Online travel experiences platform, KKday, is stepping up its aggressive expansion in Vietnam, with efforts focused on local partnerships that will allow it to drive more than US$100 million into Vietnam’s tourism industry by 2023.
KKday will work with local merchants to digitise processes, launch marketing campaigns to capture both inbound and outbound traffic, and expand distribution channels to capitalise on the sharp travel rebound expected in Vietnam across key markets such as Ho Chi Minh, Hanoi, Danang, and Phu Quoc.
The company recently inked MOUs with leading Vietnam partners, such as SunWorld Holdings, VinWonders, FLC Group and BestPrice. The agreements are expected to support domestic and international visitors, especially visitors from South Korea, Japan, and South-east Asia, and help over 3,000 travel operators globally on KKday’s platform access experiences and activities offered by its new Vietnam partners.
KKday’s Vietnam business grew 20 time during the pandemic years, and has exceeded pre-Covid-19 levels, largely driven by the growth of its domestic business. KKday expects revenues to continue growing as borders reopen and international travellers return.
“We believe that the tourism recovery in Vietnam will accelerate given pent-up demand, restrictions being lifted, and the increasing digitalisation of travel operators locally. As more travellers are digital-first and traveling for longer periods in this new environment, we are committed to establishing our foothold in Vietnam to support the growth and digital
transformation of the tourism industry in Vietnam. We believe our hyperlocal approach combined with our focus on innovation and operational excellence will continue to be the key drivers of our business,” said Pinky Lee, managing director of South-east Asia, KKday.
Prior to Covid-19, Vietnam was one of the fastest growing tourism destinations in South-east Asia, with tourism contributing to 12 per cent of the country’s GDP and the three-year CAGR was 22 per cent between 2017-2019.
According to the Asian Development Bank, Vietnam’s economy is expected to rebound by 6.5 per cent in 2022.
In terms of traveller demand, KKday forecasts over 20 million trips will be taken both inbound and outbound from Vietnam by the end of 2023. Arrivals into Vietnam is also expected to rise by 50 per cent year-on-year by the end of 2022.
KKday’s expansion will include plans to triple the size of its current team.