BUI HUU PHONG THE IMPACT OF OTAS (ONLINE TRAVEL AGENCIES) ON THE CONSUMER BEHAVIOR AGENCIES) ON THE CONSUMER BEHAVIOR OF OF GEN Z CUSTOMERS IN VIETNAM THE IMPACT OF OTAS (ONLINE TRAVEL GEN Z CUSTOMERS IN VIETNAM BUI HUU PHONG BACHELOR IN MARKETING VIETNAM NATIONAL UNIVERSITY, HANOI BACHELOR OF BUSINESS (MARKETING) HELP UNIVERSITY MAY, 2025 MAY, 2025 THE IMPACT OF OTAS (ONLINE TRAVEL AGENCIES) ON THE CONSUMER BEHAVIOR OF GEN Z CUSTOMERS IN VIETNAM BY BUI HUU PHONG Graduation Project Submitted to Vietnam National University, Hanoi – International School in Partial Fulfilment of the Requirements for the Degree of Bachelor of Marketing and Department of Business Studies, HELP University, in Partial Fulfilment of the Requirements for the Degree of Bachelor of Business (Marketing) Hons MAY, 2025 ACKNOWLEDGEMENT I would like to express my deepest gratitude to my thesis supervisor, PhD. Nguyen Thi Huyen, for her invaluable guidance, encouragement, and unwavering support throughout this research. Her expertise, insightful feedback, and patience have been instrumental in shaping this thesis, and I am truly grateful for the opportunity to learn under her mentorship. I am also thankful to the Faculty of Economics and Management at Vietnam National University, International School (VNU-IS) for providing the necessary academic resources and a supportive learning environment.
The knowledge and skills imparted by the faculty members, especially those from the Marketing program, have played a crucial role in strengthening my academic foundation and research capabilities. Furthermore, I would like to extend my heartfelt appreciation to my family and friends, who have been my pillars of strength throughout this journey. Their constant encouragement, belief in my abilities, and emotional support have helped me stay motivated and overcome challenges along the way. Completing this thesis has been a demanding yet rewarding experience, and I acknowledge that this achievement would not have been possible without the support, guidance, and encouragement of all those mentioned above.
I sincerely thank each and every one of you for being a part of this important milestone in my academic journey. 3 BUSINESS DEPARTMENT BACHELOR OF BUSINESS MGT400 GRADUATION PROJECT DECLARATION FORM Name: Bui Huu Phong Student ID VNU: 21070719 Student ID HELP: E2300048 Programme of Studies: Dual-Marketing Title of Project/Dissertation: The Impact of OTAs (Online Travel Agencies) on The Consumer Behavior of Gen Z Customers in Vietnam Name of Supervisor(s): PhD. Nguyen Thi Huyen Declaration: In accordance with the appropriate regulations, I hereby submit the above Graduation Project for examination and I declare that: (i) I have read and understood the sections on Plagiarism found in the University’s “General Information to Students” Handbook and certify that the Graduation Project embodies the results of my own work. (ii) I have adhered to the ‘Harvard system of referencing’ or a system acceptable as per “The Referencing Guide” for referencing, quotations and citations in my Graduation Project.
Each contribution to, and quotation in my Graduation Project from the work of other people has been attributed, and has been cited and referenced. (iii) I have not allowed and will not allow, anyone to copy my work with the intention of passing it off as his or her own work. (iv) I am aware that I may have to forfeit the degree in the event that plagiarism has been detected after the award. (vi) I am aware that my Graduation Project may be used by my supervisor(s) and/or HELP University for further research or any collaborative work, and under no circumstances whatsoever would claim any rights to the said work.
