Due to the impact of the COVID-19, Vietravel expected its revenue would decline by nearly 60% to only 3,000 billion VND and forecast that domestic tourism would recover from Q3 with 95% of visitors being domestic travelers.

Vietravel recently organized an annual shareholder meeting in 2020. In this meeting, Vietravel announced its revenue of 7,432 billion VND in 2019 and profit after tax of 44 billion VND. Compared to last year, Vietravel’s revenue increased by 3% but profit decreased by 24%.

In 2020, Vietravel predicts its revenue to drop at 3,065 billion VND, reducing nearly 60% compared to the previous year. It even expects to lose about 22 billion VND.

Vietravel also predicts that the tourism industry may recover at soonest from the third quarter of 2020, which means that it is high time for travel market stimulus policies. The travel market in Vietnam currently has a large proportion of domestic tourists (accounting for 82.5% of total visitors in 2019) along with visitors from China and South Korea. These are considered beneficial factors for Vietnam after the pandemic is over they may be the first markets to resume international travel.

According to the Vietnam Tourism Board, until the end of 2020, domestic tourists will account for 95% of total visitors in 2020. Therefore, it is necessary to focus on stimulating domestic tourism demand to compensate for the serious decline in international arrivals, to reduce losses for businesses and to create more jobs for the tourism sectors.

According to Vietravel, many countries around the world are gradually reopening but still implementing strict restrictions and policies to ensure safety. In Q3, visas in the Northeast Asian countries will likely be reissued and flight routes to Southeast Asia will reopen as well.

In 2020, Vietravel aims to restructure the entire company with the top priority to maintain the staff and recover each business segment as quickly as possible.

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Vietravel are planning to launch a new business-oriented brand identity of Vietravel Holding, consisting of three main areas: transport, travel, and trade in services.

In addition, Vietravel also has many technology-related plans, such as transforming the company’s marketing to a digital approach, completing the online bidding system on both domestic and foreign markets, focusing on investing in technology and transforming to transform into the online platform, and digitizing all operations within the company.


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