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 TABLE OF CONTENTS

04
Preface

05
A look back on 2020

13
Vietnam travel trends in 2021

15 Travel trends
18 Planning and booking trends
20 Technology trends in tourism
22 Destination trends

26
Reference
PREFACE

2020 was full of major events, with COVID-19 in the limelight.

The pandemic has forced billions of people to alter their lifestyles
and plunged countless businesses into severe economic crisis.
The global tourism has seen an unprecedented record decline in a
variety of domains. Everything has come to a standstill under
lockdown, social distancing, and shelter-in-place orders. As
heavily impacted by the pandemic, travel and tourism sector faces
a rapidly changing future.

However, there is a reason for hope. Mobility Market Outlook

(MMO) reveals that despite the crisis of 2020, a global decline in
arrivals and business losses, the global travel and tourism market
is set to recover fully from the pandemic by 2023 and achieve
record revenue figures. According to MMO, global travel and
tourism revenue for 2021 is forecast to increase by over 50%
compared to 2020. New revenue records can be expected from
2023 onwards; for 2025 the MMO experts even predict revenue
growth of nearly 23% versus the success year 2019.

In the wake of the pandemic, understanding the future of tourism

has become more important than ever. To get business back on
track and maintain positive relationships with potential travelers,
the tourism sector needs to take a deeper look at emerging trends
and integrate new insights into products and services as well as
marketing and communication campaigns.

04
A LOOK BACK
ON 2020
 Vietnam travel trends 2021
Upending almost every aspect of life, 2020 was a
peculiar year for Vietnam and many countries,
seemingly altered every aspect of the lives of
people – a year of constant change requiring
short-term responses, a year that negated previous
forecasts of a new surge in tourism trends.
Tourism and COVID-19: a deadly
pandemic to an economic crisis
With its growing contributions over the years,
tourism is considered as an important sector of
the economy of many countries around the
world. Hence, the impacts of COVID-19 on
tourism lead to greater effects on the whole
economy. Although the degree of influence of
COVID-19 on traveling of each country is varied,
there is a certainty that destinations with a larger
economic dependence on tourism are more
vulnerable to the crisis.
Due to the pandemic, governments worldwide
introduced unprecedented measures to contain
the virus, restrictions on travel, business
operations, and interpersonal interactions,
which caused one of the biggest crises for
tourism industry. Global tourism started to slow
03
down in mid-March 2020 when international
tourist arrivals fell 56% in the first few months
and continued to decline by 98% in May 2020.
This resulted in a loss of nearly USD 320 billion
in industry revenue in the first five months of
2020 – three times higher than the amount lost
during the entire global economic crisis of 2009
(UNWTO, 2020). Although travel restriction
was initially easing, destinations gradually
reopened in the past few months, future-based
scenarios indicate that interregional tourism
arrivals and revenues are likely to experience
further declines. Tourism recovery is highly
depended on how fast the pandemic spreads
with no certainty.
The tourism industry will not only face the
challenges that are still ahead depending on not
only the pandemic situation but also recovering
travel confidence.
06
Vietnam travel trends 2021

Vietnam’s tourism industry and COVID-19 impacts

2019 was a year of high achievement for national tourism as Vietnam received 18 million
international tourists (up 16.2% compared to 2018), and hit VND 720 trillion in revenue. This put
Vietnam in the world’s top 10 fastest growing tourism countries (General Statistics Office).

GLOOMY ECONOMIC SITUATION

TOURISM REVENUE DOMESTIC TOURISTS INTERNATIONAL TOURISTS

VND VND VND

- 530 56 3.8
trillion million million
34.1% 80%

CLOSED ACCOMMODATIONS AVERAGE OCCUPANCY TOUR OPERATORS

RATE

1/5 25% 340

total accomodation establishments apply for withdrawal of
business certificates

2020 pointed to a sharp decline in the tourism industry.

Vietnam welcomed only 56 million domestic tourists and 3.8 million international tourists,
resulting in a decline of VND 530 trillion in tourism revenue compared to 2019. In terms of the
hospitality industry, nearly one-fifth of tourist accommodations had to close temporarily, the
average occupancy rate dropped to a record low (only 20 – 25%) and nearly 340 tour operators
applied for the withdrawal of business certificates.

