Strategic Developments in Vietnam's Tourism Industry

The study delves into the burgeoning field of travel and tourism in Vietnam, examining its rapid growth due to enhanced air connectivity and strategic geographical positioning. Economic analyses reveal significant contributions from tourism to GDP, alongside substantial foreign exchange earnings. However, cultural preservation and environmental sustainability remain critical concerns amidst this expansion. The paper identifies competitive advantages such as rich heritage sites and cost-effective travel options that position Vietnam favorably in the global market. Strategic developments discussed include government initiatives aimed at infrastructure improvement and promotional campaigns targeting international tourists. This comprehensive analysis underscores both opportunities and challenges faced by Vietnam's tourism sector, offering insights into sustainable growth strategies.

Contemporary Issues In
Travel And Tourism

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P 1.1 Current Issues That Are Driving Changes In The Travel And Tourism Sector................3
P 1.2 Issues That Are Driving Changes In Vietnam...................................................................4
TASK 2 ...........................................................................................................................................5
P 2.1 Emerging Trends That Are Influencing Changes In Travel And Tourism Sector.............5
P 2.2 Emerging Trends Affecting Tourism Products And Services In Vietnam........................6
TASK 3............................................................................................................................................7
P 3.1 Ways Of Responding To Emerging Trends And Changes By Travel And Tourism
Industry.......................................................................................................................................7
P 3.2 Development Of Strategies By Thomas Cook In Order To Respond To Changes...........8
P 3.3 Justification Of Strategies Applied By Thomas Cook.......................................................9
TASK 4 .........................................................................................................................................10
P 4.1 Impacts Of Issues And Trends That Drive Changes In Travel And Tourism Sectors.....10
P 4.2 Consequences For Thomas Cook To Failing In Responding To Market Changes..........11
CONCLUSIONS............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Travel and tourism industry is growing and developing on a fast rate. This business aims
at satisfying customers by providing them with best service experience. Travel and tourism
sector provides wide range of services including accommodation, transportation facilities,
arranging events and recreation facility, sight seeing of the destination. This sector is facing
various contemporary issues such as terrorism, negative cultural impacts, etc. Thomas Cook tour
operator aims at providing and delivering the best goods and services related to tourism. Thomas
Cook tour operator carries out various services such as passenger transport, packaging and
marketing of tours, arranging holidays, etc. This study report explains currently developing
issues of tourism sector and it's emerging trends. It also explains and investigate about
production and deliver of tourism products and services.
TASK 1
P 1.1 Current Issues That Are Driving Changes In The Travel And Tourism Sector
Travel and tourism industry serves millions of people around the world. It focuses on
satisfying tourists and giving them best travel experience. Travel and tourism industry face
several issues which affects its business and operations. These sectors aim at tackling the issues
and proving complete satisfaction to clients and tourists. Most issues are happening because of
changes and variation in socio-cultural upbringings and it leads to affecting tourism related
activities. Some travel and tourism related issues are explained below:
Travel and tourism sectors are facing issues related to security threats. Various tourist
destinations are facing issues related to various terrors and criminal activities. It greatly affects
and influences the tourist destinations. People feel scared to go to that destination which have
issues related to safety. Travel or tour operator should ensure to provide packages which are safe
and free from terror activities.
Standardization of products is also a major issues which is faced by travel and tourist
sectors. Opportunity of exploring and bringing uniqueness in travel destination is difficult and it
leads to decrease in demand of destination. Travel sectors fails to provide new and specific goods
and services in tourist destinations that influences and affects decisions of tourists.
Changes in socio-cultural factors also affects and influences business of travel and tourist
sectors. The changes in people's lifestyle brings issues for travel and tourism industry across the

