Mid-Term Presentation- Business Of Homestay In Vietnam.pdf

Scale Of Homestays/ Price Homestay does not have a specified scale, some homestays only include 4-5 bedrooms, some homestays include about 20-30 rooms.. 4, Target Customer of Homestays ®

DANANG UNIVERSITY OF ECONOMICS DEPARTMENT OF TOURISM

MID-TERM PRESENTATION:

BUSINESS OF HOMESTAY IN VIETNAM

Phạm Thiên Hương Bùi Đông Vũ

Trân Kỳ Nhã Quyên

Da Ning, April 23“! 2024

MỤC LỤC

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II Current status of homestay exploitafion in the WOFÌ( co s2 5

1 The situation o£ homestay business 1m the worÏd c2 22212221 5

2 Overall index analyzing the homestay market in the worÌd - + s+s++ 9 IIL Business reality of homestay in Vietnan cccsccccssssccssesesssssssssessensesesseseessseseaes 11

IV Remedial solutions to improve the efficiency of homestay business operations in

1 There needs to be systematic pÏanning and specIfic pÏans -.-: ¿2-2555 12

2 Pay attention to quality and create affracfIV€T€SS ccc 2n nhe 12

3 Promote linkages in homestay management and developmeni - - 13

4 Strengthen promotion and attract fOUTISÉS c1 0112221222211 nu hà rrờ 13

I Definition of Homestays:

“This type of tourism is for tourists who like to explore, experience and learn about the customs and traditions of local people Tourists will eat, sleep, live

,

and work with the people to discover unique indigenous cultures ’

1 Scale Of Homestays/ Price

Homestay does not have a specified scale, some homestays only include 4-5 bedrooms, some homestays include about 20-30 rooms Homestays are mainly small and medium-sized because households renovate their homes and apply for business licenses to welcome tourists On average, each homestay has a capacity of 10 - 30 guests

2 Location Of Homestays

Most homestays are built in locations with wild resources, are pristine and need

to be preserved Or residential areas with a rich and diverse culture Especially with characteristics according to religion, ethnicity and customs in each place,

3 Amenities And Services

Besides the services of eating and sleeping needs, this accommodation model also provides a number of other entertainment services Outstanding such as renting bicycles, motorbikes, tents, outdoor BBQs, fishing, etc In particular, most homestays today have comfortable kitchens for customers who are passionate about cooking

4, Target Customer of Homestays

® Backpackers: who like to explore and traditions of local people

e Student: a group of classes create a party with the price low

e Tay Balo: who like to learn and experience about rescident, the culture in Vietnam

GROUP A 1

5 Experience Local Culture

Besides eating, sleeping and daily activities with local people Visitors can also participate in festivals and fun with indigenous people Tourists can directly feel about the new land, about the people here and integrate with them

6 Homestay Model

Homestay Denifine Pupularity Location Illustrating Images

Stilt House | The stilt house is one of the M Moutam are

Model extremely unique beauties Hightlands

of Vietnamese people Ho Chi Minh

Therefore, i 1s very stilt house Moc Chau Slilt House suitable for those who want

to experience the typical

culture of the locality

Garden Garden homestay 1S MMM The

Model suitable for tourists who southwest

want to experience the life

of people im the West

Those are rustic, quiet

relax after a series of

stressful working days

Ancient

House

Model

This type of design seems

to recreate the life scene of

his father 1m the past

Although the appearance

seems rudimentary,

nostalgic But the mside of

the homestay still fully

meets the necessary

utilities

MMM - Hoi An

- HaNoI

- Dong Van Ancient

House

Dong Van Ancient

House

Container

Model

- The most unique and

impressive homestay

model certainly cannot be

ignored container

homestay This model is

suitable for many different

areas From the plains to

the mountains are very

favored by tourists

-Normally, each apartment

has a capacity of 2 to 8

people

MMM - Moutain are

- Hightlands

Packo Hostel Da

Nang

Model On

Tree Homestay on a tree is a

very rare model in our

country However, they

appear extremely popular

in Western countries XMM - Da Lat

“ Cu Tren Cay”

GROUP A

Homestay

II Current status of homestay exploitation in the world

1 The situation of homestay business in the world

a) Strong growth

- The need to experience travel close to nature, local culture and interaction with the

community is increasing

- The popularity of online booking platforms such as Airbnb, Booking.com helps

tourists easily search and book homestay rooms

- Investment costs for homestays are lower than traditional types of accommodation such

as hotels

b) Diversity

- Traditional homestay: houses, stilt houses,

GROUP A 4

- Modern homestay: bungalows, tents

c) Benefit

- Traveler:

+ Experience local culture

+ Interact with local people

+ Enjoy a peaceful space, close to nature

+ Save on travel costs

GROUP A 5

- Local people:

+ Increase salary

+ Introducing local culture

+ Local economic development

d) Challenge

- Competition is fierce: the number of homestays is increasing

+ Homestay quality is not uniform: needs to be improved in terms of facilities, services and management

+ Shortage of human resources: need to be properly trained in tourism operations

GROUP A

+ Homestay management is still lax: clear regulations and policies are needed

- Development trends:

+ High-end homestay: focusing on quality of service and amenities

+ Homestay is associated with ecotourism: combined with ecotourism activities and environmental protection

+ Community homestay: developed by the local community, providing a unique cultural experience

2 Overall index analyzing the homestay market in the world

a) Market demand:

- Demand for homestay tourism is increasing:

+ Trend of experiential travel, close to nature and local culture

+ The need to interact with the community and learn about local life

+ The online booking platform helps visitors easily search and book homestay rooms b) Market size:

- Global homestay market value:

+ The year 2023: 18.7 billion USD

+ Expected to reach 44.2 billion USD by 2028

+ Compound annual growth rate (CAGR): 16.5% from 2023 to 2028

c) Leading position:

- Region: Asia-Pacific holds the largest market share (57.2% in 2023)

GROUP A 7

- NaHon:

+ US: largest homestay market (7.2 billion USD in 2023)

+ China: fastest growth rate (Compound Annual Growth Rate 20.1% from 2023 to 2028) d) Market segment:

- Customers:

+ Young tourists: prefer cheap homestays, basic amenities, and common living space to socialize and make friends

+ Family: Priority is given to homestays with spacious space, full amenities, guaranteed security, suitable for children

+ Tourists love nature and local culture: like homestays in the countryside, close to nature, can experience local culture

+ High-end travelers: desire luxurious homestays, high-end amenities, and professional services

- Based on price:

GROUP A 8

+ Cheap homestay: suitable for travelers with a limited budget, usually with basic amenities

+ Mid-range homestay: suitable for travelers who want to balance price and quality, with full amenities

+ High-end homestay: for travelers who want to experience luxury, high-end amenities and professional services

III Business reality of homestay in Vietnam

People tend to run homestays but do not really bring the true values that customers expect

to receive back when going for a homestay

As a matter of fact, many investors just follow newly emerging tendencies and make up their mind to pour an abundance of money into homestay without any understanding of what the core values of homestay are Therefore, they will provide accommodation services without any element of cultural experience, customs and manners, or experiencing local cuisine and lifestyle These factors coupled with the easy licensing of business activities for the homestay, which lead to an alarming fact that the construction

of homestays is swiftly massive

As a consequence, after a period of success, a lot of homestays at famous tourist destinations are currently in a slump, even free to attract customers still ineffectively, despite a number of tourists coming to these tourist attractions However, they choose other types of accommodation instead of homestay

Another consequence to be taken into consideration is that many homestays have to even close or operate on a limited basis Some decided to discount room prices in the hope of attracting customers In this way, they can sell additional services to compensate for room

fees

Some stark examples ass below:

GROUP A 9

In Cam Chau - one of the first places in Hoi An to organize house cleaning to welcome guests staying in 2009, out of 11 homestays from the first day until now, only 2 establishments are still operating moderately

Thai people in Lac village (Mai Chau, Hoa Binh) started making homestays very successfully and became the highlight of this model But now Lac village, with hundreds

of homestays, has become a bustling place identical to Western Pham Ngu Lao Street (HCMC) The quality of service has not changed, every house has karaoke., Nevertheless, they has been competing each other to attract more guests To make the matter worse, The shops are crowded but all are Chinese without any vietnamese traits The price of a place to sleep is only 20% of the price 10 years ago but it is still scattered Only noisy on weekends, guests stop by to take selfies or eat, then find another place to sleep Even so, new homestays in Lac Village and many other places are still busy with construction

IV Remedial solutions to improve the efficiency of homestay business operations in Vietnam

1 There needs to be systematic planning and specific plans

To avoid "spontaneity" in the homestay business, local tourism management agencies need to have systematic planning (calculate the number of visitors; length of stay and capacity of local accommodation facilities; Survey the accommodation needs of tourists visiting local tourist areas and attractions; Survey the area, location, infrastructure; ) to have a suitable homestay development plan There should not be widespread growth in quantity; It should not be developed in locations too far from tourist attractions and tourist attractions, in areas that are poor in tourism resources, both natural resources and unique indigenous cultural values

2 Pay attention to quality and create attractiveness

In addition to providing mainly accommodation services for tourists with quality standards according to regulations, homestays need to develop a variety of other services such as: food services with local styles and characteristics; entertainment with collective

GROUP A 10

activities in folk and traditional styles (artistic performances, ethnic music and dance, folk songs, traditional folk dance, mass arts); Sports activities combining exploration and learning about local characteristics such as cycling, walking, climbing to explore natural landscapes; Activities associated with health care according to indigenous methods such

as picking medicine, making medicine, medicinal baths, saunas, acupuncture, etc.; Practical experience activities such as participating in farming, production, handicraft making, etc

Homestay owners and family members participating in homestays must be equipped with basic and necessary knowledge, skills and operations about tourism and accommodation business At the same time, local tourism management agencies also need to pay attention and support people to equip themselves with knowledge, skills, and experience in organizing and managing homestays

3 Promote linkages in homestay management and development

Instead of each homestay doing business independently as before, now it is necessary to promote connectivity, cooperation, and mutual development Linking homestays will create "homestay communities", "homestay villages" or “homestay clubs" in the same area Besides, there needs to be a General Management Board for participating members This brings great benefits in tourist management, service provision, and promotion: Promoting linkages does not mean breaking competition between homestays Competition will push community members to actively innovate and improve their service quality to gain the choice of customers However, homestay association will overcome the negative side of competition by regulating, sharing benefits, sharing experiences, supporting and helping each other among members to develop together

4, Strengthen promotion and attract tourists

- The government needs to pay more attention and increase investment in promotion and advertising for local homestays

GROUP A 11