Travel and Tourism - Vietnam

VIETNAM

Market Profile

1 VIETNAM Market Profile July 2013

In 2012, Vietnam was Australias 25th largest inbound market for visitor arrivals and 17th for total expenditure and visitor nights.

61% repeat visitors2

57% of total arrivals are for leisure3

45-59 years largest demographic3

$13,360 average spend2

116 nights average stay2 Jul-Nov peak booking periodNov-Jan peak travel period

$0.5bn total spendTotal spend from Vietnam in 2012 (up 9 per cent on 2011)2

37,400 arrivalsVietnamese visitor arrivals in 2012 (up 11 per cent on 2011)3

4.1m total nightsVietnamese visitor nights spent in Australia in 2012 (up 19 per cent on 2011)2

0.9m dispersed nights4 Vietnamese visitor nights spent outside gateway cities in 2012 (up 66 per cent on 2011)2

Australia ranks 6thamong all out of region outbound destinations for Vietnamese travellers5

Vietnam Airlines

Singapore Airlines

Jetstar

AirAsia X

Other

In this Market Profile

Market Performance

Aviation Landscape

Distribution

Find More Information

Sources: 1. Department of Immigration and Citizenship (Aviation)2. International Visitor Survey (Tourism Research Australia)3. Australian Bureau of Statistics, Overseas Arrivals & Departures

4. Dispersed nights refer to nights spent outside gateway cities of Sydney, Melbourne, Brisbane and Perth

5. Tourism Economics, Tourism Decision Metrics

Visitor profile in 2012

Key airlines and share of passengers in 20121

Note: Table includes direct and indirect capacity

67%

13%

4%

13%3%

4%

Note: International Visitor Survey data for Vietnam should be used with caution as sample errors are larger than the weighted IVS markets.


VIETNAM

Market Performance

> In 2012, Vietnam was Australias 25th largest inbound market for visitor arrivals.

> Arrivals from Vietnam have seen a compound annual growth rate of 15 per cent between 2002 and 2012.

> Arrivals to Australia from Vietnam saw declines following the after effects of the Global Financial Crisis.

1.1 Arrivals trends

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Dec80 Dec84 Dec88 Dec92 Dec96 Dec00 Dec04 Dec08 Dec12

History of Visitors from Vietnam into Australia

Tota

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ival

s p

er Y

ear

Source: Australian Bureau of Statistics, Overseas Arrivals & Departures


VIETNAM

Market Performance

0

100

200

300

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700

Cambodia Thailand Laos China Singapore Australia

2001 2012

Trend of Top 5 Outbound Destinations from Vietnam Source: Tourism Economics (Tourism Decision Metrics)

Note: 2012 is a forecast value

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0.0%

2.0%

4.0%

0

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2,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (f)

Market Sh

are (%)

Total Outbound (000s) Australia's Share of Total Outbound (%)

Vietnam: Total Outbound & Australia's Market Share Source: Tourism Economics (Tourism Decision Metrics)

Ou

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(0

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271 3.14%

322 2.62%

320 2.70%

487 2.19%

618 2.14%

798 2.19%

809 3.00%

1,063 2.86%

1,108 2.89%

1,371 2.49%

1,556 1.97%

1,680 2.03%

1.2 Australias market share6

Australias market share of Vietnamese outbound travel > Outbound travel from Vietnam increased to 1.68 million trips in 2012, up from 1.56 million trips in 2011.

> Australias share of total outbound travel from Vietnam has decreased from 2.6 per cent in 2002 to 2 per cent in 2012.

Top five outbound destinations from Vietnam

> In 2012, the top five outbound destinations from Vietnam were Cambodia, Thailand, Laos, China and Singapore.

> Australia ranked 12th among all outbound destinations in 2012, moving up a place from 2011.

6. Figures for 2012 in this section are based on forecast data, last updated 14 February 2013


VIETNAM

Market Performance

0.0%

6.0%

12.0%

0

500

1,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (f)

Market Sh

are (%)

Total Outbound (000s) Australia's Share of Total Outbound (%)

Vietnam: Out of Region Outbound & Australia's Out of Region Market Share Source: Tourism Economics (Tourism Decision Metrics)

Ou

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d O

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of

Reg

ion

Tra

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rs (

00

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98 8.70%

154 5.50%

154 5.62%

225 4.76%

237 5.59%

248 7.03%

299 8.12%

411 7.38%

340 9.40%

383 8.89%

366 8.39%

448 7.61%

Australias market share of out of region travel

> Out of region travel from Vietnam excludes travel to South and South East Asia and China.

> Out of region travel from Vietnam increased from 154,000 trips in 2002 to 448,000 trips in 2012.

> Australias share of Vietnams total out of region outbound travel has increased from 5.5 per cent in 2002 to 7.6 per cent in 2012.

Australias competitor destinations from Vietnam

> In 2012, the top five destinations for Vietnamese travellers outside of South and South East Asia and China were Korea, France, Russia, Japan and the USA.

> Australias ranking among out of region destinations remained unchanged at 6th.

