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The December HoSkar Night featured speakers from leading hotels in Vietnam, including Park Hyatt Saigon, Sofitel Saigon Plaza, InterContinental Da Nang Sun Peninsula Resort, Centara Mirage Resort Mui Ne; hotel management groups Capella Hotel Group, Centara Hotels & Resorts; and Savills Hotels APAC, RMIT University Vietnam, Noor Studio, VinHMS, and True Digital.
They share the view that the overall picture for the industry still faces many challenges.
Under the impact of the fourth wave of the pandemic, hotel business in most major tourist destinations has almost come to a standstill. As of the end of November 2021, occupancy rates at 4-5 star hotels in Ho Chi Minh City and Hanoi hovered around 20%, down from 72% in Ho Chi Minh City and 80% in Hanoi in 2019.
In contrast to the bustling atmosphere typically seen at the end of the year before the pandemic, hotel business this year is somewhat quieter. According to hotel representatives in the city, while overall performance is not expected to see a significant surge at the end of the year, they still expect a brighter first quarter of 2022, and even hope for the second quarter as international commercial flights resume. Many high-end hotels in Ho Chi Minh City have begun to see improved demand, mainly from F&B services. Demand for event organization is also showing signs of recovery, with hotels showing interest in organizing MICE (Meetings, Incentives, Conferences, and Exhibitions) activities. Furthermore, the demand for wedding receptions is returning after months of suspension due to social distancing regulations.
KOLs of the HoSkar Night December event
Resorts in popular tourist destinations like Da Nang and Phan Thiet are expecting a faster recovery, especially with the upcoming holiday season. With vaccination rates accelerating and pent-up travel demand, vacations are a highly anticipated activity for many domestic tourists. Among these, integrated resort projects are receiving significant market attention as they cater to diverse customer groups, from families to corporate clients seeking MICE (Meetings, Incentives, Conferences, and Exhibitions) events or team-building activities. These are typically large, integrated resort projects offering a variety of amenities and entertainment options such as amusement parks, casinos, golf courses, etc. Besides integrated resorts, branded residences are also attracting market interest, with many new products expected to launch in 2022.
Omicron variant: A "double punch" to the resort tourism industry.
With the new Omicron variant spreading globally, the recovery of the world's tourism industry remains uncertain. According to a survey conducted by HoSkar Night, 92% of participants expressed concern that Omicron could cause delays in reopening international borders, with 17% believing the impact could be more severe. However, given the current vaccination rate and control measures, the majority of HoSkar Night attendees believe the recovery of tourism activities will proceed optimistically and cautiously.
Expectations for the high-end segment: A potential direction in the "new normal" phase.
Industry experts further shared that the luxury segment is expected to be one of the fastest to recover. Due to the stagnation of international tourism over the past two years, high-budget customers are paying more attention to domestic luxury resorts/hotels that meet international standards.
The luxury segment is expected to be one of the fastest to recover (photo: Internet).
Furthermore, this customer segment still has sufficient resources to maintain leisure and travel activities despite the impact of the pandemic. However, to effectively serve this group, hotels need to focus more on offering suitable products and services that meet their criteria. A large portion of these customers will have stricter requirements regarding hygiene and safety standards, privacy, comfort, and the experiences they receive when using services at luxury hotels/resorts.
Despite positive prospects for 2022, hotel managers still face numerous challenges, particularly in human resources – how to retain highly skilled staff and increase organizational engagement after a prolonged period of impact from the Covid-19 pandemic.
Watch the entire December HoSkar Night event in the video below.
