Record-breaking 170,000 booked nights in March alone. Surge in popularity as a tourist destination propels new ecosystem of locally-managed homestays, eclipsing gap in hotel availability.
Discerning Vietnamese entrepreneurs have been successful in seizing the opportunities of the home sharing sector, finds a new report released today by AirDNA. In the last two years, the number of entire homes listed on Airbnb and HomeAway/Vrbo in Vietnam rose by 452%. The global average is 140% growth.
With Vietnam experiencing a 29% increase in visitors year-on-year, hotels have reached full capacity. The surge in millennial visitors, slow construction of new accommodation, and the demand for an authentic, local travel experience have created the perfect environment for a home sharing boom.
Key findings from today’s report reveals that:
- There are currently 50,000 active homestays in Vietnam
- March 2019 saw the highest month ever recorded for entire homes in Vietnam, with a record-breaking 170,000 booked nights
- Single-listing hosts in Vietnam rose from 69% in 2017 to 74% in 2019, indicating the growing number of first-time home sharing entrepreneurs
- The country’s top 10 largest home sharing markets account for 98% of total annual revenue -- including top backpacker destinations like Hanoi, Da Nang, Hoi An and Ho Chi Minh City.
The report also shows that local communities in rural areas “off the beaten path” can benefit from home sharing. With the average salary in Vietnam at around USD $1,800 per year, Vietnamese hosts in rural areas can earn the equivalent of an annual salary by renting a private room in their home.
Let’s Get Professional: Competing with Hotels For Market Share
The home sharing boom in Vietnam has encouraged the development of ancillary businesses and services in the vacation rental sector. Substantial investment in Vietnamese homestay companies and the rise of platforms like Luxstay and Christina’s are making it easier for hosts and visitors to join the home sharing revolution.
Yet it is the ability of homestays to scale faster than the development of new hotels and provide lodging in remote locations that have enabled Vietnam to diversify its strategy to support a growing tourism sector.