Grant Thornton: Digital technologies changing hospitality sector

Thứ Bảy, 27/07/2019 - 11:30

Most hotels believe integration of technologies into hotel services will impact local hotel market, latest Grant Thornton Vietnam report finds.

(Photo: Khanh Chi/VET)

(Photo: Khanh Chi/VET)

Technology is no longer a stranger to Vietnamese hotels as internet access and smart devices become more widespread. Managing their digital image is now a crucial part of their operations, according to Grant Thornton Vietnam's Vietnam Hotel Survey 2019.

Accordingly, 95.7 per cent and 84.6 per cent of four- and five-star hotels, respectively, acknowledged the great impact of digital technologies. Overall, five-star hotels are shown to be embracing more digital development than four-star in all four questions asked.

Digital marketing via social channels such as Facebook, Twitter, and the like continues to be the priority, which results from an increase in guests’ use of numerous social networks. Nearly 100 per cent of participants said they use this effective channel to gain more awareness from social network users. Online check in / check out and guest personalization via mobile app, however, received less attention, with less than 50 per cent of hotels using them.

Airbnb continued its growth in 2018, with 185.4 per cent and 173.88 per cent increases in the number of key listings in Vietnam’s two major cities, Hanoi and Ho Chi Minh City, as of the end of Q4 2018. The occupancy rate observed was also higher in the latter half of the year and reached its peak between December 2018 and January 2019, at 63-65 per cent, according to AirDNA.

Average Room Rate

The analysis of upscale hotels was performed by star ranking and region. While five-star rankings continued to see their room rates increase by 4.1 per cent, four-star’s room rates dropped by 2.3 per cent.

By region, both northern and southern regions saw an improvement in room rates, though at a slower growth rate than last year, with the southern region achieving the highest growth, of 2.7 per cent, and the northern 1.7 per cent. The central region, in contrast, observed a marginal fall of 1.0 per cent.


RevPAR of five-star hotels increased more significantly as a result of the rise in average room rates. Four-star hotels’ RevPAR, conversely, recorded a decline of 3.6 per cent compared to the previous year. The southern region achieved the highest growth, of 5.5 per cent, with the northern and central regions fell 0.5 per cent and 2.7 per cent, respectively.

Occupancy Rate

Occupancy in five-star increased slightly, by 0.5 per cent, while falling 1.0 per cent in four-star hotels. While the northern and central regions observed a drop in occupancy rates of 2.6 per cent and 1.4 per cent, respectively, the southern region’s continued to increase, though at a lower 1.7 per cent.

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