return icon Vietnamnet.vn

Oversupply of hotels in central region leading to falling room rates

VietNamNet Bridge - Da Nang City and Hoi An, the two most famous destinations for tourists in the central region, are full of hotels and resorts, leading to cutthroat competition.

VietNamNet Bridge - Da Nang City and Hoi An, the two most famous destinations for tourists in the central region, are full of hotels and resorts, leading to cutthroat competition.


{keywords}

The number of hotel rooms is increasing 



Claude M. Balland has been working in the hotel/tourism industry in Vietnam for 22 years, with many years as general manager for Victoria Hoi An Resort & Spa. He noted that the number of hotel rooms is increasing more rapidly than the number of tourists. 

In such a context, Vietnamese owned hotels are scrambling for guests by reducing hotel room rates. In Hoi An, many hotels do not have a transparent pricing policy. They regularly open websites of rivals’ hotels to check prices and then set up lower prices for their hotels. They scramble for guests at any cost, without thinking about losses or service quality.

The unhealthy competition is occurring not only in Hoi An, but in Da Nang as well. The occupancy rate at accommodations in Da Nang is 40 percent on average, while the hotel room rate has fallen by 50 percent compared with one to two years ago.

The unhealthy competition is occurring not only in Hoi An, but in Da Nang as well. The occupancy rate at accommodations in Da Nang is 40 percent on average, while the hotel room rate has fallen by 50 percent compared with one to two years ago.

Nguyen Duc Quynh, deputy chair of the Da Nang Hotel Association, said that 4-star accommodations are competing fiercely with 5-star hotels and resorts by offering lower room rates, which are VND700,000-1.2 million per night cheaper.

Luxury hotels and resorts cannot slash their room rates because they have to provide international standard services.

Both Balland and Quynh said their room rates are stable, but they have to offer more services to retain guests.

The director of Indochina Unique Tourist, Nguyen Son Thuy, confirmed that 5-star hotels have to still set high hotel room rates, while 3-4-star hotels are trying every possible solution to increase the room occupancy. 

However, the race of slashing prices will push them against the wall because they will not have money to maintain service quality.

“I know some hotels in the world which are very small but are always full though their room rates are very high. At some restaurants, customers have to queue up for hours to have seats. Why don’t we follow them?” he said.

“Once hotels are original and provide premium quality of service, travelers will come and won’t care about prices,” he added.

The room supply will continue to rise as many projects are under construction.

Quynh believes that it is necessary to open more air routes to bring more travelers to Da Nang and the central region.


RELATED NEWS

Investors pour money into hotel projects

Investors rush to build 5-hotels in anticipation of tourism boom


Nam Mai

MORE NEWS

Ngoc Linh ginseng helps Central Highlands locals out of poverty

Growers in the Central Highlands provinces dreamed of escaping poverty when they planted Ngoc Linh ginseng which has made an economic contribution to improving local farmers’ living conditions.

Soc Trang’s Khmer pagoda features giant Buddha statue

With the long-standing bonds of the Kinh, Khmer, and Hoa ethnic groups, Soc Trang boasts a special cultural identity that makes it an outstanding spiritual destination for tourists and Buddhist followers from far and wide.

Smart-homes getting cheaper in Vietnam

In Vietnam, a smart-home installation package costs VND14-25 million.

Vietnamese nationals account largest proportion of Japan’s foreign worker population

Vietnamese nationals account for 25.4% of the total 1.82 million foreign workers who were working in Japan as of the end of October last year, according to the Japanese Ministry of Health, Labour and Welfare (MHLW).

Mekong Delta develops more OCOP products

The Cuu Long (Mekong) Delta’s 12 provinces and the city of Can Tho are developing more products under the country’s “One Commune-One Product” programme.

Major Vietnamese paintings worth millions of dollars at global auctions

2022 represented a successful year for the Vietnamese painting market as three more pieces were auctioned at more than US$1 million each, bringing the total number of valuable paintings to 19. Let’s take a closer look at some of them.

Vietnamese American singer brings Tet Holiday joy to disadvantaged children

In hope to bring the children who lost their parents because of Covid-19 a warm spring holiday, Vietnamese American singer Ha Phuong spent a day to enjoy Tet with them.

How will the economy fare in 2023?

Vietnam’s economy had a prosperous year in 2022 with GDP growth rate of 8.02 percent, a one-decade high.

Female Vietnamese badminton star Thuy Linh placed 50th in world rankings

Vietnamese badminton star Nguyen Thuy Linh has risen to 50th position in the world’s latest singles women rankings, according to the Badminton World Federation (BWF).

Phin Ho ‘shan tuyet’ tea –specialty of Ha Giang

Apart from stilt houses and seemingly endless terraced paddy fields, “shan tuyet” tea, a famous specialty of Phin Ho village, is one of the special things visitors cannot forget once setting foot in Tay Con Linh Mountain in Ha Giang.

Discovering art of making vegetarian dishes in Tay Ninh

Religions and beliefs have made considerable contributions to the culinary culture of Tay Ninh.

Hoi An, HCM City among world's top 25 trending destinations in 2023: TripAdvisor

Germany’s famous travel site reisereporter.de has run an article highlighting the world’s top 25 trending destinations for 2023, including Vietnam’s Hoi An ancient city and Ho Chi Minh City, recently voted by readers of TripAdvisor.

Make-in-Vietnam sleeping machine developed by professor

FRENZ Brainband helps users have faster, tighter and deeper sleep. It can also be used for relaxing and enhancing concentration when working.

Paris Agreement: Lessons on independence, self-reliance, int’l solidarity

The signing of the Paris Agreement on ending the war and restoring peace in Vietnam on January 27, 1973, was a resounding victory of Vietnam’s revolutionary diplomacy in the Ho Chi Minh era.

PM: Lunar New Year comes with new energy

Prime Minister Pham Minh Chinh chaired a meeting of permanent Cabinet members in Hanoi on January 27, speaking of new energy of the nation following Tet (Lunar New Year), the biggest festival in Vietnam.
back_to_top