As tourism moves beyond being merely about travel, the market is entering a new phase of competition-one in which experience and emotion have become the primary measures of value. Alongside the strong rebound in domestic travel demand, Vietnam’s tourism and hospitality industry is witnessing a clear shift from material consumption toward value-based consumption, where travelers choose destinations not solely through rational considerations, but through feelings, storytelling, and the degree to which experiences resonate on a personal emotional level.

This transformation is occurring across generations: Gen Z seeks novelty and personal expression, Gen Y prioritizes balance and energy renewal, while Gen X looks for depth and spiritual value. Faced with these increasingly diverse “emotional maps,” businesses are compelled to redefine how value is created. Within this broader context, Vietnam’s tourism sector is not merely recovering from a period of disruption, but is entering a new era-an era defined by the race for experiences and emotions, where competitive advantage is ultimately determined by the ability to touch the hearts of travelers.

Experience and Emotion as Key Drivers of Vietnam’s Tourism Recovery

In 2024, Vietnam’s tourism witnessed a robust recovery with nearly 17.6 million international arrivals, 110 million domestic travelers, and a total revenue of VND 840 trillion. However, at the “operational layer,” business recovery has been more cautious: only 62.5% of enterprises recorded revenue growth and 51.6% reported improved profitability. This indicates that the market momentum has not yet fully trickled down to businesses, particularly those still refining their products or optimizing operations to better align with evolving traveler expectations.

Stepping into 2025, the market not only maintains its recovery trajectory but has transitioned into a phase of stronger growth, clearly reflecting a shift in tourists’ travel motivations. In the first ten months, Vietnam welcomed nearly 17.2 million international visitors-an increase of 21.5% year-on-year-driven in large part by growing international interest in distinctive local experiences, major events and festivals, and cultural values. Domestic tourism remained robust at approximately 125.0 million trips, continuing to provide a stable demand base for the accommodation and services segments. Supported by abundant visitor flows and rising expectations for experiential value, industry-wide revenues recorded strong growth: travel services increased by 19.8%, while accommodation and food services rose by 14.6%, significantly outpacing overall consumer service growth.

These positive market dynamics have subsequently translated into improved business performance. According to statistics from Vietnam Report’s rankings, 63.6% of tourism and hospitality enterprises reported revenue growth-surpassing full-year 2024 levels-while 45.6% recorded profit increases. Notably, this recovery is not solely attributable to seasonal factors or large-scale events such as A50 and A80, but also reflects proactive efforts by enterprises to refresh products, upgrade service quality, and reposition experiences toward greater emotional engagement in line with increasingly sophisticated traveler expectations. This underscores that experience and emotion are no longer supplementary elements, but have emerged as core drivers underpinning the recovery and growth of Vietnam’s tourism and hospitality industry.

Emerging Consumer Trends: Spending on Experiences, Investing in Happiness

Survey results by Vietnam Report indicate that consumers are maintaining optimistic sentiment and greater confidence in their personal financial outlook for the coming year. As many as 64.5% of respondents expect their financial situation to improve in the next 12 months, while only 14.2% anticipate it will “worsen.” Approximately 21.3% believe their income will remain unchanged. These figures reflect a stable psychological state and positive expectations in the context of a macroeconomic environment that is projected to sustain growth momentum in 2026.

Following a prolonged period of restrained spending, consumers increasingly expect each expenditure to deliver emotional or long-term value. Tourism – a sector highly influenced by sentiment and income – has become the clearest “test case” of this shift. About 65.3% of consumers say they will travel more in the next 12 months, and 69.4% plan to increase their travel budget in 2025.

Only 2.0% intend to reduce travel spending, indicating that the desire to move, explore and experience has become an essential need for most consumers. Whereas travel was once viewed as a “luxury reward” for special occasions, it has now become a regular component of personal budgets – associated with the need to recharge, care for mental wellbeing and maintain emotional balance amid busy modern life.

Survey data suggest that consumer spending behavior is entering a more “mature” phase – where spending decisions are no longer driven by spontaneity, but shaped by clear awareness of experiential value. The majority report traveling two to three times per year. In terms of expenditure, the trend of “selective investment” is increasingly evident. The consumer group spending VND 10–15 million per trip remains the largest (36.7%), but notably, the segment spending upwards of VND 15 million is expanding rapidly, concentrated among higher-income groups in major metropolitan areas. This trend suggests that Vietnamese travelers are not only traveling more frequently, but are also willing to invest more in each journey – prioritizing service quality, privacy, sustainability, and the emotional value derived from experiences.

