Analyst: Bui ThiThanh, INTAGE VIETNAM LLC.

Overview

• There are regional differences in frequency and style of travel between Hanoi in the north, Da Nang in central Vietnam, and Ho Chi Minh City in the south.
• People living in the south of the country tend to travel more. In the past year, 100% of persons living in Ho Chi Minh City traveled within Vietnam, compared to 86% for Da Nang and 54% for Hanoi.
• For domestic travel within Vietnam, destinations close to the respondent’s city of residence score in the top five, particularly in Da Nang.
• When asked with whom they travel domestically, most residents in Ho Chi Minh City and Da Nang responded "with friends or colleagues"; in Hanoi, the highest response is "with family".
• For overseas travel outside Vietnam, package tours are still the most popular.

Analysis

As living standards have risen in Vietnam, people are spending more money on travel. In the past, travel typically took the form of visiting relatives at their home, or taking a company trip to the beach with one’s colleagues. More recently, however, travel has become more diverse as people look to enrich their lifestyles. This trend is helping to redefine Vietnam’s tourism industry.

For this report, we surveyed Vietnamese consumers to learn more about what kind of travel they engage in. We looked at three cities: Hanoi in the north, Da Nang in central Vietnam, and Ho Chi Minh City in the south.

1. Current status of domestic travel by Vietnamese consumers

The percentage of people who responded that they have travelled within Vietnam during the past year was: 54% in Hanoi; 86% in Da Nang; and 100% in Ho Chi Minh City. These results suggest that travel is more in demand the further south one lives.

[Figure 1] Persons who traveled within Vietnam during the past year

2. Domestic travel destinations

For domestic travel within the past three years, destinations close to the respondent’s city of residence score in the top five for all three cities. In Da Nang in particular, all five of the top five destinations are places in Vietnam’s central region, where Da Nang is located. Financial constraints and inconvenient transportation are considered to be major factors for this trend. By way of illustration, attribute analysis looking at monthly personal income shows that income in Da Nang is lower than that of the other cities studied.

[Figure 2-1] Top 5 domestic travel destinations (tourist spots visited during past 3 years)

[Figure 2-2] Monthly personal income for 3 cities

3. Styles of domestic travel

Looking at "who do you travel with?" and "package tour or self-organized?" for travel within Vietnam, residents of Ho Chi Minh City and Da Nang displayed a similar trend: they travel mostly in groups with friends or colleagues, and some 95% of travelers tend to organize their own trips. On the other hand, in Hanoi, some 65% of people travel with family, and the ratio of package-type tours is higher than in other cities studied.

[Figure 3-1] "Who do you travel with domestically?"

[Figure 3-2] "Package tour or self-organized?"

4. Styles of overseas travel

Looking at "who do you travel with?" and "package tour or self-organized?" for travel outside of Vietnam, in all three cities the majority of people travel in groups with friends or colleagues. However, in Hanoi the ratio of people who prefer to travel overseas as couples is higher than in other cities. In addition, residents of all three cities indicate a preference for package tours, but in Ho Chi Minh City, there is a slightly higher inclination to organize trips by oneself.

[Figure 4-1] "Who do you travel with overseas?"

[Figure 4-2] "Package tour or self-organized?"

Conclusions

In recent years the number of Vietnamese tourists who visit Japan has been increasing. As these numbers rise, it will become increasingly important to tailor communications and tourism promotion activities to suit the unique traits and travel preferences of each region.

Survey Overview

ASIA INSIGHT REPORT

INTAGE Inc. publishes the "Asia Insight Report" based on independent surveys conducted in the Asian region in collaboration with overseas INTAGE subsidiaries to identify trends in attitudes and behavior on a variety of themes.
Part 9 of the Report features a "Vietnam Market Survey – Travel Habits." INTAGE VIETNAM LLC., our subsidiary in Vietnam, conducted a visit-and-interview survey called "Viettrack*" in Hanoi, Da Nang and Ho Chi Minh City in June 2014. They interviewed 150 males and females, aged 18 to 40. Our analysis of the Vietnam market based on the survey results is shown above.

• * Viettrack is an independent survey conducted periodically by INTAGE VIETNAM LLC., INTAGE’s subsidiary in Vietnam. INTAGE VIETNAM LLC. specializes in assessing the opinions, values, and awareness of Vietnamese consumers in relation to the economy, trends, products, and services. The survey is conducted in compliance with ISO 20252:2006