In a masterstroke of vertical integration, Vietravel's strategic foray into airline ownership is paying off. This shrewd move has allowed the company to streamline costs and offer more competitively priced travel packages, resulting in a significant uptick in both domestic and international tourist numbers. The company's performance has not only outpaced its 2023 figures but is also setting new industry benchmarks.
Domestic and international tourism, which weathered the storm of the pandemic, are now experiencing a phenomenal resurgence, witnessing growth unlike anything seen before.
The Vietnam National Administration of Tourism reported that during the first half year of 2024, international visitor numbers surged 58.4% year-over-year to 8.8 million. This figure also represents a 4.1% increase compared to the same period in 2019, signaling a robust recovery from the pandemic-induced slump. South Korea remains the primary source market, contributing 2.2 million visitors (25.8% of the total), followed closely by China with 1.8 million (21.4%). The United States rounds out the top three, accounting for 415,000 visitors.
Domestic tourism has shown equally impressive growth, with 66.5 million trips recorded in the first half of 2024—a 4% increase from the previous year and a staggering 46.5% jump from 2019. The sector's total revenue for the period reached an estimated 436.5 trillion VND, underscoring its significant economic impact.
Vietnam's tourism sector is witnessing a spectacular comeback, with local travel companies seeing their revenues skyrocket by nearly 50% in the first five months of 2024. This surge comes on the heels of Vietnam throwing open its doors to international visitors, marking a decisive turn in the industry's fortunes.
To get the inside scoop on this tourism renaissance, VnEconomy sat down with the man at the helm of one of Vietnam's travel juggernauts - Nguyen Quoc Ky, Chairman of Vietravel Corporation. Mr. Ky, whose company has been making waves with its savvy airline operation, offered a bird's-eye view of the industry's dramatic turnaround.
Vietravel Has a Surge in Tourist Arrivals, Particularly from China
In the wake of a challenging two to three years due to Covid-19, what positive transformations are being observed in Vietnam's tourism industry? Could you share your insights on the opportunities and challenges that lie ahead for Vietnamese tourism in general?
Many popular destinations in Vietnam have recently reported significant increases in tourist numbers.
Opportunities
The government is actively rolling out policies to rejuvenate tourism, including tax reductions, financial support for tourism businesses, and global marketing campaigns promoting Vietnam as a premier travel destination. The embrace of digital technology, particularly online accommodation and tour booking, is revolutionizing the industry, as a key driver of growth.
Challenges
The competition is fierce as other Southeast Asian countries are also vigorously reviving their tourism industry. Vietnam must address service quality issues and bolster its marketing efforts to stay competitive. Additionally, the impacts of climate change are affecting many coastal tourist spots and ecosystems, necessitating measures to adapt and protect these environments.
Against this backdrop, how has Vietravel's business performance been faring?
Vietravel's performance in the first half of 2024 has been nothing short of stellar. The company served over 400,000 tourists in just six months, compared to 750,000 for the entire year of 2023. The Northern Vietnam for multi-destination tours increased by 31% compared to the same period in 2023, while Thailand grew by 7%.
Post-pandemic, we are in a period of acceleration and breakthrough. Vietravel swiftly introduced new services, focusing on eco-tourism, cultural experiences, and authentic exploration. The company has also launched numerous flexible and personalized tours to meet customer demands in this new era.
Moreover, keeping up with contemporary trends, Vietravel is expanding partnerships with many valued international partners to broaden our tour network, offering customers more choices. This strategy will enhance Vietravel's competitive edge in the international tourism market.
Forecasting a Boom: Chinese and American Tourists Expected to Double Next Year
How has the influx of Chinese and American tourists to Vietnam through Vietravel evolved over the years, and what is the company's assessment of the potential of these markets?
In the first half of 2024, the number of Chinese tourists traveling to Vietnam through Vietravel doubled compared to the same period last year, reaching over 3,000 visitors. Meanwhile, the number of American tourists served by Vietravel remained steady year-over-year.
Chinese Tourists
China is Vietnam's largest tourism market and a crucial source of customers for Vietravel. Over the years, the number of Chinese tourists traveling to Vietnam through Vietravel has shown steady growth annually. At Vietravel, we design many special tour packages tailored to the needs and preferences of Chinese tourists, including cultural heritage tours, shopping trips, and luxury resort stays.
American Tourists
Although the number of American tourists to Vietnam is not as high as Chinese tourists, the American market has significant growth potential in the near future. American tourists often seek diverse travel experiences, from cultural and historical tourism to adventure and nature tours. Vietravel has developed a wide range of tours to meet these demands.
Currently, American tourists are looking for high-quality and unique travel experiences. Vietnam, with its rich culture, long history, and beautiful natural landscapes, fully meets these needs. Additionally, the Vietnamese government has been implementing more favorable visa policies for international tourists, including Americans, facilitating the attraction and increase of American tourists.
Please elaborate on the specific challenges and obstacles faced by Vietravel?
The emergence of numerous competitors, both domestic and international, focusing on the Vietnamese tourism market creates intense competition. Price competition can affect profit margins, requiring the company to balance maintaining service quality with offering reasonable prices.
Airline Customer Growth by 40%: A Key Advantage in Attracting Tourists
Could you provide an overview of the performance of the aviation sector in terms of flight operations, route expansion, and air passenger volume during the first six months of the year, compared to the corresponding period last year?
• In the first half of 2024, Vietravel Airlines reported many positive signals compared to 2023:
• Total commercial flights reached 3,701, an increase of more than 17.9%.
• Seats offered exceeded 777,000, up more than 18.8%.
• Passenger transport reached 700,000, a remarkable 39.2% increase.
Acquiring its own airline marks a significant stride for Vietravel in captivating a broader international audience through direct flights connecting numerous countries to Vietnam. This strategic move not only bolsters Vietravel Airlines' competitive edge but also expands its footprint in the tourism market, promising unparalleled experiences for travelers.
In enhancing its domestic routes, Vietravel Airlines has introduced overnight flights on key routes like Ho Chi Minh City to Hanoi, Ho Chi Minh City to Da Nang, and Hanoi to Da Nang. Internationally, the airline has launched charter flights such as Hanoi to Sanya (China) and Ho Chi Minh City to Takamatsu (Japan).
The expansion of Vietravel Airlines' flight network brings strategic advantages, fortifying Vietravel's competitiveness and expanding its market share in the tourism sector. As the pioneering travel company in Vietnam to own its airline, Vietravel ensures consistent service excellence and a seamless customer journey from takeoff to touchdown.
Moreover, Vietravel has optimized air transport costs, enabling it to offer more competitively priced travel packages. The company also provides enticing promotions and exclusive deals for customers booking flight and tour combinations, adding further appeal and encouraging travelers to choose Vietravel.
Looking ahead, Vietravel Airlines plans to expand its flight network to new and exciting tourist destinations, enhancing opportunities for diverse and immersive travel experiences.
Additionally, Vietravel Airlines maintains flexibility in adjusting flight schedules to meet dynamic market demands, ensuring operational agility and effectiveness. The dual presence of Vietravel in both tourism and aviation sectors not only elevates brand recognition but also reinforces customer confidence in a company committed to delivering comprehensive and seamless travel solutions.
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As the Largest Aviation-Tourism Corporation in the country, Vietravel consistently provides high-standard services at the most competitive prices so that you can discover the beauty of not only Vietnam but all of Southeast Asia.
Please contact us for more information.
Vietravel – Asia’s Leading Tour Operator
Hotline: (84) 35 235 61 61
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Website: www.vietravelasia.com
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