Growth of homestay supply in Vietnam 450%?


Homestay business is no longer a story of sharing accommodation space but becoming a race of many professional investors.

Renting an old apartment near 60 m2 in Ba Dinh district (Hanoi) for 5 million / month, Mr. Thai Hoang plans to invest about 100 million to renovate into a homestay for rent. Planning to hire architects, dam walls, repair toilets, decorate balconies, buy furniture … have been fully up. However, surveying the business model from a friend, Mr. Hoang gave up his intention.

The current level of competition in the Hanoi homestay market is too high: the number is large, the guests are uneven. “If you just rent the rent and renovate it and hire the manager, the operator, plus the costs incurred, the revenue from the homestay is really not attractive, not even offset the cost,” he said. Hoang shared.

Market research report of market research firm AirDNA shows that if at the beginning of 2017, Hanoi had about 3,000 homestays, by now, the number had increased to 11,000.

Not only in Hanoi, in Ho Chi Minh City, homestay has also grown sharply in the last 2-3 years. According to the report, the number of homestays in Ho Chi Minh City has increased 6 times since 2017, currently there are about 18,000 units.

In big and small cities and tourist destinations, the homestay model is recording hot growth. Photo: ETM Homestay.

In cities or other popular tourist destinations, the number of homestay flourishes. Typically, Dalat has more than 500 homestay businesses operating with many different models. In Khanh Hoa, Vung Tau, Da Nang … the number of homestays is also high, from 1,000 to nearly 3,000 units.

Around Phong Nha Ke Bang tourist area, there are about 30-40 homestays in operation. People and investors massively built and rented housing models to renovate into homestays, advertise on many websites and social networks.

Or in Ca Mau, some households also started to enter this market with housing sharing models combining other tourism services such as dining, sightseeing.

According to AirDNA, the homestay business market in Vietnam is growing “hot” at a rate of 452% in the number of accommodation supply in the past year, larger than the global average growth of 140%. and much higher than traditional hotel industry which only grew 40% in supply.

Homestay is defined as a type of stay at a homestay when traveling. However, after many years of establishment and development, this type of accommodation has changed in nature and become a well-invested business model.

The homestay business race is flourishing in many localities. Besides redeploying the house they live in to become a tourist base for tourists, many people rent houses, or build new houses and villas for homestay business and identify competitive options. own picture.

The homestay business race is flourishing in many localities. Image: Dulichvietnam.

In advertisements, homestay owners often emphasize the location of the accommodation, utilities and spaces designed specifically for the purpose of checking in for young people. Many homestay owners acknowledge that the above factors determine the competitiveness in the market today,

The owner of a homestay in Quang Binh shared: “When deciding to be a homestay, we have to invest in renovating nearly the entire house, from restructuring the room system, painting, organizing many aesthetic spaces. tall, plant bonsai, flowers …. The cost is not small at all. “

In Soc Son, Hanoi, homestay also flourished. A series of unique homestay forms, such as designing wooden crates, iron boxes into bedrooms, installing wooden houses in pine forests, garden design, swimming pool …

Lam Tung
* Source: Partner

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