Despite a record number of international visitors to Vietnam, tourism businesses are still suffering losses.

du lịch - Ảnh 1. — Foreign tourists visiting Gao Giong tourist area (Dong Thap) - Photo by TUNG THIEN

The number of visitors is increasing, but tourism businesses are still losing revenue in the context of mass tourism products not being attractive enough and the trend of self-sufficiency is on the rise.

Foreigners like to travel independently

Mr. Pham Quy Huy - Director of Kiwi Travel Company - said that recently the number of group tourists, especially MICE tourists (tourism combined with meetings, incentives, conferences, exhibitions), has tended to decrease significantly, many businesses in the industry are in a "starved for customers" situation.

While this group is very willing to spend money on organizing large-scale events, booking luxury hotels, and using high-end services such as yachting, it brings in significant revenue for many businesses in the tourism, travel, and event organizing ecosystem. "Previously, MICE groups of 100-200 guests were extremely common. Now, getting a group of around 100 people is considered very good, it's rare," Mr. Huy said.

In contrast to the decline in group tourism, especially high-end tourism, the number of independent international tourists coming to Vietnam is increasing. This group is characterized by almost no use of services provided by travel agencies.

They apply for their own visas thanks to open policies, proactively use intermediary applications (from foreign bosses such as Traveloka, Agoda, Booking...) to book flights and hotel rooms, and find their own schedules to travel without following tours organized by Vietnamese travel companies.

"Overall, the number of international tourists entering Vietnam is high, but not all businesses in the tourism industry are benefiting well. Some are even experiencing revenue losses due to the rise of backpacking and independent travel," Mr. Huy said.

Mr. Tony Hung Tran, representative of Golden Smile Travel, said that many tourists complain that traditional tours lack novelty and have rigid itineraries, so they are switching to independent travel to have more control and suit their personal preferences. This has affected the revenue of many businesses, especially in the current difficult economic climate where customers are increasingly frugal and bargaining hard; even a price increase of 1-2 USD can result in losing customers.

Although businesses have tightened costs, Mr. Tony admits that the pressure to reduce prices is growing. If the price race continues, service quality is at risk of declining, which will have a long-term impact on the image and competitiveness of the destination.

Finding ways to attract tourist money amid turmoil

Mr. Thi Quoc Duy, Director of BenThanh Tourist's Individual Travel Center, believes that the boom in independent travel is irreversible, as social media and digital platforms make it easy to find information and plan itineraries. Faced with this change, businesses are forced to adapt by developing "Free & Easy" packages and flexible products, serving both independent travelers and maintaining traditional tours.

Thanks to a strong shift towards the inbound market, BenThanh Tourist recorded a more than 100% increase in international visitors to Ho Chi Minh City compared to the same period last year, leading to a corresponding increase in revenue and profit. The customer base also expanded to many new markets such as Europe, India, and Chinese-speaking tourists, even successfully organizing a series of European tour packages.

According to Mr. Duy, this year's growth mainly comes from two pillars: developing differentiated products and boosting promotion on international channels. The company prioritizes experiences linked to local culture, such as farming in Tra Que (Hoi An), preparing Hoi An cuisine, or staying in homestays in the highlands during tours to northern provinces, meeting the demand for "authentic experiences" from international tourists. Seasonal products are also being developed - from tours to see flowers in Northwest Vietnam and the beaches of Central Vietnam to scenic autumn routes.

Regarding services, the company maintains close links with airlines, hotels and transport companies, scheduling tours in advance to keep prices and quality stable. "No matter how good the program is, if the service is not good, it will not be able to retain customers," Mr. Duy emphasized.

According to businesses, the rise of independent travel and small tours has forced travel companies to change their operating methods, accepting groups of 1-2 people and implementing a "share tour" model so that tours can still depart even with only one person, and then adding more individual travelers later, optimizing costs while maintaining reasonable prices.

Along with that, businesses strengthen links with booking platforms, book tours online and cooperate with suppliers at the destination. "Instead of rigid package tours, the trend is flexible products, customized according to the budget and needs of each customer group," said Mr. Tony Hung Tran.

Customers have a lot of money, why do they only spend it at fried fish ball carts and mass souvenir stalls...

According to the 2024 Statistical Yearbook, the tourism industry's revenue picture is not commensurate with the number of potential visitors to Vietnam. Average spending in 2023 reached 1,449.7 USD, an increase of nearly 27% compared to before the pandemic, but the change in spending structure makes it difficult for businesses to benefit.

Budgets for accommodation, food, and shopping all decreased, while spending on separate services, experience tours, and sightseeing tickets doubled. Notably, spending on shopping only dropped to 8.4%, the lowest level in many years, showing that Vietnam has not yet become a competitive shopping destination like Thailand or Singapore.

The disparity between markets is also large: American visitors spend nearly $4,800 per trip, three times the average, while large groups such as China and South Korea spend average or low. This is the reason why despite the large number of visitors, revenue in many service industries has not increased accordingly.

"These data show a paradox: the number of international visitors increased to a record level, but changes in spending behavior caused profits to not improve as expected," experts said.

Mr. Pham Quy Huy said that many Vietnamese tourists when going to Korea are willing to spend a few million VND more each day for shopping, even spending twice the tour price. But for foreign tourists coming to Vietnam, the question is what do they buy and experience to be excited about spending?

According to Mr. Huy, shopping in Vietnam is not attractive enough, lacking international-standard shopping malls, with inconvenient tax refund policies and unexceptional products. Many night markets in Ho Chi Minh City are similar, lacking unique features; the stalls are repetitive, mainly selling affordable fast food, making it difficult to attract high-spending customers.

Similarly, in the West, many souvenir products cost only a few tens of thousands of dong, providing immediate income but not creating sustainable value.

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Source: https://tuoitre.vn/khach-quoc-te-den-viet-nam-dong-ky-luc-nhung-doanh-nghiep-du-lich-van-that-thu-20251209230806086.htm