Signature: Date: 4 LIST OF ACRONYMS TPB Theory of Planned behavior Technology – Acceptance – TAM Model OTA Online Travel Agency CV Convenience SM Social Media Impact TR Technology Readiness PS Price Sensitivity IQ Information Quality AU Actual Use of OTAs GDP Gross Domestic Product 5 LIST OF FIGURES Figure 2.1: Technology – Acceptance – Model (TAM)…………………………….2: Proposed Model………………………………………………………… 21 Figure 4.1: PLS Graphical Output………………………………………………….31 6 LIST OF TABLES Table 2.1: Measurement scale for CV……………………………………………….2: Measurement scale for SM……………………………………………….3: Measurement scale for PS……………………………………………….4: Measurement scale for IQ……………………………………………….5: Measurement scale for TS……………………………………………….6: Measurement scale for AU……………………………………………….3: Respondents’ education level…………………………………………….5: Common Method Bias Results………………………………………….6: Convergent Validity Results…………………………………………….7: Discriminant Validity Results……………………………………………35 Table 4.8: Latent Variable Correlations Results…………………………………….9: R Square Results………………………………………………………… 36 Table 4.10: Model fit Results……………………………………………………….11: Hypothesis Testing Results…………………………………………….37 7 TABLE OF CONTENTS ABSTRACT. Rationale for the Study. Significance of the Study. The scope of the research.
14 Chapter 2: Literature Review. The main concepts in the research. OTA and the role of OTA in tourism. Customer behavior in the Context of OTA Usage.
Theoretical framework of customer behavior. Technology – Acceptance – Model (TAM). Factors influencing Gen Z travellers. The proposed model and hypotheses.
23 Chapter 3: Research Methodology. Data Processing and Analysis. 29 Chapter 4: Results and Discussion. Results of the research.
The validity and reliability of the research instrument. Structural Model Analysis. Discussion and Findings .1 Summary of Key Findings .2 Interpretation and Comparison with Previous Studies .3 Evaluating Research Objectives. 40 Chapter 5: Recommendation and Conclusion.
Limitations of research. Theoretical and Practical Implications. 48 9 ABSTRACT The swift digitalization of the tourism sector has revolutionized how consumers plan and book their travel experiences, with Online Travel Agencies (OTAs) emerging as the leading platforms that offer convenience, competitive pricing, and personalized recommendations. This study explores the influence of OTAs on the travel decision- making behaviors of Generation Z (Gen Z) consumers in Vietnam, a demographic recognized for its technological adeptness and heavy reliance on digital tools.
Utilizing a quantitative research methodology, this study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze survey data collected from Gen Z respondents in Hanoi during January and February 2024. The findings highlight that trust, security, information quality, and price sensitivity significantly affect OTA adoption among Gen Z travelers. Trust, in particular, stands out as the most crucial determinant, underscoring the importance of secure transactions, verified information, and transparent policies. Information quality also plays a vital role, as comprehensive travel details and user-generated reviews significantly influence booking decisions.
Meanwhile, price sensitivity emphasizes the importance of competitive pricing, discounts, and promotional incentives. Contrary to expectations, social media impact and perceived convenience do not significantly impact actual OTA usage. This suggests that while social media serves as a source of travel inspiration, Gen Z consumers make their booking decisions based on more tangible factors such as pricing and trust. Similarly, convenience is viewed as a fundamental expectation rather than a decisive element.
These findings offer valuable insights for OTAs, hospitality providers, and policymakers, highlighting the need to improve transparency, security, and user trust while refining pricing strategies and online engagement. Strengthening consumer confidence through verified listings, AI-driven review validation and secure payment mechanisms will enhance OTA adoption and improve digital tourism experiences for Gen Z travelers in Vietnam. Keywords: Online Travel Agencies, Generation Z, Consumer Decision-Making, Digital Travel Platforms, Trust and Security, Information Quality, Price Sensitivity, Vietnam Tourism Market. Rationale for the Study 1.Research Context According to the General Statistics Office, in the first six months of 2024, the service and tourism sector emerged as a bright spot in the economy, making a significant contribution to Vietnam's GDP growth (increasing by 6.76% of overall growth) due to rising domestic demand and the robust recovery of international tourist arrivals to Vietnam.
In this context, Online Travel Agencies (OTAs) have emerged as indispensable tools for both travelers and tourism businesses. Platforms such as Agoda, Booking.com, and Traveloka have transformed how consumers interact with travel services, offering unprecedented convenience, accessibility, and personalization (Brown & Wilson, 2023). Generation Z, defined as individuals born between 1997 and 2012, represents a significant consumer demographic with unique characteristics. Often referred to as "digital natives," this cohort has grown up in an era dominated by technology, making them highly adept at utilizing digital platforms for various activities, including travel planning (Nguyen & Hoang, 2023).
