Vietnam’s travel landscape is slowly regaining momentum after being grounded for almost two years due to COVID-19 restrictions. Unlike its neighbours, the return to pre-pandemic tourism numbers has been slow due to various factors, including a lower rate of domestic tourism. As efforts to restart the industry intensify, the traveltech startup scene is taking advantage of the opportunity to get on board with the global travel revolution.
The startup landscape in Vietnam is flourishing but primarily focuses on eCommerce, fintech, and healthtech. Recently, it began developing strengths in sectors like AI, blockchain, logistics, and traveltech. The country is emerging as a tech hub in Southeast Asia, offering an ideal environment for technology companies looking to establish a presence in the region at a lower cost, with affordable labour and operating costs, government incentives, and a skilled workforce.
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As tourism apps and technology evolve, they bring opportunities for the travel sector to rise from the ashes of the pandemic and regain the 60% of international visitors that shored up its travel industry before the global health crisis.
Here are the top 5 traveltech startups and companies leading the charge in Vietnam:
Go2Joy
Go2Joy is a domestic travel-focused startup that offers a platform for booking hotel rooms in Vietnam. Its unique selling point is its focus on adult relationships and how taking a break at a hotel can help a couple find some joy with each other. It offers rooms by the hour, overnight, and at daily rates to accommodate the needs of those looking to spend some quality time with a loved one.
Its success has brought in USD 7.2 million in Series A funding, with the latest round in April 2023 netting them over USD 1.1 million. With plans to expand its services to other Southeast Asian countries, Go2Joy aims to be the region’s go-to love nest finder.
Luxstay
This Vietnamese flight and vacation rental platform offers various accommodations, from apartments to villas and hotels. While it does lean towards the more luxurious end of the market, it also provides some budget-friendly options and allows users to find flights easily.
Founded in 2016 in Vietnam by Steven Nguyen, the startup has moved its headquarters to Singapore. It has raised USD 10.5 million in seed and Series A funding through investors such as BonAngels Venture Partners, CyberAgent Capital and Genesia Ventures.
Vntrip
Vntrip is an online travel agency that offers hotel bookings, flights, and tour packages in Vietnam. Its app uses smart technology to help primarily corporate users plan and book their vacations and has serviced over 3 million travellers since its founding in 2014.
The disclosed funding sum of USD 13 million is just the tip of the iceberg, as it has had four other undisclosed funding rounds since 2017. With the backing of former Alibaba CTO John Wu, the company plans to expand its B2B offerings and become the one-stop shop for corporate travel in the region.
Travala
Travala, a blockchain-based travel booking platform, allows users to book hotels and flights using cryptocurrencies. It encourages users to join the AVA Smart Programme to gain discounts, voting rights, and access to a special NFT. Using smart contracts and blockchain technology, the crypto-focused startup easily connects travel providers and consumers.
The company has raised over $2.6 million in funding since its foundation in 2017 and plans to expand its services to other Southeast Asian countries.
VLeisure
The Ho Chi Minh City-based VLeisure is a Software as a Service (SaaS) company that offers a B2B platform for booking flights, hotels, and tour packages in Vietnam. Its platform connects agencies and over 650 thousand hotels worldwide, allows for flight searches that include consolidated fares and provides travel insurance packages.
Since its birth in 2011, it has raised undisclosed funding with Nextrans, VIC Partners and BonAngels Venture Partners investing in the startup. In April 2023, it was acquired by Indonesian startup NusaTrip, for the sum of USD 160 thousand as part of the Jakarta-based company’s expansion plans.
The above list shows that the traveltech startup scene in Vietnam is thriving as the country attempts to return to the pre-pandemic levels of travellers. Traveltech companies are using the digital revolution to bolster visitor numbers and domestic travel and to offer services within the industry to help make the tourism sector function more smoothly.
As the new year begins, startups offering ways to promote tourism using virtual tours and livestream sales will further enhance the ability of the country to promote itself as a clean, safe, inexpensive, and exciting place to visit.
With affordable labour and operating costs, government incentives, and a skilled workforce, Vietnam offers an ideal environment for technology companies looking to establish a presence in Asia at a lower cost. As technology for tourism continues to grow globally, this Southeast Asian country is ready to join the trend and hopes to emerge as one of the big players in the scene.