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Despite heavy discounts, luxury suburban homestays are still 'hungry' for renters

VTC NewsVTC News14/07/2023


Her children's summer vacation has been over for more than a month, and Ms. Phuong Dung (Linh Dam - Hanoi) has just started looking for resort villas in homestay projects on the outskirts of Hanoi and Hoa Binh. After calling a booking company (a unit that accepts travel bookings) to ask for prices, Ms. Dung received a series of calls with the purpose of inviting her to use services from many different homestays. It turns out that, even though it is the peak season, finding a room in a homestay is not as difficult as Ms. Dung thought.

Many homestays are deserted despite being in peak tourist season. (Illustration photo)

Many homestays are deserted despite being in peak tourist season. (Illustration photo)

The room rates are not as expensive as I thought, even much cheaper than last year ,” said Ms. Phuong Dung. Specifically, the room rates at a homestay resort in Soc Son, Hanoi - where Ms. Dung booked on July 21-23, cost about 5 million VND/villa per night. Each villa can accommodate up to 15 people. “ Dividing the price per person for each family, the price can be said to be very cheap, ” Ms. Phuong Dung commented. If you book on Saturday night, the room rate is higher, about 7 million VND/villa/night. “ However, the price is still cheap because the rooms are equipped with very convenient and modern amenities, lacking nothing .”

With experience staying at many homestays in Hanoi, Ms. Mai Loan (Dong Da - Hanoi) said that the price of staying at homestays on the outskirts of Hanoi is surprisingly low. " A villa has up to 4 bedrooms with full private bathrooms, a 4-star standard swimming pool, BBQ area, bicycles, motorbikes, sound system, karaoke. If 4 families go together, the cost is divided very cheaply compared to booking individual hotels ," Ms. Loan said.

Finding a homestay for vacation is not difficult even during peak season. (Illustration photo)

Finding a homestay for vacation is not difficult even during peak season. (Illustration photo)

Responding to VTC News reporter, Ms. Ngo Trang, representative of Booking Bao Anh Company (Ba Dinh - Hanoi), said that although it is in the middle of the peak tourist season, the room rates at homestays in areas on the outskirts of Hanoi such as Soc Son, Ba Vi, Son Tay or in Hoa Binh , Tam Dao have begun to "cool down". The reason, according to Ms. Trang, is that the tourism demand of people this year has decreased sharply compared to previous years. " At this time last year, the trend of traveling to homestays was considered to be at its peak, but this year it has become "saturated", even in decline. Room rates have decreased by 30% compared to previous years" , Ms. Trang said.

According to Ms. Trang, economic difficulties are one part, and people also have other options. " This year, domestic tours and airfares have also decreased early, so customers tend to book longer and farther tours."

The management representative of a villa complex advertised as having “no dead corners” right next to Dong Chanh Lake in Hoa Binh revealed that although it is mid-July, the resort still has many vacant rooms. Even if you book a room right away for this weekend, there will still be rooms available for customers to choose from.

Homestay with

Homestay with "million views", low price but still empty.

A villa here has up to 6 bedrooms. Each room has a standard double bed, a private bathroom with a bathtub, and a "luxury" interior design with full amenities. " Like every year, the price is 10 million VND/night, but this year we started running a discount program from the beginning of July. The price is only 9 million VND/villa/night on weekends. If you go in the middle of the week, the price is only 5 - 7 million VND. However, the number of guests is still not as expected, " said a representative of the homestay area.

In addition to the discount, the resort owner also offers stimulus packages such as 50% off BBQ party prices, free hot mineral bath services, no additional fees... The cost of these programs is quite expensive, while the cost to maintain operations during the tourist season is already very large. Therefore, the profits are not much, sometimes even “negative growth ”, this person said.

A survey by VTC News reporters also showed that on pages about homestay business services in Hanoi, Hoa Binh, Vinh Phuc, a series of advertisements were posted by booking agencies that were quite attractive.

There is a flood of advertising information about

There is a flood of advertising information about "crashing" sales of homestay tourism.

Ms. Hong Ngoc - a sales staff of a booking unit said that the homestay with a full view of Dong Chanh Lake - Hoa Binh is running a 30% discount program on the occasion of its opening. The listed price is 5.5 million VND/night, however, the price applied for the "opening program" is only 3 million VND/night, with all segments from 4-bedroom, 5-bedroom and bedroom apartments. The price difference is guaranteed not to be high, only falling to 1 million VND/apartment. "The price is described as a "very sharp" reduction, which has been reduced to the lowest level by the homestay owner to attract tenants. " However, the number of bookings is not much due to competition with previously established homestay locations. They have been operating for a longer time, so they have a brand and a stable number of guests from other booking units ," Ms. Ngoc analyzed.

A villa located in a 1,200 m2 area, 220 m2 house area, with a private swimming pool, mountain view with BBQ area, outdoor dining area at Minh Phu, Soc Son, Hanoi is priced at 3.8 million VND/night for 10 people. " This price is the lowest in the past 3 years ", said the sales staff. Currently, the villa system is only full on weekends, but during the week there are still many empty rooms. Every year, during the summer, this homestay rarely has empty rooms.

Homestay prices are being advertised at a cheaper price than many years ago.

Homestay prices are being advertised at a cheaper price than many years ago.

According to Mr. Tran Manh Quan, a real estate broker in the resort segment in Hanoi, the current level of competition in the Hanoi homestay market is too high. The number of guests is high, the guests are not uniform, and the quality of operations is not as advertised, which is the reality of many homestay areas. In addition, many homestay owners are currently spending both money to rent the house and hiring managers and operators, plus other expenses, so the revenue from homestay is really not attractive, not even enough to cover the costs.

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