Hotels, resorts thrive as travelers flock to Vietnam

Last update 12:00 | 13/08/2017

VietNamNet Bridge – The competition in the market is heating up and luxury hotel developers are struggling to scramble for clients. Still, the market is large enough thanks to the increasing number of travelers to Vietnam.

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Grant Thornton’s 2017 report shows that the number of domestic travelers, mostly businesspeople, staying at luxury hotels and resorts (4-5-star) in the last three years (2014-2016) has been increasing rapidly.

In 2016, Vietnamese guests accounted for 20.4 percent of total clients booking rooms at luxury hotels, an increase of 3.4 percentage points over 2014.

According to Grant Thornton’s Trinh Kim Dung, the figure showed that Vietnamese now have better payment capability. The 5-star hotel room rate in 2016 was $104.4 for one night, a slight decrease from the previous year, while the 4-star hotel room rate increased slightly to $75.

Kent Atkinson, chair of Grant Thornton Vietnam, noted that there is a sharp increase in the number of investors and businesspeople from Japan and South Korea to Vietnam, which brings opportunities to luxury hotels, though the clients tend to lease houses.

John Gardner, CEO of Chains Caravelle (Caravelle Saigon Hotel), believes that the 5-star hotel room rate decreased in 2016 partially because of clients from countries which have high investments in Vietnam. Booking hotel rooms in large quantities, some groups of clients tried to negotiate for better prices.

In 2016, Vietnamese guests accounted for 20.4 percent of total clients booking rooms at luxury hotels, an increase of 3.4 percentage points over 2014.

Gardner said he once had to refuse a big group of clients because of the price, adding that it is easier for hotel systems to deal with big groups of clients than separate hotels.

Tony Chisholm from Pullman Saigon Centre said the tendency has affected hotels. Samsung, for example, once booked 4,000 rooms at Accor for one night. Accor’s newly opened hotel in Hanoi had half of its guests from Samsung at one time.

With such big changes in sources of guests, luxury hotel owners and managers have had to adjust their business strategies.

As for clients from South Korea and Japan, multinational conglomerates, which usually need high numbers of rooms, may build hotels in Vietnam for their staff to stay in for 18-20 years. Samsung has done this in some countries.

Realizing that the number of Vietnamese guests is on the rise, the Accor chain is trying to attract more Vietnamese clients. Vietnam is expected to be among the top 3 countries which have the highest numbers of citizens staying at the hotel chain.

The attractiveness of the hotel service market has prompted many investors to pour money into Vietnam. A series of successful M&A deals were made in 2016, including the transfer of Sofitel Metropole Legend Hanoi, Novotel Saigon Center and Kumho Asiana Plaza Saigon.

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This entry was posted in Du lịch - Tourism and tagged , by Trần Đình Hoành. Bookmark the permalink.

About Trần Đình Hoành

I am an attorney in the Washington DC area, with a Doctor of Law in the US, attended the master program at the National School of Administration of Việt Nam, and graduated from Sài Gòn University Law School. I aso studied philosophy at the School of Letters in Sài Gòn. I have worked as an anti-trust attorney for Federal Trade Commission and a litigator for a fortune-100 telecom company in Washington DC. I have taught law courses for legal professionals in Việt Nam and still counsel VN government agencies on legal matters. I have founded and managed businesses for me and my family, both law and non-law. I have published many articles on national newspapers and radio stations in Việt Nam. In 1989 I was one of the founding members of US-VN Trade Council, working to re-establish US-VN relationship. Since the early 90's, I have established and managed VNFORUM and VNBIZ forum on VN-related matters; these forums are the subject of a PhD thesis by Dr. Caroline Valverde at UC-Berkeley and her book Transnationalizing Viet Nam. I translate poetry and my translation of "A Request at Đồng Lộc Cemetery" is now engraved on a stone memorial at Đồng Lộc National Shrine in VN. I study and teach the Bible and Buddhism. In 2009 I founded and still manage dotchuoinon.com on positive thinking and two other blogs on Buddhism. In 2015 a group of friends and I founded website CVD - Conversations on Vietnam Development (cvdvn.net). I study the art of leadership with many friends who are religious, business and government leaders from many countries. In October 2011 Phu Nu Publishing House in Hanoi published my book "Positive Thinking to Change Your Life", in Vietnamese (TƯ DUY TÍCH CỰC Thay Đổi Cuộc Sống). In December 2013 Phu Nu Publishing House published my book "10 Core Values for Success". I practice Jiu Jitsu and Tai Chi for health, and play guitar as a hobby, usually accompanying my wife Trần Lê Túy Phượng, aka singer Linh Phượng.

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