07
 Vietnam travel trends 2021

Pandemic and unprecedented responses from the tourism industry

COVID-19

MEASURE No mask,
Lockdown
no fly

RESULT New normal

Travel
Blursday Hoffice Workation Contactless
bubble

CONSEQUENCE SOLUTION

Historically, tourism has demonstrated a strong seize this crisis as an opportunity to facilitate
ability to adapt, innovate, and recover from industrial transformation towards flexible,
adversity. However, this unprecedented comprehensive and sustainable growth.
situation requires new approaches, solid
multi-level responses and inter-agency As a response to the crisis, the tourism landscape
collaboration. While solutions are needed to came up with numerous jargons and buzzwords
mitigate pandemic’s impacts on tourism and to better reflect current trends in tourism.
accelerate recovery, industry leaders should

08
 Vietnam travel trends 2021

No mask,
no fly
Lockdown If lockdown is how the government responds to
a pandemic, “no mask, no fly” is how the tourism
sector in general and the transportation sector
in particular ramp up their efforts to control the
virus. In Vietnam, unmasked passengers will be
reminded of wearing masks or even be refused
to boarding, regardless of whether they travel
by plane, bus, or train.

This means, in the time of a pandemic, wearing

a mask is a must, not something people can do
Travel’s biggest nemesis, a lockdown is a
on a whim. All citizens are required to wear
requirement for people to stay in their local areas
masks in public places to protect themselves
and to adapt to the impossibility of free
and their communities from the virus.
movement between countries. Lockdown
reduced international tourist arrivals in Vietnam
to 3,8 million and total tourism revenue by VND
530 trillion. In such a dilemma, tourism players
have promptly changed practices, shifting focus
to the domestic tourism market to scale down
the effect of the crisis.

09
 Vietnam travel trends 2021

New
normal
This term is used the most in not only the
tourism industry but also many other economic
sectors in 2020. New normal is the result of
adaptation process of people and the whole
economy with the pandemic. The advent of
jargons like Blursday (the loss of the sense of
dates when being at home for too long) and
Hoffice (working from home) describes the
change and the strangeness of the new normal.

The tourism industry is not an exception when it

comes to adapting to the new state of the world
when travel is limited. Tourists change their
travel behaviors such as choosing destinations
close to their accommodation to reduce travel
distance or choosing to travel locally to satisfy
their travel needs while ensuring safety. Among
these changes, some will return to “normal”
once COVID-19 is under control and countries
lift their restrictions. However, some changes
like spending more time at home and focusing
on home entertainment will take longer to get
back to "normal". Some changes such as being
more responsible for travel, not simply
protecting the environment, but also being
accountable to local communities at the
destination, will turn into a long-term habit
post-pandemic.

10
 Vietnam travel trends 2021

Travel
bubbles
Travel bubble was first coined in early May 2020 to describe unrestricted travel between Australia and
New Zealand. Travel bubble, also called travel corridors, is an exclusive agreement between countries
or cities that well manage the spread of COVID-19. Travel bubble allows people to travel freely
between two countries without any quarantine upon arrival. Although travel bubbles in Asia and other
regions fail to materialize due to another wave of the pandemic, they still stand out as a practical solu-
tion to reopen the world to travel.

11
 Vietnam travel trends 2021

Workation
Contactless
Before the pandemic, tourism was a service
industry that required regular contact, but
COVID-19 forced people to limit exposure.
Faced with these new requirements, trends in
exposure-limiting technology have never been
developed and applied as much as they are now
in the tourism and service industries. Touchless
technologies are everywhere in your journey
from check-in to boarding, to hotel check-in or
payment for travel services. It can be said that
in addition to the negative impacts, COVID–19
The line between business travel and leisure has contributed significantly to shortening the
travel continues to blur under the influence of time of digital transformation in the tourism
COVID-19 as well as the rearrangement of the industry, which used to take years or so now
priorities when traveling. In 2020, travel takes only a few months.
agencies, hotels and resorts will launch special
'staycation' or 'workation' packages that
combine safety measures with low prices to
incentivize tourists and address the demand.
This trend is expected to continue to grow after
the pandemic, and demand for bleisure travel
will come back stronger after being disrupted
and pent-up due to lockdown and social
distancing. On the other hand, changes in
behavior, in gradually established new normal,
in the nature of the work and in operation
remain the same quite a long time post-COVID.

12
VIETNAM
TRAVEL TRENDS
IN 2021
 Vietnam travel trends 2021

In 2020, the four factors that affected the tourism sector include vaccine, the government‘s tourism policies,
economy, and environment. The number of COVID-19 infections continues to increase and WHO officials warn
that health systems are collapsing under coronavirus. The availability of COVID-19 vaccines and tourism
policies of each country are prerequisites for boosting travel demand. Finance also has a part to play in
consumers’ travel motivation. Given income contraction, travelers start to vote with their wallets when weighing
destinations. COVID-19 pandemic was not the only tragedy in 2020 as thousands of people were killed and
millions were displaced due to disasters fueled by climate change. These events have raised environmental
awareness and responsibility.

