Market Size of Vietnam Online Travel Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | 10.00 % |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Vietnam Online Travel Market Analysis
The Vietnam Online Travel Market is currently valued at USD 9.2 Billion and is expected to register a CAGR greater than 10% during the forecasted period.
The COVID-19 pandemic severely impacted the Vietnam economy, hitting tourism particularly hard, and the sector needed to accelerate digital transformation to manage the business and reach customers. Vietnam's travel sector relied heavily on international travel, which plunged in the year 2020. International flights dropped 80 percent in October 2020 from the same period a year earlier in Vietnam. The demand for domestic travel in Vietnam is expected to grow. It will likely recover relatively fast because of growing domestic spending by vacationers who could not travel abroad and who have redirected their money locally at a higher level than in 2019.
Vietnam is a Southeast Asian country known for its beaches, rivers, Buddhist pagodas, and bustling cities. Tourism contributes a significant share of Vietnam's GDP, and the economy has relied on domestic travel to buoy the sector. Vietnam's Online Travel industry is a flourishing sector. An increasing staycation, beach visits, fairs, and exhibitions are expected to contribute to inflows of international tourists and domestic tourist movement. The Government's initiative of taking fast steps towards online travel promotion tells about the growth in Vietnam travel in 2019; the blooming of online travel helps the participants have an overview of the online travel market in Vietnam, tourism development trends, and the conversion of customers' choices from traditional tourism to digital tourism. Also, VECOM addressed that the demand of tourists determines the supply of product services and ways to catch up with the psychology of tourists and optimize the cost for the business. It is needed because tourists desire explorations and experiences wherever they go, not just food and drinks. Therefore, to meet customer needs, it is necessary to optimize to diversify service utilities and increase the experience of tourists even when they have not arrived.
The rise in the travel and tourism industry and changing patterns in the standard of living have led to progressive growth in online travel market trends. One area of potential growth in demand for Vietnam Online Travel is working holidays. Further divided into Nature-based holidays with cultural elements, adventure or wellness have high growth potential. Consumers' desire to go outdoors remains strong, and the Vietnam countryside is estimated to enjoy the benefit in the forecast period. Nature-based holidays with cultural elements, adventure, or wellness have high growth potential.
Vietnam Online Travel Industry Segmentation
Vietnam Online Travel is one of the most widely demanded as people prefer tourism and naturally embrace economic trips. A complete background analysis of the Vietnam Online Travel Market, which includes an assessment of the economy, a market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles, are covered in the report. The Vietnam Online Travel Market is segmented by Booking Type (Air Ticketing, Hotels and Packages, Bus Ticketing, Rail Ticketing, and Other Booking Types) and platform (Desktop and Mobile). The report offers Market size and forecasts for the Vietnam Online Travel Market in revenue value (USD) for all the above segments.
By Booking Type | |
Air ticketing | |
Hotels and Packages | |
Bus Ticketing | |
Railway Ticketing | |
Other Booking Types |
By Platform | |
Desktop | |
Mobile |
Vietnam Online Travel Market Size Summary
The Vietnam Online Travel Market is experiencing significant growth, driven by a shift towards digital tourism and increased domestic travel. The sector, which is a crucial component of Vietnam's economy, has been recovering from the impacts of the COVID-19 pandemic by focusing on domestic tourism and digital transformation. The government's initiatives to promote online travel have facilitated this transition, encouraging a shift from traditional to digital tourism. This evolution is supported by changing consumer preferences, with a growing demand for diverse travel experiences, including nature-based and wellness holidays. Despite the competitive landscape, with international players like Agoda and Booking.com dominating the market, local companies are gradually adapting to these trends.
Vietnam's appeal as a tourist destination is bolstered by its rich cultural heritage, natural beauty, and affordability, making it a popular choice for both domestic and international travelers. The country's infrastructure improvements, such as upgraded airports and transportation systems, have enhanced accessibility, further boosting tourism. The online travel market in Vietnam is highly competitive, with numerous players vying for market share. International brands are leading the market, but local companies are increasingly leveraging digital platforms to offer attractive travel deals and packages. This competitive environment is expected to drive further growth in the online travel sector, positioning Vietnam as a key player in the Asia-Pacific region.
Vietnam Online Travel Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Internet Penetration
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1.2.2 Government Initiatives and Infrastructure Development
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1.3 Market Restraints/ Challenges
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1.3.1 Language and Cultural Barriers
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1.3.2 Competition from Offline Travel Agencies
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Buyers/ Consumers
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1.4.2 Bargaining Power of Suppliers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products
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1.4.5 Intensity of Competitive Rivalry
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1.5 Insights on Consumer Buying Behavior in Vietnam Online Travel Market
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1.6 Insights on Governmental Regulations in Vietnam Online Travel Market
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1.7 Insights on Technological Disruption in Vietnam Online Travel Market
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Booking Type
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2.1.1 Air ticketing
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2.1.2 Hotels and Packages
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2.1.3 Bus Ticketing
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2.1.4 Railway Ticketing
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2.1.5 Other Booking Types
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2.2 By Platform
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2.2.1 Desktop
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2.2.2 Mobile
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Vietnam Online Travel Market Size FAQs
What is the current Vietnam Online Travel Market size?
The Vietnam Online Travel Market is projected to register a CAGR of greater than 10% during the forecast period (2024-2029)
Who are the key players in Vietnam Online Travel Market?
Tugo, Expedia, Bookings.com, Agoda and SkyScanner are the major companies operating in the Vietnam Online Travel Market.