Author: Thinh Joey

Adaptability in the face of geopolitical changes.

Travellive:UMBRELLAHow do you assess the impact of this war on Vietnam's tourism market?

Mr. Pham Ha:When the fighting broke out, I was on my way from Vietnam to Germany to attend the ITB Berlin travel fair. Luckily, Vietnam Airlines proactively adjusted the flight path to avoid the conflict zone, so we still arrived safely. But two of my friends were not so fortunate and were stranded in Oman for almost a week.

In the following days, the impact spread further as the conflict escalated. Rising oil prices led to a dramatic increase in airfares. The flow of European travelers, who usually transit through the Middle East before entering Vietnam, was severely disrupted. This directly affected customer demand: they tended to switch to closer destinations, or decided to postpone or cancel their trips to wait for another time.

Not only international tourists but also domestic services are more expensive due to increased transportation costs. Our cruise segment is also directly affected by the significant increase in operating expenses. It's safe to say this fluctuation impacts every aspect of tourism. From my observations, the number of tourists has decreased by about 30% recently due to tour cancellations, postponements, or a wait-and-see attitude.

Travellive:Given this difficult situation, how have travel companies implemented short-term crisis management strategies?

Mr. Pham Ha:At Lux Group, we had to adapt flexibly immediately. The best solution right now is to persuade customers to postpone their trips instead of canceling tours entirely, especially for tours that have already been paid for. For services with fixed prices, such as cruises, even with increased input costs, we are still maintaining the prices we committed to our customers.

In the long term, of course, everything still depends on the course of the conflict. If prices continue to escalate, we will be forced to adjust fees accordingly. But right now, the business is willing to accept some losses because credibility is something that cannot be compromised.

Travellive:What are your predictions regarding future travel trends, especially during longer holidays?

Mr. Pham Ha:There will undoubtedly be a significant shift towards closer destinations. This is an inevitable trend that we predicted and is entirely consistent with current safety concerns and cost realities. Interestingly, this shift isn't solely due to conflict; it also reflects a deeper change in post-pandemic travel thinking.

People are gradually turning back to themselves, focusing on the values ​​of body and mind. Instead of ostentatious displays, today's luxury travelers are gravitating towards what we call "quiet luxury." For them, luxury doesn't lie in expensive watches or flashy cars, but in tranquility, cultural depth, and the pristine beauty of nature.

For example, with our cruises, instead of just 1-2 nights like before, guests can now stay 3-4 nights, or even charter the entire cruise to design a private itinerary, visiting uncharted destinations to truly connect with each other. Beyond Ha Long Bay and Lan Ha Bay, green and new destinations like Pu Luong are also becoming a preferred choice. These are trips where travelers don't need to prove themselves to anyone; they just need to feel happy and be themselves.

Travellive: So what should businesses do to effectively tap into this segment?

Mr. Pham Ha:In our industry, we have two very distinct concepts: tourist (the average traveler) and traveler. Travelers are those who seek to explore, discover, and crave a deep connection with the people and places they visit. Serving this group requires a genuine understanding of their customer profile, rather than simply chasing quantity.

Luxury travelers only account for 3-5% of total visitors, but they have very high spending power and stay for longer periods. Furthermore, when guests are truly satisfied, they naturally become ambassadors, recommending the destination to other travelers. This is the most sustainable marketing approach!

Currently, our national tourism brand has remained unchanged for 15-16 years. Meanwhile, Thailand, after the pandemic, quickly reinvented itself with a "luxury wellness" positioning, attracting many tourists and generating significant revenue.

Vietnam needs a national strategy for tourism brand positioning that truly resonates with customers' desires. We must select at least 10 high-quality destinations specifically for luxury travelers, and then focus our communication, marketing, and staff training efforts to meet 5-star standards. This shouldn't be too difficult if we have clear goals and a roadmap.

Tourism will soon recover once the fighting ends.

Travellive: Since the beginning of April, Quang Ninh and Hai Phong cities have officially implemented a passenger transport plan across the heritage area, connecting the sea tourism route between Ha Long Bay and Lan Ha Bay. How do you assess the significance of this step?

Mr. Pham Ha:This is a positive and welcome move. Geographically and culturally, these bays have historically been a unified entity, and connecting them will open up vast experiential spaces, allowing visitors to comfortably stay for a week to explore the entire Gulf of Tonkin as a "super destination".

Furthermore, management thinking should also be reformed to reflect Industry 4.0: We shouldn't force all boats to stay overnight in one place like a "floating city," causing overcrowding and a loss of privacy. As I mentioned, tranquility and solitude are sometimes the very luxuries that guests seek. Let businesses have the freedom to create unique experiences.

Creativity starts with small things, such as the need for traditional brown sails characteristic of Ha Long Bay culture, instead of just rows of uniformly white luxury yachts. The harmony between scenery, culture, and nature is what keeps tourists coming back the longest.

Travellive:According to him, what are the major opportunities that Vietnam's tourism industry has yet to fully exploit?

Mr. Pham Ha:I think cinema has a powerful influence because it touches emotions. History has proven this: after the films *L'Amant* and *Indochine* were released in France, the number of French tourists visiting Vietnam skyrocketed at that time.

Netflix has been doing a similar job brilliantly with South Korea, making viewers want to pack their bags and leave immediately after watching. Vietnam has countless beautiful landscapes, but we have missed many opportunities for the most authentic and direct promotion. A recent positive sign is that the Ministry of Culture, Sports and Tourism has taken steps such as promoting Vietnam in the US and participating in Cannes to invite directors.

Furthermore, a destination brand is something businesses can proactively build, without waiting for anyone else. Creative social media campaigns and unique experiences voluntarily shared by guests are some of the most effective marketing methods today.

Travellive:How do you assess the opportunities for Vietnamese tourism compared to other destinations in the region?

Mr. Pham Ha:Vietnam's strengths lie in its people, culture, nature, and cuisine – things that are not easily replicated. Currently, Vietnam is emerging as one of Asia's top destinations. This is a positive trend, but it needs to be developed sustainably, because if we pursue rapid growth without preserving the landscape and the quality of the experience, tourists will only visit once and never return.

Travellive:Looking at the longer term, are you concerned that geopolitical instability will become the “new normal”? And do tourism businesses need to proactively restructure to adapt to global changes?

Mr. Pham Ha:Tourism is the industry most vulnerable to external shocks: from war and epidemics to energy crises. But it is also the fastest to recover. When the conflict is over, when oil prices return to normal, everything goes back to normal. History has proven this many times.

For businesses, the key is adaptability: not only during crises but even during normal times. This means diversifying products, diversifying customer base markets, and always putting customer satisfaction at the center.

Thailand has proven that creating one job in tourism will generate six jobs in other sectors. For example, a tourist's transportation (fuel), food and drink (services), consumption of products (industry), telephone and internet services, and other supporting industries are all crucial. We must accurately and comprehensively calculate the costs so that the tourism industry can contribute more to Vietnam's economy and be treated as a truly legitimate economic sector.

Travellive:Thank you very much, sir!