South Korea’s Lotte Duty Free and Modetour signed an agreement on January 26 to boost their collective marketing efforts and bolster Vietnam’s tourism market.
According to reports from the two companies, given the growing array of preferred destinations in Vietnam for South Koreans, including Da Nang, Nha Trang, Phu Quoc Island, and Da Lat, the two companies have partnered to leverage their combined strengths. They aim to expand customer engagement points and develop tourist-centric offerings that integrate tax-free shopping with travel experiences.
Significantly, Lotte Duty Free and Modetour have strategized to cooperate in advancing Vietnam’s tourism sector while jointly introducing all-inclusive travel packages nationwide.
They intend to conduct joint marketing activities such as advertising and utilizing social media services, while establishing close cooperation to ensure long-term development strategies and benefits for both sides.
As of 2023, Southeast Asian visitors comprised the largest share of Modetour’s total package tour travelers, accounting for 53 per cent. Vietnam received the highest percentage among Southeast Asian destinations, of 44 per cent.
Lotte Duty Free currently manages four outlets in Vietnam, at Da Nang International Airport, Nha Trang International Airport, Noi Bai International Airport in Hanoi, and a downtown location in Da Nang. Revenue in 2023 surged 351 per cent compared to 2022, with approximately 60 per cent being attributed to South Korean tourists.
Mr. Lee Seung-jun, Head of Lotte Duty Free’s overseas business department, said the company is partnering with Modetour to meet the growing demand of local customers post-Covid-19. In response to customer needs, the company aims to explore and offer specialized services tailored to Lotte Duty Free’s clientele.
For his part, Mr. Lee Woo-yeon, Director of Modetour’s Southeast Asia business division, said that as Vietnam is one of the most popular destinations for South Korean travelers, Modetour expects to provide better services through this MoU with Lotte Duty Free. He also emphasized Modetour’s commitment to closely cooperating with Lotte Duty Free to expand into markets in Vietnam, Guam, and Singapore, thereby enhancing customer benefits.