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BUSINESS REPORT

PHOTO: VIET TUAN

Journey to success

Domestic online travel agencies have adopted specific strategies
to compete with their foreign counterparts and expand market share.

T LINH LAN REPORTS

ovid-19 changed the travel habits of online platforms and it believes this will con- its focus during the pandemic to developing
just about everyone. According to a tinue to be a trend into the future. solutions for digital transformation in the
C survey by Rakuten Insight on online Vietnam’s online travel market has been tourism industry, launching the “Vntrip TMS”
travel agencies (OTAs) conducted in late 2020, forecast by Google and Temasek to reach $9 (Travel Management Solution) tech platform
60 per cent of Vietnamese respondents said billion by 2025, but most market share late last year. “In developed countries such as
they have used an OTA, and many of these belongs to foreign OTAs, including South Korea or Japan, digitizing the tourism
agencies are seeking to identify opportunities Agoda.com (which has more than 7,600 part- industry is an inexorable trend, but in Vietnam
and take a new direction as a foundation for ner hotels) and Booking.com (with more it remains quite new,” Mr. Le Dac Lam, CEO
their future development. than 6,000). The Rakuten Insight survey of Vntrip, told VET. “Although revenue was
revealed that Booking.com was the leading lower last year than in other years, a large
Changing to develop OTA in Vietnam in terms of use, selected by number of Vntrip’s corporate customers con-
2020 marked a major change for Vietnam’s 62 per cent of respondents. Agoda was a verted to using the 4.0 tech platform. This
tourism industry. Without international vis- close second, with 61 per cent. has potential in the future.” In the B2C market,
itors, the focus of the domestic tourism sector Domestic OTAs have been attempting to Vntrip also provides cheap combos, a room
went to appealing to Vietnamese tourists. come up with their own strategies for devel- hunting system, and airline tickets.
According to a survey by the Tourism Advisory opment. Though known as a pioneer and one Among major domestic OTAs, HG Hold-
Board (TAB) conducted last year, 44.2 per of the largest OTAs in the B2C (business-to- ings’ Gotadi has identified strong, long-term
cent of respondents booked tours through customer) industry in Vietnam, Vntrip changed investment in technology as a means of moving

24 | VIETNAM ECONOMIC TIMES | JUNE 2021