world. For example, changes of moving into nuclear family from joint families also affects travel
sectors.
Environmental factors greatly affects the business and operations of travel and tourist
sectors. These factors include climatic changes, pollution, availability of natural resources in a
tourist destination. It greatly influences the decisions of clients and tourists.
Political conditions of country affects travel and tourist sectors. The political factors of
country or destination acts as hindrance for tourists while traveling to specific destinations. The
destination hindrance are related to visa acceptance, rules and regulations for tourist, amenities
being provided, etc. these factors greatly affect travel sectors.
P 1.2 Issues That Are Driving Changes In Vietnam
Travel and tourism industries help in development of destination country. It brings
various economic opportunities for development and growth. There are various factors which
influence and affects travel and tourism industries(So and et.el., 2016). Vietnam has emerged as
one of the brightest emerging markets around the world and it attracts wide number of tourists.
But there are certain issues that affect the business of travel and tourist in Vietnam which are
explained as follows.
Local authorities of Vietnam fails to maintain pristine attractions which affects business
operations of tourist sectors. This happens because of increasing pollution and traffic in the
country. These factors affect travel industries in attracting clients and tourists. Vietnam have
beautiful cultures, sceneries and sight seeing available in various destinations which attracts
customers but these issues limits number of people.
Another issues which affects business of travel and tourist sector is that of security.
Tourist feel unsafe to roam around Vietnam because it has issues of robberies, tourist mugging,
thefts, etc. The safety issues greatly affects travel and tourism sector of Vietnam which needs to
be corrected in order to increase number of tourist(Mason, 2015).
One of the issues which drive changes in travel industry is high cost of visiting to
Vietnam. Its currency has devalued against US dollar which has resulted in increased traveling
expenses in Vietnam. The general travel and accommodation got raised and got expensive which
limits number of tourist and creates issues for travel and tourist sectors.
Certain issues needs to be looked up on and resolved by Vietnam authorities so that it can
attract foreign visitors and boom the travel and tourist sectors. Security, visa cost and other

issues needs to be resolved by authorities. Travel and tour operators should make strategies and
plans to attract more customers and tourists.
TASK 2
P 2.1 Emerging Trends That Are Influencing Changes In Travel And Tourism Sector
In order to maintain sustainable environment, travel and tourism industry needs to
maintain relationship with tourist, visitors and local authorizes. It also needs to analyze the
various emerging trends and to cope up with it and make tourist satisfy and happy. Travel and
tourism sectors needs to adopt different emerging and current trends that affect and bring
changes in its business activities, some are discussed below.
Getting all information from online is trends that is adopted by most of tourist and
visitors. Visitors prefer to check information of destination through their self by using internet
and mobile phone. Tourist can check place to visit in specific destinations, availability of hotel
for accommodation, climatic condition of destination, etc. Various information are available on
internet and it influences demands and decision of visitors which also influences changes in
travel and tourist sectors(Boniface, Cooper and Cooper, 2016).
Mobile phones and internet are used by visitors to book their flights and hotels in visiting
destinations. The online booking helps visitors to easily check availability and book them which
also facilitate travel and tourism sectors. Tourists frequently use internet to check about
attraction sights of destination, book flight tickets, book hotel rooms and also book travel
operators. And this all influences travel and tourist sectors and helps in attracting visitors.
Adventure trips are influencing travel and tourist industries. The availability of adventure
trips on destinations attracts visitors and tourists. Specially young people who like to have active
and adventurous experience chooses these destinations. Travel and tourist sectors with
availability of adventurous task and trips will get boomed with these current trends. It includes
mountain climbing, paragliding, African safari, hiking, etc.
Food tourism has become current trends among visitors and tourists which greatly affects
and influences travel and tourist sectors. Travel sectors is connected to food services also as
when people go out for travel they also like to have variety of food which completely satisfies
them. Travel and tourist sectors aim on providing best service experience related to travel, it also
needs to aim at providing the best food experience so that it turns into complete satisfaction for