COVID-19 extended the impact of these effects on the Vietnamese tourism industry and make an important
contribution to form Vietnamese tourism trends in 2021. Under the influence of these four factors, the 2021
tourism trends will be summarized into four groups including travel trends, planning and booking trends,
technology trends, and destination trends.

14
Vietnam travel trends 2021

TRAVEL TRENDS

Socially distant travel

Before COVID-19, exploring a crowded city, strolling through

bustling markets, enjoying dinner at a bistro brimming with locals, or
touring major attractions were Vietnamese tourists’ favorite
activities. However, in this current situation where virus-containing
measures are enforced at every corner, travelers must direct the
need to travel to destinations that give top priority to their safety.
Restrictions on destination choices, travel mobility, and
interpersonal interactions have changed the way people travel.
Socially distant travel is expected to set the trend for 2021. Travelers
can plan socially distanced vacations in a sparsely populated area
nearby and be safe from coronavirus.

With this paradigm shift, tour operators need more suitable plans
and products that align with travel demands of people who prefer
socially distant travel.

16
15
Vietnam travel trends 2021

XU HƯỚNG
TRAVEL TRENDS
DU LỊCH

Small group travel

If socially distant travel is how independent travelers adapt to the

new situation, small group travel is a choice for people who want to
travel as a group. A regular trip in 2019 could accommodate 20 – 30
visitors; in 2021, the size will shrink down to control the spread of
infectious diseases. As countries impose stricter entry restrictions
on overcrowded place, travel with safety at the top of the mind
receives more attention.

As this trend becomes more prevalent, tour operators need to work

out their creativity by designing itineraries. There are several
contents that tour operators can consider, including focusing on
more remote and isolated areas, or niches such as biking tours or
hiking tours where travelers are less likely to come into contact with
others. Tours that prioritize safety and hygiene are the new tool to
earn customer attention and increase business profitability.

03 16
 Vietnam travel trends 2021

TRAVEL TRENDS

The Conscious Travelers

The COVID-19 crisis presents an opportunity for industry players

to rethink tourism operations and also for travelers to reconsider
FIR
ST their travel choices. This forms a new type of traveler – conscious
travelers. Be responsible while considering every decision is what it
SAF means to be a conscious traveler. They want to see the world in a
ETY
FIR different way and desire unique experiences and memories, but not
ST
at the cost of the planet and local communities.

Safety is the most important priority for this type of group at the
moment. With this in mind, tourism businesses need to customize
products to better match these travelers’ preferences.

Wellness travel
Wellness travel is not a new trend in the tourism industry;
however, during the pandemic, fatigue and stress have become
almost familiar to everyone. So finding a wellness retreat after the
pandemic will be a trend in 2021.

In 2019, Vietnam is considered an emerging destination for the

wellness travel trend in the Asia Pacific region. This combined
with the increase in visitor demand for wellness travel trends this
year will be a good opportunity for Vietnam's wellness tourism
market, especially as Vietnam is emerging as a safe destination for
disease control.

03 17
Vietnam travel trends 2021

PLANNING AND BOOKING TRENDS

Shorter timeframes

Pre-COVID, Vietnamese travelers often planned their trip and

booked services long before their departure to save money,
especially when it comes to overseas tours. However, in times of
uncertainty, shorter booking timeframes will help mitigate the risk
of travel policy changes and mobility restrictions.

A report of Skyscanner in 2020 also stressed that travelers waited

until the last minute to book accommodation, as they perceived it
would be harder to cancel and get a refund for hotel bookings than
flight tickets.

In order to adapt to “shorter timeframes” trend, tourism enterprises

have changed booking terms and conditions towards flexibility. With
rapidly changing travel policies and regulations, allowing travelers to
change hotel reservations or flight tickets at no extra charge seems
the only way to give travelers a nudge to book confidently.

Travel with more responsible choices

Any discussion on tourism sustainability will end up centering

around environmental impacts. Pre-COVID, travelers frequently
agonized over how to minimize the footprints they left to the
environment. The pandemic has put the world on hold to reconsider
the impact of individual actions on the natural environment as well
as society and local communities as a whole. Travelers start to make
more conscientious decisions to fulfill their responsibilities towards
the environment, destinations, and local communities.

03 18
Vietnam travel trends 2021

PLANNING AND BOOKING TRENDS

The indispensable travel consultants

In times of disruption and uncertainty, travelers are in dire need of

an invaluable source of information to keep informed of the latest
coronavirus news. COVID-19 underlines the critical role of travel
agents, they not only sell tours and events like before but also have
fountains of knowledge and information. Travel agents respond to
all requirements since they offers travel advices, implement the
best flight plans, provide the latest news on health and safety
standards, and help tourists cancel and get a refund for flight
tickets and hotel bookings.

