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  • Titill er á ensku An analysis of the Vietnamese online travel agency industry: Opportunity for entry
  • Bakkalár
  • Útdráttur er á ensku

    Vietnam ranks among the fastest-growing tourist destinations in the world, with revenue in 2018 reaching $26.75 billion, up $4.75 billion from 2017. Between 2010 and 2018, the number of international tourists grew threefold from 5 million to more than 15 million. An estimated 19 million tourists will visit Vietnam in 2020, including 3.5 million from North America, Australia and Europe. This massive spike in tourists has created a lucrative business environment, especially in the online travel sphere. The goal of this paper is to determine whether current market conditions in the Vietnamese tourism industry are ripe for a new online travel agency to enter the market, specifically in the tour and activity sphere. Most flight tickets and accommodations are booked online through the major online travel agencies, such as Expedia and Booking. However, the focus of this paper is the tour and activity industry, which differs from other industries in the sense that global online travel agencies have not been able to capture its market potential as successfully as has been the case with air travel and hotels. A competition analysis was conducted of the online travel agencies for tours and activities to define where in the product life cycle the industry is currently located. The question of whether it is feasible to enter the market in Vietnam with an online platform that offers tours and activities for tourists is addressed. The key metrics for analysing the online market for tours and activities in Vietnam were defined. Based on these metrics, the key players in the market were identified and analysed. Studying the main competitors in the market and comparing them to the current size of the tourism market in Vietnam revealed that the online market for tours and activities is still very early in the product life cycle. The results provide an impetus to continue developing an online entity focused on the tours and activities market in Vietnam. However, several factors need to be further investigated, such as market conditions in Vietnam, general online interest and the convenience of booking through a hotel desk instead of online booking.

  • 18.9.2020

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