0

20

40

60

80

100

120

140

160

180

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Korea France Russia Japan United States Australia

2001 2012

Trend of Top 5 Out of Region Outbound Destinations from Vietnam Source: Tourism Economics (Tourism Decision Metrics)


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VIETNAM

Market Performance

1.3 Visitor arrivals by age and purpose of visit

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Tota

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Visitors from Vietnam by Age and Purpose of Visit for 2012 Source: Australian Bureau of Statistics, Overseas Arrivals & Departures

Under 15yrs 15 to 29yrs 30 to 44yrs 45 to 59yrs 60yrs & over 2,310 (6%) 10,040 (27%) 8,880 (24%) 11,800 (32%) 4,250 (11%)

Holiday 7,560 (20%)

Visit Friend/ Relatives 13,860 (37%)

Business 4,610 (12%)

Education 7,140 (19%)

Other 2,920 (8%)

Employment 1,190 (3%)

-

+

Total Vietnam 37,280 (100%)

Analysis of visitors from Vietnam in 2012

> In 2012, the majority of arrivals from Vietnam visited Australia for Leisure purposes, with Visiting Friends and Relatives (VFR) representing 37 per cent of total arrivals, and Holiday representing 20 per cent.

> The largest age demographic was 45 to 59 years, representing 32 per cent of total visitors.


VIETNAM

Market Performance

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Tota

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Vietnam: Visitor Arrivals by Age for 2002-2012 Source: Australian Bureau of Statistics, Overseas Arrivals and Departures

Under 15 yrs

15 to 29 yrs

30 to 44 yrs

45 to 59 yrs

60 yrs & over

Age demographic of visitors from Vietnam for 2002-2012

> In 2012, the 45 to 59 year old demographic became the largest visitor segment out of Vietnam, achieving an annual compound growth rate of 17 per cent for the past decade.

> Following declines in 2011, the 15 to 29 years segment and the 30 to 44 years segment experienced growth in 2012.

Visitor segments from Vietnam for 2002-2012

> The VFR segment has remained the largest visitor segment out of Vietnam over the past decade, despite declines between 2007 and 2011. The VFR segment has achieved annual compound growth of 17 per cent between 2002 and 2012.

> The Holiday segment, which has seen fluctuations over recent years, experienced growth in 2012.

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Tota

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mb

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f vi

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Vietnam: Visitor Arrivals by Purpose of Visit for 2002-2012 Source: Australian Bureau of Statistics, Overseas Arrivals and Departures

Holiday

Visit Friends/Relatives

Business

Education

Employment

Others


VIETNAM

Market Performance

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

Spending by Visitors from Vietnam by Age and Purpose of Visit for 2008-2012 Source: International Visitor Survey (Tourism Research Australia)

Under 15yrs 15 to 29yrs 30 to 44yrs 45 to 59yrs 60yrs & over

Not covered by the IVS

$125,264 (65%) $32,373 (17%) $31,604 (16%) $3,704 (2%)

Holiday $16,507 (9%)

Visit Friend/ Relatives $33,665 (17%)

Business $15,597 (8%)

Education $120,051 (62%)

Other $1,822 (1%)

Employment $5,303 (3%)

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Total Vietnam $192,944 (100%)

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1.4 Spend by age and purpose of visit

Breakdown of spend by visitors from Vietnam for 2008-2012

> On average from 2008 to 2012, the largest spending segment was Education visitors, representing 62 per cent of total spend.

> The largest spending age group was 15 to 29 year olds, representing 65 per cent of total spend by Vietnamese visitors.

Note: Data in graph refers to an average of 2008-2012


VIETNAM

Market Performance

1.5 Visitor profiles for spend and nights

Spend per trip $11,543

Stay 99.3 nights

Spend per night $116

Age groups

Average visitor

30 to 44 yearsSpend per trip $4,273

Stay 40.8 nights



Stay 23.3 nights


60 years & overSpend per trip $3,158

Stay 38 nights

Spend per night $83


Stay 147.4 nights


Purpose of visit

HolidaySpend per trip $3,683

Stay 25.3 nights


Visiting Friends and RelativesSpend per trip $2,631

Stay 28.8 nights

Spend per night $91

BusinessSpend per trip $3,348

Stay 14.9 nights


Other (including education and employment)Spend per trip $31,794

Stay 275.9 nights


International Visitor Survey (Tourism Research Australia)

Note: Data refers to an average of 2008-2012


VIETNAM

Aviation Landscape

> Direct capacity to Australia declined 4 per cent, following years of strong growth.

> Two thirds of all Vietnamese visitors entering Australia in 2012 travelled on Vietnam Airlines.

> Vietnam Airlines increased its stake in Jetstar Pacific in January 2012. Jetstar Pacific announced that it is looking to increase its network (to Singapore and Jakarta) and upgrade its fleet.