Therefore, destinations, airlines, hotels, and car rental companies

should collaborate closely with travel agents to ensure they all have
the details they need to increase consumer base and handle any
potential disturbances.

19
Vietnam travel trends 2021

TECHNOLOGY TRENDS IN TOURISM

Digital transformation
Technology has been embedded in Vietnam and the world’s
tourism industry for years. COVID-19 pandemic has sped up
digital transformation more than ever before. Many countries have
advocated the adoption of digital technologies in tourism as an
effective solution to address the policies such as reduced contact
or distancing which are designed to prevent the spread of diseases.
such as reduced contact or social distancing. Online tours are
seeing a surge in popularity as they take advantage of virtual
reality technology.

Airbnb took a step ahead of the competition by launching online

experiences – a great way to connect people who want to escape
reality with hosts. However, virtual experiences require strong
investment in the technology platform, which only a few service
providers can handle, said Parin Mehta, Regional Director, Airbnb
Experiences APAC.

In the future, virtual experiences can become a gold standard for

each business, enabling visitors to connect with their tour guides
and experience services prior to booking. This type of
experience will help businesses hook customers and run direct
marketing effectively.

20
Vietnam travel trends 2021

TECHNOLOGY TRENDS IN TOURISM

Contactless technology to inspire traveler confidence

In 2021, technology will be conducive for boosting traveler

confidence. In recent survey conducted by Censuswide, more than
4 out of 5 travelers said technology would increase their confidence
to travel in the next 12 months. A mobile app that provides
warnings and updates on local outbreaks or government’s latest
guidelines would be the solution of the year. Besides, touchless
payments (for example, Apple, Google Pay, PayPal, and Venmo)
would take off the heavy lifting, helping travelers confidently to be
on the move in the next 12 months.

In 2021, safety will be of paramount importance, and simple

technology solutions will urge travelers on exploring the world
with more confidence.

03 21
Vietnam travel trends 2021

DESTINATION TRENDS

Off-the-beaten-track destinations and second cities

Following 2019 – 2020 trends, travelers tend to opt for

off-the-beaten-track destinations and second cities. Post-COVID,
interest in traveling to these places continues to grow as prioritizing
safety and avoiding crowds will be the leading factors in travelers’
decisions. These destinations allow tourists to practice social
distancing while exploring and reconnecting with nature – activities
that they missed in the entire year. Given the tendency to hop in new
landscapes and keep tourist hotspots at arm’s length, it is projected
that Vietnam’s tourism map will witness the emergence of brand
new destinations which are small-scale and well-fitted with specific
travel needs.

22
Vietnam travel trends 2021

DESTINATION TRENDS

Domestic tourism

Until the pandemic can be suppressed and controlled, the domestic

tourism market is still at the heart of the development in 2021. A
survey conducted by Outbox Consulting in 2020 reveals that
islands, beach cities and famous tourist cities are top desinations
and expected to be on top of mind of Vietnamese travelers in 2021.

Vietnamese tourists often spend 2 – 3 days enjoying domestic tours

when they have a long weekend or short holidays. Therefore, their
preferred destinations are often in the proximity of their cities and
have good traffic. Regarding beach cities, Vung Tau and Nha Trang
are among popular destinations that domestic travelers can visit at
their convenience. Ha Long, Sapa, Phu Quoc, or Da Lat also enjoy a
high number of tourist arrivals.

23
Vietnam travel trends 2021

DESTINATION TRENDS

Vaccine-dependent recovery path of outbound tourism

As reported by Skyscanner, tourism will be the first industry to

rebound once the global economy gets back on track. Travelers will
be more cognizant of the need to travel to destinations and pick
tours that make it easy to maintain health and safety. While hunger
for new experience appears undimmed, and mobility restrictions are
still in place, a strong ability to contain the pandemic and distribute
vaccines will push the tourism industry forward.

Vietnam also sets out its roadmap for borders opening and tourism
rebuilding based on the effectiveness of other countries’
interventions against COVID-19. Apart from vaccines, the speed of
tourism recovery depends partly on the factors that drive
destinations reopening. Mastercard and CrescentRating report
suggests a plausible growth recovery path for ASEAN. In Q1 2021,
the recovery phase is gradual due to sporadic collaboration among
ASEAN countries, and in Q3 2021, normalization begins with news
of a potential vaccine being made available. International travel
begins to open to tourists in Q1 2022.
What we do

NOW
is shaping our

FUTURE
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