According to Lee (2023), the growing dominance of OTAs among this group stems from their emphasis on seamless user experiences, instant gratification, and the ability to access information on demand. OTAs provide a one-stop solution for searching, comparing, and booking travel services, aligning perfectly with Gen Z’s expectations for efficiency and transparency. In Vietnam, Generation Z is rapidly becoming the driving force behind consumption trends, particularly in sectors like tourism, where experiential offerings hold high value (Dao & Anh, 2024). This group prioritizes experiences that are not only unique and memorable but also tailored to their preferences.
They are willing to invest in travel that reflects their individual tastes, a behavior significantly influenced by online platforms and peer recommendations (Williams et al. A critical factor shaping the travel behavior of Gen Z is their reliance on technology. As Pham and Nguyen (2023) highlight, over 85% of Gen Z travelers in Vietnam use mobile devices for planning and booking their trips. OTAs, with features like mobile app integration, real-time booking updates, and AI-driven recommendations, cater to these preferences, ensuring a frictionless user experience.
Moreover, peer reviews and social media play a pivotal role in their decision-making process, as Gen Z places immense trust in user-generated content over traditional advertising (Nguyen & 11 Hoang, 2023). Given their growing influence, understanding Gen Z’s OTA usage will provide valuable insights for tourism stakeholders, including policymakers, operators, and digital platforms, enabling them to develop more effective engagement strategies. Furthermore, despite extensive research on OTAs and online consumer behavior, studies specifically examining Gen Z in Vietnam remain limited. By addressing this gap, this study aims to offer both theoretical contributions and practical implications, helping businesses optimize their digital strategies to align with the evolving expectations of young travelers.
Research Gap Despite the increasing dominance of Online Travel Agencies (OTAs) in Vietnam’s tourism industry, research on their specific impact on Generation Z consumers remains limited. While international studies have explored OTA adoption, they often generalize findings across demographics, overlooking the unique behavioral patterns of Gen Z in Vietnam (Lee, 2023). Most existing research tends to group Gen Z with Millennials, failing to recognize their distinct digital behavior, trust concerns, and preference for social media-driven travel decisions (Nguyen & Pham, 2023). Given Vietnam’s high social media penetration (Statista, 2023), understanding the role of peer-generated content in OTA decision-making is crucial.
Additionally, while studies have examined factors influencing consumer trust in digital transactions, research specific to Vietnamese Gen Z’s trust and security perceptions toward OTAs remains scarce. Local consumers are often more cautious about fraud, pricing transparency, and hidden fees (Hoang & Le, 2022), making this an essential area for investigation. By addressing these gaps, this study aims to provide a deeper understanding of how OTAs shape Gen Z’s travel behavior in Vietnam, offering insights for both industry stakeholders and academic research. Significance of the Study Theoretical Contributions: This study addresses existing research gaps by conducting a thorough analysis of the influence of Online Travel Agencies (OTAs) on the consumer behavior of Generation Z travelers in Vietnam.
The research specifically investigates key determinants shaping this influence, including pricing transparency, the impact of user-generated reviews, and the integration of social media platforms. By examining these factors, the study aims to contribute to the expanding body of knowledge on digital consumer behavior within emerging markets. Furthermore, it 12 offers a nuanced perspective that reflects the distinct characteristics of the Vietnamese Generation Z cohort (Pham & Nguyen, 2023) Practical Contributions: From a practical standpoint, this study offers valuable insights for a range of stakeholders within the tourism sector. For Online Travel Agencies (OTAs), the findings can inform the development of more effective marketing strategies tailored to the preferences of Generation Z.
This includes the implementation of personalized travel recommendations and the integration of gamified elements into user experiences to enhance engagement. Tourism businesses can leverage the research to optimize their presence and visibility on digital platforms, particularly OTAs, thereby fostering stronger customer relationships with this key demographic.