Hotel room rates increased by more than 20%

At the end of the year, hotel room rates in the city reached nearly VND 1.4 million per night, up 21% quarter-on-quarter, thanks to the restart of tourism.

Savills Vietnam’s Ho Chi Minh City hotel market report said that in the fourth quarter of 2021, the disease control situation in the city was positive, the speed of vaccine coverage was fast, boosting tourism demand gradually. come back.

The average room rate of accommodation in Ho Chi Minh City witnessed an increase of 21% quarter-on-quarter, to nearly 1.4 million VND per room per night, mainly welcoming domestic guests. However, compared to the year-on-year, room rates decreased by 5% because 5-star hotels still have to reduce prices to stimulate domestic demand and 3-star hotels cut food services.

In the isolated hotel market, room rates increased by 18% quarter-on-quarter to 1.6 million dong per room per night thanks to Vietnam’s restoration of international flights to welcome repatriated guests and foreign experts. In the last quarter of 2021, the supply of isolated hotels increased by 55% quarter-on-quarter, to 2,760 rooms from 23 hotels in Ho Chi Minh City.

In the fourth quarter of 2021, the city’s hotel room occupancy rate reached 20%, down 36 percentage points quarter-on-quarter due to a decrease in accommodation demand from businesses under the “3 on-site” and “two-way street” directives. destination” expires. The 4-star segment achieved a capacity of 28% thanks to softer room rates than 5-star and quality services, attracting business guests.

This unit cited Visa’s “Travel in 2021” report, visitors are of Generation Y (Millennial), who were born between 1981-1996, and Generation Z (Gen Z, following Generation Y). , those born in 1997-2012 will be the consumer force leading the recovery momentum for the hotel market in the coming time. This is a young customer, ready to travel as soon as the epidemic is under control, more active than previous generations. Young people tend to pay online while traveling, showing the need to develop a technology platform to connect with this audience.

Savills said that the effective vaccination campaign helps Vietnam to manage the policy of restricting movement at a moderate level. From the beginning of 2022, international flights will be gradually resumed, visitors on entry must still be isolated (for 3 days) and comply with anti-epidemic regulations. About 56% of Vietnam’s total foreign visitors in 2019 were Chinese and Korean. These two countries currently have the highest vaccination rates among Vietnam’s main tourism markets, which will allow Vietnam’s tourism to regain momentum once the two countries reopen to tourism.