More broadly, this shift reflects not only a change in spending behavior, but also an adjustment in lifestyle mindset: travel is no longer a “reward” after hard work, but a long-term investment in mental health and quality of life. Each journey, therefore, carries greater meaning - as a way to find balance, healing, and self-discovery amid the pace of contemporary life.

 It is precisely this shift that is reshaping market competition: enterprises that are able to address emotional and experiential needs in a more authentic, nuanced, and profound manner will secure a leading advantage in the new competitive landscape of Vietnam’s tourism and hospitality sector.

Three Generations – Three “Emotional Maps” in the Travel Journey

According to Vietnam Report’s survey, travel trends among Vietnamese consumers are becoming increasingly differentiated by generation - not only in spending behavior and destination preferences, but also in the motivations behind each journey.

For Gen Z (aged 13–28), travel serves as a means of self-expression and exploring multiple facets of life. Born into the digital era, this generation views each trip as a form of “personal achievement,” where they can leave a mark through photos, vlogs or social media posts. More than 53.8% of Gen Z consumers say they will travel more next year, although their spending remains limited (typically VND 3-5 million). With most not yet married, Gen Z leans toward adventure and is willing to challenge themselves through backpacking, trekking or camping. Survey findings show that 31.0% of Gen Z prefer personal vehicles, reflecting their desire for freedom, flexibility and autonomy. For Gen Z, travel is not simply sightseeing - it is about encountering new experiences, overcoming challenges and discovering personal limits.

Gen Y (aged 29–44) - the generation juggling multiple responsibilities-views travel as a necessary pause amid work pressures and family duties. Under financial and social expectations, travel becomes a form of balance and mental reset. A total of 76.9% of Gen Y intend to increase travel spending - the highest among generations - and 40.0% are willing to spend VND 10–15 million per trip. Vietnam Report’s survey suggests Gen Y favors resort travel, sustainable tourism and journeys that help restore energy, strengthen family bonds and regain emotional balance. With 69.6% choosing air travel, Gen Y clearly prioritizes convenience, time efficiency and optimized experience-aligned with the lifestyle of a generation balancing career ambitions and personal wellbeing.

For Gen X (aged 45–60), travel takes on a slower, more reflective pace. After years of contribution and accumulation, they approach travel as a time for reflection and enjoyment. Rather than adventure or leisure tourism, Gen X prefers spiritual and wellness travel-journeys that allow them to escape noise and restore physical and mental balance. According to the survey, 57.1% of Gen X spend over VND 15 million per trip - signifying the willingness to invest in deep, meaningful experiences.

Despite generational differences, a common trend is evident: a shift from material consumption to value-based consumption, where experiences, emotions and personal growth become the new metrics of spending. Travel is therefore not merely leisure activity, but an expression of a purposeful lifestyle focused on balance and sustainable values.

Previously, consumers placed greater emphasis on acquiring tangible assets; today, they increasingly prioritize experiences, knowledge, and intangible “assets” gained through each journey. For the tourism – hospitality sector, this presents both an opportunity to innovate through personalized products and a test of experiential depth. To capture this wave, businesses must restructure services toward delivering meaningful experiential value-not only in comfort, but in emotion, storytelling and depth embedded in each journey.

Decoding the Emotional Connection Race: A Strategic Axis for Creating Differentiated Value among Tourism and Hospitality Enterprises in 2025

Survey results from Vietnam Report indicate that Tourism and Hospitality enterprises are developing a new strategic mindset: adapting to create differentiated value in a competitive environment where experience and emotion have become the most critical “units of measurement.” Amid rapidly evolving traveler behavior, enterprises are structuring their strategies along two parallel directions-addressing short-term requirements while simultaneously preparing for long-term sustainable development.

In a context where travelers increasingly prioritize journeys that resonate emotionally and deliver intangible value, Tourism, Hospitality enterprises are entering a new phase of competition - one in which competitive advantage no longer derives from scale or pricing, but from the ability to design meaningful experiences, convey compelling emotional narratives, and personalize journeys for distinct customer segments. Vietnam Report’s survey findings show that enterprises have begun to realign their strategies along two concurrent directions: capturing market trends in the short term and strengthening an “emotional foundation” for long-term growth.

