Vietnam Tourism Sector should Seek Upscale Tourists

According to data released by International Luxury Travel Market (ILTM), the top 3 per cent o of tourists spends 20 per cent  of total tourism expenditure. Applying this analogy on Vietnam incoming tourism, where the average spend per tourist is around US$750, it means that the top 3 per cent has an average spend of approximately US$ 5.000 vs US$ 600 of the remaining 97 per cent.
 
Evidently, this 3 per cent is a very significant segment of the tourist market, particularly considering its upward trend. What are the practical implications for Vietnam tourism and how can it position itself to make the best out of it? How can we approach this market that, compared to the mass market, is immune to the business cycle. What are the requirements of luxury travelers?
 
Luxury travelers have particular requirements and are people with time and money for their holidays. They are usually FITs and not group travelers, seek qualitative experiences and demand personal and confidential service. They often have requirements that, to the average person, seem absurd but which should be evaluated in relation to the amounts spent for their acquisition.
 
Recent statistics from VNAT have shown that Vietnam’s tourist arrivals by group mostly from China, Japan and South Korean, and ASEAN countries.
 
Of course Vietnam tourism sector should target the high-end tourists from traditional tourism markets, but should focus on the Western European as American countries which are seeking luxury travel.
 
Ha Pham, founder and CEO of the Luxury Travel Company explained that travelers are seeking to holiday in style and that Vietnam has potential to capture that market by selling niche products rather than “sell the same tourism products since 10 years ago”.
 
He added, “Golfing, spa, beach vacation, family travel, junk and sampan cruises, honeymoon and romance moved up to the top notch and favorites for upscale travelers. Vietnam’s appeal is vast”
 
Luxury Travel Company believes that Vietnam’s tourism sector should promote Vietnam as an upscale destination, where products and services must be developed to cater for that niche market.
 
Vietnam set a target to lure 5 millions tourists in 2008.
 
Anh Tuan