Foreign tourists visit Phú Quốc Island in Kiên Giang Province. VNA/VNS Photo Lê Huy Hải

Smart technology, particularly artificial intelligence (AI), has become a critical driver of innovation in the tourism sector, experts have said.

Technology is not only improving operational efficiency but also addressing pressing challenges such as labour shortages and enhancing customer satisfaction, said Justin Matthew Pang, interim senior programme manager in tourism and hospitality management at RMIT Vietnam.

“AI is like an ocean -- its potential applications in tourism are limitless. This technology has the power to transform every aspect of the industry, from customer service to event management,” Pang, PhD, said.

Practical applications of technology in tourism are vast and varied. For instance, AI-powered chatbots provide personalised recommendations and help travellers plan their trips more efficiently.

At airports and hotels, facial recognition technology simplifies check-in processes and reduces wait times, significantly improving customer experiences.

Artificial intelligence has become a critical driver of innovation in many fields including the tourism sector, experts have said. Forbes Illustration photo

Big data analytics is enabling businesses to better understand customer behaviour and preferences, leading to more tailored services.

The benefits of these technological advancements extend beyond convenience.

In the MICE (Meetings, Incentives, Conferences, and Exhibitions) sector, smart technology optimises resource management and minimises waste during events.

The younger generation of tech-savvy travellers demands seamless, smart travel experiences, and technology not only meets these expectations but also promotes more sustainable practices within the industry, according to Pang.

Sustainability is intrinsically linked to this evolution. It is no longer optional -- it is a necessity for the tourism industry to thrive.

A visitor experiences digital technology at the Sài Gòn Special Task Force Museum in HCM City. Photo baotintuc.vn

The post-COVID-19 era has seen heightened traveller awareness of the environmental impact of tourism, prompting businesses to offer eco-friendly and sustainable travel options.

“Today’s travellers are not only looking for exciting journeys; they also want to ensure their experiences do not harm the environment. This requires creativity in developing sustainable tourism products,” Pang said.

Key sustainability initiatives include reducing single-use plastics in hotels and resorts, adopting renewable energy solutions like solar power, and organising eco-tours to raise awareness about environmental conservation.

Trang Phạm, PhD, lecturer in tourism and hospitality management at RMIT Vietnam, said Việt Nam was an attractive choice for international travellers seeking distinctive and authentic journeys.

“Việt Nam, with its vibrant cultural heritage and breathtaking landscapes, is becoming an ideal destination for travellers seeking unique and sustainable experiences,” she said.

While natural and cultural resources serve as a strong foundation, the integration of digital technologies is amplifying Việt Nam’s appeal, accordding to the lecturer.

In addition to its natural assets, the country is making significant strides in digital transformation within its tourism sector. Technologies like virtual tours, e-ticketing, and digital payment solutions are increasingly popular, enhancing both convenience and competitiveness.

Furthermore, the national blockchain strategy is unlocking new opportunities for transparency in service booking, quality assurance, and traveller data security, further strengthening its position as a modern and innovative destination.

However, to fully capitalise on these advancements, Việt Nam must address challenges brought by the rapidly evolving tourism landscape.

Trang highlighted the disruptive impact of emerging platforms like Airbnb on traditional tourism business models.

To remain competitive, hotels and resorts need to innovate by offering authentic, high-quality experiences that reflect the unique identity of Việt Nam.

Combining its natural strengths with technological advancements and sustainability initiatives gives Việt Nam a competitive edge in the regional tourism market.

By leveraging these elements, the country has a remarkable opportunity to position itself as a trailblazer in the region’s smart tourism landscape.

“Việt Nam has a unique advantage, not only in its rich tourism resources but also in its readiness to adapt to technology and sustainability trends,” Trang said.

"The future of Việt Nam’s tourism industry lies in fostering innovation, building strong brand identities, and investing in workforce development to ensure sustained growth."

Hotel occupancy gains

The hotel sector is recovering, supported by robust tourism demand, according to Savills Vietnam latest market report.

Hà Nội’s occupancy improved in the fourth quarter of last year, reaching 71 per cent, up 7 percentage points year-on-year.

The average room rate fell by 6 per cent year-on-year.

Future supply is set to reshape the market, with 68 projects expected to deliver 12,065 rooms from 2025 onwards. Notable upcoming brands include Hilton, Fusion, Accor, and Four Seasons.

In HCM City, all hotel grades recorded year-on-year improvements, with occupancy rising four percentage points year-on-year to 71 per cent.

The average room rate increased by 6 per cent year-on-year to VNĐ2.1 million (US$83) per room per night.

Neil McGregor, managing director of Savills Vietnam, said that the hotel sector in HCM City is expected to achieve full recovery by 2025, driven by the strong return of international visitors, especially from its key source markets.

Việt Nam welcomed more than 17.5 million foreign visitors last year, up 39.5 per cent year-on-year.

Foreign visitors to Việt Nam in January reached nearly 2.1 million, up 36.9 per cent year-on-year. VNS