE STRONGLY FAVORED BY

VIETNAMESE TOURISTS
There certainly are concerns about tourists not traveling by plane this year for fear of being unsafe. However,
because of captivating demand boost and promotion campaigns from airlines as well as extreme safety
measures, air travel remains the top choice of Vietnamese tourists when traveling (45%) regardless
of domestic or international flights. Additionally, personal vehicle has gradually become popular
among Vietnamese tourists (32%).

45% 19%
Bus

Plane

3%
32%
Train

Personal 1%
vehicle Others

MEANS OF TRAVEL

12
VIETNAMESE TRAVEL BEHAVIOR IN 2020

INDEPENDENT TRAVEL WITH FAMILIES IS THE VIETNAMESE TOURISTS’

OVERWHELMINGLY PREFERRED STYLE
The trend of independently planned travel has become more and more prevalent among the Vietnamese
tourist community, especially domestic trips. 92% of Vietnamese tourists opt for planning the trip themselves in
2020; 48% of those announce that they will go on trips with their families.

The tendency to travel with families of the Vietnamese is hardly affected by the Covid-19 pandemic. Besides,
in 2020, there exists the trend of solo travel among Vietnamese tourists with 19% of those surveyed respond
that they will choose this style for their trips in the next six months.

Independent travel with families 48%

Independent travel with friends / colleagues 25%

Solo travel 19%

Take tour group 8%

TRAVELING STYLE

13
VIETNAMESE TRAVEL BEHAVIOR IN 2020

SEA AND ISLAND TOURISM IS FAVORED BY MOST

TOURISTS IN 2020
According to the survey results, Vietnamese tourists do not have any dominant travel activity options. Vietnam-
ese tourists’ favorite activities vary from peaceful homestays to famous tourist attractions. 26% of those
surveyed state that they will choose sea and island destinations for their trips. 20% of those will visit famous
cities and 16% will engage in outdoor and picnic activities.

Sea & Island tourism 26%

Tour to popurlar destination 20%

Outdoor & Picnic ativities 16%

Staying at resorts 13%

Staying at quiet homestay 12%

Family tour with kids 12%

Others 1%
PREFERRED TRAVEL ACTIVITIES

14
 CONCLUSION
The Covid-19 outbreak in the past few months has made a tremendous impact on
tourists’ attitude and behavior regarding traveling. After the pandemic, tourists tend
to be more cautious about planning and expending on a trip. The study results
demonstrate that the domestic tourism market will stand a chance to grow in no time
for the reason that a majority of the Vietnamese would like to opt for traveling within
the country.

Vietnamese tourists will be more sensitive to price as well as pay particular

attention to health care when selecting destinations. Therefore, travel businesses
and tourist attractions should handle any matters relating to safety and sanitation
with extra care. Independent travel with families and going on short trips are vastly
preferred by Vietnamese tourists. Tourists’ top priority will be traveling to seas and
islands as well as most visited cities. In response to this behavior, travel businesses
can design short trip plans to attract tourists.

Summertime will still be the period that most tourists choose to travel. This will be
“the golden time” for destinations and travel agents to introduce new products or
bonus policies to boost demand. As planes are favored means of transportation for
short trips, airlines can raise the number of flights in the near future to fulfill tourist’s
growing travel demand.

Besides, there remain many tourists who feel quite prudent when it comes to traveling,
for they concern that the pandemic will recur. However, when the pandemic situation
has become calmer in the near future, tourists will be more willing to travel. Although
the tourism industry has been stagnant for the first six months of 2020, tourists will
travel more in the second half of the year. We believe that domestic tourism will rapidly
recover and this is the opportunity for businesses and destinations to come up with
their own recovery plan, gradually getting back to full operation in the coming year.

15
New Thinking. New Destination

CONTACT US:

www.outbox-consulting.com
220 Tran Nao St., Dist.2, Ho Chi Minh City, Vietnam
info@outbox-consulting.com
+84 28 6275 5726