Vietnam hotels less competitive

HO CHI MINH CITY  Hotels rates in Vietnam are less competitive than in other ASEAN countries with fewer international brands to broaden accommodation appeal, a tourism association chief claimed.
Vietnam Tourism Association vice chairwoman, Do Thi Hong Xoan, told local media during a press briefing, last week, that wild fluctuations in hotel rates was impacting on the country’s ability to expand tourism.
“Room rates are often higher than in other regional destinations and this makes it difficult for tour operators to compete.”
Hoi An Tourism Service Joint Stock Company general director, Le Tien Dung, noted that room tariffs in Hoi An were 30% higher than in Danang, but hotels could still attracted repeat business because they offered quality and many of them had a beach location.
inside no 2Tourism executives claimed Thailand and Malaysia maintained stable prices, while in Vietnam there were vast differences between low and high peak room rates.
However, the comments appeared to overlook the highly competitive hotel environment in places like Thailand where there is a long history of discounting and aggressive sales tactics to secure business across all seasons.
Vietnam has 16,000 hotels, resorts and guesthouses with a combined 332,000 rooms, according to data supplied up to the end-2014. It included 75 five-star, 191 four-star, 381 three-star, 1,180 two-star and 2,460 one-star hotels.
More local hotel chains are opening, but 94% of them are small and fail to meet the requirements of international travellers.
Local hotels need to upgrade room facilities and offer better service if they are to compete with hotels in neighbouriing countires the Vietnam Tourism Association chief warned.

sourced:traveldailynews.asia