Demand for Luxury Resorts Surges in Vietnam
Demand for Luxury Resorts Surges in Vietnam
Tourists are eagerly embarking on post-COVID-19 journeys, showing a willingness to spend more on upscale options such as luxury hotels and first-class airfares. International operators are also enthusiastically exploring partnerships in Vietnam to tap into the future boom in tourism.
COVID-19 Ignites Demand for Luxury Resorts
Pent-up demand over the two years of COVID-19 lockdowns has resulted in a swift rebound as soon as the tourism market reopened. In just the first five months of the year, tourist destinations welcomed 48.6 million domestic visitors. In May alone, there were 12 million visitors, a 243% increase compared to the same period in 2021.
Analysis from Google Destination Insights indicates that Vietnamese people are searching for premium services more after the pandemic. Searches for the "best luxury hotels" have increased by 71% in Vietnam. Not only are they searching, but Vietnamese tourists are also willing to splurge on significant amounts for high-end travel experiences. Of course, their expectations are higher.
During the summer of 2022, domestic tourists, especially, favored 4- and 5-star hotels and resorts. On online booking platforms like Agoda and Booking.com, many places were fully booked for weekends until the end of July. Weekdays are also gradually filling up.
Luxury resort tours, custom-designed experiences, flight + resort room combos, yacht trips, etc., have become the focal points attracting customers for travel companies.
Ambitions of Hotel Industry Giants and Newcomers
The enthusiasm for travel is not only waking up the tourism industry from its slumber but is also reinvigorating the hotel and accommodation sector. In just the first four months of 2022, six 5-star and seven 4-star accommodation facilities were introduced. As of February 2022, about 64 hotel brands from the region and internationally have a presence in Vietnam. This number is expected to continue rising in the coming quarters.
According to experts, the growth drivers of the hotel industry remain consistent with the pre-pandemic period and will continue into the future. Therefore, the Vietnam market is garnering more attention from global giants than ever before.
The return of tourists is breathing new life into the tourism industry and awakening the aspirations of investors in the resort hotel sector. In the context of tourism being identified as a spearhead economic sector, Vietnam aims to become one of the world's top 30 tourist powers by 2030. Investors are increasingly confident that the golden age of resort hotels will soon return.