2.1 Summary

Ho Chi Minh City

Sydney

Melbourne

Hanoi

Singapore

Vietnam

Key airlines and share of passengers

Airline 2008 2009 2010 2011 2012

Vietnam Airlines 54% 59% 60% 63% 67%

Singapore Airlines 15% 12% 13% 14% 13%

Jetstar 9% 7% 7% 5% 4%

AirAsia X 0% 2% 2% 1% 3%

Other 21% 20% 19% 16% 13%

Table includes direct and indirect capacity

67%

13%

4%

13%3%

4%

Operating Airlines Flights per week Route

Vietnam Airlines

7

7

Hanoi-Ho Chi Minh City-Melbourne

Hanoi-Ho Chi Minh City-Sydney

Source: Innovata, Northern Summer Scheduling Season (31 March 2013 to 26 October 2013)

Note: Table includes direct services to Australia only


VIETNAM

Aviation Landscape

2.2 TrendsCapacity > In 2012 capacity from Vietnam to Australia decreased 4 per cent, following strong growth of 14 per cent in 2011.

> The declines were driven by Jetstar whilst Vietnam Airlines added 11 per cent capacity.

> Limited capacity growth of 5 per cent is expected to during 2013.

ll

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Russian Federation - Up 10.7%

Australia - Down 3.5%

South Korea - Up 20.4%

Japan - Down 0.9%

Hong Kong - Down 12.4%

France - Up 9.8%

0.0

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0.4

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0.8

1.0

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Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13

Capacity from Vietnam to Australia vs competitor destinations Source: Innovata; Department of Infrastructure and Transport

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Forecasts

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Loads and seasonality in 2012

Low seat

availability

Sustainable seat

availability

High seat

availability

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Vietnam to Australia

Source: Department of Infrastructure and Transport

Average loads > Load factors or seat utilisation is the ratio of passengers carried to the number of seats available, expressed as a percentage.

> As direct capacity declined in 2012, average load factors increased from 69 per cent in 2011 to 75 per cent in 2012.

> Despite overall loads increasing, the Vietnam market remains highly seasonal. Average loads remain low during March, June and December, and high during January/February and July.

Note: Chart includes direct capacity only

Note: Chart includes direct capacity only and above percentages reflect change in direct capacity from 2011 to 2012


VIETNAM

Distribution

Wholesalers/ Large Agents > Inbound Tour Operators (ITOs) are still responsible for the vast majority of holiday business into Australia, including Business Events bookings.

> Wholesalers have developed their own packages to promote Australia and work closely with airline partners.

Retail Agents > The travel industry in Vietnam continues to operate under the traditional model, although the larger retail agents often take on the role of wholesalers. These retail agents market their own programs with links to Inbound Tour Operators (ITOs), on-selling to smaller agencies.

> Retail agents also book travel through wholesale agents.

Aussie Specialists > The Aussie Specialist Program (ASP) is the primary platform for Tourism Australia to train and develop retail agents to sell Australia.

> As at July 2013, there were 12 qualified Aussie Specialists in Vietnam and a further 5 agents in training.

Inbound Tour Operators > ITOs are still responsible for the vast majority of holiday business into Australia, including Business Events incentive bookings from agents.

3.1 Distribution system Whilst there are a number of channels available to Vietnamese consumers for planning and booking travel, most consumers book through traditional retail travel agencies. The internet is primarily used as a research tool, with many Vietnamese travellers not yet comfortable with booking online. Language remains a barrier for free independent travel (FIT).

Seasonality > The peak booking periods for travel to Australia are leading into Lunar New Year (TET) and Christmas holidays (July to November).

> The peak travel periods for travel to Australia are Lunar New Year (TET) and Christmas holidays (November to January).

Brochures and rates

Brochure Validity > Due to price fluctuations throughout the year, agents generally do not publish prices in their annual brochures and only suggested itineraries are featured. The latest prices are published on a new flyer as and when available, and attached to the brochures accordingly.

Brochure Space Policy > Generally, agents do not ask for contributions.

Setting Rates > January and Christmas holiday peak period.

Standard Rate Validity Periods

> April to September and October to March.

-140%

-70%

0%

70%

140%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

All Purposes Leisure Business Other

Seasonality of Visitors from Vietnam Source: Australian Bureau of Statistics, Overseas Arrivals & Departures, 2008 to 2012

more than the

average

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less than the

average

Avg: 14,707 Avg: 8,433 Avg: 1,990 Avg: 4,284


VIETNAM

Distribution

3.2 Trends 3.3 Planning a visit to market Distribution > When buying travel there are a number of distribution channels available to consumers. They may research and book their trip using a combination of traditional distribution partners.

Planning and purchasing travel > Consumers continue to book holidays via traditional retail agencies.

> The market provides a significant proportion of VFR arrivals due to the large Vietnamese community in Australia. These VFR visitors tend to book their flights through travel agents.

Top tips for sales calls > The best time for sales calls is March to May and September to November.

> The key market centre to visit is Ho Chi Minh City.

> For more general information on sales calls and planning a visit to market, please see Tourism Australias Planning for Inbound Success at www.tourism.australia.com/inboundsuccess

Where to Find More Information

Tourism Australias activities in Vietnam are managed from Tourism Australias Kuala Lumpur office. For more information visit Tourism Australias Corporate website at www.tourism.australia.com

There are no Australian State and Territory Tourism Organisations operating in Vietnam.

Also see: Vietnam Country Brief published by the Department of Foreign Affairs and Trade.

Documents

Travel and Tourism - Vietnam