Independent travel is becoming a trend and is developing rapidly.

Tourists are choosing to buy heavily discounted tours at the Ho Chi Minh City Tourism Festival on April 4th.

We must adapt to survive.

Speaking at the "Transforming Tourism Business Models to Keep Up with Global Trends" seminar held on April 4th in Ho Chi Minh City, Mr. Dang Manh Phuoc, CEO of Outbox Consulting, stated that there are currently three main tourism trends: the dominant role of intra-regional tourism; the rise of the Asian market; and especially the explosion of independent travel.

"Tourists prioritize searching for travel and vacation information on online platforms. On the other hand, with AI (artificial intelligence) and the internet making information searching easier, independent travel is further developing. This requires tourism businesses to adapt to the emerging new travel trends," Mr. Dang Manh Phuoc assessed.

Independent travelers often choose self-guided travel because of the flexibility they have in choosing their itinerary, travel time, and other aspects of the trip.

From the perspective of travel businesses, Mr. Pham Anh Vu, Director of Communications at Vietnam Tourism, stated that tourists currently prefer short trips, traveling in small groups of 20 or fewer, with this customer segment increasing by 30-50%. These tourists usually travel independently, mostly using private vehicles, leading to a decrease in demand for shared transportation (including buses, tour buses, and trains). Consequently, tourists only book a few services from travel agencies, while the rest of their travel plans are handled independently, not following any specific travel agency's itinerary.

"The increasing trend of independent travel has led to a decline in the role of tourism businesses. Previously, package tours were the main product of travel companies, but this needs to change in the near future to suit modern trends," Mr. Phan Anh Vu worried.

With the growing trend of independent travel, tourists often only purchase a few individual services from travel agencies.

According to surveys by travel businesses, the new travel trend (independent travel) is changing the business strategies of the travel service industry. Ms. Nguyen Thi Anh Hoa, Director of the Ho Chi Minh City Department of Tourism, said that one of the reasons for the increase in independent travel is the proactive approach of tourists to adapt to new circumstances, without being dependent on travel companies. Furthermore, independent travel gives tourists freedom and flexibility, allowing them to depart at times that suit them, stay longer or shorter at a location if needed, and completely control their spending. Therefore, travel businesses need to grasp this trend and adapt accordingly.

Change the way you do business.

Mr. Nguyen Chau A, Founder and CEO of Oxalis Adventure, stated that inbound tourism (foreign tourists visiting Vietnam) has followed a B2B (business-to-business) model for many years. Accordingly, tourism businesses design and operate tourism products, while foreign partners handle marketing, sales, and gathering customers to send to Vietnamese partners to execute tour programs. Many Vietnamese businesses adopt the B2B model because it is both simple and cost-effective.

However, while the B2B model is cost-effective, Vietnamese tourism businesses are quite passive in developing new products to introduce to partner markets. Nowadays, with the increasing trend of independent travel, the B2B model is becoming unsuitable.

Nowadays, digital travel has brought many new experiences to customers.

"Therefore, to attract independent travelers, businesses need to shift to a B2C inbound tourism model (directly sold tour products). To transition to this model, businesses first need to strengthen destination promotion; a strong destination brand will attract tourists. In addition, businesses need to develop products that meet the needs of their target market segment; build a strong brand; develop a systematic marketing strategy; and finally, build a strong sales and customer service force," Mr. Nguyen Chau A added.

According to Ms. Nguyen Thi Anh Hoa, updating to global business trends is an urgent need in the era of Industry 4.0 for state management agencies and tourism businesses in Vietnam. "To meet new tourism trends, businesses need to shift their focus to attracting independent travelers by increasing safety through the application of safety standards and procedures suitable for each destination and accommodation facility; strengthening research and development to create new product lines that suit the market, thereby adjusting tours and routes accordingly. At destinations, it is necessary to develop tourism products that enhance the value of local culture; and at the same time, focus on promoting digital transformation, moving towards a more accessible and interactive product ecosystem with customers on digital platforms," Ms. Nguyen Thi Anh Hoa proposed.

Ms. Nguyen Thi Anh Hoa, Director of the Ho Chi Minh City Department of Tourism, spoke at the workshop on "Transforming Tourism Business Models to Update Global Trends."

Meanwhile, Mr. Ho An Phong, Deputy Minister of Culture, Sports and Tourism, stated that in the shift to the B2C model, digital transformation plays a vital role. The application of technology and expansion are crucial. Accessing the market through digital platforms will provide better opportunities for Vietnamese businesses to attract international tourists.

"In the near future, the Ministry will coordinate with other ministries, sectors, and localities to promote activities and campaigns to advertise and communicate the brand of Vietnam's tourist destinations through digital technology. At the same time, the Ministry will research and develop mechanisms to support and invest in building B2C trade fair and exhibition platforms, improve the quality of B2C tourism promotion information; and develop appropriate mechanisms and policies to update the national tourism promotion database... For businesses, it is necessary to focus on solutions to increase the attractiveness of traditional tours, design new tour products and routes, effectively utilize B2C marketing methods, innovate business models, and restructure businesses in line with the development of the green economy and digital economy," Mr. Ho An Phong stated.

According to Mr. Ho An Phong, businesses are the core force, pioneering and driving change in tourism development, so they need to proactively restructure and innovate their operating models and business practices. "Transformation is a powerful process of change, requiring shifts in mindset, awareness, human resources, infrastructure, strategy, and technological solutions... Businesses need to clearly identify solutions, roadmaps, and steps that are appropriate to their conditions and capabilities," Mr. Phong added.

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