In the short term, enhancing corporate image and strengthening digital marketing remain the key strategic pillars, selected by 81.8% of surveyed companies. Amid intensifying competition and rapidly shifting consumer behavior toward online platforms, “capturing the right trends” – from optimizing content on social media and websites to expanding communication channels – has become the fastest pathway for enterprises to maintain visibility and attract customers. Digital communication, therefore, is not merely a marketing tool but a branding battleground in the era of digitized tourism.

According to Vietnam Report’s survey, 90.0% of enterprises identify short-form videos on platforms such as TikTok, Instagram Reels, and YouTube Shorts as their primary communication channels moving forward – thanks to their strong emotional appeal and rapid viral effects. This shift shows that businesses are not only following market trends but are also communicating in the language of the younger generation – the cohort shaping modern travel behavior.

Technological advancements have fundamentally transformed how the Tourism – Hospitality sector tells its story. Whereas enterprises previously relied mainly on static posts through Facebook or Zalo, today the communication landscape has shifted decisively toward the language of short-form videos. The rise of TikTok, Reels and Shorts has made this format the most prominent form of experience expression – where emotions are conveyed faster, more directly and more authentically than traditional promotional methods. The appeal of short-form videos lies in their ability to instantly recreate the atmosphere of a journey. Without reading long descriptions, just a few seconds of blended images and sound are enough to make viewers want to become the main character of that journey.

For tourism products – which are inherently intangible and difficult to evaluate before purchase – visual and emotional experiences act as “evidence” that help customers picture the value they expect to receive. A single moment capturing the sound of waves, a hotel room overlooking the sea, or a distinctive dining experience, if conveyed effectively, can generate a stronger impact than large-scale advertising campaigns. Many brands only need one timely viral video to achieve a sudden surge in customer bookings – something that previously required months of communication effort. Ultimately, tourism is not a product that can be held or consumed, but an experience chosen through emotion and trust. And short-form videos, with their ability to vividly reproduce sensations, are becoming a key tool in helping customers believe in the experience even before they embark on it.

Despite the competitive advantage that digitalization brings, businesses still acknowledge an unchanging reality: people remain the central asset. Therefore, long-term strategies in the industry are placing greater emphasis on human-resource development – a decisive factor for brand sustainability. Training and improving the quality of human resources were selected by 63.6% of enterprises, reflecting a shift in management mindset that recognizes people as the backbone of competitive capability. In service-based industries – where each traveler’s experience is directly shaped by employees’ attitudes, skills, and emotional engagement – investing in human resources is indeed an investment in long-term brand value. An employee who is able to listen attentively, convey the story of a destination through emotion, guide the overall experience, and demonstrate refined interpersonal skills can create an emotional imprint that even the most advanced technologies struggle to replicate. Recognizing this, enterprises are increasingly focusing on building a more professional workforce-one that is technologically literate and highly adaptable-viewing human capital development as a prerequisite for competing in an increasingly intense experience- and emotion-driven marketplace.

 Differentiated value does not simply arise from the addition of services or the upgrading of physical infrastructure; rather, it is rooted in a profound understanding of travelers-what they seek in each journey, which emotions shape their decision-making, and what kinds of experiences are capable of creating lasting memories. This depth of understanding forms the foundation upon which enterprises can design signature experiences and cultivate long-term customer engagement. In the “emotion-driven race,” successful enterprises are those that can translate data and market trends into experiences imbued with personal meaning for each customer segment. From destination storytelling and accommodation design to service delivery and every touchpoint along the customer journey, all elements must be orchestrated around a coherent core experiential value. When experiences are emotionally grounded and authentically conveyed, brands are not only remembered but also amplified through travelers’ own perceptions and shared narratives. This behavioral shift is fundamentally reshaping competition within the tourism and hospitality industry. As experience and emotion become central to travelers’ decision-making, enterprises are compelled to move beyond an operational mindset toward one focused on value creation. The industry’s “new race,” therefore, will be determined by the depth of experience and the degree of emotional resonance each brand is able to deliver.