AI and Big Data are no longer merely supporting tools. They are becoming direct productive forces that determine the competitiveness of Vietnam’s tourism industry and how it reaches travelers around the world.

At a conference on the Application of artificial intelligence (AI) and Big Data in sustainable tourism development, organized by the Ministry of Culture, Sports and Tourism on the morning of August 20, technology was presented as an increasingly essential part of the industry’s future.

Ho An Phong, Deputy Minister of Culture, Sports and Tourism, said AI and Big Data are no longer simply tools that assist the industry but have become direct productive forces driving tourism growth.

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Deputy Minister of Culture, Sports and Tourism Ho An Phong. Photo: Pham My

Vietnam’s tourism industry is entering an important period, marked by an impressive recovery and fundamental changes in how the market operates.

According to UN Tourism, Vietnam and Japan are the two countries recording the fastest tourism recovery rates in the world, with growth exceeding 20%.

This year, Vietnam’s tourism industry is targeting 25 million international arrivals and 150 million domestic trips.

Alongside that growth, the industry’s business model is undergoing a significant shift from the traditional business-to-business, or B2B, approach toward independent travelers in a business-to-consumer, or B2C, environment.

According to figures presented at the conference, B2B travel now accounts for less than 25% of the market. Travelers today can arrange virtually every aspect of their trips themselves through digital platforms without necessarily relying on traditional travel companies.

That shift requires major businesses to accelerate digitalization rather than continue storing customer information through manual, paper-based systems for years.

Technology solutions for tourism

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Phi Tien Dai, customer strategy specialist at Google. Photo: Pham My

Insights from Google offered a clearer picture of how technology is reshaping the travel experience.

Trinh Viet Anh, Head of Sales for Small and Medium Business Customer Solutions and Google’s representative in Vietnam, said AI-powered Google Search now serves around 2 billion users worldwide.

Travelers’ search habits have also changed. They are increasingly entering much longer and more specific queries, such as “five-day Vietnam travel package for a family with young children during the September 2 holiday.”

Searches containing more than eight words now make up the largest share, at 35%, suggesting that travelers are increasingly treating Google as a kind of “travel adviser.”

For businesses, this means websites need to be optimized so Google’s AI algorithms can scan and surface their information. Companies also need to develop advertising strategies that allow them to appear at the moment customers are ready to make purchasing decisions through features such as AI Overviews and AI Mode.

Phi Tien Dai, a customer strategy specialist at Google, emphasized that Vietnam’s tourism industry needs to use AI to identify the right target markets and shift its focus toward higher-value potential customers who can increase both tourism spending and length of stay, rather than concentrating on low-cost tourism.

Beyond Google Search, YouTube, where travel content attracts 25 million hours of viewing every day, is emerging as a powerful platform for inspiring potential travelers.

Combining advertising across Google and YouTube can increase return on advertising spend by 21%.

In addition, through the “YouTube BrandConnect” program, travel companies can take advantage of funding from YouTube for content production while paying only for media advertising, helping optimize costs and improve conversion rates.

Despite the enormous potential of AI and Big Data, the conference arrived at a shared understanding: tourism is, at its heart, cultural.

Robots and AI may be faster and safer, but they cannot replace the human experience of exploring nature, enjoying local cuisine or interacting with friendly Vietnamese people.

AI and technology can bring convenience, improve productivity and create new room for growth, but Vietnam’s diverse cultural identity remains the foundation of what makes the country compelling as a travel destination.

Tinh Le