Struggling with accommodation services

Although domestic and international tourism has returned at present, the hotel system is facing many difficulties. In particular, the hotel system focuses on accommodation facilities that meet the minimum conditions to serve tourists and 1-3 star hotels in the city are facing the most difficulties and challenges.

By the end of 2022, the city has 3,227 tourist accommodation establishments of all kinds, corresponding to more than 65,000 rooms that meet business conditions. Of which, 325 hotels are ranked from 1 to 5 stars, corresponding to 17,613 standard rooms; 2,902 hotels meet the minimum criteria for facilities and service techniques, corresponding to more than 48,000 standard rooms.

However, the hotel segment is significantly differentiated. The 4-5 star hotel system has an average room/room occupancy rate of 75% or more, with stable business and revenue for the whole year of 2022. The above mentioned customer source focuses on foreign experts working in the city, international tourist groups - loyal guests of the hotel system and a large number of international MICE delegations coming to organize incentive conferences and combine sightseeing.

Meanwhile, the hotel system from zero star rating or 1-3 star rating is limited in terms of international guests that have not yet recovered, the market's purchasing power has not shown signs of growth as in the same period in 2019. More importantly, there is a difficulty in human resources with professional experience, because most of the high-quality human resources have shifted to other industries. There is fierce competition between traditional business types and types of booking rooms through online room sales sites (Booking, Agoda, Traveloka...). Traditional businesses are usually limited in technology, customer experience, limited ability to promote and reach customers, so room sales and the level of attracting guests to stay at small and medium-sized establishments are seriously affected.

This year, Ho Chi Minh City tourism aims to welcome about 35 million domestic visitors, 5 million international visitors with total industry revenue of about 160,000 billion VND. In the long term, to make tourism a spearhead economic sector, improve service quality, develop more tourism products, increase length of stay and stimulate tourist spending... it is extremely urgent to find specific solutions for the city's hotel industry to develop effectively. Because when the service quality is good, tourists not only stay longer, spend more but also are willing to come back.

When the city's tourism accommodation service industry develops to its full potential, it will contribute to enhancing its position and making the tourism industry increasingly developed, contributing an increasingly high proportion to the GRDP structure of Ho Chi Minh City.

Source: https://nld.com.vn/goc-nhin/tran-tro-voi-dich-vu-luu-tru-20230323220639799.htm