visitors. Food is closely tied to destinations culture and it influences decisions of visitors and also
business of travel sectors(Prebensen, Chen and Uysal, 2018).
Global campaigns is one of the emerging trends which is being adopted by everyone
around the world. It refers to promoting sustainable form and environment of travel and tourist
industry. People often like to go to destination which provide natural and Eco tourism. It refers to
tourism which is based on natural experience which also develops social economy of country.
P 2.2 Emerging Trends Affecting Tourism Products And Services In Vietnam
Travel and tourism sectors needs to adopt various changes driven by trends of markets. It
will result in increasing demands by attracting more customers. Various strategies needed to be
used by travel sectors to cope up with impacts of trends which are affecting travel related
products and services.
Vietnam is seeing extraordinary development and growth in travel and tourism industry
by increasing number of visitors and tourists. This is a result of adopting to various emerging
trends of market by travel and tourism sectors. Travel industries focuses on providing better
transport services for its customers by allowing them to drop their vehicle at home.
It also aims at adopting sustainable environmental campaigns which increases number of
visitors. Income received from tourism is invested in development purposes, which makes
Vietnam to develop its infrastructure and develop tourist destinations. Popular destinations in
Vietnam are Imperial Capital of Hue, National parks, World Heritage sites, caves etc. Dark
tourism is trending now-a-days around the world-wide which helps in attracting number of
visitors(Mason, 2015). The Phong Nha cave of Vietnam is most impressive tourist sites which
allows tourist to see and experience about amazing rock formation.
Increase in number of tourists from various parts of world is explained in table below. Adoption
of methods and techniques to cope up with emerging trends resulted Vietnam to grow and
develop its travel and tourism industry.
Tourist arrivals from different countries Statistics
(Increase in number of visitors in %)
China 20
South Korea 38.1
Taiwan 2.1

Russia 10.2
UK 6.5
French 12.6
Germany 9.4
America 11.4
Australia 1.7
US 11.4
Use of social media in travel and tourism has played a vital role in attracting more
visitors in Vietnam. Social interaction, cultural aspects and educational aspects changes and
influences decisions of visitors while selecting tourist destination. Vietnam adopts various
techniques and make use of technologies and social media in travel related products and services
so that it facilitate in increasing visitors(Baker, 2014).
TASK 3
P 3.1 Ways Of Responding To Emerging Trends And Changes By Travel And Tourism Industry
Thomas Cook tour operator is best known name in travel and tourism sector. Thomas
cook tour operator started its international travel business in 1841. Travel and tourism sector is
growing and developing at a great speed and it also gets affected by various external factors of
environment including trends.
Adopting to changes accordingly will lead business of travel sectors to gain advantage.
Thomas cook needs to respond to changes emerging in markets in order to sustain profitability.
This will also help Thomas cook to serve large number of visitors(Mason, 2015). Vietnam is
growing and developing its tourist destinations and resulted in attracting more visitors and
tourists. Thomas cook responds to various economic and political changes happening in Vietnam
effectively.
Thomas cook uses various distribution channels and focuses on internet most as it greatly
affects and influences travel sectors. People chooses internet to get details about destination,
book flight tickets and also for booking holiday packages. Therefore, Thomas cook uses internet
in its business activities in order to gain its advantage. The use of online booking for hotels and
flight tickets facilitate in saving time as well.

