The domestic hotel industry will face many challenges during development, especially in the application of technology (Photo: tbck.vn) Hanoi (VNS/VNA) - The domestic hotel industry will face many challenges duringdevelopment, especially in the application of technology, according to anexpert from Savills Vietnam – a foreign property service provider in Vietnam.
In most countries,three- and four-star hotels are usually popular with domestic tourists, and Vietnamis the same, said Troy Griffiths, Deputy Managing Director of Savills Vietnam.
“In this golden ageof domestic tourism for Vietnam, we can see that these are generally performingwell,” he said in a statement.
Infrastructure in Vietnamis developing at a rapid pace with a multitude of second-tier cities nowtouting international capacity. This, in turn, pulls forward competitivenessand capacity, so for the short to medium term, Savills Vietnam believes hospitalityand particularly the low mid star level is well-positioned to take advantage ofthe boom in tourism. Local budget level is exposed the greatest tocompetition as capital levels are lower and therefore more easily accessed,according to the deputy director.
However, hospitalitywas already under pressure from running out-dated business models and has hadto adapt and change much more than many other asset classes.
In the era ofProptech and Industry 4.0, booking platforms, word of mouth and social mediaall work to both disrupt and benefit hotels. Whilst Airbnb has totallydisrupted and removed market share, at the same time Booking, Agoda and otherplatforms allow greater reach.
Some of theVietnamese start-ups are now operating in this space and have received verygood support, including Luxstay, Mytour, Vntrip, Ivivu and Vietnambooking.
Internationaloperators, like RedDoorz and OYO, have sturdy practice templates thatstandardise quality. Since the hotels and place owners act as the franchisee,they’re bound to operate in line with the pre-determined standards, he said.They have tapped into younger market segments through providing an affordable,instantly accessible service.
"Operatingmargins are very shallow at the budget levels and so efficient operations arecritical, however, the ability to increase revenue through greater occupancyand market share is also very important. International operators andbooking sites offer this advantage and together the global brands offer loyalcustomers," Griffiths said.
Vietnam’s tourism isbooming, establishing itself as one of Southeast Asia’s top destinations. More than 15 million foreigners visit each year, compared to only 4 million adecade ago, alongside roughly 80 million domestic traveller-trips, which havesimilarly quadrupled over the same period. Average growth of 13.5 percent perannum is forecast for 2019-23 with total arrivals to reach 29.1 million by2023, according to Savills Vietnam.
In 2018, travel and tourismGDP was approximately 27 billion USD, accounting for 8 percent of Vietnam’sGDP. According to the World Travel and Tourism Council (WTTC), the totalcontribution of travel and tourism to GDP for the next ten years is forecast toincrease to 9.8 percent, ranking Vietnam 10th out of 185 countries.
Vietnam is in a verygood situation and will lead the Asia-Pacific region in compounded annualgrowth rate (CAGR) at 14 percent per annum to 2023, according to the PacificAsia Travel Association (PATA)
Meanwhile, accordingto “The Technology Application to Tourism in the period of 2018-20 oriented to2025”, developing technology will be a focus to improve Vietnam Tourism in thecoming years. Mobile apps will improve tourism information and experiences,particularly as virtual tour guides and translation services.
According toTravelport Digital – a mobile engagement platform for travel brands, 35 percentof users downloaded a travel app to their smartphones to search forflights/accommodation, 27 percent of them downloaded to bookflights/accommodation, and 19 percent keep them updated with travelnotifications./.
In most countries,three- and four-star hotels are usually popular with domestic tourists, and Vietnamis the same, said Troy Griffiths, Deputy Managing Director of Savills Vietnam.
“In this golden ageof domestic tourism for Vietnam, we can see that these are generally performingwell,” he said in a statement.
Infrastructure in Vietnamis developing at a rapid pace with a multitude of second-tier cities nowtouting international capacity. This, in turn, pulls forward competitivenessand capacity, so for the short to medium term, Savills Vietnam believes hospitalityand particularly the low mid star level is well-positioned to take advantage ofthe boom in tourism. Local budget level is exposed the greatest tocompetition as capital levels are lower and therefore more easily accessed,according to the deputy director.
However, hospitalitywas already under pressure from running out-dated business models and has hadto adapt and change much more than many other asset classes.
In the era ofProptech and Industry 4.0, booking platforms, word of mouth and social mediaall work to both disrupt and benefit hotels. Whilst Airbnb has totallydisrupted and removed market share, at the same time Booking, Agoda and otherplatforms allow greater reach.
Some of theVietnamese start-ups are now operating in this space and have received verygood support, including Luxstay, Mytour, Vntrip, Ivivu and Vietnambooking.
Internationaloperators, like RedDoorz and OYO, have sturdy practice templates thatstandardise quality. Since the hotels and place owners act as the franchisee,they’re bound to operate in line with the pre-determined standards, he said.They have tapped into younger market segments through providing an affordable,instantly accessible service.
"Operatingmargins are very shallow at the budget levels and so efficient operations arecritical, however, the ability to increase revenue through greater occupancyand market share is also very important. International operators andbooking sites offer this advantage and together the global brands offer loyalcustomers," Griffiths said.
Vietnam’s tourism isbooming, establishing itself as one of Southeast Asia’s top destinations. More than 15 million foreigners visit each year, compared to only 4 million adecade ago, alongside roughly 80 million domestic traveller-trips, which havesimilarly quadrupled over the same period. Average growth of 13.5 percent perannum is forecast for 2019-23 with total arrivals to reach 29.1 million by2023, according to Savills Vietnam.
In 2018, travel and tourismGDP was approximately 27 billion USD, accounting for 8 percent of Vietnam’sGDP. According to the World Travel and Tourism Council (WTTC), the totalcontribution of travel and tourism to GDP for the next ten years is forecast toincrease to 9.8 percent, ranking Vietnam 10th out of 185 countries.
Vietnam is in a verygood situation and will lead the Asia-Pacific region in compounded annualgrowth rate (CAGR) at 14 percent per annum to 2023, according to the PacificAsia Travel Association (PATA)
Meanwhile, accordingto “The Technology Application to Tourism in the period of 2018-20 oriented to2025”, developing technology will be a focus to improve Vietnam Tourism in thecoming years. Mobile apps will improve tourism information and experiences,particularly as virtual tour guides and translation services.
According toTravelport Digital – a mobile engagement platform for travel brands, 35 percentof users downloaded a travel app to their smartphones to search forflights/accommodation, 27 percent of them downloaded to bookflights/accommodation, and 19 percent keep them updated with travelnotifications./.
VNA
