AirDNA outlines short-term rental growth in Vietnam
Vietnam: According to a report released by AirDNA, discerning Vietnamese entrepreneurs are seizing the opportunities in the home-sharing sector, amid a surge in listings in the country.
The vacation rental data firm found that in the last two years, the number of entire homes listed on Airbnb and HomeAway/Vrbo in Vietnam rose by 452 per cent. To put that into perspective, the global average is 140 per cent growth.
With Vietnam experiencing a 29 per cent increase in visitors year-on-year, hotels have started to reach full capacity. This can be attributed to factors such as a surge in millennial visitors, slow construction of new accommodation, and the demand for an authentic, local travel experience.
Key findings from the 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 per cent in 2017 to 74 per cent in 2019, indicating the growing number of first-time home sharing entrepreneurs
- The country’s top ten largest home sharing markets account for 98 per cent 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 now earn the equivalent of an annual salary by renting out a private room in their home.
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 has also made 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 the country to diversify its strategy to support a growing tourism sector.
For the full report, visit the AirDNA website here.