Active and adventurous trips are in demand by visitors especially by young age groups.
Therefore, travel and tourism industry aims at providing adventurous holiday packages to attract
more customers. Travel industry makes its packages in a way that fully satisfies visitors.
Travel and tourism sectors also focuses on providing wide range of food products and
beverages so that it can meet demands of visitors for food tourism. Travel and tourism sectors
come in contract with different hotels and restaurants that can meet food demands of visitors and
satisfies them.
P 3.2 Development Of Strategies By Thomas Cook In Order To Respond To Changes
Travel and tourism industry get affected and influenced by various external factors so in
order to respond to those changes Thomas cook develops various plan and strategies.
Development of plans and strategies adopted by Thomas cook facilitate it to significantly
manage and respond to these changes. For this, Thomas cook adopts progressive tactics which
supports business to attain sustainability(Becker, 2016). For effective planning and development
of strategies, one needs to conduct analysis of internal and external factors which affects
Vietnam's tourist destinations. SWOT and PEST analysis have been used by Thomas Cook to
analyses affecting factors and make strategies which help in responding to changes.
Political factors: Government's rules and regulations affects business and activities of travel and
tourism sectors. Several policies and securities are tightened due to happening of terror attacks
which affects travel industry to inspect each and every place carefully.
Economic factors: Economy of a country get affected by terror attacks and also get disturbed. It
slows down the growth of country which greatly affects business of travel sectors. Thomas Cook
faces losses in business activities due to security issues of Vietnam(Boniface, Cooper and
Cooper, 2016).
Social factors: The social factors greatly influence and attract visitors. Vietnam has successfully
increased number of visitors by applying various techniques. Social factors impacts in both
negative and positive ways. Positive impact will support in developing infrastructure which also
enhances culture.
Technological factors: Travel and tourist sector gets benefits by having technological
advancement. Thomas cook aims at adopting technological advancements and provides various
information on internet which facilitate visitors to get information on their phones. Thomas cook

provides information regarding holiday packages, availability of hotel rooms and flight details, it
also allows giving feedback on official sites.
strength weakness opportunities threats
Thomas cook focuses
on attaining
sustainability and also
adopt green initiatives.
Government puts extra
taxes for tourists(Fang,
Ye and Law, 2016).
Vietnam offers
sustainable holiday
packages for tourists
which can have
positive outcomes.
Economic crisis of
Vietnam acts as a
threat for travel and
tourism sectors(Fang,
Ye and Law, 2016).
Vietnam's
infrastructure is
developing on a well
speed which attracts
more visitors.
Vietnam has issues of
security and terror
attacks.
Vietnam alliances with
various travel and
tourism agencies
which will result in
attracting more
number of visitors.
Terrorist attacks
creates security issues
which influences
demands and choices
of tourists.
It follows various
cultures.
It has high pollution
and traffic(Mason,
2015).
Decrease in tax
amount by government
will help travel sector
to gain advantage.
Environment
degradation affects
business of travel
sectors.
Vietnam is beautiful
city with attractive
sights.
Profit margin is very
low for travel sectors.
Economic and
adventurous holiday
packages offered by
Vietnam attracts
visitors.
Vietnam has threat of
other holiday
destinations which
growing on a rapid
rate.
P 3.3 Justification Of Strategies Applied By Thomas Cook
Analysis of internal and external factors explains that Vietnam possess great
opportunities and potential which can facilitate it to become great destination for people to visit.
Vietnam has beautiful destination, well developing infrastructure, various cultures adopted, etc.
can result in attracting more and more visitors(Page, 2014). SWOT and PEST analysis help
Thomas cook to understand various aspects and factors which affects and influences its business
and activities.

Influences by Vietnam's economic factors can be observed in terms of increased
employment opportunities. Social factors leads to encouraging travel and tourism sector to meet
needs and wants of visitors and tourists. Strength and opportunities needs to be used to grow and
develop business activities in order to gain advantage and it also assists in development of travel
and tourism sectors. Weakness and threats needs to be worked on and eliminated to increase
number of visitors in Vietnam.
SWOT and PEST analysis benefits Thomas Cook to develop effective business strategies
which can help in achieving business objectives, increase revenue and profits, create brand
image, bring improvements in business process. It will also benefit in community development,
infrastructure development, bring foreign exchange in country, bring improvements, etc.
TASK 4
P 4.1 Impacts Of Issues And Trends That Drive Changes In Travel And Tourism Sectors
Vietnam is facing positive impact on tourism and travel sectors and results in attracting
more visitors. Travel and tourism sector of Vietnam focuses on attracting customer's by
effectively using brand image, providing travel related quality products and services, giving
promotional offers and discounts, enabling tourist information center, offering best holiday
packages, etc(Prebensen, Chen and Uysal, 2018). The important factors which attracts tourists
and visitors are related to economical, infrastructure and technological developments of country.
Social networking sites used by tour operators to promote its business plays vital role and
it benefits travel sectors. The use of social networking sites positively affects business of travel
and tour sectors of Vietnam. It helps and benefits both travel industry and visitors as well.
Official websites which guides visitors to have information about destination and
availability of hotel rooms and flight tickets, etc. The adoption of this tool by travel sector helps
visitors to plan their holiday packages easily by using phone and internet.
Thomas cook facilitate travel and tourism sector by proving travel related quality
products and services to its customers which makes them satisfied and happy. It aims at
providing holiday packages that meet expectation of various kinds of visitors. Thomas cook has
large number of competition and in order to gain competitive advantage it owns various
distribution channels, tour operations and airline.
There are different number of suppliers for business operations of travel and tourism
sectors like cruise ships, vehicle rentals, hotels and restaurants, etc. Thomas cook have made tie

