Phuoc Dang
Phuoc Dang
09:41:11 – May 25, 2020

Covid-19 swept through and changed almost the whole landscape of all industries. As an industry directly affected by the crisis, Vietnam tourism has no choice but to follow the new changing trend.

In this context, tourism management and enterprises in Vietnam must not only quickly implement immediate solutions to gradually restore domestic tourism activities but also be ready for a comprehensive change in the way the industry operates and develops in the future.

Aircraft may need restructuring for more space
After getting familiar and recognizing the huge benefits of social distancing, all airline passengers are expected to prefer more personal space on flights to ensure safety. In fact, many airlines in other countries like Alaska, Delta or EasyJet are considering applying this standard to their flights in the future. As a result, the future of low-cost airlines becomes unforeseeable.
Aircraft may need restructuring for more space
After getting familiar and recognizing the huge benefits of social distancing, all airline passengers are expected to prefer more personal space on flights to ensure safety. In fact, many airlines in other countries like Alaska, Delta or EasyJet are considering applying this standard to their flights in the future. As a result, the future of low-cost airlines becomes unforeseeable.
Cleanliness becomes an indispensable element to all services
While airlines face the pressure of imposing new hygienic standards on their services, restaurants and hotels have to prove their “safety” to the guests as well. To ensure safety, tourists are expected to look for boutique resorts or accommodations with less physical contact. They may even require authorities in their destination to verify that safety standards in services are well preserved.
Cleanliness becomes an indispensable element to all services
While airlines face the pressure of imposing new hygienic standards on their services, restaurants and hotels have to prove their “safety” to the guests as well. To ensure safety, tourists are expected to look for boutique resorts or accommodations with less physical contact. They may even require authorities in their destination to verify that safety standards in services are well preserved.
People will travel to destinations that are closer to them

Travelers are expected to choose near destinations which are highly approachable by car, train or short-haul flights. Destinations in urban areas with huge crowds will no longer be the priority to travellers. Instead, destinations which are associated with countryside, ecology and community and attract fewer numbers of visitors will be their new top priority in the new normal. In addition, although business travellers are expected to contribute to the recovery of the international tourism market, they now may start to carefully consider the need of business travel as many alternative solutions for meeting and working rapidly emerged during the social distancing period.

People will travel to destinations that are closer to them

Travelers are expected to choose near destinations which are highly approachable by car, train or short-haul flights. Destinations in urban areas with huge crowds will no longer be the priority to travellers. Instead, destinations which are associated with countryside, ecology and community and attract fewer numbers of visitors will be their new top priority in the new normal. In addition, although business travellers are expected to contribute to the recovery of the international tourism market, they now may start to carefully consider the need of business travel as many alternative solutions for meeting and working rapidly emerged during the social distancing period.

The decline of the middle and low-end market segment
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The severe economic downturns caused by Covid-19 directly impacted the purchasing ability of the market, especially of the middle and lower class that accounts for the majority of the total demand. Travelers are expected to tighten their pockets, even cancel tours for at least the next few years.
3662319
The decline of the middle and low-end market segment
The severe economic downturns caused by Covid-19 directly impacted the purchasing ability of the market, especially of the middle and lower class that accounts for the majority of the total demand. Travelers are expected to tighten their pockets, even cancel tours for at least the next few years.

The golden opportunity to make a comprehensive change,

In recent years, Vietnam tourism has always been named as one of the most developed tourism markets in the world and Vietnam has always been one of the top choices of international tourists. Besides seizing many great achievements, the development of the Vietnam tourism industry, however, has been considered as being potentially risky and limited. The lack of sustainability in the market structure, the laxness of the business system, and the lack of connectivity of the supply chain are only some of the existing problems Vietnam tourism are facing right now.

Like other countries in the world, Vietnam tourism also has to be ready for a “new normal” when our former internal problems may become major constraints that hinder our development in the next period. A future tourism market with a customer-centric mindset will require the tourism industry to have a deeper understanding of its market. It also needs to have clear orientations in designing personalized experience when developing tourism products and have more specific solutions to build the service supply chain. All these things are still unfamiliar to many destination managers and domestic tourism businesses and so, what will our tourism need to do to prepare for a new normal with many opportunities as well as challenges and competitiveness?

In addition to the immediate short-term recovery solutions that are currently being implemented, a comprehensive change in development, operation and business that can help improve the capacity of the entire supply chain, respond to new market demands and turn tourism into an experience economy will be a vital task for the tourism management and businesses in Vietnam to consider. The development perspective may shift from performance measurement based on guest statistics to management based on revenue and quality of visitors’ experience. Moreover, innovative thinking in market research, market development, product development and destination building are all urgent tasks to set an important foundation that Vietnam tourism needs to implement soon in order to breakthrough in a new normal of the world tourism industry.

The golden opportunity to make a comprehensive change,

In recent years, Vietnam tourism has always been named as one of the most developed tourism markets in the world and Vietnam has always been one of the top choices of international tourists. Besides seizing many great achievements, the development of the Vietnam tourism industry, however, has been considered as being potentially risky and limited. The lack of sustainability in the market structure, the laxness of the business system, and the lack of connectivity of the supply chain are only some of the existing problems Vietnam tourism are facing right now.

Like other countries in the world, Vietnam tourism also has to be ready for a “new normal” when our former internal problems may become major constraints that hinder our development in the next period. A future tourism market with a customer-centric mindset will require the tourism industry to have a deeper understanding of its market. It also needs to have clear orientations in designing personalized experience when developing tourism products and have more specific solutions to build the service supply chain. All these things are still unfamiliar to many destination managers and domestic tourism businesses and so, what will our tourism need to do to prepare for a new normal with many opportunities as well as challenges and competitiveness?

In addition to the immediate short-term recovery solutions that are currently being implemented, a comprehensive change in development, operation and business that can help improve the capacity of the entire supply chain, respond to new market demands and turn tourism into an experience economy will be a vital task for the tourism management and businesses in Vietnam to consider. The development perspective may shift from performance measurement based on guest statistics to management based on revenue and quality of visitors’ experience. Moreover, innovative thinking in market research, market development, product development and destination building are all urgent tasks to set an important foundation that Vietnam tourism needs to implement soon in order to breakthrough in a new normal of the world tourism industry.

Vietnam tourism has enough potential to quickly adapt or even rapidly develop in the "new normal" of the world tourism market. However, in order to do that, we need to abandon the old development thinking, follow the trend and come up with drastic solutions to change the way we operate, step by step resolving the inadequacies of the industry to develop more sustainably in the future. Only by these can we be ready for a "new normal" post Covid-19.

Phuoc Dang, CEO - Outbox Consulting
Vietnam tourism post Covid-19: Ready for a “New normal”
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