ups with various suppliers which benefits it gaining discounts and offers which lowers down the
holiday cost attracting more customers(So and et.el., 2016). It aims at developing relationship
with its suppliers so that it can provide the best quality of travel related goods and services to
customers and make them fully satisfied.
P 4.2 Consequences For Thomas Cook To Failing In Responding To Market Changes
Travel and tourism industry is growing at rapid rate and to adopt every emerging change
in developing business is very difficult. Economic situation of Vietnam is growing and
developing which makes various environmental changes in business environment of travel and
tourist sector. Thomas cook aims at bringing changes in business and its operations according to
changing environment and its trends. It also adopts various plans and strategies which help in
gaining advantage. Consequence of various changes in travel and tour sectors are explained:
Customer's preferences are changing rapidly which creates problem and issues for travel
and tourism sector to meet their changing demands. It becomes difficult for travel sectors to
create brand image and loyalty(Xiang., Magnini and Fesenmaier, 2015).
Thomas cook should bring changes and innovate its business activities which can help in
increasing demands of its travel related products and services. It should also aim at increasing its
market share by expanding business and its activities.
Mismanagement in business activities of Thomas cook happens because of various
functions to be handled and managed. It should make proper management of activities and in
accurate way that brings positive outcomes.
It is very difficult to maintain good relationship with each and every supplier. Thomas
cook fails to maintain effective relationship with its hotel and restaurants suppliers in Vietnam
which affects its business and activities. It should make its strategies in a way that helps in
building effective relationship.
CONCLUSIONS
It is very essential for every tour and travel industries to adopt various techniques and
tools to drive positive changes. Travel and tourism industries needs to maintain effective
relationship with its suppliers which acts as intermediaries so that it make customers satisfy and
happy. This will lead in gaining advantage and also create brand image and loyalty of that
destination.

REFERENCES
Books And Journal
Baker, D.M.A., 2014. The effects of terrorism on the travel and tourism industry. International
Journal of Religious Tourism and Pilgrimage, 2(1), p.9.
Becker, E., 2016. Overbooked: the exploding business of travel and tourism. Simon and
Schuster.
Boniface, B., Cooper, R. and Cooper, C., 2016. Worldwide destinations: The geography of travel
and tourism. Routledge.
Fang, B., Ye, Q. and Law, R., 2016. Effect of sharing economy on tourism industry
employment. Annals of Tourism Research, 57(3), pp.264-267.
Mason, P., 2015. Tourism impacts, planning and management. Routledge.
Page, S.J., 2014. Tourism management. Routledge.
Prebensen, N.K., Chen, J.S. and Uysal, M. eds., 2018. Creating experience value in tourism.
Cabi.
So and et.al., 2016. The role of customer engagement in building consumer loyalty to tourism
brands. Journal of Travel Research, 55(1), pp.64-78.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal
of Retailing and Consumer Services, 22, pp.244-249.
Online
21 Issues & Trends That Will Shape Travel and Tourism in the 21st Century. 2018. [ONLINE].
Availble
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